Interactive Brokers

“We rely on our computer software to receive and properly process internal and external data. Any disruption in the proper functioning of our software due to, for example, erroneous or corrupted data, or cyber-attacks, may cause us to make erroneous trades or suspend our services and could cause us great financial harm.”

Annual report 2025A · The company itself

“We rely on certain third-party computer systems or third-party service providers, including but not limited to clearing systems, exchange systems, banking systems, digital asset service providers, Internet services, third-party identity verification services, co-location facilities, communications facilities and other facilities.”

Annual report 2025A · The company itself

“The proliferation of electronic exchanges and market centers has allowed us to integrate our software with an increasing number of trading venues, creating automatically functioning, computerized platforms that require minimal human intervention. Nearly five decades of developing our automated trading platforms and automating many middle- and back-office functions have allowed us to become one of the lowest cost providers of broker-dealer services and to significantly increase the volume of trades we handle.”

Annual report 2025A · The company itself

“Technology Overview Our proprietary technology is the key to our success. We believe that integrating our system with electronic exchanges and market centers worldwide results in transparency, liquidity and efficiencies of scale.”

Annual report 2025A · The company itself

“Table of Contents Research and Development One of our core strengths is our expertise in the rapid development and deployment of automated technology for the financial markets. Our core software technology is developed internally, and we do not generally rely on outside vendors for software development or maintenance. To achieve optimal performance from our systems and in response to changing market conditions, we continuously upgrade and improve our software.”

Annual report 2025A · The company itself

“Our internally-developed, fully integrated trading and risk management systems are unique and transact across all product classes. These systems have the flexibility to assimilate new trading venues and new product classes without compromising transaction speed or fault tolerance.”

Annual report 2025A · The company itself

“We achieve a rapid software development cycle by leveraging a highly integrated, object-oriented development environment. The software code is modular, with each object providing a specific function while being reusable across multiple applications. New software releases are tracked and tested with proprietary automated testing tools.”

Annual report 2025A · The company itself

“Our future success will depend on our response to the demand for new services, products and technologies. The demand for our services that rely on electronic communications gateways, is characterized by: • rapid technological change; • changing customer demands; • the need to enhance existing services and products or introduce new services and products; and • evolving industry standards.”

Annual report 2025A · The company itself

“Computer-generated buy/sell programs and other technological advances and regulatory changes in the marketplace may continue to tighten spreads on securities transactions.”

Annual report 2025A · The company itself

“New developments in AI could enable competitors to offer new products or services never before seen in the marketplace. The adoption of AI technologies across the financial services industry may accelerate competitive dynamics and innovation cycles.”

Annual report 2025A · The company itself

“We continually monitor developments in emerging technologies, including in the field of Artificial Intelligence (“AI”), to evaluate applications, systems and services with potential to enhance development efficiency or improve performance, risk management or our customer experience. Any such technologies are evaluated within our existing development, testing and governance frameworks.”

Annual report 2025A · The company itself

“Ask IBKR provides fast, actionable insights directly inside the platform.”

Annual report 2025A · The company itself

“Table of Contents For customers looking for online advisory services, we offer: • Interactive Advisors – Interactive Advisors evaluates and recruits registered financial advisors, analyzes their investment track records, and groups them by their risk profile. Investors who are interested in having their individual accounts robo-traded are grouped by their risk and return preferences.”

Annual report 2025A · The company itself

“Our future success will depend on our response to the demand for new services, products and technologies. The demand for our services that rely on electronic communications gateways, is characterized by: • rapid technological change; • changing customer demands; • the need to enhance existing services and products or introduce new services and products; and • evolving industry standards.”

Annual report 2025A · The company itself

“We trace our roots to the market making business founded by our Chairman, Mr. Thomas Peterffy, on the floor of the American Stock Exchange in 1977. Since our inception, we have focused on developing proprietary software to automate broker-dealer functions. We have been a pioneer in developing and applying technology as a financial intermediary to increase liquidity and transparency in the capital markets in which we operate.”

