The retail brokerage firm, Interactive Brokers Group, was the latest to include digital assets in its offering on Monday, announcing that it will offer low-fee cryptocurrency trading on its platform. The Greenwich-based company is partnering with the blockchain infrastructure platform Paxos Trust Co. on this endeavor. Interactive Brokers’ trading comes with commissions of 0.12% to 0.18% of trade value, depending on monthly volume, and a $1.75 minimum per order.
Interactive Brokers LLC is an American multinational brokerage firm. It operates the largest electronic trading platform in the U.S. by a number of daily average revenue trades. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, and funds.
“As financial markets evolve, sophisticated individual and institutional investors are increasingly seeking out allocations to digital currencies as a means of achieving their financial objectives,” said Milan Galik, CEO of Interactive Brokers. “In giving our clients access to cryptocurrency trading, we recognize the need to meet the growing investor demand to trade cryptocurrency alongside other asset classes in a convenient and low-cost way,” he added.
“We started with four that we thought were the basics,” said Steve Sanders, executive vice president of marketing and product development at Interactive Brokers. “It could be the case that we expand that,” he added. “We just view crypto as yet another asset class.”
The U.S. cryptocurrency market is seeing dramatic price swings and greater regulatory scrutiny this year. Chair Gary Gensler of the Securities and Exchange Commission has asked Congress to pass a law giving it legal authority to monitor cryptocurrency exchanges. The regulator has already used its existing powers in cases like a recent lawsuit against the founder of BitConnect, a cryptocurrency exchange.
“As the regulatory environment emerges, we’ll be there to work with it,” Sanders said. “We offer all of these asset classes — stocks, options, foreign exchange, futures, bonds and metals. We work with a lot of regulators.”
The cryptocurrency trading feature will initially be available to U.S. residents with individual or joint accounts and Interactive Brokers plans to expand this offering to additional client types including financial advisers and international clients in the near future.