3074 | 16 April 2024

Interactive Brokers Order Routing andPayment for Order Flow Disclosure
1. IBKR's Order Routing System: IBKR provides brokerage clients two different
account offerings: (1) IBKR-PRO; and (2) IBKR-LITE. Subject to certain
restrictions, clients may choose between either offering depending on which theydecide best satisfies their trading objectives and goals. 1 These offerings aredesigned to give IBKR clients the flexibility to prioritize the opportunity for zerocommission NMS stock trades and fixed-rate commission US equity option
trades versus the amount and likelihood of price improvement they receive on
trades.
IBKR-PRO orders are submitted to IBKR's high-speed Best Execution Order
Routing System (SmartRoutingSM), which is designed to optimize execution price,
speed and total cost of execution for stocks and options. IBKR constantly
changes and enhances the SmartRouting system to adapt to changes inmarkets, new exchanges, new trading rules, etc. IBKR's SmartRouting system
continually scans competing market centers and automatically seeks to routeorders to the best market, taking into account factors such as quote size, quote
price, exchange or ATS transaction fees or rebates and the potential availabilityof price improvement (execution at a better price than the National Best Bid orOffer ("NBBO"), "Price Improvement"). The IBKR SmartRouting system
continually reevaluates market conditions and prices for pending IBKR client
orders and dynamically re-routes orders as necessary. With IBKR-PRO, unless
you direct your order to a specific market center or "algo" provider, IBKR's
SmartRouting system retains control over the routing of your order for execution
and does not deliver your order for another broker to route.
For some products, IBKR-PRO clients may directly route their orders to aparticular market of their choice, although IBKR recommends that our clients use
the IBKR SmartRouting system.
IBKR also operates an Alternative Trading System (the IBKR ATS) in accordancewith SEC Regulation ATS, on which it (i) executes IBKR client orders against
each other or against one or more professional liquidity providers who sendorders into the IBKR ATS and (ii) matches IBKR client option orders withprofessional liquidity provider interest (or other trading interest) for the purpose ofinitiating the various auction and Price Improvement mechanisms offered under
U.S. option exchange rules. Order executions on the IBKR ATS are faster,eliminate exchange fees, and may offer Price Improvement. Statisticalinformation regarding the quality of executions for orders effected through the
IBKR ATS (e.g., average execution speed, percentage of orders receiving Price
Improvement, etc.) is available on the IBKR website at:https://ibkr.com/regulatoryreports.
IBKR-LITE clients are charged zero commission for NMS stock orders (except for
certain order types, orders to execute at the open or close, orders executed
outside of regular trading hours, and orders for stocks executed under $1.00 2)
and a fixed rate commission per contract for US equity options 3. IBKR-LITE
orders for NMS stocks are generally routed to select over-the-counter marketmakers ("Market Makers") for handling. IBKR's agreements with the Market
Makers provide Interactive Brokers payment for order flow from each Market
Maker for trades executed with that Market Maker. A potential effect of thesepayments is reduced price improvement on executions received by IBKR-LITE
clients, in proportion to the payment received by IBKR.
IBKR may also route IBKR-LITE orders to another broker, ATS, or exchange(each an "Away Route"), in which case IBKR may collect payment for order flow
for trades executed at or through that Away Route; IBKR may also route IBKRLITE orders in US equity options to Market Makers for handling, and may collectpayment for order flow for options trades executed through such Market Makers
and/or trades executed at an Away Route. By using the IBKR-LITE service,clients authorize IBKR to receive and retain such payments from Market Makers
and Away Routes, in whole or in part, for IBKR's own account and not that of theclient, in consideration for services provided by IBKR to the client. For moredetails, please see IBKR's quarterly order routing report at
https://ibkr.com/regulatoryreports.
In the event that IBKR is experiencing technical issues with its connections to allof its Market Makers at the time that an order in an NMS stock is to be routed for
an IBKR-LITE client, IBKR may route the order using its SmartRouting
functionality (as if the client had chosen the IBKR-PRO offering), but will stillcharge no commission on any resulting trades.
IBKR may add other products to its IBKR-LITE-specific commission schedule
offering from time to time.
If an IBKR-LITE-specific commission schedule is not in place for a product,orders in such products are routed for IBKR-LITE clients in the same way as they
are for IBKRPRO clients. For these products, the same commission structure will
apply to both IBKR-LITE and IBKR-PRO. Where available, a "Fixed" commission
model will apply to IBKR-LITE clients for such products. For more information,
see below and at https://www.ibkr.com/en/index.php?f=1590.

