Interactive Brokers, a global electronic brokerage, has announced the launch of cryptocurrency trading for clients in the United Kingdom. This new addition allows individual and institutional investors, including financial advisers, to trade cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) alongside traditional investment products on a single, unified platform.
Unified Trading Platform
Clients of Interactive Brokers (U.K.) Limited (IBUK) can now manage both their securities brokerage accounts and their crypto accounts at Paxos Trust Company through one platform. This integration provides a comprehensive view of balances and streamlines cash management, enabling users to trade a variety of assets, including stocks, options, futures, currencies, bonds, mutual funds, ETFs, and cryptocurrencies, from a single screen.
Gerald Perez, Chief Executive Officer at Interactive Brokers (U.K.) Limited, commented on the launch:
“Interactive Brokers offers a wide selection of global investment products, sophisticated technology, and competitive pricing. Introducing cryptocurrency trading gives UK clients enhanced flexibility to invest across markets and asset classes while also adding exposure to digital assets.”
Competitive Rates and Convenience
Cryptocurrencies on Interactive Brokers’ platform are denominated in USD, with clients able to convert GBP or other currencies with spreads as tight as 1/10 of a PIP. Clients with cash accounts can utilize FX auto-conversion for their balances, while those with margin accounts can either borrow needed currencies automatically or convert at competitive rates.
Cryptocurrency trading commissions for IBUK clients are low, ranging from 0.12% to 0.18% of trade value depending on monthly volume, with a minimum of USD 1.75 per order. Notably, there are no added spreads, markups, or custody fees.
Regulatory Compliance
Interactive Brokers (U.K.) Limited is registered with the Financial Conduct Authority as a crypto assets firm under the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017. However, it is important to note that crypto assets are unregulated in the UK and are not covered by the Financial Services Compensation Scheme (FSCS) or the Securities Investor Protection Corporation (SIPC). Exchange and custody services for cryptocurrency tokens are provided by Paxos Trust Company, which is licensed by the New York Department of Financial Services.
This new offering by Interactive Brokers aims to simplify the investment process, providing UK clients with a robust and integrated platform for both traditional and digital asset trading.
