Press Release

Interactive Brokers Welcomes New Bond Disclosure Rules

Company Known for Low Fees Supports Amendments Requiring Brokers to Increase Transparency

GREENWICH, CT, June 5, 2018 — Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global electronic broker, today announced its support for a new rule implemented by the Securities and Exchange Commission (SEC) on May 14th requiring brokers to disclose the fees they make on corporate, municipal, and agency bond transactions.

The amendments to FINRA Rule 2232 and MSRB Rule G-15 regarding Customer Confirmations requires SEC member firms to disclose the amount of mark-up or mark-downs applied to trades made for retail clients if the firm executes an offsetting trade in the same security on the same trading day. The amendments also require firms to provide clients with trading data for the security traded and the exact execution time of the transaction.

"Interactive Brokers welcomes the new rule requiring brokers to be transparent about their fees. In the past, many brokers claimed they did not charge commission, but hid fees in their spreads. Unlike most other brokers, our firm offers low, transparent pricing and does not charge spread mark-ups," said Thomas Peterffy, CEO of Interactive Brokers.

The company, which was ranked Number One in Barron’s 2018 Best Online Brokers Ranking and the "Lowest Cost Online Broker" by Barron’s five years on a row*, is known for its advanced technology, breadth of offerings, and low costs.

The company's bond commissions are:

  • US Treasuries .002% on the first $1,000,000 of face value and .0001% of the face value after the initial $1,000,000.
  • Municipal Bonds .05% on the first $10,000 of the face value and .0125% of the face value after the initial $10,000.
  • Corporate Bonds 0.1% on the first $10,000 of face value and 0.025% of the face value after the initial $10,000.

More details on IBKR’s bond pricing can be viewed here.

"IBKR is committed to lowering clients’ costs to help them maximize their returns. We provide online access to a broad range of bonds and sophisticated cash management tools for everyone from corporate treasurers to individual investors. We encourage our clients to enter their own bids and offers and negotiate instead of acting on the quotes of others." Mr. Peterffy noted. In May, IBKR added mobile trading for both Municipal and Corporate bonds. Its Trader Workstation (TWS) trading platform provides Corporate Bond and Muni Bond Market Scanners that let clients quickly and easily scan global markets for the top performing bonds across instrument types and metrics.

About Interactive Brokers Group, Inc.:
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 120 markets in numerous countries and currencies, from a single IB Universal Account® to clients worldwide. We service individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Focusing on technology and automation for over 41 years has enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios at the lowest cost. Due to our range of services, low costs and technology, IBKR is ranked the “Top Online Broker”, according to Barron’s Best Online Brokers review, March 24, 2018. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low prices, positioning them to achieve superior returns on investments.

For Interactive Brokers Group, Inc. Investors: Nancy Stuebe, 203-618-4070 or Media: Kalen Holliday, 203-913- 1369.


Notes:

* Lowest Cost Rated by Barron's 5 Years Straight - Lowest cost broker 2014 through 2018 according to Barron's online broker review. Interactive Brokers earned a 4.6 star ranking in the March 26, 2018 Barron's Annual Best Online Brokers - “All Together Now”. Criteria included Trade Experience and Technology, Usability, Mobile, Range of Offerings, Research Amenities, Portfolio Analysis & Reports, Customer Service, Education and Security, and Costs. Barron's is a registered trademark of Dow Jones & Co. Inc.