If IBKR detects certain non-retail trading behaviors from an IBKR-LITE client,
IBKR will route their non-marketable orders to lit exchanges rather than to market
makers.
2. Orders Sent Near the Opening of Trading: Please note that markets can beespecially volatile near the opening of a trading session, with prices and available
volume often changing rapidly and with data feeds from various markets
potentially being slow or temporarily unavailable. IBKR cannot guarantee thatorders sent at or near the opening of trading necessarily will receive the bestposted price. You may want to consider the use of limit orders at the open,
although market orders should be used if certainty of getting a fill is of greater
concern to you than fill price.
3. Order Conversion and Designation: IBKR may convert certain order types orapply conditions to certain IBKR client orders in order to facilitate an execution.
For example, IBKR may simulate certain order types using order designations.
Simulated order types may be used in cases where an exchange does not offer
an order type or in cases where IBKR does not offer access to the "native" formof certain order types offered by an exchange. In addition, orders may be sent
Immediate or Cancel, Fill-Or-Kill, All-Or-None, etc., in order to facilitate an
immediate, automatic execution, consistent with the objectives of the client order.
To protect client orders from significant and rapidly changing prices, IBKR may
simulate market orders on exchanges by establishing a price ceiling for a buy
order or a price floor for a sell order at a percentage beyond the inside bid/ask.
While this cap or floor is set at a level intended to balance the objectives ofexecution certainty and minimized price risk, there exists a possibility that an
execution will be delayed or may not take place. In addition, IBKR is required byexchanges and regulators to maintain "filters" in its systems that prevent
executions at prices that might be deemed to be disruptive to an orderly market(or exchanges may have such filters in their systems). These filters may cause
an otherwise marketable order not to be executed or to be delayed in execution,even if the client might want the order to be executed immediately at a certain
price. In accordance with our regulatory obligations as a broker, IBKR may also
reject orders exceeding certain size thresholds, based upon factors including thenormal volume in the product, the type of order, the marketability of the order,
and other factors which may affect the likelihood that the order could result inmarket disruption.
4. Important Characteristics and Risks of Using Stop Orders: A Stop Order i.e., a Stop (Market) Order - is an instruction to buy or sell at the market priceonce your trigger ("stop") price is reached. Please note that a Stop Order is notguaranteed a specific execution price and may execute significantly away fromits stop price, especially in volatile and/or illiquid markets. Stop Orders may betriggered by a sharp move in price that might be temporary. If your Stop Order istriggered under these circumstances, you may buy or sell at an undesirable

price. Sell Stop Orders may make price declines worse during times of extreme
volatility. If triggered during a sharp price decline, a Sell Stop Order also is more
likely to result in an execution well below the stop price. Placing a limit price on a
Stop Order may help manage some of these risks. A Stop Order with a limit price- a Stop (Limit) Order - becomes a limit order when the instrument reaches thestop price. By using a Stop (Limit) Order instead of a regular Stop Order, you will
receive more certainty regarding the execution price, but there is the possibility
that your order will not be executed at all if your limit price is not available in themarket when the order is triggered.
5. Important Characteristics and Risks of Using Market Orders: Please notethat a Market Order is an instruction to execute your order at any price available
in the market. A Market Order is not guaranteed a specific execution price andmay execute at an undesirable price. If you would like greater control over the
execution prices you receive, please submit your order using a Limit Order,
which is an instruction to execute your order at or better than the specified limit
price.
6. Potential Effects of High Volumes and Market Volatility: High volumes of
trading and price volatility may lead to wider market volatility and extreme market
conditions. It is important that IBKR clients understand the potential risks thispresents, including:
A. Delay and Price Issues: High volumes of trading, either around themarket open, market close or other times of day, may cause delays in
execution (or associated reporting) and/or executions at prices
significantly different than the market price quoted or displayed at the timeof order entry.
B. Changes to Order Handling and Restrictions on Order
Acceptance: Volatile or extreme market conditions may necessitatechanges to IBKR's order handling procedures, margin requirements,
and/or restrictions on the types of orders IBKR will accept. IBKR is not
required to receive or accept orders from clients, particularly incircumstances where IBKR believes that the associated compliance, legal,financial, credit or other risks are not acceptable. IBKR may determine that
it is necessary to change order handling procedures or margin
requirements, or restrict or prohibit trading, to limit IBKR's and/or clients'
exposure to extraordinary market, financial or other risks. IBKR may makethese changes in its sole discretion, without notice. For example, IBKR
may determine that it is necessary to restrict certain transactions toclosing-only status (meaning that clients may close existing positions but
may not open new positions), make certain products non-shortable(meaning that clients may not open short positions in a particular product),
or increase margin requirements.

