Interactive Brokers Group LLC holds equity of USD 8.5 billion - 6 billion more than the statutory requirement. This capital cover has risen continuously over 31 years - even during the 2008 financial crisis. Today IB is the most capitalized independent US brokers. This capital is fully liable for your deposits.

IBG LLC is owned by the public company Interactive Brokers Group, Inc. (18.5%) and employees and affiliated companies of the company (81.5%). In contrast to other companies, where the management holds only a relatively small share in the company, the decision-makers at IB feel negative business developments themselves just as clearly as positive ones. Out of this self-interest, IB pursues a conservative business policy.

These include:

• A real-time margin system that constantly insists on compliance with all limits of each account by automatically triggering a position liquidation in the account where margin limits have been exceeded at any time, even during the day. Other brokers often allow clients to carry such risks for several days, which ultimately represents a risk to the broker itself.
• No exposure to mortgage or credit derivatives (CDOs, subprime debt, credit default swaps): Another decisive advantage in transactions with IBKR is that IBKR does not hold proprietary inventory. IBKR acts exclusively as an intermediary for trading activities of customers and transacts no directional speculative transactions. Two of the most significant broker-dealer insolvencies of the past decade (Lehman Brothers and MF Global) were caused by risks from proprietary position holdings.
• Positions and resulting liabilities or claims are reconciled daily together against external sources.
• IBG LLC does not have any long-term liabilities.
• When IBKR makes rehypothecations of customer securities, the company provides daily 102 – 105 % of the market value of these rehypothecated securities. Most broker-dealers return this money only once a week.
• Similarly, unlike other broker-dealers, IB segregates cash on a daily basis to cover securities owed to customers that are temporarily not in a "good control location." This is a well-known phenomenon in the industry, also referred to as a "segregation deficit." Other broker-dealers may allow such deficits to exist for several days before taking the necessary action.

Finally, it should be mentioned that IBKR is not affiliated with a bank, which differentiates the company from most broker-dealers with a similar market capitalization. The fact that IBKR is not affiliated with a bank means that the company can provide a more stable platform in the event of a market-wide crisis and your equity cannot be attacked by negative business developments in areas common to banks.

Interactive Brokers LLC is rated „BBB+“ with a „Positive Outlook“ by Standard & Poor's.

Customer securities accounts at Interactive Brokers (IB) are protected by the Securities Investor Protection Corporation („SIPC“) up to a maximum coverage of $500,000 ($250,000 limit for cash) and are further insured by Interactive Brokers' excess SIPC policy with certain underwriters at Lloyd's of London¹, which covers an additional $30 million ($900,000 limit for cash), subject to an aggregate limit of $150 million. Futures and futures options are not insured. As with all broker-dealers, this insurance protects against the failure of a broker-dealer and does not protect against market losses in securities.

Accounts with the same name and type (e.g. "Peter and Lisa Schmidt" and "Lisa and Peter Schmidt") are combined for the purpose of identifying customer accounts at Interactive Brokers (IB), but accounts of different types (e.g. "Individual Customer Account / Peter Schmidt" and "IRA Account / Peter Schmidt") are not combined.

The SIPC is a non-profit membership association funded by broker-dealers who are members of the SIPC. For more information about the SIPC and answers to frequently asked questions (e.g., about how the SIPC works, what its protections extend to, how to make a claim, etc.), visit the following websites:

http://www.SIPC.org

https://www.finra.org/investors/need-help/your-rights-under-sipc-protection

Alternatively, you can contact the SIPC directly:

Securities Investor Protection Corporation
805 15th Street, NW – Suite 800
Washington, D.C. 20005-2215
Phone: (202) 371-8300
Fax: (202) 371-6728
Lloyd's of London is a global leader in the insurance industry.

As a CapTrader client, you will also benefit from the Bank Deposit Insurance Transfer Program, designed for clients to provide them with additional insurance protection on cash held in their brokerage accounts. The program provides up to $2.5 million in insurance coverage through the Federal Deposit Insurance Corporation (FDIC) for cash held in your client account. Combined with existing insurance coverage through the Securities Investor Protection Corporation (SIPC) for the first $250,000 of cash in your clients' accounts, the total insurance coverage will be $2.75 million. There is no cost to participate, the insured balances will earn the same interest as any other free positive balances, and the balances will remain available for trading. Additional information and enrollment instructions are provided below.

