Having the ability to trade crypto around the clock gives investors increased flexibility to manage their cryptocurrency exposure, according to Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers.
On August 9, Interactive Brokers, an automated global electronic broker, introduced the ability for customers to access 24/7 crypto trading through an enhanced web application available from Paxos Trust Company.
Sanders told Traders Magazine that the newly enhanced web application gives clients of Interactive Brokers access to 24/7 crypto trading, the ability to place non-marketable buy limit orders with Paxos, and trade more coins.
Clients who elect to manage the funding of their crypto account themselves can pre-fund their crypto accounts at Paxos during regular US banking hours and then trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), plus additional coins around the clock.
“Clients of Interactive Brokers who trade cryptocurrency via the Paxos web application can pre-fund their Paxos accounts and therefore have access to trade cryptocurrency and manage their cryptocurrency exposure anytime, even when Interactive Brokers’ standard trading platforms are unavailable,” Sanders explained.
On September 13, 2021, Interactive Brokers launched cryptocurrency trading, enabling clients to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) via Paxos Trust Company.
This enabled IBKR clients to trade cryptocurrency alongside other asset classes on the Interactive Brokers platform, creating a unified customer experience, Sanders said.
On October 18, 2021, Interactive Brokers launched cryptocurrency trading for Registered Investment Advisors (RIAs) in the US, enabling these RIAs to trade and custody Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) via Paxos Trust Company on behalf of clients.
Sanders said that RIAs benefit from the ability to manage their client’s positions in cryptocurrency in addition to stocks, options, futures, bonds, mutual funds and ETFs from all over the world from a single screen, and all shown on one platform with customizable reports.
According to Sanders, while other crypto exchanges and brokers charge trading fees as high as 2.00% of trade value or more, Interactive Brokers customers trading with Paxos pay low crypto commissions of 0.12% – 0.18% of trade value, depending on monthly volume, with a $1.75 minimum per order.
“There are no added spreads, markups, or custody fees,” he said.
The following accounts are able to trade cryptocurrency using the enhanced Paxos web application: Individual Accounts, Joint Accounts, Trust Accounts, Limited Liability Company Accounts, Introducing Brokers, and Separate Trading Limit Accounts.
While Financial Advisors and Hedge Fund clients currently do not have access to pre-funded trading and the various features that go with that, these clients are able to trade cryptocurrency through Paxos Trust company alongside stocks, options, ETFs, futures, bonds, and more from Interactive Brokers’ single unified platform, Sanders said.
Cryptocurrency trading is available through the company’s trading platforms, including Trader Workstation, Client Portal, IBKR Mobile, and IBKR GlobalTrader, as well as through the Paxos web application.
When asked about future plans, Sanders said: “We are partnering with OSL in Hong Kong to offer crypto trading to our professional clients in HK in the near future.”
“We will continue to look for other strategic opportunities to expand our offering and to continue to bring clients a platform to access a comprehensive range of investment and trading products,” he added.