Interactive Brokers Review 2024

Autor

Revisor

Last update: 6 months ago

Our veredict

Interactive Brokers stands out in the cryptocurrency brokerage space primarily for its robust trading platform and competitive fee structure, making it a compelling choice for both seasoned traders and those new to the cryptocurrency market. One of the platform’s most significant strengths is its low trading fees, which range from 0.12% to 0.18% of the transaction value. This is notably lower than many competitors, and there are no additional charges for spreads, markups, or custody, which enhances its appeal to cost-conscious traders.

However, the platform might pose challenges for beginners due to its complex account opening process and the sophisticated nature of its trading platform. While these features are advantageous to experienced traders who can utilize the extensive tools and functionalities offered, newcomers to trading might find the initial learning curve somewhat steep. Additionally, customer support is noted to be under-resourced, which could be a critical drawback for users who require assistance in navigating the complexities of cryptocurrency trading or resolving issues. Interactive Brokers is therefore recommended for those who are looking for a cost-effective trading environment and have the capacity to handle, or learn to navigate, a complex trading platform. It might not be the best fit for complete beginners unless they are committed to climbing the steep learning curve associated with its advanced trading environment.

Pros

Cons

4,9

Threenvest Score

Fees

Low 4,4/5

Regulated

SEC, FCA

With the confidence of Threenvest

Year Founded: Established in 1978, Interactive Brokers has a long history of providing reliable and innovative trading solutions.

Security Methods: The platform uses top-tier security measures, including two-factor authentication and encryption, ensuring the safety of client assets and data.

Number of Users: Interactive Brokers boasts a large user base, serving over 1.6 million clients globally, which speaks to its reliability and popularity.

Regulation: The firm is regulated by major financial authorities, including the SEC, FINRA, and several international regulators, ensuring compliance with stringent financial laws.

Trading Volume and Liquidity: Interactive Brokers handles a high volume of trades daily, providing deep liquidity, which is crucial for effective trading execution and minimal slippage.

Best Crypto Brokers

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About Interactive Brokers

What is Interactive Brokers?

Interactive Brokers (IB) is a global brokerage firm that offers a wide range of financial instruments, including stocks, options, futures, forex, and cryptocurrencies. Founded in 1978, the firm is known for its advanced trading platforms and competitive fee structures, catering to both retail and institutional investors.

Background and History

Interactive Brokers was established by Thomas Peterffy, a pioneer in the field of electronic trading. The company began as a market maker in equity options and has grown to become one of the largest brokerage firms in the world. IB is headquartered in Greenwich, Connecticut, and operates offices in multiple countries. It is publicly traded on the NASDAQ under the ticker symbol IBKR. The firm has consistently been at the forefront of innovation in trading technology, offering robust platforms that support a wide range of financial products, including cryptocurrencies.

Founders

Thomas Peterffy, the founder and chairman of Interactive Brokers, is a Hungarian-American businessman who is often credited with revolutionizing the financial industry through the development of electronic trading platforms. His vision and leadership have been instrumental in positioning IB as a leader in the brokerage industry.

Cryptocurrency Offering

Interactive Brokers introduced cryptocurrency trading to its platform to meet the growing demand for digital assets. The firm offers trading in Bitcoin, Bitcoin Cash, Ethereum, and Litecoin through regulated entities like Paxos Trust Company and Zero Hash LLC. Clients can choose between Crypto Basic and Crypto Plus trading permissions, which provide varying levels of access and features, including 24/7 trading and non-marketable limit orders. This addition allows IB clients to integrate cryptocurrency trading into their broader investment portfolios, offering a seamless experience for those looking to diversify their assets.

Why Choose Interactive Brokers?

Choosing Interactive Brokers for your cryptocurrency trading offers several strong advantages. First, their competitive fee structure is a significant draw, with low commissions ranging from 0.12% to 0.18% and no added spreads or custody fees. This makes it cost-effective for both small and large trades. Additionally, the platform provides a secure and regulated environment for trading, leveraging partnerships with entities like Paxos Trust Company and Zero Hash LLC, ensuring compliance and safety for your digital assets.

Another compelling reason to choose Interactive Brokers is the seamless integration it offers with other financial instruments. This allows you to manage a diverse portfolio that includes not only cryptocurrencies but also stocks, options, futures, and forex, all within a single platform. This integration is particularly beneficial for investors looking to diversify and manage their investments efficiently.

