Interactive Brokers announced on Monday that it will now offer cryptocurrency trading to users.
The Low Cost Broker is one of the largest online brokerage firms, with over a million clients. He joined a growing list of major brokers, including TradeStation and RobinHood, making cryptocurrencies accessible to a wider pool of investors.
Here’s what to know about cryptocurrency trading with Interactive Brokers
Interactive Brokers now allow you to buy and sell a number of crypto assets. These include:
These crypto assets can be traded with other offerings from Interactive Brokers, including stocks, bonds, options, futures, mutual funds and ETFs. Cryptocurrencies can be bought, sold and stored on the Interactive Brokers platform with this extension of services. Cryptocurrency trading will also be affordable:
- The fees will vary between 0.12% and 0.18% of the trade volume, with the specific price depending on the monthly volume.
- There are no additional spreads, no mark-ups and no custody fees.
Interactive Brokers announced plans to make cryptocurrencies accessible on their platform in June and said the feature will be rolled out by the end of the summer. The company offers crypto trading to clients as the asset class is growing in importance in today’s financial markets, as investors look for new ways to increase the diversity of their portfolios.
“By giving our clients access to cryptocurrency trading, we recognize the need to meet the growing demand from investors to trade cryptocurrencies alongside other asset classes in a convenient and inexpensive manner.” , Milan Galik, CEO of Interactive Brokers, said of the company’s decision.
Interactive Brokers have partnered with a New York-based cryptocurrency services company called Paxos to offer a crypto trading service to clients. Paxos is a regulated cryptocurrency service provider that also partners with large companies such as PayPal.
“Paxos provides the regulated blockchain infrastructure to ensure that businesses can enable crypto safely and with reduced risk,” said Paxos CEO and Founder Charles Cascarilla. “Our collaboration with Interactive Brokers provides experienced investors with fast and reliable access to the digital economy for the first time.”
With the decision of Interactive Brokers, it is likely that other online brokers will follow suit to stay competitive. This could increase the demand for cryptocurrencies, as a growing number of investors will be able to purchase Bitcoin and other virtual coins through the brokerage companies they already use, rather than having to use an app. or a separate cryptocurrency exchange.
However, if you are investing in cryptocurrencies, keep in mind that this asset class is newer and has a history of volatility. Making sound investment decisions and understanding the role cryptocurrency can play in a diversified portfolio is key to minimizing risk.
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