Interactive Brokers Crypto. Can You Buy Crypto on Interactive Brokers?
Interactive Brokers (IBKR) is a simplified brokerage firm that focuses on broad market access, cheap fees, and outstanding transaction execution. Customers may use a single integrated account to trade bitcoin alongside stocks, options, futures, FX, bonds, and funds on 135 marketplaces. The firm introduced its Impact Dashboard in late 2020, which allows users to examine assets through the lens of socially responsible investment (SRI). Interactive Brokers recently added cryptocurrencies to its trading platform, making it another major player in the world of crypto exchanges.
Our experts at Traders Union have prepared a review of Interactive Brokers’ crypto features. Find out what cryptocurrencies are available on the broker's platform, Interactive Brokers’ crypto fees, and other important information before you get started on the platform as a crypto trader.
Start trading cryptocurrencies right now with Interactive Brokers!What is Interactive Brokers Crypto?
Futures ;
Options ;
Forex;
Bonds;
Funds etc.
Interactive Brokers LLC (IBKR) is a worldwide brokerage business based in the United States. The broker offers for trading:
It runs the United States' largest electronic trading platform in terms of daily average revenue trades.
How does Interactive Brokers Crypto Work?
IBKR works as a crypto exchange and broker, similar to their competitors that offer direct crypto trading. IBKR's high-quality desktop platform, as well as its easy mobile and online platforms, allow users to effortlessly access crypto markets. Paxos Trust Company provides cryptocurrency trade execution and custody. IBKR allows users to trade stocks, options, futures, spot currencies, bonds, ETFs, and more all from a single platform. Cryptocurrency futures are also available. IBKR is unique in that it offers direct crypto trading, as brokers like Fidelity do not offer direct crypto trading but allow access to funds such as BTC futures.
Does Interactive Brokers have a Crypto Exchange?
Yes. Interactive Brokers recently launched their crypto exchange which allows users to trade as well as custody different types of cryptocurrencies in addition to stocks, bonds, and other trading instruments.
Interactive Brokers Crypto Pros and Cons
There are many benefits to using IBKR as a crypto broker, including the following:
Large investment asset selection outside of crypto.
Great research and educational tools.
User-friendly interface.
Direct crypto trading
Unfortunately, IBKR does have its downsides:
Limited crypto selection with only four available coins.
Interactive Brokers Crypto Trading Platform Overview
Photo: Interactive Brokers Broker
IBKR joined the ranks of several established brokers that have implemented cryptocurrency trading in September 2021. The Paxos Trust Company, a blockchain technology startup and broker, provides custody and trading of cryptos through the brokerage. IBKR now supports just four cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH). This list isn't very remarkable, considering brokers like Robinhood and eToro provide access to many more crypto assets. IBKR's strength, on the other hand, is its low price. All crypto trades are subject to charges ranging from 0.12 percent to 0.18 percent each trade, with a low minimum trade requirement of $1.75.
On paper, this is still more expensive than Robinhood, which offers commission-free crypto trading, but it is significantly more affordable than practically all other exchanges, which charge roughly 2% each deal. Also, with IBKR, you receive exactly what it says on the box—no custodial fees, extra spreads, or hidden costs. IBKR's minimal costs, access to additional trading products, and sophisticated professional-grade platform are well-suited for devoted crypto traders who want a big toolset to work with, despite its restricted cryptocurrency offering.
What Cryptocurrencies Can I Trade on Interactive Brokers?
