Interactive Brokers Group, Inc. Expands Cryptocurrency Trading to Retail Investors in Hong Kong
Interactive Brokers Group, Inc. (IBKR) is taking a major step in expanding cryptocurrency trading to retail investors in Hong Kong. As a SFC-licensed securities broker, it has been approved to allow retail clients to trade cryptocurrencies, marking a significant milestone in the digital asset market.
David Friedland, the head of APAC for Interactive Brokers, stated, “As demand for cryptocurrency exposure as a means of diversification continues to rise, we are pleased to offer investors in Hong Kong a straightforward and cost-effective way to allocate a portion of their portfolio to digital assets,” highlighting the growing demand for access to cryptocurrency markets in the region.
Crypto Trading to Revolutionize Retail Investor Experience
The expansion of crypto trading for IBKR’s eligible clients in Hong Kong is significant as it allows them to transact and manage their portfolios through a single platform, providing a unified view. This also comes with the added benefits of centralized cash management and the ability to trade a wide range of asset classes – including stocks, options, futures, currencies, bonds, mutual funds, exchange traded funds (ETFs), event contracts, cryptocurrency futures, and futures options – all from a single account and interface.
The capabilities of their single unified platform make it easier for clients worldwide to invest across a broad range of global products. This will enable the retail investor community in Hong Kong to benefit from access to digital currency markets without the need to open and maintain multiple accounts at various brokers and exchanges.
Collaboration with OSL Digital Securities
Notably, Interactive Brokers partnered with OSL Digital Securities to launch cryptocurrency trading in Hong Kong. OSL Digital Securities is Hong Kong’s first SFC-licensed digital asset trading platform, making the partnership an excellent strategic move for IBKR.
Low Commissions and Global Expansion
The cryptocurrency trading through IBKR Hong Kong offers low commissions, ranging from 0.20-0.30% of the trade value, depending on the monthly volume. This is just one of the many moves that IBKR is making to enhance its global presence, including recent initiatives such as the IBKR GlobalTrader and the introduction of Overnight Trading on U.S. stocks and ETFs nearly 24 hours a day, five days a week.
Moreover, IBKR has also launched cryptocurrency trading via Paxos Trust Company, charging commissions that are lower than other crypto exchanges. Over the past six months, shares of IBKR have gained 3.2% compared with the industry’s growth of 2%.
Competitive Landscape in Cryptocurrency Trading
Certainly, cryptocurrency trading has become the focal point in the investment sector. Earlier this month, Robinhood Markets, Inc. (HOOD) announced its plans to start cryptocurrency trading in the European Union (“EU”) and brokerage operations in the U.K., indicating the increased global expansion in cryptocurrency trading. This move comes at a time when other crypto firms are suspending serving customers in the U.K. due to new regulations.
The expansion of Interactive Brokers Group, Inc. in Asian markets through Hong Kong is expected to further bolster its competitive position in the global cryptocurrency trading industry, marking another achievement in its growth strategy. Follow the story on Zacks.com to stay updated on the latest developments in the cryptocurrency market.
I have been writing about crypto for over two years. I have a vast amount of experience in the industry and my work has been featured on some of the biggest publications in the space.
