Investment advisers who are registered with Interactive Brokers Group will be able to trade four cryptocurrencies.
Interactive Brokers has launched cryptocurrency trading for four tokens
Interactive Brokers’ Registered Investment Advisers will be able to trade and custody Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC) for clients utilizing Paxos Trust Company, according to a Monday release.
This service is currently only available to the firm’s advisers in the United States, but it wants to expand to include crypto trading for all clients in the future.
Interactive Brokers’ chairman and founder, Thomas Peterffy, stated in June that his company expects to begin trading cryptocurrencies with consumers on its platform before the end of the summer.
“We don’t disclose any new product to the public until it’s been extensively vetted,” said Interactive Brokers’ senior vice president of marketing and product development, Steve Sanders.
Sanders noted that the company currently has 5,731 RIA clients, but that by introducing crypto, it expects to be able to grow that number. He didn’t name any of his firm’s RIAs, claiming that the firm never names clients in public.
Flourish Crypto, a freshly announced turnkey investment solution that gives RIAs access to Bitcoin investing, beat Interactive Brokers to the market.
“Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace,” said Interactive Brokers executive vice president of marketing and product development Steve Sanders. “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,” he added.
According to Interactive Brokers, rival crypto exchanges and brokers charge fees of up to 2% of the trade value and generally add spreads or markups to the price.
Interactive Brokers confirmed the prospect of RIAs handling cryptos a month after the US-listed brokerage began its crypto trading services. In September, the company announced that commissions on crypto trading on the platform would range from 0.12 percent to 0.18 percent of the trade value, depending on monthly volume.
Although the service is currently only offered in the United States, Interactive Brokers has stated that it intends to make it available to financial advisors worldwide.
Interactive Brokers, with its headquarters in the United States, is regulated by the Securities and Exchange Commission and the Financial Industry Regulatory Authority. The firm had 1.54 million client accounts with $353.8 billion in equity as of Oct. 1.
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