While IBKR does not offer a massive range of crypto coins, it does offer the most popular cryptocurrencies out there. When compared to crypto exchanges like Coinbase or Webull, variety is certainly lacking. Still, for traders who just want to invest in the major coins, IBKR is a decent choice.
| Trading pair | Industry | Current price | |
|---|---|---|---|
Bitcoin |
BTCUSD |
Payments |
$58,706.27 |
Ethereum |
ETHUSD |
Blockchain platform |
$4,433.35 |
Bitcoin Cash |
BCHUSD |
Payments |
$579.24 |
Litecoin |
LTCUSD |
Payments |
$208.61 |
Interactive Brokers VS Robinhood Crypto Assets
Both IBKR and Robinhood are excellent platforms for trading cryptocurrency. Both brokers offer direct crypto trading and offer the basic cryptocurrencies available in the market. However, both platforms are fairly limited in their crypto offering and do not offer much variety in terms of altcoins and tokens. Robinhood has an edge over IBKR due to the fact that it offers Dogecoin (DOGE), Bitcoin SV (BSV), and Ethereum Classic (ETC). Still, both platforms are very similar and excellent choices for trading, buying, and selling crypto.
| Interactive Brokers | Robinhood | |
|---|---|---|
Number of Assets |
4 |
7 |
Available cryptocurrencies |
Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) |
Bitcoin (BTC) ? Bitcoin Cash (BCH) ? Bitcoin SV (BSV) ? Dogecoin (DOGE) ? Ethereum (ETH) ? Ethereum Classic (ETC) ? Litecoin (LTC) |
Interactive Brokers Crypto Fees
IBKR charges very low commissions that range from 0.12% to 0.18% of the crypto trade value with no additional spreads, custody fees, or markups. While other cryptocurrency exchanges and brokers charge trading fees as high as 2.00% of trade value or more, and add spreads or markups to the cryptocurrency price, Paxos on Interactive Brokers' platform charges only 0.12% to 0.18% of trade value1 with a $1.75 USD minimum per order (though the minimum is subject to a cap of 1%of trade value). INKR also offers BTC futures for U.S. markets. Each CME Bitcoin contract (which includes 5 BTC per contract) features a commission contract fee of $10.02 USD and is subject to exchange and regulatory fees via the Electronic Globex.
Interactive Brokers VS Webull Crypto Fees
IBKR and Webull are both great choices for buying crypto. However, IBKR wins this round in terms of trading fees for crypto over Webull.
| Interactive Brokers | Webull | |
|---|---|---|
Crypto fees (spread) |
0.12% to 0.18% |
Spread of 100 basis points, or 1% |
How to Buy Crypto on Interactive Brokers
Buying crypto on IBKR is quite simple. Follow these steps for success to get started trading crypto on IBKR’s platform:
Step 1
Create an account on IBKR. Wait for your account to be verified, and then log into your client portal to request cryptocurrency trading. Approval will typically take one day.
Step 2
Add funding to your IBKR account to start purchasing crypto.
Step 3
Search for your cryptocurrency’s ticker via the search function. Navigate to the crypto’s market research page.
Step 4
Execute a trade. Enter in the amount you want to purchase, your funding source, and other required parameters. Your crypto purchase should be available immediately.
How Can I Withdraw Crypto From My Interactive Brokers Account?
This is possible. However, it’s worth noting that IBKR’s crypto capabilities come from its integration with Paxos. When moving digital assets to an external wallet address, Paxos charges the market "network" cost to the consumer. The cost will be deducted from the total amount of your transfer. This is true for all cryptocurrency assets transferred through Paxos and thus, IBKR.
How Much Money Do I Need for a Start?
IBKR does have account minimums in certain scenarios, though this is not the case for all accounts on the platform. Individual, Joint, Trust, and Organization Accounts have zero account minimums. The same applies to Advisor, Friends and Family, Family Office, and Hedge Fund Investment Accounts. Broker accounts are subject to a $2,000 to $10,000 USD account minimum.
With these account minimums in mind, how much money would a beginner crypto investor really need to start? This depends on your intention. Many expert traders would recommend investing somewhere between 5% and 30% of one’s total investment capital. However, this is not suitable for everything. Crypto is extremely volatile and risky. In most situations, especially for beginners, we would recommend conducting a risk assessment to determine how much capital you are willing to risk.
