In a press release, Interactive Brokers Group Inc. announced that it has introduced cryptocurrency trading for registered investment advisors in the United States.
Financial advisors will be able to trade crypto
The idea behind it is that financial advisors will be able to trade and hold Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for their clients next to their usual options, futures, bonds, mutual funds, and ETFs. “Allocating a small percentage of assets to cryptocurrency as part of a well-diversified portfolio has steadily become more commonplace, and advisors may wish to recommend cryptocurrency to their clients,” said Steve Sanders, EVP of Marketing and Product Development at Interactive Brokers.
Interactive Brokers’ crypto trading is offered through Paxos Trust Company, a regulated blockchain infrastructure platform. The company partnered with Paxos earlier this year to offer low commissions of just 0.12%-0.18%. While the service is initially available to RIAs in the US, Interactive Brokers plans to offer it to financial advisors in other parts of the world in the future.
Interactive Brokers lowers the barrier to entry for retail investors
As of October 1, 2021, Interactive Brokers had 1.54 million client accounts and $353.8 billion in client assets. With such a large client base, this means that Interactive Brokers will continue to lower the barrier to entry for retail investors into digital assets by offering crypto trading.
Rival broker Charles Schwab does not offer direct crypto trading on its platform but does offer some related funds. However, the stock trading app Robinhood does offer crypto trades. Many consider Interactive Brokers to be a more established broker than Robinhood.