7. Payment for Order Flow, Dark Pools, Liquidity Provider and Affiliate
Relationships:
A. IBKR-LITE Ordersi.
IBKR-LITE Orders in NMS Stocks and US Equity
Options: Please see paragraph 1 for a discussion of IBKR's
policies regarding payment for order flow in connection with IBKRLITE orders in NMS stocks and US equity options.
ii.
Specific Provisions Regarding IBKR-LITE Orders in US Equity
Options:a. IBKR may route orders in US equity options to Market
Makers. For US equity options orders not routed to Market
makers, IBKR employs its SmartRouting system to try toachieve the best execution for client option orders. The
SmartRouting system is designed to achieve an execution
price at or better than the NBBO by utilizing relationships
with liquidity providers, who may provide Price Improvement
through the various auction and Price Improvement
mechanisms offered under U.S. option exchange rules.
These relationships benefit IBKR clients, who may receive
Price Improvement for their options orders. IBKR may
receive payment in the form of commissions or otherpayments from the liquidity providers for these executions.
b. Several options exchanges impose "maker-taker" fees andrebates, in which exchange members are charged for ordersthat take liquidity (i.e., marketable orders that trade against a
posted quote or limit order) and receive a rebate for ordersthat add liquidity to the exchange (i.e., non- marketable limit
orders that are posted and then trade against incoming
marketable orders), or vice versa. By electing IBKR-LITE,
you are agreeing to allow IBKR to retain any rebates it
receives from an exchange in connection with your order
being routed at that exchange.
c. Under certain circumstances, IBKR may route a marketableoption order to an exchange that is not currently posting the
NBBO but which may be willing to execute the order at the
NBBO. Generally, IBKR will do this in order to avoid or
reduce the fee for executing the order, compared to routing
to a different exchange. In addition, in the limited
circumstances where IBKR routes orders in this manner,
IBKR generally guarantees a fill at the NBBO at the time theorder was routed.
d. Option exchange payment for order flow programs may
result in payments to specialists or primary market makers,
some portion of which may be paid to IBKR.
iii.
Other Products: For products not subject to an IBKR-LITE specificcommission schedule, entitled to zero-commission trading underIBKR-LITE, the same commission structure will apply to both IBKRLITE and IBKR-PRO. Where available, a "FIXED" commission
model will apply to IBKR-LITE clients for such products. For more
information, see below and athttps://www.ibkr.com/en/index.php?f=1590.
B. IBKR-PRO Ordersi.
Dark Pool and ATS Executions for Clients' Marketable Stockand ETF Orders: IBKR maintains connections to "dark pool" ATSs("Routeaway Dark Pools") that may execute IBKR-PRO client
marketable orders in NMS stocks. IBKR clients benefit from IBKR's
access to dark pools. Dark pools provide a source of substantial
additional liquidity. Dark pools generally charge no execution feesor lower execution fees than exchanges. Dark pools also provide
fast executions and the possibility of executions at prices morefavorable than the prevailing NBBO.

ii.

IBKR receives rebate payments for routing and executing
marketable client orders for Regulation NMS stocks at some
Routeaway Dark Pools. As of May 29, 2018, IBKR generally
passes the amount (or approximate amount) of any such rebate to(i) Tiered-commission IBKR-PRO clients as a venue rebate; and to(ii) Fixed-commission IBKR-PRO clients in the form of a reduction
to the standard U.S. stock commission.
Liquidity Provider Relationships in the IBKR ATS and
Executions of Client Orders Against Those Liquidity Providers
in the IBKR ATS: IBKR has entered arrangements with certain
institutions under which such institutions may send liquidity-adding
orders in NMS stocks to the IBKR ATS. These orders are held
within the IBKR ATS and are not displayed in the national market. If
an IBKR-PRO client marketable order could be immediately
executed against such an order held in the IBKR ATS (at the NBBO
or at a better price than the NBBO), the orders may be crossed andthe execution reported to the National Market System. This
arrangement provides extra potential liquidity (size) for IBKR-PRO
client orders and may provide faster executions (since the orders
do not have to be routed out to an exchange), as well as providing
the possibility of Price Improvement (since the orders may be
executed at a better price than available on an exchange).
IBKR may receive payment in the form of commissions orcommission equivalents from the liquidity providers for these
executions in the IBKR ATS. In the event IBKR receives any suchpayment, IBKR generally passes the amount (or approximate
amount) of the benefit to the client as follows, to (i) Tieredcommission IBKR-PRO clients as a venue rebate; and to (ii) Fixed-

iii.