Moreover, Interactive Brokers offers advanced trading features and robust security measures. The platform supports 24/7 trading, particularly useful for the always-active cryptocurrency markets, and employs high-level security protocols, including two-factor authentication and encryption. This makes it a reliable and secure choice for both novice and experienced traders looking to trade cryptocurrencies alongside other financial assets.

Where it falls short

Despite its many strengths, Interactive Brokers has some areas that could be improved. One significant drawback is the limited number of available cryptocurrencies. Currently, the platform supports trading in only eight cryptocurrencies, which is fewer than many other exchanges. To become more competitive, Interactive Brokers could expand its crypto offerings to include a wider variety of coins, catering to the diverse interests of the crypto community.

Another area for improvement is the complexity of the account opening process. New users might find the steps involved in getting started, particularly the requirement to obtain separate permissions for cryptocurrency trading, somewhat cumbersome. Simplifying the account setup process and integrating crypto trading permissions into the standard account package would enhance the user experience, making it easier for beginners to start trading quickly and efficiently. By addressing these issues, Interactive Brokers could attract a broader range of users and strengthen its position in the cryptocurrency trading market.

Features	Explanation
Minimum Trade	Interactive Brokers offers a low minimum trade amount, making it accessible for both small and large investors. This encourages new traders to start without significant capital.
Trading and Transaction Fees	The platform’s fees are among the lowest in the industry, which is a major advantage for frequent traders.
Number of Cryptocurrencies	Currently, only eight cryptocurrencies are available, which limits options for traders looking for a diverse portfolio.
Crypto-to-Crypto Trading Pairs	The platform offers limited crypto-to-crypto pairs, which restricts trading strategies for users looking to trade beyond major cryptocurrencies.
Website Transparency	Interactive Brokers provides clear and comprehensive information about their services and fees. However, the site could be more intuitive for beginners.
Credit/Debit Card
Storage Offering	The platform offers secure storage solutions through partnerships with regulated entities, ensuring the safety of users’ digital assets.
Staking and Rewards	Interactive Brokers does not currently offer staking or rewards programs, which could be a drawback for users looking for passive income opportunities.
Mobile App and Desktop	The mobile and desktop platforms are highly rated for their functionality and user-friendly design, catering to both novice and experienced traders.
Customer Service	The customer service is generally responsive and helpful. However, the complex account setup process can be a barrier for new users.
Deposit and Withdraw	The platform provides efficient deposit and withdrawal processes with multiple options, although there is room for improvement in speeding up withdrawal times.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert on our website, I highly recommend Interactive Brokers for those interested in integrating cryptocurrency trading with traditional financial instruments. The platform offers competitive fees, robust security, and seamless integration with other asset classes, making it an excellent choice for experienced traders looking to diversify their portfolios. While the account setup process can be complex, the advanced trading features and reliable customer support make it worth the effort. If you’re seeking a secure and cost-effective way to trade cryptocurrencies, Interactive Brokers is a solid option.

Fees

Interactive Brokers offers a competitive and transparent commission structure for cryptocurrency trading. The commission rates range from 0.12% to 0.18% of the trade value, with a minimum fee of $1.75 per order, capped at 1% of the trade value. This fee structure is notably lower than many competitors, who may charge up to 2.00% or include additional spreads and markups. Trading cryptocurrencies on Interactive Brokers’ platform does not incur any added spreads, markups, or custody fees. This is facilitated through their partnerships with Paxos Trust Company and Zero Hash LLC, both of which are regulated entities, ensuring a secure trading environment. Furthermore, clients can trade cryptocurrencies 24/7 when funds are transferred to their dedicated Paxos or Zero Hash account during normal US banking hours.

Pros

Low trading fees: Interactive Brokers offers some of the lowest trading fees in the industry, making it cost-effective for frequent traders.
Volume discounts: The platform provides volume-based discounts, which benefit high-frequency traders by further reducing costs.
Transparent fee structure: The broker has a clear and detailed fee structure, allowing users to easily understand and calculate their trading costs.

