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Interactive Brokers Group Inc. has launched crypto trading for registered investment advisors in the U.S. to trade and custody bitcoin, ethereum, litecoin, and bitcoin cash via Paxos Trust Co.
Interactive Brokers Launches Crypto Trading
Interactive Brokers Group, a global brokerage firm has announced the launch of cryptocurrency trading for Registered Investment Advisors (RIAs) in the U.S. Under the arrangement, the trading and custody of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) will be allowed via Paxos Trust Company on behalf of clients.
The RIAs will benefit from the ability to manage their client's positions in cryptocurrency in addition to stocks, options, futures, bonds, mutual funds, and ETFs from all over the world from a single screen, and shown on one platform with customizable reports.
While other crypto exchanges and brokers charge fees as high as 2.00% of trade value or more and add spreads or markups to the price, crypto trading with Paxos on Interactive Brokers’ RIA platform has commissions of just 0.12% - 0.18% of trade value, depending on monthly volume with a $1.75 minimum per order. In addition, there are no added spreads, markups, or custodial fees.
The Company Has Over 5,000 RIA
Interactive Brokers now has 5,731 RIA clients and expects to be able to expand that by offering crypto trading. Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers, said:
“Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace, and advisors may wish to recommend cryptocurrency to their clients. Adding cryptocurrency trading underscores our ongoing dedication to providing advisors with the investment products and tools they need to successfully manage client portfolios and grow their businesses.”
Paxos offers a regulated blockchain infrastructure platform and says it was the first chartered trust company for digital assets in 2015 and regulated by the New York Department of Financial Services.