Posted 2 months ago | by Catoshi Nakamoto
Interactive Brokers Group has launched crypto trading for U.S. Registered Investment Advisors enabling them to trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Interactive Brokers Group Opens U.S. Flood Gates To Four Cryptos
Inteactivee Brokers Group is a brokerage firm which extends globally expressed that the service was currently available only for its advisers in the United States. However, the firm stated it plans to launch crypto trading for global clients in the future according to the press release.
“Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace, and advisors may wish to recommend cryptocurrency to their clients,” Interactive Brokers executive vice president of marketing and product development Steve Sanders said.
This is made possible through, Paxos Crypto Brokerage who will handle the custody of , , , and for RIA clients.
The custom built platform will give U.S.-based RIAs a detailed display to manage their clients’ positions in crypto and traditional finance, with reports and real-time data and trakcing of— stocks, futures, mutual funds, bonds, ETFs, options and the fresh addition crypto. Interactive Brokers said cryptocurrency trading with Paxos on their platform will have commissions of 0.12% to 0.18% of trade value, depending on monthly volume with $1.75 minimum per order as per the report. It’s important to highlight there are no added spreads, markups, or custodial fees.
Other crypto exchanges and brokers charge fees that can be as high as 2.00% on a trade value or more and add spreads or markups to the price.
Since, Interactive Brokers is headquarterd in the U.S. it falls under the jurisdiction of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FIR). As of Oct. 1st, the brokerage reported 1.54 million client accounts with $353.8 billion of which was in equity that’s 52% higher than the prior year according to the firm.
It’s further worth mentioning that Interactive Brokers Group just last month, launched crypto trading for U.S. clients under the custodianship of Paxos as well. As CNBC reported, last month, the platform was said to have 1.49 million client accounts and over $360 billion in assets under its custody. In comparison, Robinhood a similar app has 18 million clients and $80 billion in assets under custody.
This is massive bullish news as RIA’s who manage an estimated $110 trillion for 61 million clients can now offer their clients cryptocurrency trading through Interactive Brokers.
This comes after the U.S. SEC passed two proposed ETFs — Valkyrie and Pro-shares. Although thus far no ETF is physically backed and settled in spot Bitcoin, with news that Interactive Brokers Group is opening its platform up to RIAs, it probably isn’t too far behind.
Bitcoin is currently trading at [FIAT: $62,116.59] DOWN -0.4% in the last 24 hours according to Coingecko at the time of this report.