Cons

Read more about fees in Interactive Brokers

Interactive Brokers offers a highly competitive commission structure for cryptocurrency trading, designed to appeal to both small and large traders. The commission fees range from 0.12% to 0.18% of the trade value, with a minimum fee of $1.75 per order. These fees are notably lower than many other platforms, which can charge up to 2.00% or include additional spreads and markups. Additionally, there is a cap on the commission fees, set at 1% of the trade value, ensuring cost efficiency for larger trades.
One of the significant advantages of trading cryptocurrencies on Interactive Brokers is the absence of added spreads, markups, or custody fees. This transparency in pricing is facilitated through partnerships with Paxos Trust Company and Zero Hash LLC, both regulated entities, ensuring that trades are conducted in a secure environment. The lack of hidden fees means that traders can better predict their costs and manage their trading strategies more effectively.
Interactive Brokers supports 24/7 trading for cryptocurrencies, provided that funds are transferred to the dedicated Paxos or Zero Hash account during normal US banking hours. This round-the-clock trading availability is crucial for the highly volatile crypto markets, allowing traders to respond to market changes at any time. However, while the trading fees are low, the platform does not offer other incentives like staking or rewards programs, which might be a drawback for some users looking for passive income opportunities.

In summary, Interactive Brokers’ commission structure for cryptocurrency trading is straightforward and cost-effective, making it an attractive option for both novice and experienced traders. The platform’s regulatory partnerships and lack of hidden fees further enhance its appeal, providing a secure and transparent trading environment. However, the limited number of cryptocurrencies and absence of staking options may be a consideration for those looking for a more diverse range of services.

Product selection

Interactive Brokers offers a diverse range of services and products that cater to both traditional and cryptocurrency traders. Clients can trade and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with low commissions ranging from 0.12% to 0.18%, and no added spreads, markups, or custody fees. The platform also supports 24/7 trading through its partnerships with Paxos Trust Company and Zero Hash LLC, ensuring regulated and secure transactions. In addition to cryptocurrency trading, Interactive Brokers provides access to a wide array of financial instruments, including stocks, options, futures, forex, and bonds. This integration allows users to manage a diverse portfolio from a single platform. The Trader Workstation (TWS) and mobile applications are equipped with advanced trading tools and features that support professional-grade trading and investment strategies. The platform also offers educational resources, including ESG (Environmental, Social, and Governance) tools, to help clients align their investments with their values. Additionally, Interactive Brokers provides free CRM and portfolio management tools, making it easier for advisors and individual investors to manage their investments efficiently.

Pros

Wide range of assets: Interactive Brokers offers access to a broad spectrum of assets, including stocks, options, futures, forex, and cryptocurrencies.
Advanced trading platforms: The broker provides sophisticated trading platforms like Trader Workstation (TWS) and mobile apps, catering to both professional and retail traders.
Comprehensive research tools: Users have access to a wealth of research tools, data, and analytics to inform their trading decisions.

Cons

Read more about product selection in Interactive Brokers

Comprehensive Review of Interactive Brokers’ Services and Products

Interactive Brokers offers a diverse and extensive range of services and products, making it a highly versatile platform for both traditional and cryptocurrency traders. Here’s a detailed look at what they provide:

Cryptocurrency Trading

Interactive Brokers enables clients to trade and hold cryptocurrencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), and Litecoin (LTC). The trading is facilitated through partnerships with Paxos Trust Company and Zero Hash LLC, ensuring secure and regulated transactions. Clients can trade 24/7, and the platform supports low commissions ranging from 0.12% to 0.18%, with no added spreads, markups, or custody fees.

Traditional Financial Instruments

In addition to cryptocurrencies, Interactive Brokers offers a broad spectrum of financial instruments. These include stocks, options, futures, forex, bonds, and ETFs. This integration allows users to manage a comprehensive investment portfolio from a single platform. The Trader Workstation (TWS) and mobile applications are equipped with advanced trading tools and features, making it suitable for professional-grade trading and investment strategies.

Special Features and Tools

Interactive Brokers provides various tools and features to enhance the trading experience. These include:

ESG Tools: For sustainable investing, allowing clients to align their investments with their values.
Free CRM and Portfolio Management: Tools to help advisors and individual investors manage their investments efficiently.
Spot Bitcoin ETPs: Allowing exposure to Bitcoin without directly owning the asset, offering a more accessible way to invest in cryptocurrencies.

