Interactive Brokers has announced the launch of cryptocurrency trading in the United Kingdom.
The new feature allows Interactive Brokers (U.K.) Limited (IBUK) clients – individual and institutional investors, including financial advisors – to trade a range of cryptoassets, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), reports Business Wire. These cryptoassets can be traded alongside a wide range of investment products available through Interactive Brokers, all on a single, unified platform.
IBUK clients can now trade and view balances on a single platform that integrates their IBUK brokerage account and their cryptocurrency account with Paxos Trust Company. This integration provides the convenience of centralized money management, allowing clients to trade BTC, ETH, LTC, BCH, stocks, options, futures, forex, bonds, mutual funds, ETFs, and more from a single screen. This eliminates the need to switch between trading platforms, allowing financial advisors to efficiently manage portfolios and allocate a portion of client assets to cryptocurrency.
"Interactive Brokers offers a wide range of global investment products, advanced technology, and competitive pricing," said Gerald Perez, CEO of Interactive Brokers (U.K.) Limited.
"The introduction of cryptocurrency trading gives UK clients greater flexibility to invest across a range of markets and asset classes, including digital assets," he added.
Cryptocurrencies on the Interactive Brokers platform are denominated in US dollars. Clients can convert pounds sterling, or other currencies into US dollars with spreads as low as 1/10 PIP. For products denominated in a currency other than the one held by the client, clients with cash accounts can use automatic currency conversion, while clients with margin accounts can either automatically borrow USD or convert the currency at Interactive Brokers' competitive rates.
Cryptocurrency trading commissions for IBUK clients range from 0.12% to 0.18% of the transaction value, depending on monthly volume, with a minimum of $1.75 per order. There are no additional spreads, markups, or custodian fees.
Interactive Brokers (U.K.) Limited is registered with the Financial Conduct Authority as a cryptoasset firm under the Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017. Although cryptoassets are not regulated in the United Kingdom and are not subject to the Financial Services Compensation Scheme (FSCS) or the Securities Investor Protection Corporation (SIPC), all exchange and custody services for IBUK's cryptocurrency trading clients are provided by Paxos Trust Company, a New York limited trust company licensed by the New York Department of Financial Services.
Recall that Interactive Brokers will be hosting a webinar on May 23 to discuss the features of its IBKR Desktop platform.
