Interactive Brokers Group Inc has revealed plans to begin offering crypto trading through its brokerage in the coming months.
“Clients are asking for it and we hope to be ready to offer it to them by the end of the summer,” said Thomas Peterffy, president and founder of Interactive Brokers, who at the Piper Sandler Global Exchange & FinTech Conference on Wednesday, June 9.
While Peterffy did not specify which crypto assets the foreign exchange company intends to offer, the New York-based brokerage firm began offering Bitcoin futures trading on its platform in December 2017.
Although rival brokerage firms such as Charles Schwab and Fidelity do not provide direct cryptocurrency trading on their platforms, they do provide some access to some related funds. However, the Robinhood stock trading app offers cryptocurrency trading.
Coinbase Global, the world’s largest crypto exchange, is one of the leading trading platforms used by various investors to access digital currencies. However, the newly listed company earned its first sell rating at Wall Street, Florida-based investment bank Raymond James, thanks to competition from traditional brokerage firms.
Investment bank Raymond James recently began hedging Coinbase’s COIN shares, awarding it an “underperforming” rating due to concerns that competition will reduce its transaction-based earnings.
Interactive brokers offering Bitcoin trading will further lower the barrier to entry for retail investors to access digital currencies. But unregulated currencies could pose security risks for established online brokers.
Peterffy admitted that the biggest challenge in providing cryptocurrency trading was ensuring that the company kept its customers’ digital currencies safe.
“When it comes to hurdles, the biggest hurdle is how to keep your customers 100% safe. How can you be 100% sure that your coins will not be stolen even if they cannot be traced? We will find out more about this when we open the business at the end of the summer, ”said Peterffy.
Interactive Brokers had $ 330.6 billion in client capital and 1.33 million client accounts, according to its first quarter of 2021.
Trading Forex with Cryptocurrencies
The foreign exchange market is the most liquid and largest in the world. It is truly a global currency market, open 24 hours a day every week, everywhere and accessible because it can be traded directly through brokers. There are a large number of market players who participate in the market.
Cryptocurrencies like Bitcoin have added a new dimension to forex currency trading. Various forex brokers such as eToro, IG, City Index, Interactive Brokers, and others have started accepting Bitcoin for currency trading in recent years. Some brokers accept a variety of other cryptocurrencies.
A significant advantage of currency trading with cryptocurrencies is that the cryptocurrency is not tied to a central bank. Crypto assets are free from macroeconomic issues like inflation or country-specific interest rates and great geopolitical influence.
Many brokers are willing to offer crypto transactions because such operations have no geographical limits and are attracting new clients.
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