Educational Resources

The platform also focuses on education, offering resources to help clients understand and make the most of their investments. These resources include market research tools, educational courses, and detailed guides on trading various financial instruments.

Account Types and Features

Interactive Brokers offers multiple account types to cater to different client needs, including individual, joint, institutional, and advisor accounts. The account setup process, though comprehensive, ensures that clients are well-prepared to manage their investments effectively. Clients can also choose between Crypto Basic and Crypto Plus trading permissions, with the latter providing access to additional coins and features like non-marketable limit orders.

In summary, Interactive Brokers is a robust platform that integrates cryptocurrency trading with a wide range of traditional financial instruments. Its competitive fee structure, advanced trading tools, and comprehensive educational resources make it a strong choice for both novice and experienced traders. However, the platform’s complexity and limited cryptocurrency selection might be a consideration for some users.

Account opening

Opening an account with Interactive Brokers is straightforward and efficient, offering a fully digital experience. The process begins by visiting their website and clicking on the “Open Account” button. You’ll need to provide personal information, including your name, email, and contact details. After verifying your email, you will be prompted to complete additional personal data fields, including your financial background and trading experience. Next, you must choose the type of account you wish to open, such as individual, joint, or retirement accounts, and select your account’s base currency. The final step involves uploading identification documents, such as a passport or driver’s license, and a proof of residence, like a utility bill. Once all information is submitted and verified, which usually takes a few business days, your account will be approved and ready for funding. The low minimum deposit and user-friendly platform make Interactive Brokers an attractive choice for both new and experienced traders.

Pros

Cons

Read more about account opening in Interactive Brokers

Detailed Account Opening Process for Interactive Brokers

How to Sign Up on Interactive Brokers

Create an Account:
- Visit the Interactive Brokers website and click on “Open Account.”
- Select your country of residence to determine the appropriate legal entity for your account.
- Provide your email address and create a password.
Opening an Account:
- Complete the online application by entering your personal information, including name, address, and contact details.
- Answer questions regarding your financial status and trading experience. This helps the platform understand your investment profile and suitability for different types of trades.
- Choose the type of account you want to open (e.g., individual, joint, trust, IRA for US clients, etc.).
Verification:
- Upload required documents for identity verification, such as a passport, national ID, or driver’s license.
- Provide proof of residence, which can be a bank statement, utility bill, or another official document that shows your address.
KYC and Compliance:
- Complete the Know Your Customer (KYC) process, which is mandatory for all financial institutions to prevent fraud and money laundering. This involves confirming your identity and residence.
Enable Trading Permissions:
- To trade cryptocurrencies, you need to request specific trading permissions. Interactive Brokers offers Crypto Basic and Crypto Plus permissions, the latter providing access to additional features and coins.

Buying Your First Cryptocurrency

Funding Your Account:
- Deposit funds into your Interactive Brokers account. The platform supports bank transfers and, for US residents, additional methods such as ACH, checks, and online bill payment.
- For Crypto Plus accounts, you need to pre-fund your cryptocurrency account by transferring money from your linked IBKR account to Paxos or Zero Hash.
Placing a Trade:
- Log in to the Client Portal and search for the cryptocurrency you want to trade using the symbol search bar.
- Select the desired cryptocurrency, choose your order type (e.g., market, limit), and enter the amount you wish to buy.
- Confirm and place your order. For Crypto Plus accounts, trades can be executed 24/7.

Account Types Interactive Brokers offers various account types tailored to different needs:

Individual Accounts: For single users.
Joint Accounts: For two individuals.
Trust Accounts: Managed by a trustee for the benefit of another person.
IRA Accounts: For US residents, offering tax advantages for retirement savings.
Corporate Accounts: For businesses, requiring higher minimum deposits.

How to Use Interactive Brokers

Trading Platforms: Utilize the Trader Workstation (TWS) for advanced trading options or the GlobalTrader app for a more streamlined experience.
Educational Resources: Interactive Brokers provides extensive educational materials, including tutorials, webinars, and research tools, to help you make informed trading decisions.
Customer Support: Access customer service via live chat, phone, or email for any assistance needed during the account setup and trading process.

By following these steps, you can efficiently open an account with Interactive Brokers and start trading cryptocurrencies, benefiting from their robust platform and extensive resources.

