Interactive Brokers Crypto: Everything You Need to Know

If you have decided and are looking to begin trading crypto with a reliable trading platform like Interactive Brokers, open your account now and begin trading with a minimal deposit.

Interactive Brokers (IBKR) has achieved a major step by adding cryptocurrency trading to its strong platform. Renowned for its sophisticated trading tools and economical pricing, IBKR today lets customers trade well-known digital assets, including Bitcoin and Ethereum, alongside conventional assets such as stocks and futures. Working with regulated providers like Paxos Trust Company, IBKR guarantees a seamless and safe crypto trading experience. Thanks to this integration, investors have a unique opportunity to diversify their investments on one cohesive platform. Whether you’re familiar with cryptocurrencies or not, this article addresses what you need to know about trading on IBKR.

Interactive Brokers Crypto Overview

Interactive Brokers (IBKR) entered the crypto market and lets users trade digital assets in tandem with conventional investments. Launched in September 2021, IBKR's crypto product is powered by a Paxos Trust Company alliance, allowing customers to buy, sell and hold cryptocurrencies in a regulated environment. This connection offers investors wishing to diversify their portfolios with digital assets a seamless experience.

Key Features of Interactive Brokers Crypto

• Limited Cryptocurrency Selection: Depending on trading permissions, clients can access four or eight cryptocurrencies. The basic plan includes Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC). The Crypto Plus plan adds Chainlink (LINK), Polygon (MATIC), Uniswap (UNI) and Aave (AAVE).
• Regulated Trading Environment: Unlike many cryptocurrency exchanges, IBKR operates under strict regulatory oversight, offering a safer trading environment for investors. This reduces the risks associated with unregulated trading platforms, such as hacking and fraud.
• Low Trading Fees: Interactive Brokers offers competitive commission rates for cryptocurrency trades, ranging from 0.12% to 0.18% of the transaction value, depending on the client's monthly trading volume. This low-cost structure makes it an attractive option for frequent traders.
• Centralized Cash Management: Clients can manage their cryptocurrency holdings alongside traditional assets like stocks and options from a single account. This centralized approach simplifies portfolio management and enhances overall trading efficiency.
• Access to Futures and ETNs: In addition to spot trading, IBKR allows clients to trade Bitcoin and Ether futures and exchange-traded notes (ETNs) linked to cryptocurrencies, providing further investment options.
• User-Friendly Platform: IBKR's trading platform is known for its sophisticated technology. It offers advanced tools and analytics that cater to both novice and experienced traders. The platform is accessible via desktop, mobile and web applications.
• Educational Resources: Interactive Brokers provides a wealth of educational materials and resources to help clients understand the complexities of cryptocurrency trading, making it easier for new investors to navigate the market.

Interactive Brokers Crypto Fees

Interactive Brokers (IBKR) appeals to investors by providing reasonable pricing for trading cryptocurrencies. Based on monthly trading volume, the platform charges a low cost of 0.12% to 0.18% of the trade value. Small trades have a minimum fee of $1.75, which is capped at 1% of the trade value, ensuring that even small transactions remain reasonably affordable. There are no markups, custody fees or additional spreads – a significant advantage over many conventional cryptocurrency exchanges.

Interactive Brokers does not charge deposit fees or trading costs, so traders can easily fund their accounts. The first withdrawal each month is free, while subsequent withdrawals incur a fee of $10 for USD transactions. This system lets traders manage their money without incurring unnecessary expenses.

Can You Buy Crypto on Interactive Brokers?

Yes, you can buy cryptocurrency on Interactive Brokers (IBKR). Clients may trade a restricted range of digital assets on the platform, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). Your trading permissions will determine whether or not you can access further cryptocurrencies such as Chainlink (LINK), Polygon (MATIC), Uniswap (UNI) and Aave (AAVE).

How to Buy Crypto on Interactive Brokers

Here's a brief step-by-step guide on how to buy crypto on IBKR:

1. Open an Account: If you don't already have an account, visit the Interactive Brokers website and complete the registration process. Ensure you select the option for cryptocurrency trading.
2. Request Trading Permissions: Request the appropriate trading permissions depending on your needs. The Crypto Basic plan allows trading four cryptocurrencies, while the Crypto Plus plan provides access to eight.
3. Deposit Funds: Fund your account with USD, as cryptocurrencies are traded in this currency. You can transfer funds from your bank account or other sources.
4. Access the Trading Platform: Log into the IBKR trading platform, which is available on desktop, mobile and web applications.
5. Select Cryptocurrency: Use the search function to select the cryptocurrency you wish to buy (e.g., BTC or ETH).
6. Place an Order: Choose the type of order (market or limit) and enter the amount you wish to invest. IBKR allows you to specify the dollar amount you want to spend, simplifying the process.
7. Review and Confirm: Double-check your order details and confirm the transaction. Your cryptocurrency will be added to your IBKR account.