Annual report 2025A · The company itself

“Technology Overview Our proprietary technology is the key to our success. We believe that integrating our system with electronic exchanges and market centers worldwide results in transparency, liquidity and efficiencies of scale.”

Annual report 2025A · The company itself

“Our success in the past has largely been attributable to our sophisticated proprietary technology that has taken many years to develop. We have benefited from the fact that the type of proprietary technology equivalent to that which we employ has not been widely available to our competitors.”

Annual report 2025A · The company itself

“With respect to our direct market access brokerage business, the market for electronic and interactive bidding, offering and trading services in connection with equities, options and futures is rapidly evolving and intensely competitive.”

Annual report 2025A · The company itself

“Such risks and uncertainties include political, economic and financial instability; unexpected changes in regulatory requirements, tariffs and other trade barriers; exchange rate fluctuations; applicable currency controls; and difficulties in staffing, including reliance on newly hired local experts, and managing foreign operations.”

Annual report 2025A · The company itself

“We actively manage our global currency exposure on a continuous basis by maintaining our equity in a basket of currencies we call the GLOBAL. We define the GLOBAL as consisting of fractions of a U.S. dollar, Euro, Japanese yen, British pound, Swiss franc, Chinese renminbi, Indian rupee, Canadian dollar, Australian dollar and Hong Kong dollar.”

Annual report 2025A · The company itself

“IBKR Universal AccountSM – From a single point of entry in their IBKR Universal1 AccountSM, our customers are able to transact in 29 currencies, across multiple classes of tradable, primarily exchange-listed products traded on more than 170 electronic exchanges and market centers in 40 countries around the world seamlessly.”

Annual report 2025A · The company itself

“Karta Visa Infinite Charge Card – A premium U.S. charge card designed for our customers who operate across borders and markets. The card seamlessly links to our customer’s account for monthly payments and gives our customers instant access to their cash anywhere in the world with no foreign transaction fees.”

Annual report 2025A · The company itself

“As a clearing member firm providing financing services to certain of our brokerage customers, we are ultimately responsible for their financial performance in connection with various securities and derivatives transactions. Our clearing operations require a commitment of our capital and, despite safeguards implemented by our software, involve risks of losses due to the potential failure of our customers to perform their obligations under these transactions.”

Annual report 2025A · The company itself

“We may incur trading losses relating to these activities since each primarily involves the purchase or sale of securities for our own account. In any period, we may incur trading losses in a significant number of securities for a variety of reasons including: • price changes in securities; • lack of liquidity in securities in which we have positions; and • the required performance of our market making obligations.”

Annual report 2025A · The company itself

“Regulation of the cryptocurrency industry continues to evolve and is subject to change.”

Annual report 2025A · The company itself

“Cryptocurrency – Customers of Interactive Brokers LLC, including both individuals and advisors, can trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and more2 through Paxos Trust Company or Zero Hash LLC, which execute, clear and custody the cryptocurrencies, alongside other asset classes on a single unified platform.”

Annual report 2025A · The company itself

“We offer our customers access to all tradable classes of primarily exchange-listed products, including stocks, options, futures, forex, bonds, mutual funds, ETFs, precious metals, cryptocurrencies, and forecast contracts traded on more than 170 electronic exchanges and market centers in 40 countries and in 29 currencies around the world.”

Annual report 2025A · The company itself

“Risks Related to Cryptocurrency • We rely on third-party Cryptocurrency Service Providers (“CSPs”) to provide our customers the ability to access cryptocurrency trading and custody services. • A data breach at a CSP may result in irreversible losses, which would adversely affect our customers and our business. • We may encounter technical issues which would result in disruption or interruption of our customers’ access to their CSP accounts. • Changes in laws and regulations regarding cryptocurrency may negatively impact our ability to enable our customers to buy, hold and sell cryptocurrencies in the future and may adversely affect our business.”