Security

Interactive Brokers is known for its robust security measures, ensuring that clients’ funds and personal information are well protected. The broker is regulated by top-tier financial authorities, including the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), which provide a high level of oversight and investor protection. This regulation ensures that the company adheres to strict standards, promoting transparency and reliability. To safeguard client accounts, Interactive Brokers employs multiple layers of security, including two-factor authentication (2FA), secure socket layer (SSL) encryption, and advanced firewalls. These measures help prevent unauthorized access and protect against potential cyber threats. Additionally, the broker offers account insurance through the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 in securities and $250,000 in cash per client, providing an extra layer of security in case of broker insolvency. Despite its strong security framework, it’s important for users to remain vigilant and follow best practices, such as regularly updating passwords and enabling all available security features, to ensure their accounts remain secure.

Pros

Highly Regulated: Interactive Brokers is regulated by top-tier financial authorities, including the SEC, FINRA, and FCA.
Two-Factor Authentication (2FA): Enhances account security by requiring an additional verification step during login.
Insurance Coverage: Client accounts are protected by SIPC up to $500,000, including a $250,000 limit for cash, with additional excess SIPC coverage.

Cons

Read more about security in Interactive Brokers

Is Interactive Brokers Legit?

Yes, Interactive Brokers is a legitimate and highly reputable brokerage firm. It is regulated by top-tier financial authorities such as the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), as well as the UK’s Financial Conduct Authority (FCA). The firm’s parent company is listed on the NASDAQ, which adds to its credibility and transparency as it must regularly publish financial statements.

Regulation and Licensing

Interactive Brokers operates under multiple regulatory licenses across various jurisdictions. This includes regulation by the SEC and FINRA in the US, the FCA in the UK, and other regulatory bodies in countries like Australia, Japan, and Hong Kong. This extensive regulatory framework ensures that Interactive Brokers adheres to strict financial and operational standards, providing a secure trading environment for its clients.

Is Interactive Brokers Safe?

Interactive Brokers employs several security measures to ensure the safety of client assets and data. These include:

Two-Factor Authentication (2FA): Enhances account security by requiring a second form of verification during login.
Encryption: Uses Secure Socket Layer (SSL) technology to encrypt data transmissions, protecting sensitive information from unauthorized access.
Insurance: Client accounts are protected by the Securities Investor Protection Corporation (SIPC) up to $500,000, including a $250,000 limit for cash. Additionally, Interactive Brokers provides excess SIPC coverage, further enhancing protection.

Security Methods

Interactive Brokers maintains high security standards through:

Regulated Partnerships: Cryptocurrency trading is facilitated through regulated entities like Paxos Trust Company and Zero Hash LLC, ensuring compliance with financial regulations and secure handling of assets.
Account Protection: The broker provides negative balance protection for retail clients trading CFDs, ensuring that clients cannot lose more than their account balance.

Security History

Interactive Brokers has had incidents involving regulatory fines for compliance issues in the past. These fines have been related to anti-money laundering (AML) and supervisory failures. However, the firm has since taken measures to strengthen its compliance and regulatory procedures, aiming to prevent future issues.

Conclusion

Interactive Brokers is a highly secure and well-regulated platform, making it a reliable choice for cryptocurrency trading and other financial activities. Its strong regulatory framework, combined with advanced security measures, ensures the protection of client assets and data. Despite past compliance issues, Interactive Brokers remains a trusted and transparent brokerage firm, offering robust security for its clients’ investments.

Customer service

Customer Service Review for Interactive Brokers Interactive Brokers offers multiple channels for customer service, including live chat, phone, and email. However, it is not available 24/7, which can be a drawback for users needing immediate assistance outside of operating hours. Response Speed: Live Chat: The response time can vary significantly. Some sessions receive a response in a minute, while others may take several minutes. Phone: The speed is described as mediocre. At times, the response is quick, but at other times, users might wait for 3-4 minutes. Email: The response time for emails is unpredictable. Sometimes replies are fast, but there are instances where it takes up to two days to get a response. Response Relevance: Live Chat: Generally provides clear and detailed information, addressing users’ queries effectively. Phone: Interactive Brokers’ phone support offers comprehensive answers, ensuring that users’ concerns are adequately addressed. Email: Email responses are detailed and provide all necessary information, but the variability in response times can be a drawback.

