Interactive Brokers Extends Cryptocurrency Trading Services to Customers in the UK

The investment options available to UK investors have expanded to include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH), which now complement the array of traditional investment products Interactive Brokers offers.

This strategic expansion in the UK occurs five months subsequent to Interactive Brokers’ alliance with OSL Digital Securities, which in November 2023 initiated cryptocurrency trading options for retail investors in Hong Kong.

Having embarked on its cryptocurrency venture in July 2021 initially with retail consumers in focus, Interactive Brokers shortly extended these services to include US-based institutional investors. With the services now available to those in the UK, the brokerage is offering both retail and institutional investors the opportunity to delve into the burgeoning realm of digital assets.

Gerald Perez, the CEO of Interactive Brokers, remarked, “Offering cryptocurrency trades endows our UK clientele with more versatility for cross-market investment, augmenting their portfolio with the addition of digital assets.”

UK clients of Interactive Brokers are capable of managing an integrated investment account through Paxos Trust Company, enabling a seamless experience between conventional and digital asset portfolios. This integration proffers a single comprehensive platform where clients may access cryptocurrencies in conjunction with traditional assets like equities, options, commodities, and forex.

In terms of cost efficiency, UK customers, including financial advisors, stand to gain from competitively low commission rates applied to digital asset transactions on the platform, beginning from 0.12% to 0.18% of the trade value with a nominal fee threshold of $1.75 per trade, free of additional spreads, markups, or custody charges.

Under the FCA’s recent guidelines, firms in the crypto sector are obligated to ensure marketing communications are transparent, equitable, and non-deceptive. This includes clear risk warnings and the elimination of inducements such as incentives tied to referrals. New investors must also be subject to a 24-hour cooling-off period and advertising efforts adhered to strict rules.

Firms involved in promotional activities for cryptocurrency products must now issue explicit risk disclaimers and validate that consumers possess the necessary knowledge and investment acumen for crypto ventures to comply with regulations. Failure to adhere could trigger penalties, including incarceration for up to two years.

The effect of these stringent measures is evident within the UK crypto market, with operations like Bybit and PayPal scaling back specific services. Moreover, Luno, a leading cryptocurrency enterprise, has imposed restrictions on certain clients concerning cryptocurrency purchases on its platform.