- Interactive Brokers is a leading online trading platform which provides seamless trading products to its clients.
- The Paxos Trust is a funded blockchain network with over $500 million funds invested by leading investors.
- The Paxos trust has developed a trading platform for Interactive Brokers so as to enable users to trade in cryptocurrencies.
What did Interactive Brokers announce?
The Interactive Brokers Group announced its partnership with the Paxos trust to launch a cryptocurrency trading platform. This platform will allow Interactive Brokers’ clients to trade seamlessly in a number of cryptocurrencies. For now, the company has allowed only a limited number of cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Bitcoin Cash. If it receives an overwhelming response from clients needing more assets, they may enable trading in other safe coins such as Cardano, Ripple and many more.
Moreover, with the addition of cryptocurrency on its platform, the company is all set to compete with leading hybrid brokers such as Robinhood. However, unlike other broker’s transaction commissions of 2%, Interactive Brokers will levy a relatively lower charge of 0.12% to 0.18% of the total trade value. However, it will levy a fixed charge of $1.75 on each trade. That means that on a traded value of a $1,000, the broker will levy a charge of $1.2. However, since the minimum transaction cost is $1.75, the broker will charge $1.75 instead of $1.2. There are no hidden fees, markups or custodian charges on the platform. These features make the broker a firm competitor to other popular brokers which offer the same products. However, Interactive Brokers has a significant edge as it leads the industry in market share and is a mainstream trading broker.
What are its details?
The traders and investors need not fear while trading as the Interactive Brokers group is a trustworthy platform. Moreover, they need not worry about the digital assets they hold as the company has outsourced its custodian services to the Paxos trust.
The investors can trade the aforementioned cryptocurrencies through their mobile application or website. The feature of traditional call-and-trade has not yet been announced by the firm. Traders used to leverage can also benefit from this partnership as the broker has established futures product along with spot trading. Thus, this newly established platform is suitable for both, retail and experienced traders.
The Broker group also offers an award-winning platform to manage their portfolio efficiently. These features are available on the mobile application as well as the website. In addition to this, the platform is equipped with advanced trading tools to enable traders to make better trading decisions. Advanced scanners and indicators are provided for a seamless trading experience in cryptocurrencies. Finally, Interactive Broker also provides features to ensure a sustainable investment plan for all their customers.
Source: Interactive Brokers
How has Interactive Brokers benefitted its clinets?
With the establishment of this platform, Interactive Brokers became one of the few brokers to offer trading in various asset classes. The company has now incorporated stocks, exchange-traded funds, REITs, commodities, mutual funds and cryptocurrencies on its platforms. It is expected that the company will accumulate a huge client base as more and more people look for exposure in this asset class.
Previously, traders needed to open accounts with different brokers to trade different assets. Interactive Brokers has provided a great solution for these issues. They have enabled trading different asset classes on a unified trading platform by opening an account with a single broker.
The mainstream broker through this partnership recognizes the growing demand for cryptocurrencies among their clients and people in general. Investing and creating a portfolio of diversified assets has never been easier. Traders can trade and invest in cryptocurrencies, stocks, funds, ETFs, futures and options and bonds through a single trading platform. They can track their investments on a daily basis on the mobile application or website.
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