By
John K. Kumi
August 10th, 2022
Interactive Brokers, one of the leading global electronic brokers based in the United States, is expanding its presence in the crypto industry with the rollout of digital asset trading services to British customers through its UK unit.
In an official press release on Wednesday, May 15, the company announced that it has added support for buying and selling various cryptocurrencies to expand its business offerings. Investors in the region can now trade Bitcoin (BTC), Ethereum (Ether), Litecoin (LTC), and Bitcoin Cash (BCH) along with other traditional investment products offered by the firm.
Interactive Brokers Extends Crypto Trading to UK Customers
The move comes five months after the company teamed up with OSL Digital Securities (OSL) to introduce crypto trading services to retail customers in Hong Kong in November last year.
The company started its crypto journey in July 2021 with a focus on retail investors. However, a few months after the initial launch, Interactive Brokers opened trading for institutional customers in the country.
Now, the company is extending its crypto services to UK customers, allowing them to participate in the emerging economy. The new service is available to both retail and institutional customers of Interactive Brokers (U.K.) Limited (IBUK).
“Introducing cryptocurrency trading gives UK clients enhanced flexibility to invest across markets and asset classes while also adding exposure to digital assets,” said Gerald Perez, CEO of Interactive Brokers.
The company said that eligible customers of IBUK can seamlessly manage both their traditional securities and digital assets accounts opened at Paxos Trust Company through a single “unified platform”.
This means that users can access their crypto holdings together with other traditional assets such as stocks, derivatives, commodities, and foreign exchange products in one account through the unified platform.
The platform is designed to provide a comprehensive overview of users’ accounts, including their holdings and transaction history, without having to open numerous accounts on various platforms.
Low Commission Rates for British Customers
The company stated that British customers, including financial advisors, will enjoy low commission rates for digital asset trading on the unified platform.
The fee ranges from 0.12% to 0.18% of the trade value, with a minimum fee of USD 1.75 per order with no added spreads, markups, or custody fees.
The move aims to provide transparent and cost-effective trading options for users in the region.
On the Interactive Brokers platform, cryptocurrencies are priced in USD. This means that during trading, users will have to convert their GBP or other currencies to USD with tight spreads, ensuring efficient currency exchange.
However, when trading products denominated in a different currency than the one in the user’s account, users can incur potential conversion fees.
Meanwhile, Interactive Brokers Limited is regulated in the UK by the country’s market watchdog, the Financial Conduct Authority (FCA).
The company registered with the agency as a crypto assets firm in compliance with the Money Laundering, Terrorist Financing, and Transfer of Funds Acts of 2017.