How it works
Participating customers will hold cash balances in excess of $250,000 in their interest-bearing accounts at one or more FDIC-insured banks under the program. If a customer's balance approaches the FDIC threshold of $250,000 at one of these banks, additional cash will be deposited at the next approved bank, ensuring that customers do not exceed the single bank thresholds. By using multiple banks, the program can provide FDIC insurance coverage of up to $2,500,000 in addition to the $250,000 in SIPC insurance, bringing the total cash insurance coverage to $2,750,000. Cash balances in excess of $2,750,000 remain subject to protection under SEC Customer Protection Rule 15c3-3, backed by the Company's equity in excess of $6 trillion.

Registration
Suitable customers are e.g. Individual accounts with cash balances exceeding $250,000 without a beneficiary for account transfer in case of death. These customers can sign up by logging into Account Management and then going to Settings -> Account Settings -> Configuration -> Bank Deposit Insurance Transfer Program and signing the information form. Activation usually takes place overnight.
Note: Non-qualified accounts do not have a login option in your account management.

The information below relates to trading in non-US index options, UK metals, OTC CFDs and non-US index futures (in combination with non-US index options), i.e. the UK segment (F sub-account):

Client assets
Interactive Brokers (U.K.) Limited („IBUK“) – authorized and regulated by the Financial Conduct Authority („FCA“) with firm reference number 208159 – is a wholly-owned subsidiary of Interactive Brokers Group (IBG LLC). IBUK provides services in relation to client money and assets in compliance with the FCA’s Client Asset Rules („CASS“).

Customer funds are protected as follows:
The client money rules apply to all regulated entities that receive funds from clients or hold funds on behalf of clients in the course of executing MiFID trades and/or designated investment business activities. Client funds are fully segregated from IBUK's own funds. In the event of the insolvency of an Eligible Entity, client funds held in segregated accounts will be returned to the relevant clients and will not be included in the liability for the payment of general creditors. In the event of a shortfall, the customer may be entitled to compensation from the Financial Services Compensation Scheme ("FSCS").

Customer funds are segregated in separate bank accounts that are held in trust for the customers. These accounts are distributed among a number of different banks with investment grade ratings in order to avoid concentration risks with respect to individual institutions. When selecting and entrusting banks to hold client funds, IBUK takes into account the bank's expertise and market reputation, its financial position, and legal requirements or market practices related to the safekeeping of client funds that may adversely affect clients' rights.

IBUK permits customer funds to be held in a customer transaction account with an exchange, clearinghouse, or intermediary broker, but only if the funds have been transferred there for a transaction or to satisfy the customer's obligation to provide collateral for a transaction.

IBUK performs a detailed reconciliation each day between client funds in bank and transaction accounts for client assets and liabilities to clients to ensure that all client funds are properly segregated and sufficient to cover all liabilities in accordance with the FCA's CASS rules. All funds deposited into such bank accounts are held by the Company as trustee (or agent, as applicable).

FCA regulations also require IBUK to maintain a CASS resolution package to ensure that, in the event of a firm's dissolution, the insolvency practitioner is able to access relevant information in a timely manner for the purpose of repaying client money and client assets to the firm's clients.

The Financial Services Compensation Scheme
Interactive Brokers (U.K.) Limited ("IBUK") is authorized by the Financial Conduct Authority ("FCA") as an investment company and a participant in the Financial Services Compensation Scheme ("FSCS") and as such is regulated by the FCA. Some customers who meet certain criteria are entitled to compensation under the FCA compensation rules.

The main criteria for this eligibility are as follows:

• The FSCS pays compensation to eligible customers only when an eligible firm becomes insolvent and initiates an investigation to determine whether this is in fact the case.
• The FSCS only pays compensation for financial losses and the limits for UK investment companies are given below.
• The FSCS was established primarily to assist private individuals. However, smaller businesses are also covered.
• Larger companies are generally excluded.

Attachments
The FSCS provides protection in the event that an authorized company becomes unable to meet its payment obligations, for example, if an authorized company goes out of business and the company is unable to return clients' assets to them. Assets that are considered investments for investment companies under the FSCS rules include stocks and shares, futures, options, CFDs and other regulated financial instruments, and clients' cash deposits.

Limitations of the compensations
The actual amount of compensation you receive depends on your basis of claim. The FSCS will only pay compensation for financial losses. The limits of compensation apply per person per approved company.

The current maximum amount of damages for installations is £85,000 per person per company (for claims against companies whose default has occurred since 01/01/2010). The amount of damages is subject to change. For up-to-date information, please visit the FSCS website: http://www.fscs.org.uk