Pros

Multiple support channels: Interactive Brokers offers customer service through live chat, email, and phone, providing various options for users to seek assistance.
Responsive phone support: Phone support generally provides quick responses, allowing users to get help with their issues efficiently.
Detailed online resources: The broker provides extensive online resources, including FAQs, tutorials, and user guides, which can help users find answers to common questions independently.

Cons

Read more about customer service in Interactive Brokers

Customer Service Review for Interactive Brokers

Interactive Brokers offers multiple channels for customer service, including live chat, phone, and email. However, it is not available 24/7, which can be a drawback for users needing immediate assistance outside of operating hours. Response Speed:

Live Chat: The response time can vary significantly. Some sessions receive a response in a minute, while others may take several minutes.
Phone: The speed is described as mediocre. At times, the response is quick, but at other times, users might wait for 3-4 minutes.
Email: The response time for emails is unpredictable. Sometimes replies are fast, but there are instances where it takes up to two days to get a response.

Response Relevance:

Live Chat: Generally provides clear and detailed information, addressing users’ queries effectively.
Phone: Interactive Brokers’ phone support offers comprehensive answers, ensuring that users’ concerns are adequately addressed.
Email: Email responses are detailed and provide all necessary information, but the variability in response times can be a drawback.

Summary

Overall, Interactive Brokers provides a decent level of customer service, with multiple communication channels available. While the quality of responses is generally good, the variability in response times, particularly with live chat and email, suggests room for improvement. Additionally, the lack of 24/7 availability could be a limitation for users needing immediate assistance at unconventional hours.

Is Interactive Brokers Right for You?

1. Are You Looking for Low-Cost Trading? Interactive Brokers is renowned for its low trading fees, making it an excellent choice for cost-conscious traders. If you are an active trader who executes a high volume of trades, the broker’s competitive fee structure and volume-based discounts can significantly reduce your trading costs. Additionally, the transparent fee structure allows you to easily calculate and understand your trading expenses, ensuring there are no hidden surprises.
2. Do You Need Access to a Wide Range of Assets and Advanced Trading Tools? Interactive Brokers offers access to a broad spectrum of financial products, including stocks, options, futures, forex, bonds, and cryptocurrencies. This extensive range is ideal for traders looking to diversify their portfolios across different asset classes. Moreover, the broker’s sophisticated trading platforms, such as Trader Workstation (TWS), cater to both professional and retail traders with advanced features like customizable charts, real-time data, and complex order types. If you are an experienced trader or someone looking to expand your trading capabilities, Interactive Brokers provides the tools and resources to support your needs.
3. Are You Comfortable with Advanced Platforms and Require Extensive Research Tools? While Interactive Brokers offers powerful trading platforms and comprehensive research tools, these features can be overwhelming for beginners. The broker’s advanced tools are best suited for experienced traders who are comfortable navigating complex interfaces and utilizing detailed analytics. If you are new to trading, you might find the learning curve steep, but the extensive educational resources available can help you get up to speed. However, if you prefer a more straightforward and user-friendly platform, you might need to invest time in learning how to use Interactive Brokers’ advanced features effectively.

In summary, Interactive Brokers is an excellent fit for active traders seeking low-cost trading, a wide range of assets, and advanced trading tools. However, beginners should be prepared to invest time in learning the platform to fully leverage its capabilities.

Threenvest score

4,9

Fees

Low 4,4/5

Regulated

SEC, FCA

Available cryptocurrencies

4 (BTC, ETH…) (CFDs)

On the crypto broker website

Threenvest score

4,7

Fees

Low 3,7/5

Regulated

CySEC

Available cryptocurrencies

7 (CFDs)

Trading212

Threenvest score

4,9

Fees

Regulated

FCA, CySEC

Available cryptocurrencies

15 (CFDs)

Available cryptocurrencies and countries available

Available Cryptocurrencies and Countries at Interactive Brokers

Interactive Brokers offers access to a diverse selection of 11 cryptocurrencies for trading. Among the available digital assets, you can trade popular options such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and USD Coin (USDC). This range provides ample opportunities for traders looking to engage in cryptocurrency markets, whether for long-term investment or short-term trading. However, it is important to note that some prominent cryptocurrencies are not available on the platform. Notably absent from Interactive Brokers’ offerings are coins like Cardano (ADA), Polkadot (DOT), and Solana (SOL), which are popular among many crypto enthusiasts and traders. Regarding country availability, Interactive Brokers serves clients from a wide array of countries around the globe. Key markets include the United States, Canada, most European Union countries, Australia, Japan, and Hong Kong. However, there are some important restrictions. Residents of countries such as North Korea, Sudan, Iran, and Myanmar cannot open accounts with Interactive Brokers due to regulatory constraints. Additionally, certain features and services might be limited in specific jurisdictions based on local regulations.

