Interactive Brokers (Nasdaq: NASDAQ:IBKR) has recently expanded its offerings in the United Kingdom by introducing cryptocurrency trading to its platform. This new addition allows both individual and institutional investor clients of Interactive Brokers (U.K.) Limited (IBUK) to trade a variety of crypto assets, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). With this new feature, clients can now access a wide range of investment products from a single unified platform.
One of the key benefits of this new offering is the convenience of a unified platform for trading various assets. Eligible clients of IBUK can now view and transact balances through a single platform that provides a comprehensive view of their securities brokerage account and their crypto account at Paxos Trust Company. This streamlined approach eliminates the need for investors to switch between different trading platforms, making it easier for financial advisers to manage portfolios efficiently.
Enhanced Flexibility and Exposure
According to Gerald Perez, Chief Executive Officer at Interactive Brokers (U.K.) Limited, the introduction of cryptocurrency trading provides UK clients with enhanced flexibility to invest across different markets and asset classes. By adding exposure to digital assets such as cryptocurrencies, clients can diversify their portfolios and potentially benefit from the growth of this emerging asset class.
Interactive Brokers is known for offering competitive pricing on its products, and cryptocurrency trading is no exception. Clients can access cryptocurrencies denominated in USD on the platform, with the ability to convert GBP or other currencies to USD with tight spreads. Additionally, cryptocurrency commissions for IBUK clients are low, ranging from 0.12% to 0.18% of the trade value, with a minimum of USD 1.75 per order. Clients are not charged any added spreads, markups, or custody fees, making it a cost-effective option for trading cryptocurrencies.
Interactive Brokers (U.K.) Limited is registered with the Financial Conduct Authority as a crypto assets firm under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. While cryptocurrencies are unregulated in the UK and not covered by the Financial Services Compensation Scheme (FSCS) or the Securities Investor Protection Corporation (SIPC), clients can rest assured that all exchange and custody services are provided by Paxos Trust Company, a licensed entity under the New York Department of Financial Services.
The addition of cryptocurrency trading to Interactive Brokers’ platform in the UK offers clients a range of benefits, including a unified platform for trading, enhanced flexibility and exposure, competitive pricing, and regulatory compliance. As the demand for cryptocurrency trading continues to grow, Interactive Brokers is well-positioned to cater to the needs of investors looking to diversify their portfolios and explore the world of digital assets.