Global brokerage firm Interactive Brokers today introduces cryptocurrency trading for Registered Investment Advisors (RIAs) in the U.S.
IBKR will allow RIAs to trade and custody Bitcoin, Ethereum, Litecoin, and Bitcoin Cash via Paxos Trust Company on behalf of clients. The brokerage firm says that 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 all shown on one platform with customizable reports.
Interactive Brokers Group
Interactive Brokers Group affiliates provide automated trade execution and custody of securities, commodities and foreign exchange around the clock on over 135 markets in numerous countries and currencies, from a single IBKR Integrated Investment Account to clients worldwide. Barron’s ranked Interactive Brokers #1 with 5 out of 5 stars in its February 26, 2021, Best Online Broker Review.
In September, Interactive Broker launched cryptocurrency trading for clients amid soaring demand for the digital assets. IBKR joins Robinhood as one of the only major brokerage firms to enable clients to invest directly in cryptocurrencies. Competitor brokers Fidelity and Charles Schwab currently don’t offer direct crypto trading on their platforms, but do offer access to related funds like bitcoin futures.
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.”
While other crypto exchanges and brokers charge fees that can be as high as 2.00% of trade value or more and add spreads or markups to the price, cryptocurrency trading with Paxos on Interactive Brokers’ RIA platform has low commissions of just 0.12% – 0.18% of trade value, depending on monthly volume with a USD 1.75 minimum per order. In addition, there are no added spreads, markups, or custodial fees. While initially available to RIAs in the U.S., Interactive Brokers plans to launch the service for financial advisors in other parts of the world, in the future.
Additional features available on the IBKR RIA platform include:
- No ticket charges, no custodial fees, no minimums and no technology, software, platform or reporting fees.
- No in-house advisory team or proprietary trading group to compete with advisors for clients.
- Ability to trade stocks, options, futures, currencies, bonds and funds on over 135 markets from a single integrated master account, and trade cryptocurrencies from the same platform.
- Free CRM, portfolio management and trading platform, plus PortfolioAnalyst®, which gives advisors the ability to consolidate and analyze a client’s entire portfolio, including assets held at other institutions.
- Automated and flexible client billing.
- Free compliance and website building services.
- Debit Card and Bill Pay functions available for U.S. advisor clients.
Interactive Brokers’ crypto trading is offered through Paxos Trust Company, a regulated blockchain infrastructure platform. It became the first chartered trust company for digital assets in 2015 and is regulated by the New York Department of Financial Services. This oversight helps protect consumers and provides for assets to be held in bankruptcy remote, segregated accounts.
