Major Nasdaq-listed Brokerage firm Interactive Brokers announced on the 13th that it will provide customers with cryptocurrencies trading on its platform in partnership with crypto brokerage Paxos Trust.
Interactive Brokers is a US-based global securities trading service company that manages client assets worth $232 billion. For the first time, it will provide services related to cryptocurrencies. The firm will allow its US clients to trade in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
According to the press release, the clients pay a low commission of 0.12% to 0.18% of a trade’s value, depending on monthly volume, with no added spreads, markups, or custody fees.
In the announcement, Steven Sanders, EVP of Marketing and Product Development at Interactive Brokers noted:
“Interactive Brokers remains committed to providing breadth of product globally, advanced technology and superior pricing. Adding access to cryptocurrency trading further delivers on our mission to provide active traders and sophisticated investors with powerful trading tools and a wide range of products at low cost.”
With its new service, the company will compete with Robinhood and TradeStation who also provide cryptocurrency trading. Robinhood has recently gained popularity due to its offering of commission-free trading. The company would instead earn from rebates from trading venues.
For the new initiative, the company has partnered with blockchain infrastructure platform Paxos which is also a partner of US payments giant PayPal. It acts as a regulatory provider of cryptocurrency services as well as asset tokenization services and settlement services.
With respect to the partnership, Charles Cascarilla, CEO and Co-Founder of Paxos, commented:
“Consumer interest in accessing digital assets through trusted intermediaries is driving a shift in the financial industry. Paxos provides the regulated blockchain infrastructure to ensure enterprises can enable crypto safely and with reduced risk. Our collaboration with Interactive Brokers allows experienced investors to have fast, reliable access to the digital economy for the first time.”