Summary
Interactive Brokers (IBKR) is a straightforward brokerage business that emphasizes extensive market access, low fees, and excellent transaction execution. IBKR functions as a cryptocurrency exchange and broker, comparable to its competitors that provide direct cryptocurrency trading. Users may easily access crypto markets thanks to IBKR's high-quality desktop platform, as well as its simple mobile and internet platforms. IBKR's cryptocurrency trade execution and custody are handled by Paxos Trust Company.
While IBKR does not have a large selection of crypto coins, it does include the most popular ones, such as Litecoin (LTC), Ethereum (ETH), Bitcoin (BTC), and Bitcoin Cash (BCH). IBKR charges exceptionally low commissions, ranging from 0.12 percent to 0.18 percent of the amount of the crypto deal, with no extra spreads, custody fees, or markups. Overall, this platform is a wonderful choice for both new and seasoned cryptocurrency traders.
FAQs
Am I eligible for IBKR Lite?
IBKR Lite is normally available to direct US clients and any US client of an independent Advisor, and it is available for both Cash and Margin accounts. Natural beings, not legal corporations or organizations, are exclusively eligible for direct accounts. All trustees and beneficiaries on a stand-alone trust account must be natural people. The trustees and beneficiaries of trust accounts managed by an adviser may be legal entities.
US resident individuals, joint accounts, IRA and trust accounts, US Professional or Non-Professional Advisors, and their clients are all eligible for IBKR Lite. On a case-by-case basis, IBKR may allow brokers to use Lite.
How do I use IBKR Mobile?
If you prefer mobile investing for crypto, you have options with IBKR Mobile. The IBKR Mobile app gives you access to all of the features you need to trade and manage your account while on the road.
For a consolidated view of significant account, position, and market updates, go to the Home Page. IBKR Mobile may also be used to do market research. Market data is an important part of your trading environment. In the Client Portal, you may subscribe to market data. When available, you will receive free delayed data for all non-subscribed instruments and exchanges, which will be denoted by yellow coloring. You can pay for a single-use data snapshot whenever you need it if you trade rarely and don't require full-time market data.
You may also use Watchlists on IBKR Mobile to keep track of the instruments you're interested in. Swipe up and touch "Add Financial Instrument" at the bottom of the Watchlist to add an instrument to it. Directly from a Watchlist, create a watchlist order. To see quote information, tap a symbol once. To view the order buttons, tap again to see the entire Quote Details screen.
Am I eligible to start trading crypto on IBKR?
You can trade cryptocurrencies if you have an individual or joint account with the IB LLC company, which includes most Financial Advisors' customers. If you live in the United States, the Cayman Islands, Switzerland, Monaco, or Andorra, you are also eligible. Existing clients in Switzerland, Monaco, or Andorra who have an account with a different company than IB LLC will not be able to switch their accounts to IB LLC.
Organizational accounts in the United States are also eligible. In the Client Portal, all qualified clients can seek trading permissions for "United States - Cryptocurrencies." Paxos Trust, though, will make the final decision. Trading is restricted to the account's principal user.
Does my cryptocurrency order need to be accepted by Paxos before it can be executed via IBKR?
To trade cryptocurrencies, you must first become a Paxos customer. Although IBKR acts as your cashiering agent when you trade crypto over the IBKR platform, IBKR has no custody or control over the crypto assets you have in your Paxos account. None of the legal safeguards connected with your securities account at IBKR (such as insurance under the Securities Investor Protection Act) apply to those crypto assets, and Paxos is your counterparty for all crypto trades conducted at Paxos and your custodian for all crypto assets.
Paxos Trust provides all exchange and custody services in conjunction with trading and holding bitcoin and other digital asset tokens on IBKR trading platforms.
Team that worked on the article
Oleg Tkachenko is an economic analyst and risk manager having more than 14 years of experience in working with systemically important banks, investment companies, and analytical platforms. He has been a Traders Union analyst since 2018. His primary specialties are analysis and prediction of price tendencies in the Forex, stock, commodity, and cryptocurrency markets, as well as the development of trading strategies and individual risk management systems. He also analyzes nonstandard investing markets and studies trading psychology.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.