Markets are continuously evolving, brokers and other financial services businesses need to adapt to meet those changes. Interactive Brokers is usually among the leaders here, as is demonstrated by its latest move in US cryptocurrency trading. Which will add four widely traded tokens to its client offering.
Interactive Brokers has added four popular cryptocurrencies to its trading platform, in the shape of Solana, Cardano, Ripple, and Dogecoin.
These cryptocurrencies join the existing line-up of Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, creating a more comprehensive digital asset ecosystem for investors.
Interactive Brokers has added these four tokens to its existing offering to provide clients with greater flexibility and choice means, added to which there is also seamless integration with its traditional investment tools.
Investors can now manage and trade cryptocurrencies alongside stocks, options, futures, and other financial instruments. All from a single, unified platform, rather than having to switch between accounts or providers.
Key Features
Interactive Brokers is playing to its strengths and offering users low trading costs:
Commissions range from 0.12% to 0.18% of trade value, with a minimum ticket of $1.75 per order
There are no hidden fees, such as spreads or custody charges.
Indeed, the firm is happy to show clients some cost comparisons on a notional $1000.00 crypto trade.
For example, Interactive Brokers’ commission of 0.18% is lower than the 0.40% charged by crypto platform Gemini Active, and the 1.00% fee levied by eToro, or the 1.20% traders pay at Coinbase.
Though it’s dearer than the zero commissions available at Robinhood and Fidelity Crypto.
However, unlike Robinhood and Fidelity, Interactive Brokers charges no markup or additional spreads, whilst Robinhood levies a +0.60% markup and Fidelity adds a charge of +1.00% to each trade.
Low Cost Crypto
In aggregate, that means that the cost of trading $1000.00 worth of crypto with Interactive Brokers is just $1.80. Versus as much as $10.00 with rivals eToro and Fidelity, or $12.00 with Coinbase.
Robinhood’s costs are $6.00, and Gemini active comes in at $4.00.
Other benefits of the Interactive Brokers offering include access to 24/7 cryptocurrency trading with advanced order types, including limit orders.
The ability to hold both USD and cryptocurrencies in one account. And the option for clients to be able to withdraw crypto to external wallets.
| Fee | IBKR | Gemini | Robinhood Crypto | Fidelity Crypto | eToro | Coinbase |
| Crypto Transaction Fee | 0.18% | 0.40% | None | None | 1.00% | 1.20% |
| Spread / Markup | None | None | 0.60% | 1.00% | None | None |
| Total fee | 0.18% | 0.40% | 0.60% | 1.00% | 1.00% | 1.20% |
| Cost of $1,000 trade | $1.80 | $4.00 | $6.00 | $10.00 | $10.00 | $12.00 |
Added Value
Of course, trading charges aren’t the be-all and end-all when it comes to choosing a broker. Potential clients need to take a holistic approach to their selection.
So what added benefits does Interactive Brokers offer to its customers?
Well as we have already noted Interactive Brokers is a one stop shop when it comes to trading it covers most asset classes and markets and has a selection of desktop, web based and mobile trading platforms.
The firm has clients in 200 countries and offers accounts in 28 different currencies.
There are also research tools such as IBKR Global Analyst that allow traders to search a wide range of markets for trading opportunities.
Interactive Brokers also offer the IBKR Campus, which is full of educational materials, including podcasts, webinars and courses, on a wide range of market-related subjects as well as getting the best out of Interactive Brokers technology, including its APIs.
With over 35 years of finance experience, Darren is a highly respected and knowledgeable industry expert. With an extensive career covering trading, sales, analytics and research, he has a vast knowledge covering every aspect of the financial markets.
During his career, Darren has acted for and advised major hedge funds and investment banks such as GLG, Thames River, Ruby Capital and CQS, Dresdner Kleinwort and HSBC.
In addition to the financial analysis and commentary he provides as an editor at GoodMoneyGuide.com, his work has been featured in publications including Fool.co.uk.
As well as extensive experience of writing financial commentary, he previously worked as a Market Research & Client Relationships Manager at Admiral Markets UK Ltd, before providing expert insights as a market analyst at Pepperstone.
Darren is an expert in areas like currency, CFDs, equities and derivatives and has authored over 260 guides on GoodMoneyGuide.com.
He has an aptitude for explaining trading concepts in a way that newcomers can understand, such as this guide to day trading Forex at Pepperstone.com
Darren has done interviews and analysis for companies like Queso, including an interview on technical trading levels.
A well known authority in the industry, he has provided interviews on Bloomberg (UK), CNBC (UK) Reuters (UK), Tiptv (UK), BNN (Canada) and Asharq Bloomberg Arabia.
You can contact Darren at darrensinden@goodmoneyguide.com
