Interactive Brokers has launched cryptocurrency trading for Registered Investment Advisors (RIAs) in the United States.
This means that RIAs can use the Interactive Brokers’ service to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) via Paxos Trust Company on behalf of clients.
From their IBKR accounts, investment advisors will be able to manage their client’s positions in cryptocurrency in addition to stocks, options, futures, bonds, mutual funds, and ETFs from a single screen.
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.”
The partnership with Paxos allows Interactive Brokers to offer its registered investment advisors commissions of 0.12% – 0.18% of trade value, depending on monthly volume with a USD 1.75 minimum per order. There are no added spreads, markups, or custodial fees.
This is in contrast with other crypto exchanges and brokers that can charge fees that as high as 2.00% of trade value or more and add spreads or markups to the price.
Interactive Brokers plans to launch the service for financial advisors in other parts of the world, in the future. For now, it is available for RIAs in the United States and the IBKR RIA platform features:
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.
It was last month that Interactive Brokers first announced its partnership with Paxos Trust in order to roll out a cryptocurrency offering.
The discount brokerage counts nearly 1.49 million accounts and joined the commission-free trading app Robinhood as the only US brokers offering direct trading in cryptocurrencies.