Interactive Brokers Introduces Cryptocurrency Trading Through Paxos1
Clients with individual brokerage accounts in the US now have the ability to seamlessly trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) through IBKR's professional grade desktop platform and intuitive mobile and web platforms. Cryptocurrency trade execution and custody are provided by Paxos Trust Company, a regulated New York limited trust company that affords investors secure technology and a high level of protection.
While other crypto exchanges and brokers charge trading fees of as much as 2.00% of trade value (or more), with added spreads or markups, cryptocurrency trading with Paxos on the Interactive Brokers platform has a low commission of just 0.12% to 0.18% of trade value, with a USD 1.75 minimum commission per order. There are no added spreads, markups or custody fees.
You can trade cryptocurrencies from Client Portal and with TWS Latest version 10.10.2j or later, IBKR Mobile (iOS) version 8.82 or later, or IBKR Mobile (Android) version 8.4.458 or later.
We expect to offer access to cryptocurrency trading to additional client types, including Financial Advisors and clients in other parts of the world, in the future.
To Request Cryptocurrency Trading Permission:
After receiving Cryptocurrencies trading permission, you can trade BTC, ETH, LTC or BCH in Trader Workstation by creating an order ticket, typing the currency symbol in the Financial Instrument search field, entering your order details, and clicking "Transmit".
From IBKR Mobile, click "Trade" > click "Buy Order" > search for the currency, and choose the currency. If you have more than one account, choose the account you want to trade with by clicking the drop down. Enter your order details > click "Preview" then "Slide To Submit Buy". Click "Yes" on the disclaimer to finalize the order.
From Portal, click Trade > Crypto, search for the currency, enter your order details and click "Submit Buy Order" to place the trade.
 Trading in digital assets, including cryptocurrencies, is especially risky and is only for individuals with a high risk tolerance and the financial ability to sustain losses. All trading and custody of digital assets is provided by Paxos Trust Company (“Paxos”) in an account held in your name at Paxos. Digital assets held with Paxos are not protected by SIPC. Eligibility restrictions apply. For more information please see ibkr.com/crypto.
INTERACTIVE BROKERS LLC IS A MEMBER OF NFA AND IS SUBJECT TO NFA'S REGULATORY OVERSIGHT AND EXAMINATIONS. HOWEVER, YOU SHOULD BE AWARE THAT NFA DOES NOT HAVE REGULATORY OVERSIGHT AUTHORITY OVER UNDERLYING OR SPOT VIRTUAL CURRENCY PRODUCTS OR TRANSACTIONS OR VIRTUAL CURRENCY EXCHANGES, CUSTODIANS OR MARKETS.
While many of our clients actively trade or maintain substantial equity in their account, we have decided to eliminate our monthly inactivity fee so there are no impediments to maintaining an account with IBKR.
As of July 1, 2021, we eliminated inactivity fees for most account types, so there is no longer a USD 10 charge for not maintaining a minimum balance or transaction activity with your account. The change will be reflected on August 2021 account statements.
Our decision to remove inactivity fees aligns us with industry standards and reflects our ongoing commitment to provide clients with low-cost trading solutions.
Interactive Brokers introduced new, simplified pricing for Western European stocks:
These low commission rates are available with IB SmartRoutingSM, which optimizes the execution quality for clients by accessing the many exchanges and trading venues across the continent. Please note the Fixed commission model does not have fee caps.
Our new pricing is offered alongside our current tiered pricing so that you can choose a commissions structure that best aligns with your investing objectives, without added spreads, ticket charges, platform fees or account minimums.
Clients from over 200 countries and territories trade stocks, options, futures, currencies, bonds, funds and more from a single, integrated account. Fund or trade your account in multiple currencies, access 135 global exchanges including all U.S exchanges, and use powerful mobile, web and desktop trading platforms.
Hong Kong stocks now from HKD 0.015% - 0.05% of Trade Value1
Interactive Brokers has new, lower pricing for Hong Kong stocks:
Many brokers sell their clients' orders to market makers who pay the brokers for these orders. The market makers trade with the orders by taking the other side of the trade and thus, establishing an execution price.
Yes. The SEC requires that all orders be executed at or inside the NBBO (the national best bid / offer). The best bid is the highest bid displayed among all the exchanges and the best offer is the lowest offer displayed among all the exchanges in the U.S. There is an exception to this rule when the size of an order exceeds the size displayed at the NBBO.
Brokers say that if they sent the order to an exchange, that order would trade at the NBBO, but when they send the order to a market maker, the order also trades at or slightly better than the NBBO. Since the broker gets paid for the order it can afford to charge zero commissions. In this sense the customer is not disadvantaged.
Since most retail brokers sell their orders to market makers, nearly 50% of orders are executed away from the exchanges. As a result, liquidity at the exchanges has diminished and it is likely that the NBBO is now wider than it would be if all orders went to the exchanges. So although market makers do give a slight improvement over the NBBO, if they did not divert orders from the exchanges it is likely the NBBO would be narrower.
Lastly, many institutional traders do not want to show their orders at the exchanges for fear of driving the price away from themselves. Instead, they prefer to route these orders into Dark Pools. When brokers who do not sell their orders (but want to execute them at the best possible price), send the orders into Dark Pools, they often get an execution well inside, often even in the middle of, the NBBO. Seeking such executions is standard practice for IBKR Pro orders.
Many brokers maintain Dark Pools in which institutional traders can rest hidden orders. These hidden orders are not shown to anyone, but when a retail order comes in on the opposite side of the market, it can execute against a hidden order so long as the execution price would be at or inside the NBBO. By trading with each other directly, both the institutional trader and the retail customer benefit.
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