The US-based multinational brokerage firm has partnered with Paxos to set up crypto-currency trading services.
Electronic brokerage Interactive Brokers announced yesterday that it will enable low-cost crypto-currency trading. Customers of the broker will now be able to trade and hold crypto-currencies directly on the platform. The Connecticut-based broker is the latest online retail broker to introduce crypto assets to its offering.
Few brokerages have embraced digital assets, with Robinhood and TradeStation being the other notable names. Other investment management service providers like Charles Schwab and Fidelity indirectly support crypto-currency trading. Both of these financial services companies offer access to Bitcoin futures.
The news of crypto-currency trading integration is not really surprising. President Thomas Peterffy announced in June that the broker would be integrating crypto-currencies on its platform by the end of the summer. He explained that the move would suit sophisticated clients. The offering is, for now, exclusively available to US users with individual or joint accounts and covers Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
The company’s CEO Milan Galik noted, “By giving our clients access to crypto-currency trading, we recognize the need to meet the growing demand from investors to trade crypto-currencies alongside other asset classes conveniently and at low cost.”
The provision of the new service is facilitated by regulated blockchain infrastructure company Paxos. The financial institution and technology company, which received a banking charter from the Office of the Comptroller of the Currency in April, has previously worked with PayPal to offer digital asset trading services. Interactive Brokers is leveraging Paxos Crypto Brokerage’s offering as an API to support trading and custody while retaining its customers.
Paxos CEO Charles Cascarilla spoke about the company’s role, saying, “Paxos provides the regulated blockchain infrastructure for businesses to activate crypto securely and with reduced risk. Our collaboration with Interactive Brokers gives experienced investors fast and reliable access to the digital economy for the first time.”
Trading in crypto assets will be offered on the same screen as other traditional assets such as stocks, futures, mutual funds and bonds, providing users with a user-friendly, unified customer experience. The company also highlighted its low commissions in the announcement.
“Crypto-currency trading with Paxos on Interactive Brokers’ platform has low commissions of only 0.12% – 0.18% of the trade value, based on monthly volume, with a minimum of USD 1.75 per order. In addition, there are no additional spreads, markups or custody fees.”
Although the service is starting in the US first, there are plans to expand the service to cover financial advisors and clients in other markets.