commission IBKR-PRO clients in the form of a reduction to thestandard U.S. stock commission.
Client-to-Client Order Crosses in the IBKR ATS: For client
orders in Regulation NMS stocks that result in client-to-client
crosses on the IBKR ATS, IBKR charges and/or provides thefollowing commissions, fees, and/or rebates:
a. Non-Marketable Orders Directed to and Executed in the
IBKR ATS: IBKR does not pay rebates or commission
breaks to clients for non-marketable orders directed to andexecuted in the IBKR ATS ("Directed IBKR ATS Order(s)").
b. Orders Smart-Routed to and Executed in the IBKR ATS
Against Directed IBKR ATS Orders:If IBKR smart-routes
an order to the IBKR ATS and that order is executed against
a Directed IBKR ATS Order, IBKR will provide: A fixed per-share rebate to the IBKR-PRO Tieredcommission client who submitted the smart-routed
order; or A fixed per-share commission reduction to the IBKRPRO Fixed-commission client who submitted thesmart-routed order.
c. Non-Marketable Orders Smart-Routed to the IBKR ATS
Which Were Also Eligible for Execution at an
Exchange: IBKR may smart-route a non-marketable orderto an exchange and later re-route that order to the IBKR ATS(the "Eligible Resting Non-Marketable Order") where it
executes against another client order. In this instance: An IBKR-PRO Tiered-commission client that
submitted the Eligible Resting Non-Marketable Orderwill receive the add-liquidity rebate (or pay the addliquidity fee, if applicable) that the client would havereceived (or paid) if their resting order had executedat the exchange on which it had been resting.
 An IBKR-PRO Fixed-commission client that submitted
the Eligible Resting Non-Marketable Order will pay
the typical fixed commission.
d. Orders Smart-Routed to the IBKR ATS Which Are
Executed Against Eligible Resting Non-Marketable
Order(s): IBKR may smart-route a client order to the IBKR
ATS so that it executes against an Eligible Resting NonMarketable Order. In this instance: An IBKR-PRO Tiered-commission client that
submitted the order will be charged the venue takefee (or receive the venue take-rebate, if applicable)that the client would have paid at the exchange towhich the client's order would otherwise have beenrouted.

An IBKR-PRO Fixed-commission client that submitted
the order will pay the standard fixed commission.
IBKR-PRO Tiered Commission Structure for Orders Routed to
Exchanges: Under IBKR's Tiered commission model, IBKR passes
to Tiered commission clients some or all of certain rebate payments
IBKR receives for executing stock orders at exchanges, although
the Tiered commission model is not intended to be a direct passthrough of exchange and third-party fees and rebates. For example,
IBKR may receive enhanced rebate payments for exceeding
volume thresholds on particular markets, but typically will not
directly pass these enhancements to clients. Likewise, IBKR does
not pass to clients all of the rebates IBKR may receive for orders inpink sheet or OTCBB stocks. In certain circumstances, IBKR may
receive discounts with respect to third party fees, including
exchange and/or clearing fees, that may not pass through toclients.
Options: IBKR does not deliver its IBKR-PRO option orders toanother broker to handle and route. Rather, IBKR employs its
SmartRouting system to try to achieve the best execution for client
option orders. The SmartRouting system is designed to achieve an
execution price at or better than the NBBO by utilizing relationships
with liquidity providers, who may provide Price Improvement,
including by matching client interest in the IBKR ATS in order toinitiate auction and Price Improvement mechanisms offered under
U.S. option exchange rules. These relationships benefit IBKR
clients, who may receive Price Improvement for their options
orders. IBKR may receive payment in the form of commissions orother payments from the liquidity providers for these executions.


iv.

v.

