Summary: Interactive Brokers provides a platform for cryptocurrency trading through their partnership with Paxos Trust Company, enabling users to trade and hold 4 digital assets, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. For investors interested in a more diverse range of assets, lower fees and a safer trading environment, we recommend using a regulated digital currency exchange.
For those seeking a broader selection of digital assets, considering a specialized exchange like eToro could be advantageous. eToro distinguishes itself by offering a more extensive selection of cryptocurrencies, beyond the four available on Interactive Brokers. This platform is not only limited to major cryptocurrencies but also supports stocks, ETFs, commodities and more. As a global exchange, it provides a multilingual interface available in 30 languages.
- A reputable trading platform founded in 2007, regulated and serving millions worldwide.
- Buy, sell and trade over 3,000 Cryptocurrencies, Shares, ETFs and more.
- Instant deposits through Faster Payments, bank transfer, debit cards and more.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Can I Buy Bitcoin with Interactive Brokers?
Yes, Interactive Brokers supports four cryptocurrencies to trade, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. While this selection allows for direct investment in these prominent tokens, it's important to recognize the constraints in variety. For those looking to diversify their portfolio beyond these four options, a specialized and regulated exchange in the UK, Europe, Australia, Asia or USA might be a more suitable choice. It’s important to find a trading platform overseen by the regulatory body in your jurisdiction.
How to Buy Crypto with Interactive Brokers Alternative
For Interactive Brokers clients looking to expand their cryptocurrency trading options, considering a regulated exchange is a great alternative. A recommended platform for such purposes is eToro, known for its wide range of digital assets and strict adherence to global regulators. eToro offers a variety of deposit methods, including bank transfers, PayPal, Skrill, iDEAL, Payoneer, Neteller, and both credit and debit cards.
If you're an Interactive Brokers user wanting to explore cryptocurrency trading on eToro, you can start with these simple steps:
- Account Creation: Set up your eToro account and go through the necessary identity verification.
- Selecting Currency: In eToro, navigate to the "Deposit Funds" section and choose "GBP" as your currency.
- Fund Your Account: Choose your preferred payment method from the available options and deposit the funds.
- Crypto Purchase: Utilize the search tool to find your desired token, select ‘Trade’, enter the amount you wish to invest, and confirm your trade by clicking on ‘Open Trade’.
Will Interactive Brokers offer more Cryptocurrency?
Interactive Brokers entrance into the cryptocurrency market is focused on providing direct trading options for a limited selection of digital currencies, specifically Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. This approach allows clients to have actual ownership of these coins, differentiating from platforms that offer crypto-based derivatives like CFDs.
While this direct ownership model is appreciated by many for the security and control it offers, the selection of digital assets is notably narrower compared to some other platforms. Considering the evolving dynamics of the crypto market, exemplified by events like the FTX incident, the value and demand for more extensive direct trading options are becoming more pronounced, underscoring the potential benefits of autonomy and security in managing a diverse digital asset portfolio.
Digital Asset Investing Fees
For individuals exploring cryptocurrency investments through platforms, it’s important to have a clear understanding of the various fees that can affect investment returns. Here's an overview of the fee structure you might encounter on an exchange for digital asset trading:
- Trading Fees: eToro typically imposes transaction fees for trading digital currencies. These fees are generally around the 1% mark for each trade, but it's advisable to check eToro’s latest fee schedule for accurate figures.
- Deposit Fees: The cost of depositing funds into your account varies depending on the chosen method. Using bank transfers and Faster Payments usually incurs lower fees. However, if you opt to deposit via credit or debit cards, you might face fees of up to 2%.
- Withdrawal Fees: Withdrawing cryptocurrencies can entail different charges depending on the token. For instance, Bitcoin withdrawals often have a fee around 0.0005 BTC.
For those considering diving into the cryptocurrency market, we recommend eToro for its competitive fee structure. It is compliant with the regulations of various international financial authorities, ensuring a secure and regulated trading environment for its users.
What is IBKR Crypto?
IBKR Crypto is Interactive Brokers' advanced offering that enables users to trade cryptocurrencies at competitive rates. With commissions as low as 2% of trade value, users can trade and hold primary digital assets like Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Furthermore, the platform extends the ability to hold USD in the cryptocurrency account, trade additional tokens provided by Paxos Trust Company, and engage in cryptocurrency trading around the clock.
All trading and custody regarding these digital assets are overseen by Paxos Trust Company, ensuring a secure and reliable trading environment. Additionally, Interactive Brokers' platform provides a unified trading experience, allowing clients to invest in crypto alongside other assets like stocks, options, ETFs, and more.
Final Thoughts
In conclusion, Interactive Brokers, through its partnership with Paxos Trust Company, offers a streamlined and secure approach to cryptocurrency trading. The platform currently supports trading in four major cryptocurrencies, Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. However, for investors seeking a more diverse cryptocurrency portfolio, platforms such as eToro present a viable alternative, offering a wider range of digital assets and a competitive fee structure.
Co-Founder & former Investment Banker (Finance MBA) turned Full-Time analyst and Head of Research at Buy Bitcoin Bank. Left traditional finance to pursue my interest in digital assets and decentralized finance.
