Interactive Brokers’ new cryptocurrency trading offering lets individuals, institutional investors, and financial advisers trade popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
This is in addition to other more traditional investment products, such as stocks, options, futures, currencies, bonds, funds, and ETFs, all from a single unified platform.
Interactive Brokers has partnered with the Paxos Trust Company, a New York-based regulated trust company and custodian with expertise in digital assets, securities and payments, to provide cryptocurrency brokerage.
- Paxos has previously partnered with organisations such as Paypal and Mercado Libre
- Interactive Brokers’ UK clients will have a unified view of their IBKR securities brokerage account and their crypto account at PaxosTrust Company
- This means clients can manage their cash, trade cryptocurrencies, and invest in other asset classes, all from a single trading screen.
Low-Cost Crypto Investing
Overall, Interactive BRokers continues to be one of the cheapest places to trade anything. You can see in the below cost comparison compared to Coinbase and eToro execution costs are very low.
| IBKR | Gemini ActiveTrader | Coinbase Pro | eToro | |
| Crypto Transaction Fee | 0.18% | 0.40% | 0.60% | 1.00% |
| Spread / Markup | None | None | None | None |
| Total fee | 0.18% | 0.40% | 0.60% | 1.00% |
| Cost of $1,000 trade | $1.80 | $4.00 | $6.00 | $10.00 |
There are several benefits to trading crypto on IBKR:
- Consolidated platform: Clients can access a wide range of global investment products, including cryptocurrencies, on a single sophisticated trading platform, eliminating the need for multiple platforms
- Competitive pricing: Cryptocurrency commissions are low at 0.12% – 0.18% of trade value, depending on monthly volume, with a minimum of $1.75 per order. There are no added spreads, markups, or custody fees
- Currency conversion: Clients can convert GBP or other currencies to USD (the denomination for cryptocurrencies on the platform) at tight spreads as low as 1/10 of a PIP
- Efficient portfolio management: Financial advisers can easily allocate a percentage of client assets to cryptocurrencies and manage their clients’ portfolios more efficiently.
However, it’s important to note that cryptocurrency is still a very high-risk investment and even tough the costs of trading are lower, there is a high possibility that crypto could become worthless.
Cryptocurrency Regulation In The UK
Interactive Brokers (U.K.) Limited is registered with the Financial Conduct Authority as a crypto assets firm under the relevant regulations.
However, it’s important to note that cryptocurrencies are unregulated in the UK, and are therefore not covered by the Financial Services Compensation Scheme (FSCS).
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