Annual report 2025A · The company itself

“We have entered into agreements with third-party CSPs, which provide (i) cryptocurrency exchange platforms and services whereby investors can buy and sell certain cryptocurrencies and (ii) custody services for certain cryptocurrencies (collectively, the “Exchange Services”), enabling some of our customers to trade and custody cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE) and several other cryptocurrencies3, (collectively, "Cryptocurrency Assets") via CSPs.”

Annual report 2025A · The company itself

“Computer-generated buy/sell programs and other technological advances and regulatory changes in the marketplace may continue to tighten spreads on securities transactions.”

Annual report 2025A · The company itself

“We trace our roots to the market making business founded by our Chairman, Mr. Thomas Peterffy, on the floor of the American Stock Exchange in 1977. Since our inception, we have focused on developing proprietary software to automate broker-dealer functions. We have been a pioneer in developing and applying technology as a financial intermediary to increase liquidity and transparency in the capital markets in which we operate.”

Annual report 2025A · The company itself

“The proliferation of electronic exchanges and market centers has allowed us to integrate our software with an increasing number of trading venues, creating automatically functioning, computerized platforms that require minimal human intervention. Nearly five decades of developing our automated trading platforms and automating many middle- and back-office functions have allowed us to become one of the lowest cost providers of broker-dealer services and to significantly increase the volume of trades we handle.”

Annual report 2025A · The company itself

“Our internally-developed, fully integrated trading and risk management systems are unique and transact across all product classes. These systems have the flexibility to assimilate new trading venues and new product classes without compromising transaction speed or fault tolerance.”

Annual report 2025A · The company itself

“Nature of Operations As an automated broker, we execute, clear and settle trades globally for both institutional and individual customers.”

Annual report 2025A · The company itself

“Capitalizing on our proprietary technology, our systems provide our customers with the capability to monitor multiple markets around the world simultaneously and to execute trades electronically in these markets at a low cost in multiple products and currencies from a single unified platform. We offer our customers access to all tradable classes of primarily exchange-listed products, including stocks, options, futures, forex, bonds, mutual funds, ETFs, precious metals, cryptocurrencies, and forecast contracts traded on more than 170 electronic exchanges and market centers in 40 countries and in 29 currencies around the world.”

Annual report 2025A · The company itself

“Our proprietary technology infrastructure enables us to provide our customers with the ability to execute trades at among the lowest execution costs in the industry for comparable services. Customer trades are both automatically captured and reported in real time in our system. Our customers can trade on more than 170 electronic exchanges and market centers in 40 countries around the world.”

Annual report 2025A · The company itself

“With respect to our direct market access brokerage business, the market for electronic and interactive bidding, offering and trading services in connection with equities, options and futures is rapidly evolving and intensely competitive.”

Annual report 2025A · The company itself

“This control supports precise rebalancing and risk reduction without disrupting long-term positions and helps maintain a clear audit trail for reporting and compliance. • Sustainable Investing Tools • IMPACT by Interactive BrokersSM – IMPACT by Interactive BrokersSM (“IMPACT App”) is a unique, simple and intuitive mobile app that helps customers easily align their investment portfolio with their values. The IMPACT App is intended to allow customers to select their personal investment criteria from thirteen impact goals and principles and to exclude investments based on business practices they would like to avoid.”

Annual report 2025A · The company itself

“Impact Dashboard – The Impact Dashboard is intended to help customers evaluate and invest in companies that align with their principles. Customers can select investments they care about and can measure how both individual securities and their overall portfolio measure up against their criteria. • ESG Scores – ESG Scores from Refinitiv give customers a separate set of tools to help them make investment decisions.”

Annual report 2025A · The company itself

“Companies are scored along several dimensions, such as reducing emissions and supporting human rights, and customers can easily see how companies rank both overall and on each dimension.”

