Offering for crypto in IBKR / Paxos Feedback?

Has anyone tried the Cryto traiding with IB?
Any comments on the offer from IB?

regards,

I have no experience with Paxos, but looking at the numbers from the link it looks ok at a first glance.
(0.12% to 0.18% of trade value)

If you look a bit deeper, you’ll see that they have 1.75 USD minimum per trade, which means you have to trade more than 1000 USD to get the 0.12/0.18% fee. Otherwise, you’ll pay 1.75 USD for every trade.

Also the number of available currencies doesn’t look very appealing to me: AAVE, BCH, BTC, BUSD, ETH, LINK, LTC, MATIC, PAXG, UNI and USDP

Personally, I would not use it. It’s just the easier integration with IBKR, but other than that I don’t see any advantages. Unless you are often times trading with 1k+ USD per trade, which is not advised from a risk management perspective (unless you are already a millionaire and you don’t care).

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I thought it’s anyway not possible for us because IBUK does not permit crypto trading at all.

I didn’t look into it in detail but when I recently opened an account there is a question if you plan to trade cryptos or not, and if you choose ‘yes’ it says that normally Swiss clients would open an account with IBUK but with IBUK it isn’t possible to trade cryptos and therefore they would open an account with another IB entity (not sure if it was IBLU) and then you can trade via such a trust.

But since I anyway don’t want any cryptos I’ve chosen ‘no’ because I wanted an account with IBUK because with IBLU we would most likely lose access to US-ETFs and that’s something that is quite important for me to have.

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AFAIK it’s only available for US customers at the moment.

Not possible. Also trading of crypto futures is not possible.

Just seen the offer at IBRK. At first, I’d enjoy haveing all in onse single dashboard and platform, but then:

  1. it is not possible to transfer Crypto in or out of IBRK
  2. to transfer out, you can create a Paxos acccount and request a transfer there
  3. IBRK does not charge to transfer your coins to a Paxos account
  4. From Paxos you can send to a wallet etc

If IB UK allows it, it could be an option to buy and hold there for long term crypto investing in blue chip coins.

What do you think?

Edit: I don’t seem to be able to find " Client Portal and request “United States - Cryptocurrencies” trading permissions" (IB UK user)

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"as you have a residency of Switzerland and have an account under an entity other than IBLLC, it is not possible to convert your existing account from IBUK to IBLLC.
You can however, request “United States - Cryptocurrencies” trading permissions in your client portal through your U account. Please note, final approval will be determined by Paxos Trust. Trading is limited to the primary user on the account. "

This is the answer I got from support. I have a Family and Friends account and a User trading account under it. Both at IBUK. Seems that if the U account would be IBLLC in USA it would be ok.

Hi @Dr.PI

I don’t understand why you insist in killing the discussion.

  1. other forum members may still want to know and be able to open an account at IBLLC or IBLUX if they so wish
  2. You don’t know if I am able or can open an account at IBLLC

I could just simply open an account there (new U account, in US or LUX) and change my assets if I’d like to. Now, going back to the actual holding Crypto with Paxos through IB, we could discuss if this makes sense?

It seems to me similar to the Revolut Crypto offer.

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Sorry it was not my intention to kill any discussion. It just the topic of buying crypto at IB was coming up from time to time and the answer was so far that it is not possible for Swiss residents, which make a majority in this forum. If you are able to do it, go on and share your experience.