Financial advisors with $110 billion in assets under management may now provide cryptocurrency trading to their clients through Interactive Brokers
Registered investment advisors (RIAs) with more than $110 trillion in assets under management may now provide cryptocurrency trading to their customers through Interactive Brokers. RIAs are in charge of over 61 million customer portfolios.
Cryptocurrencies are now available to clients of registered investment advisors
Interactive Brokers Group (Nasdaq: IBKR), a global financial business, announced the introduction of cryptocurrency trading for registered investment advisers (RIAs) in the United States on Monday.
This service will allow RIAs to “trade and custody bitcoin (BTC), ethereum (ETH), litecoin (LTC), and bitcoin cash (BCH) on behalf of customers via Paxos Trust Company.” They’ll be able to handle their customers’ cryptocurrency assets alongside traditional investments like stocks, options, futures, bonds, mutual funds, and exchange-traded funds (ETFs).
According to joint research by the Investment Adviser Association and National Regulatory Services, almost 14,000 investment advisers registered with the US Securities and Exchange Commission (SEC) reported nearly 61 million customers in 2020. Both of these figures represent new highs for the sector. Furthermore, the business manages roughly $110 trillion in total assets.
As of the first quarter, the Interactive Brokers platform has roughly 1.33 million user accounts and $330.6 billion in customer equity. From a single integrated account, clients from over 200 nations and territories invest internationally in stocks, options, futures, currencies, bonds, and funds.
Interactive Brokers’ Executive Vice President of Marketing and Product Development, Steve Sanders, said:
Advisors may want to suggest bitcoin to their clients since allocating a modest amount of assets to cryptocurrencies as part of a well-diversified portfolio has become increasingly prevalent.
Commissions for cryptocurrency trading with Paxos on Interactive Brokers’ RIA platform range from 0.12 percent to 0.18 percent of trade value, depending on monthly volume, according to the firm. There are also no additional spreads, markups, or custodial costs, according to the notification.
While the service is now only available to RIAs in the United States, the firm says it aims to “launch the service for financial advisers in other areas of the world in the future.”