Annual report 2025A · The company itself

“Table of Contents Our key product offerings include: • IBKR ProSM is the core IBKR service designed for sophisticated investors. IBKR ProSM offers the lowest cost access to stocks, options, futures, forex, bonds, mutual funds, ETFs, precious metals and cryptocurrencies from a single unified platform with no added spreads, ticket charges, account minimums or platform fees. • IBKR LiteSM provides unlimited commission-free trades on U.S. exchange-listed stocks and ETFs and low-cost access to global markets without required account minimums or platform fees to participating U.S. customers.”

Annual report 2025A · The company itself

“Since the launching of our electronic brokerage business in 1993, we have grown to approximately 4.4 million institutional and individual brokerage customers.”

Annual report 2025A · The company itself

“As a result of our advanced automated brokerage platform, we are especially attractive to sophisticated and active investors.”

Annual report 2025A · The company itself

“Our customers are mainly comprised of individuals, trading desk professionals, retail brokers, hedge funds, mutual funds, financial advisors, proprietary trading firms, and introducing brokers and banks that require global access.”

Annual report 2025A · The company itself

“Our current and potential future competition principally comes from five categories of competitors: • prime brokers who, in an effort to satisfy the demands of their customers for hands-on electronic trading facilities, universal access to markets, smart routing, better trading tools, and lower commissions and financing rates, have embarked upon building such facilities and product and service enhancements; • direct market access and online equity brokers, and online options and futures firms; • zero commission brokers, while technically not offering direct market access, who use simplified interfaces and a limited product offering to attract new market participants; • software development firms and vendors who create global trading networks and analytical tools and make them available to brokers; and • traditional brokers.”

Annual report 2025A · The company itself

“IBKR ProSM offers the lowest cost access to stocks, options, futures, forex, bonds, mutual funds, ETFs, precious metals and cryptocurrencies from a single unified platform with no added spreads, ticket charges, account minimums or platform fees. • IBKR LiteSM provides unlimited commission-free trades on U.S. exchange-listed stocks and ETFs and low-cost access to global markets without required account minimums or platform fees to participating U.S. customers. IBKR LiteSM was designed to meet the needs of investors who are seeking a simple, commission-free way to trade U.S. exchange-listed stocks and ETFs and do not wish to consider our efforts to obtain greater price improvement through our IB SmartRoutingSM system.”

Annual report 2025A · The company itself

“Since the launching of our electronic brokerage business in 1993, we have grown to approximately 4.4 million institutional and individual brokerage customers.”

Annual report 2025A · The company itself

“Nature of Operations As an automated broker, we execute, clear and settle trades globally for both institutional and individual customers.”

Annual report 2025A · The company itself

“Customers Our customers primarily fall into two groups based on services provided, both of which take advantage of our low commissions as well as our best price execution. Cleared customers, the large majority of our customers, use our trade execution and clearing services, low financing rates, high interest paid (when benchmark rates are sufficiently above zero) and, under our IBKR LiteSM offering, commission-free trades. Non-cleared customers, including trading firms that provide liquidity in our ATS, use our trade execution services while clearing with another prime broker or a custodian bank.”

Annual report 2025A · The company itself

“IBKR Campus offers self-directed courses at the Traders’ Academy; live and recorded webinars; our Traders’ Insight market commentary blog; IBKR Podcasts, a podcast series featuring interviews with financial industry thought leaders; the IBKR Quant Blog; IBKR-API, the source for all IBKR API documentation; and the Student Trading Lab, which allows educators to bring real-world trading experiences to their classroom. In addition, we provide content to Coursera, an online provider of learning content, for a certificate program called Practical Guide to Trading.”

Annual report 2025A · The company itself

“IBKR InvestMentorSM – IBKR InvestMentor is a new mobile microlearning app developed by our wholly-owned subsidiary, Interactive Academy LLC. IBKR InvestMentor is a fun and engaging way to learn about investing and personal finance.”

