Interactive Brokers as crypto exchange platform

[thomasparra]

Commissions and custody fees seem ok. Interactive Brokers would probably be almost safer than holding the keys physically yourself in some cases (no loss or theft risk). Of course, the biggest risk to consider might be them freezing the account as with any third parties but IB is probably one of the safest exchange to hold your digital assets isn't it?

The cons are i) you probably do not own the keys, you just buy the "paper" financial product similar to buying a gold ETF and ii) you can't send BTC or ETH to other third parties (for payment for instance).

Last edited: Dec 12, 2023

 

[JohnnyDoe]

Not better than Binance, but anything that adds liquidity to the market is good.

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[thomasparra]

JohnnyDoe said:
Not better than Binance, but anything that adds liquidity to the market is good.
Click to expand...

I would at least expect IB to be safer, and trustable in how they segregate clients assets, and not be a Ponzi versus the average crypto platform. If a government wants to seize assets we are screwed either way.

 

[JohnnyDoe]

thomasparra said:
I would at least expect IB to be safer, and trustable in how they segregate clients assets, and not be a Ponzi versus the average crypto platform. If a government wants to seize assets we are screwed either way.
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IB too will most likely take liquidity from Binance.
One thing is trading another thing is holding. Nobody can seize your cold wallet.

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[jafo]

I wonder what IB will use to provide liquidity. Anyone know?

 

[JohnnyDoe]

jafo said:
I wonder what IB will use to provide liquidity. Anyone know?
Click to expand...

From a regulatory and technical standpoint the best (if not the only) option for them would be to use futures (those listed on CME/CBOE).

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[Martin Everson]

jafo said:
I wonder what IB will use to provide liquidity. Anyone know?
Click to expand...

"Clients can trade cryptocurrencies through Paxos or Zero Hash, alongside global stocks, options, futures, spot currencies, bonds, funds and more via the Interactive Brokers platform."​

Security You Can Trust​

Security is crucial to cryptocurrency trading. Use the IBKR platform and funds from your IBKR account to trade cryptocurrencies at either Paxos Trust Company or Zero Hash LLC. Paxos Trust Company is regulated and supervised by the New York Department of Financial Services (the New York bank regulator). Zero Hash LLC is a FinCEN-registered Money Services Business, is licensed as a money-transmitter in various states, and has been granted a BitLicense by the NY Department of Financial Services.

https://www.interactivebrokers.com/en/trading/products-cryptocurrencies.php​

I wonder if this is the case for all their non-US entities or have they upgraded the offering now with that mail they sent OP?

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[zzzzzz]

I looked up in my non-US IB account and it's the same as last two years - cryptocurrency trading through Paxos on IB is NOT available for me.

@thomasparra are you US citizen/resident?

 

[thomasparra]

zzzzzz said:
I looked up in my non-US IB account and it's the same as last two years - cryptocurrency trading through Paxos on IB is NOT available for me.

@thomasparra are you US citizen/resident?
Click to expand...

Asia

 

[DeepDrilling]

JohnnyDoe said:
Not better than Binance, but anything that adds liquidity to the market is good.
Click to expand...

you better like Binance or both are good in your experience?

 

[JohnnyDoe]

DeepDrilling said:
you better like Binance or both are good in your experience?
Click to expand...

Binance is the best for trading (with all its issues tricks).

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[DeepDrilling]

yeah it smells like poo¤%&&