Buying Crypto in IBKR

Investing / Cryptocurrencies
1

Hey everyone,

I’m mostly with stocks/ETFs portfolio on IBKR, and crypto is just a tiny ~2% slice for me. Currently using Nexo for my small BTC holdings, but thinking of switching to buying/holding directly through IBKR via Zero Hash (or Paxos for some coins).

Has anyone tried IBKR’s crypto setup? Is it a good move for long-term spot holding, especially if you already bank with IBKR?

Quick reasons it looks better than most CEXs (Kraken, Coinbase, etc.) to me:

• Very low fees: 0.12%–0.18% commission (min ~$1.75, capped at 1% trade value), no spreads, markups, or custody fees — much cheaper than typical CEXs (often 0.5%+ with spreads).

• One unified account: Crypto trades alongside stocks/ETFs/options — easy portfolio view and cash management, no app-switching.

• Stronger regulation: Zero Hash has NYDFS BitLicense + chartered Trust Company (qualified custodian status), IBKR heavily regulated (SEC/FCA etc.) — feels more institutional/safer than many crypto-native exchanges.

• Pure spot only: No lending/rehypothecation risks like on yield platforms.

• 24/7 crypto trading + withdrawals to external wallets supported.

Downsides: Limited coins (~11 majors), no yields/staking, crypto not SIPC/FDIC protected (same as most).

Also, cold storage/hardware wallet seems too complicated/hassle for such a small allocation to meer, and the available Bitcoin ETPs/ETFs on ibkr (without beeing prof. Investor status) feel expensive over time compared to direct spot with low one-time fees.

Worth switching, or stick with Nexo?

Thanks for thoughts!

2 Likes
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Seems not many people have used this path yet.

However I went through the whole permission process and bought a first btc share through IBKR (PAXOS).
The default buying in 500 USD setps (while you could choose an arbitrary value as well). Seems to have very high liquidity, orders are filling instantly.
The crypto assets are neatly presented along side all stocks. I will likely move my assets to this solution.

3

Been doing this for a while. One of the better ways to buy crypto, and no issues with withdrawal. Would not advise storing anything there longer term, but to each their own. Revolut X is cheaper and simpler now though.

1 Like
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Hi. Thanks for creating this topic! I was about to ask you guys a question.

So yes, I own some BTC through IBKR and their partner Paxos. If I’m not wrong, the trading fee is 0.18% of the trade value, and the custody fee is 0%.

I gotta say, when I went through the process of getting the approval, IBKR kept saying that this whole crypto business is handled by Paxos, they offer no guarantee on anything, and it’s just integrated into IBKR for convenience. On account statement, the Paxos statement comes separately.

Now, I’d like to know your opinion about owning BTC that way, through Paxos, vs holding an ETF like the iShares Bitcoin Trust ETF (ticker: IBIT). The IBIT has a custody fee of 0.12% per year.

Which of these ways is “better”, more secure, more safe, more dependable? Is there a way to tell? What is your opinion?

To be honest, and I’m shamed to admit, I do not even know what I’m holding via Paxos. I guess it’s not an ETF, these are actual bitcoins that Paxos holds for me. But how does it work for the iShares ETF? The ETF is physically backed, so Blackrock also holds these Bitcoins.

So, I wonder what’s the practical difference. Anybody has an idea?

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Can you elaborate why? Where would you store any BTC for longer? And I want to exclude self-custody. I did it once, some years ago, and idk, I’d rather someone else handle it for me, than to trust my own monkey brain to never make a mistake and get hacked.

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Yes, I meant self-custody. To me the probability of Paxos getting hacked (just look at the list of crypto companies that got hacked) or my IBKR/Paxos account getting hacked (they are still surprisingly reliant on SMS for instance, 2FA “IB Key” can just be moved to a new phone with a password + SMS) is way higher than a decent self-custody setup being broken, which almost exclusively requires targeted physical and possibly violent crime. Though getting it right is not so simple and I understand it’s not for everyone. I think there are also now firms that specialize in proper crypto custody, but that’s private banking level of $$$.

1 Like
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I see. What I read is that Paxos only allows you to transfer to a whitelisted cold storage wallet. And there is a cooldown period of 24h once you whitelist a new wallet. This could give you the time to act if someone tried to steal your coins.

Btw, how do you protect yourself from malicious acts made on your regular stocks held at a broker? Yeah, like if your phone gets hacked and they get access to your IBKey, they could make some very stupid trades and make you lose all money. What option does a buy&hold investor have? One who trades maybe once a year…

Btw do you think holding an ETF like IBIT would be safer? Then it’s basically no different to holding any other stock. The hackers can’t steal your ETF. They could steal them from Coinbase, sure.

I wish the brokers took really good care when authenticating us, the users, to keep our portfolios safe…