Supported Countries

Mostly serving clients in the United States, United Kingdom and Hong Kong, Interactive Brokers provides crypto trading. This broad global reach lets various investors join the expanding crypto market. Interactive Brokers offers a regulated and safe forum for customers wishing to explore digital assets alongside conventional investments by incorporating crypto trading into its existing platform.

Is Interactive Brokers Crypto Safe and Secure?

Yes, Interactive Brokers (IBKR) is safe and secure for trading cryptocurrency. Under rigorous regulatory control from elite authorities like the SEC and FCA, the platform guarantees compliance with high standards of financial integrity. This regulatory structure reduces the risks associated with trading on ùnregulated exchanges, such as hacking and fraud.

IBKR partners with Paxos Trust Company for crypto trading, which adds another layer of protection. Funds are kept in a segregated account, ensuring customer assets are safeguarded even during a financial crisis. IBKR also uses strong risk management strategies like daily asset evaluations and large margin ratios to further protect client investments.

Although SIPC insurance does not cover cryptocurrencies held on IBKR, the platform provides additional protections through compensation plans, which can cover losses of up to $2.5 million for qualified customers. Generally speaking, Interactive Brokers is a trustworthy option for investors since it offers a secure place for trading and storing cryptocurrencies.

Can I Withdraw Crypto from IBKR?

Yes, you can withdraw cryptocurrency from Interactive Brokers (IBKR), allowing you to transfer your digital assets to an external wallet. This feature enhances user flexibility, enabling customers to better control their crypto holdings.

How It Works

To withdraw crypto from IBKR, follow these steps:

1. Log into Your Account: Access your IBKR account through the desktop or mobile.
2. Navigate to Crypto Funds Transfer: Go to the "Transfer & Pay" section and select "Transfer Funds."
3. Select Crypto Transfer: Choose the cryptocurrency you want to transfer and enter the amount you wish to withdraw.
4. Specify Your Wallet Address: Input the external wallet address where you want to send your crypto. Ensure that this address is correct, as transactions cannot be reversed.
5. Confirm the Transaction: Review the details and confirm the withdrawal.

IBKR's Crypto Wallet

Although IBKR does not offer a traditional crypto wallet, it manages crypto assets in partnership with Paxos Trust Company. Your cryptocurrencies are housed in a secure account managed by Paxos, which provides protection against fraud and theft. Users must rely on IBKR's infrastructure for security, as the assets are not in a personal wallet.

Although IBKR offers the option to withdraw cryptocurrencies, it’s important to note that the platform operates differently than a standard crypto wallet and emphasizes trading and investment over personal custody of digital assets.

Interactive Brokers Crypto Signup Bonus

No, Interactive Brokers does not currently offer a special crypto sign-up bonus for new users. Although the platform offers a robust environment for trading cryptocurrencies, including Bitcoin and Ethereum, it emphasizes low trading fees and a wide range of investment products over promotional incentives.

Interactive Brokers is well-known for its competitive commission structure, charging between 0.12% and 0.18% of the trade value with a minimum cost of $1.75 per order. This low-cost trading approach is designed to attract serious investors instead of relying on bonuses. 

While new users might not receive a direct sign-up bonus, the platform's comprehensive features – which include access to a variety of cryptocurrencies, advanced trading tools and educational resources – still offer significant value. Although some might view the lack of a sign-up bonus as a disadvantage, Interactive Brokers appeals to cryptocurrency investors overall because of the benefits of low fees and a regulated trading environment.

Navigating the Future of Crypto with Interactive Brokers

Interactive Brokers (IBKR) has become a strong competitor in crypto trading, providing investors with a regulated and secure environment. By trading well-known cryptocurrencies like Bitcoin and Ethereum, IBKR combines cheap trading fees – between 0.12% and 0.18% – with a user-friendly interface for new and experienced traders.

Although IBKR's complete features – access to a broad selection of investment products, advanced trading tools and educational resources – have value even if there is no particular crypto sign-up bonus. Although consumers should be advised that assets are kept in a custodial account rather than a personal wallet, the cooperation with Paxos Trust Company guarantees that cryptocurrencies are managed safely.