Annual report 2025A · The company itself

“Spot Gold – Customers can trade U.S. Spot Gold alongside other asset classes from a single unified platform. In addition, our customers have access to efficient pricing in quantities as small as one ounce and can request physical delivery of their U.S. Spot Gold position. • London Unallocated Gold/Silver – Customers in Europe and the United Kingdom (“U.K.”) can gain exposure to gold and silver through our unallocated metals contracts. • No Transaction Fee Program for Exchange-Traded Funds – We offer a no transaction fee program for ETFs that reimburses IBKR ProSM customers and eligible non-U.S. customers for commissions paid on ETF shares held for at least 30 days. • Overnight Trading Hours – Customers can trade over 10,000 U.S. stocks and ETFs, U.S.”

Annual report 2025A · The company itself

“We offer our customers access to all tradable classes of primarily exchange-listed products, including stocks, options, futures, forex, bonds, mutual funds, ETFs, precious metals, cryptocurrencies, and forecast contracts traded on more than 170 electronic exchanges and market centers in 40 countries and in 29 currencies around the world.”

Annual report 2025A · The company itself

“With respect to our direct market access brokerage business, the market for electronic and interactive bidding, offering and trading services in connection with equities, options and futures is rapidly evolving and intensely competitive.”

Annual report 2025A · The company itself

“We seek to manage, monitor and control our market, credit, operational, liquidity, and legal and regulatory compliance risks through risk management policies developed and implemented by our Steering Committee, which is chaired by our Chief Executive Officer and comprised of senior executives of our various operating subsidiaries. However, there can be no assurance that our procedures will be adequate.”

Annual report 2025A · The company itself

“Our business relies on technology and automation, causing us to be potentially vulnerable to various forms of cyber-attacks by external actors or malicious insiders. Cybersecurity risks continue to evolve, including through more sophisticated attacks, increased use of automation by threat actors and heightened targeting of financial institutions and digital asset-related services.”

Annual report 2025A · The company itself

“We rely on our computer software to receive and properly process internal and external data. Any disruption in the proper functioning of our software due to, for example, erroneous or corrupted data, or cyber-attacks, may cause us to make erroneous trades or suspend our services and could cause us great financial harm.”

Annual report 2025A · The company itself

“Risks Related to Laws, Regulations and Litigation • Our future efforts to sell shares or raise additional capital may be delayed or prohibited by regulations. • Regulatory and legal uncertainties could harm our business. • We are subject to risks relating to litigation and potential securities laws liability. • Heightened regulatory and legislative requirements and changes in the U.S. and globally have increased our compliance, regulatory and other risks and costs. • There are emerging legal and regulatory risks related to prediction markets that could harm our business. • We may incur additional tax expense or become subject to additional tax liabilities.”

Annual report 2025A · The company itself

“We are required to interpret and implement extensive and frequently changing regulatory and legislative requirements in the U.S. and other jurisdictions in which we do business resulting in substantial compliance, regulatory and other risks and costs, including the cost of hiring additional personnel.”

Annual report 2025A · The company itself

“Rules regarding data privacy worldwide are continuously evolving and developing, increasing in complexity and, as a result, interpretation and implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future. New laws, amendments to or reinterpretations of existing laws, regulations, standards, and other obligations, if applicable, might require us to incur additional costs and change how we use, collect, store, transfer or otherwise process certain types of personal data, to implement new processes to comply with those applicable laws and our customers’ exercise of their rights thereunder.”

Annual report 2025A · The company itself

“We are affected by domestic and international macroeconomic and political conditions, as well as, the level of interest rates, inflation, and by fiscal and monetary policy. Our business depends in part on the level of global trading volumes and volatility, which are affected by factors beyond our control.”

Annual report 2025A · The company itself

“Our net interest income and profitability could be negatively affected by lower benchmark interest rates caused by central banks lowering target benchmark rates in an attempt to buffer their economies from a public health emergency.”