Main cryptocurrencies available

Bitcoin (BTC)
Ethereum (ETH)
Bitcoin Cash (BCH)
Litecoin (LTC)
Chainlink (LINK)
Polygon (MATIC)
Uniswap (UNI)
Aave (AAVE)
USD Coin (USDC)
Stellar (XLM)
Dogecoin (DOGE)
Solana (SOL)
Cardano (ADA)
Polkadot (DOT)
Avalanche (AVAX)
Ripple (XRP)
Shiba Inu (SHIB)
Terra (LUNA)
VeChain (VET)
Algorand (ALGO)

Main countries where you can open an account

United States
Canada
United Kingdom
Germany
France
Australia
Japan
Hong Kong
Singapore
Switzerland
Italy
Spain
Netherlands
Belgium
Sweden
Norway
Finland
Denmark
Austria
New Zealand

FAQs

1. What types of accounts can I open with Interactive Brokers?

You can open a variety of accounts with Interactive Brokers, including individual, joint, retirement (IRA), corporate, and institutional accounts. Each type of account offers different benefits and is tailored to meet the needs of different kinds of investors.

2. Is Interactive Brokers suitable for beginners?

Interactive Brokers offers extensive educational resources and a demo account to help beginners learn the ropes. However, its advanced tools and platforms might be overwhelming for newcomers, so it’s advisable to take advantage of the educational materials provided.

3. What are the trading fees at Interactive Brokers?

Interactive Brokers is known for its low trading fees, which include competitive commissions and volume-based discounts. The exact fees depend on the asset class and trading volume, but the broker maintains a transparent fee structure.

4. How secure is my money with Interactive Brokers?

Interactive Brokers is highly secure, being regulated by top-tier financial authorities like the SEC and FINRA. The broker employs robust security measures, including two-factor authentication and SSL encryption, and offers account protection through SIPC insurance up to $500,000.

5. Can I trade cryptocurrencies on Interactive Brokers?

Yes, Interactive Brokers offers access to around 11 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. While the selection covers popular options, some cryptocurrencies like Cardano and Solana are not available.

6. What deposit and withdrawal methods are available?

You can deposit and withdraw funds using bank transfers and wire transfers. The first withdrawal each month is free, but subsequent withdrawals may incur a fee. Processing times typically range from one to three business days.

7. What countries are restricted from opening an account with Interactive Brokers?

Residents of North Korea, Iran, Sudan, Myanmar, Syria, and Cuba are currently unable to open accounts with Interactive Brokers due to regulatory constraints. It’s important to check for the most current information, as these restrictions can change.

Final opinion on Interactive Brokers

Interactive Brokers stands out as a comprehensive and reliable platform for trading cryptocurrencies, offering a wide range of financial instruments and low trading fees. Its robust security measures, coupled with regulation by top-tier financial authorities, provide a high level of trust and safety for users. The platform’s advanced trading tools and extensive research resources cater to professional traders and those seeking to diversify their investment portfolios. However, the complexity of its interface and the steep learning curve may pose challenges for beginners. Despite this, Interactive Brokers’ educational resources and demo account help mitigate these challenges, making it a viable option for those willing to invest the time to learn.

Compared to other exchanges, Interactive Brokers excels in providing a broad spectrum of asset classes, not just limited to cryptocurrencies, but also including stocks, options, futures, and forex. This versatility makes it a strong contender for traders looking for a one-stop trading solution. However, the platform’s cryptocurrency selection, while covering major coins, is limited compared to dedicated crypto exchanges. Additionally, the absence of 24/7 customer support can be a drawback for users who need immediate assistance across different time zones. Overall, Threenvest finds Interactive Brokers to be a solid choice for traders who value low fees, security, and access to a wide range of financial instruments, but it may require some acclimatization for those new to trading.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.