Interactive Brokers Brings Crypto Trading to UK Customers

Interactive Brokers (Nasdaq: IBKR) has expanded its offerings on its platform in the United Kingdom by launching cryptocurrency trading. Investors, both individuals and institutional, onboarded under the brokerage's UK entity can now trade four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Expansion of Crypto Trading

Announced today (Wednesday), the US-headquartered broker has introduced crypto services in partnership with Paxos, similar to its services in its home country. Although offered in partnership with a third-party crypto exchange, Interactive Brokers highlighted that its users can trade cryptocurrencies along with instruments of other asset classes from the same brokerage account.

“Introducing cryptocurrency trading gives UK clients enhanced flexibility to invest across markets and asset classes while also adding exposure to digital assets,” said Gerald Perez, CEO of Interactive Brokers' UK entity.

Interactive Brokers is not the only broker to expanse its crypto services. Recently Robinhood also launched staking services under its crypto platfrom for its customers in Europe.

Low Fees

For the cryptocurrency trades, Interactive Brokers promises a commission between 0.12 percent and 0.18 percent of the trade value, with a minimum of $1.75 per order. It also clarified that there will not be added spreads, custody fees, or markups.

It further highlighted that cryptocurrencies are denominated in USD on its platforms. However, it will allow its UK clients to convert GBP to USD with tight spreads of up to 1/10 of a pip.

Interactive Brokers is a popular brokerage brand with a global presence. The platform first offered cryptocurrency trading in September 2021, a service it launched with its Paxos partnership. Last year, it teamed up with Zero Hash, a crypto infrastructure platform, to offer crypto trading and custody services. The Hong Kong-registered entity of Interactive Brokers also obtained a local licence in the autonomous region to offer retail crypto trading.

Apart from its offerings with third-party crypto partners, the broker is allowing its customers to take exposure to Bitcoin, investing in the Bitcoin exchange-traded funds (ETFs) approved by the US Securities and Exchange Commission.

Meanwhile, total revenue at Interactive Brokers was up 42 percent to $4.3 billion in 2023, which compares very favourably with the 5 percent rise recorded by IG in its last fiscal year, Saxo’s 11 percent, and Fidelity’s 12 percent increase.