Annual report 2025A · The company itself

“Our revenues are dependent on the level of trading activity on securities and derivatives exchanges in the U.S. and abroad and on the general level of interest rates. In the past, our revenues and operating results have varied significantly from period to period primarily due to movements and trends in the underlying markets and to fluctuations in trading and interest rate levels.”

Annual report 2025A · The company itself

“We are affected by domestic and international macroeconomic and political conditions, as well as, the level of interest rates, inflation, and by fiscal and monetary policy. Our business depends in part on the level of global trading volumes and volatility, which are affected by factors beyond our control.”

Annual report 2025A · The company itself

“Our revenues are dependent on the level of trading activity on securities and derivatives exchanges in the U.S. and abroad and on the general level of interest rates. In the past, our revenues and operating results have varied significantly from period to period primarily due to movements and trends in the underlying markets and to fluctuations in trading and interest rate levels.”

Annual report 2025A · The company itself

“The loss of our key employees would materially adversely affect our business. Our key executives have substantial experience and have made significant contributions to our business, and our continued success is dependent upon the retention of our key management executives, as well as the services provided by our staff of trading system, technology and programming specialists and a number of other key managerial, marketing, planning, financial, technical and operations personnel.”

Annual report 2025A · The company itself

“We experience competition in hiring and retaining qualified employees. The market for qualified personnel in our business is highly competitive and, at various times, the demand in the market for different functions and roles can become especially high, which may oblige us to pay more to attract and retain talent.”

Annual report 2025A · The company itself

“Such risks and uncertainties include political, economic and financial instability; unexpected changes in regulatory requirements, tariffs and other trade barriers; exchange rate fluctuations; applicable currency controls; and difficulties in staffing, including reliance on newly hired local experts, and managing foreign operations.”

Annual report 2025A · The company itself

“These factors may cause a weakness in securities markets, leading to a slowdown in trading volumes, which would result in reduced transaction revenues.”

Annual report 2025A · The company itself

“Internet-related issues may reduce or slow the growth in the use of our services in the future. • We could be the target of a cyber-attack or experience a cybersecurity incident that impairs internal systems, degrades services we provide to customers, or results in a data compromise, causing reputational or monetary damages as a consequence. • We are subject to stringent and complex data privacy rules.”

Annual report 2025A · The company itself

“The impact of a public health emergency may have a material adverse impact on our business and results of operations. The response of governments and societies to a public health emergency, which could include temporary closures of certain businesses; social distancing; travel restrictions, “shelter in place” and other governmental regulations; and reduced consumer spending due to job losses, may significantly impact volatility in the financial, commodities and energy markets, and general economic conditions.”

Annual report 2025A · The company itself

“We currently service approximately 4.4 million cleared customer accounts and have customers residing in over 200 countries and territories around the world.”

Annual report 2025A · The company itself

“During 2025, approximately 30% of our net revenues were generated by our operating subsidiaries outside the U.S.”

Annual report 2025A · The company itself

“We currently service approximately 4.4 million cleared customer accounts and have customers residing in over 200 countries and territories around the world.”

Annual report 2025A · The company itself

“During 2025, approximately 30% of our net revenues were generated by our operating subsidiaries outside the U.S.”

Annual report 2025A · The company itself

“We currently service approximately 4.4 million cleared customer accounts and have customers residing in over 200 countries and territories around the world.”

Annual report 2025A · The company itself

“During 2025, approximately 30% of our net revenues were generated by our operating subsidiaries outside the U.S.”

Annual report 2025A · The company itself

“Table of Contents We have procured renewable power sources for all our offices through direct renewable energy or through the purchase of renewable energy certificates. We use third-party providers for data centers. Globally, where possible, our data centers use renewable power provided directly through the landlord or via renewable energy certificates.”

Annual report 2025A · The company itself