Several options exchanges impose "maker-taker" fees and rebates,in which exchange members are charged for orders that takeliquidity (i.e., marketable orders that trade against a posted quote or
limit order) and receive a rebate for orders that add liquidity to theexchange (i.e., non- marketable limit orders that are posted andthen trade against incoming marketable orders), or vice versa. The
charges imposed or rebates offered by these exchanges affect the
total cost of execution, and IBKR's SmartRouting System takes this
into account in determining where to route option orders - trying tominimize the costs that clients incur. If multiple exchanges are
quoting at the NBBO for an option order and IBKR has discretion as
to where to send the order or a portion of it, IBKR generally will"break the tie" by sending the order to an exchange where it will
receive the most payment for the order.
Under certain circumstances, IBKR may route a marketable option
order to an exchange that is not currently posting the NBBO butwhich may be willing to execute the order at the NBBO. Generally,
IBKR will do this in order to avoid or reduce the fee for executing
the order, compared to routing to a different exchange. IBKR
generally will share the economic benefit of routing orders in thismanner with clients in the form of reduced execution fees, although
IBKR does not guarantee that it will share such benefit. In addition,in the limited circumstances where IBKR routes orders in thismanner, IBKR generally guarantees a fill at the NBBO at the time
the order was routed.
Under IBKR's Tiered commission model, IBKR passes to Tieredcommission clients some or all of certain rebate payments IBKR
receives for executing option orders, although the Tieredcommission model is not intended to be a direct pass-through of
exchange and third-party fees and rebates. 4 For example, IBKR
may receive enhanced rebate payments for exceeding volume
thresholds on particular markets, but typically will not directly passthese enhancements to clients. Likewise, IBKR does not pass toclients all of the rebates IBKR may receive for liquidity taking
orders, complex orders or orders executed in price improvement
auctions. Traditional exchange payment for order flow programs
result in payments to specialists or primary market makers, some
portion of which may be paid on to IBKR. IBKR does not pass thesepayments directly to clients. Notwithstanding anything else to thecontrary herein, certain public customer complex option orders
executed on certain exchanges may be subject to take liquidity
charges without regard to the manner of execution andcorresponding exchange fee/rebate that may be received by
IBKR. For example, such a circumstance may arise where theexchange is not able to confirm whether an order qualifies for add
liquidity or take liquidity treatment at the time of execution.
8. Internalization of Customer Order Flow: IBKR may internalize non-directed
whole share customer order flow through an affiliate. The internalization ofcustomer orders is intended to provide the opportunity for improved execution
quality (i.e., increased price improvement) and/or reduced execution costs
without reducing execution quality. The internalization of a customer order may
enable the affiliate of IBKR to generate a trading profit by trading as principal.
Customers have the option to opt out of internalization of the whole-shareportions of their stock orders; customers cannot opt out of internalization for thefractional-share portion of any order they submit.
9. Affiliate Investments in Exchanges: An affiliate or affiliates of Interactive
Brokers LLC own(s) minority interests in OneChicago (security futures exchange)
and a substantial, minority investment in the Boston Options Exchange Group
LLC, which operates the BOX Options Exchange.

10. Quarterly Order Routing Reports and Other Order Routing Information
Available upon Request: U.S. Securities and Exchange Commission rules
require all brokerage firms to make publicly available quarterly reports describing
their order routing practices. IBKR's quarterly order routing reports are available
on the IBKR website at https://ibkr.com/regulatoryreports, or you can contact
IBKR Client Services.
In addition to the basic quarterly reports, under Rule 606 of SEC Regulation
NMS, a broker-dealer is required upon a client request to provide information
regarding the identity of the market center to which the client's orders wererouted in the six months prior to the request; whether the order was a directed or
non-directed order, and the time of the transaction, if any, that resulted from suchorder. Please contact the IBKR Client Services Desk in writing through theinformation on the IBKR website at ibkr.com/ (https://www.ibkr.com/help) if you
wish to receive the foregoing routing information for any order(s) within the past
six months. Please type "Request for Order Routing Information" in the subject
line of your request and please include your name, user id and account number
as well as the date of the order, the security, the quantity, and any otherinformation necessary to identify the order (e.g., the time of day if there wereseveral similar orders that day.)
As long as consistent with applicable securities laws and regulations, we may
share anonymized account information or anonymized delayed order information
with third parties (and/or share such information among our affiliates) for the
purpose of analysis, research, market data compilation, product creation,
establishing order routing and execution relationships, or for any other lawful
purpose.
NOTES:
1. For more information about the IBKR-PRO and IBKR-LITE offerings, please visit
the IBKR website at ibkr.com.
2. IBKR-LITE NMS stock orders that execute at the open or at the close ("OnOpen"or "OnClose" orders, respectively), orders that execute outside of regular trading
hours ("Outside-RTH"), and orders for stocks executed under $1.00 ("Sub-Dollar"
orders) are commission-free in any given month so long as the account's
aggregate OnOpen, OnClose, Outside-RTH, and Sub-Dollar executed ordervolume in that month does not exceed a certain percentage of the account's
aggregate US stock trading volume in that same month. For details, see thesection on Free Commissions on IBKR's website.
3. IBKR-LITE accounts are charged a fixed rate commission on the first 1,000 U.S.
options contracts traded per month (subject to exchange surcharges for certain
contracts, as set forth in more detail on the Firm's website under
ibkr.com/commissions. For U.S. options volume in excess of 1,000 contracts permonth, IBKR may apply the IBKR-PRO U.S. option tiered commission model tothe contracts executed above the first 1,000.

4. For IBKR-PRO clients trading U.S. options, IBKR only offers the Tieredcommission model. For Direct Routed option orders, the same model applies, butwith no volume-tiering for the base commission.