Investing in cryptocurrency through a trusted, regulated brokerage platform has become increasingly appealing — especially for investors who already manage stocks, bonds, and other assets in one place. Interactive Brokers (IBKR) offers a seamless way to buy and trade major cryptocurrencies like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash — all within the same account used for traditional securities.
This comprehensive guide walks you through everything you need to know about buying crypto with IBKR, from enabling cryptocurrency trading permissions and choosing between Basic and Crypto Plus modes, to placing your first order and understanding fee structures. Whether you're a beginner or an experienced trader, this article ensures you can confidently navigate the process.
Why Buy Bitcoin with IBKR? Risks and Advantages
While Interactive Brokers is primarily known as a securities broker, it now supports cryptocurrency trading through regulated third-party providers. However, there are important limitations:
- The total value of your crypto holdings cannot exceed 10% of your total account value (including both securities and crypto).
- Alternatively, the cap is $1,000,000, whichever is lower.
- For users with a conservative financial profile, the limit drops to 5% of account value.
👉 Discover how easy it is to start investing in crypto alongside your traditional portfolio.
Key Advantages
- Unified Investment Management: View and manage stocks, options, futures, and cryptocurrencies all in one platform — ideal for diversified portfolios.
- Seamless Fund Transfers: Move funds directly between your IB securities and crypto accounts without external wallets or exchanges.
Regulated Third-Party Providers:
- Paxos Trust Company, LLC: Licensed by the New York Department of Financial Services (NYDFS).
- Zero Hash LLC: Registered with FinCEN and holds a BitLicense, operating legally across 51 U.S. jurisdictions.
Important Considerations
- No SIPC/FSCS Protection: Unlike stocks and bonds, cryptocurrency assets are not protected by investor protection programs like SIPC or FSCS. If the service provider fails, recovery may not be possible.
- Third-Party Custody: Your crypto is held by Paxos or Zero Hash — not IBKR itself — introducing counterparty risk.
- High Volatility: Cryptocurrencies are highly volatile; only invest what you can afford to lose.
- No Margin or Short Selling: You cannot use margin to buy crypto or short-sell any digital assets on IBKR.
💡 Pro Tip: If you're holding large amounts of crypto long-term, consider transferring assets to a cold wallet (hardware wallet) after purchase for enhanced security.
Available Cryptocurrencies on IBKR
IBKR currently supports trading in four major digital assets:
- BTC – Bitcoin
- ETH – Ethereum
- LTC – Litecoin
- BCH – Bitcoin Cash
These are accessible under two different trading models: Basic Mode and Crypto Plus Mode.
Choosing Between Basic and Crypto Plus Trading Modes
Interactive Brokers offers two distinct ways to trade cryptocurrency, each suited for different types of investors.
Basic Mode (Ideal for Beginners)
- Automatically enabled after approval.
- Trade directly via IBKR platforms: TWS, Client Portal, or Mobile App.
- Supports only market orders.
- Limited to the four supported cryptocurrencies.
- Trading hours: Weekly from Sunday 4:00 PM to Saturday 5:00 AM (Taipei Time), with segmented sessions.
Crypto Plus Mode (Recommended for Active Traders)
- Requires pre-funding your crypto account by transferring USD from your securities account.
- Enables 24/7 trading.
- Supports limit orders (non-marketable buy limit orders).
- Allows access to additional cryptocurrencies through the service provider’s own platform (e.g., Paxos or Zero Hash web interface).
- Funds must be transferred in advance; transfer window is limited to specific hours.
👉 See how professional traders leverage advanced order types for better entry points.
| Feature | Basic Mode | Crypto Plus Mode |
|---|---|---|
| Order Types | Market only | Market & Limit |
| Trading Hours | Restricted | 24/7 |
| Fund Transfer Required | No | Yes |
| Access to More Coins | No | Yes (via provider) |
✅ Recommendation: Most users should opt for Crypto Plus Mode for greater flexibility, especially if they want to use limit orders or trade outside regular market hours.
How to Enable Cryptocurrency Trading on IBKR
Follow these steps to activate crypto trading:
Step 1: Enable Basic Crypto Access
- Log in to your IBKR Web Portal.
- Click on Settings → Trading Permissions.
- Search for “Cryptocurrency and Virtual Assets”.
- Submit the application — approval is typically instant.
Step 2: Upgrade to Crypto Plus Mode
- In the same Trading Permissions section, enable Crypto Plus.
- Once approved, transfer funds from your securities account to your crypto account.
⚠️ Note: Transfers occur only during specific windows:
- Eastern Time: 6:00 AM – 4:00 PM
- Taipei Time: 7:00 PM – 5:00 AM (next day)
All transactions are processed by the third-party provider (Paxos or Zero Hash), not IBKR directly.
How to Buy Cryptocurrency on IBKR: Step-by-Step Order Guide
You can place trades either directly through the IBKR interface or via the third-party provider's platform.
Option 1: Buy Crypto Directly on IBKR Platform (Recommended)
- Open the Trader Workstation (TWS) or Client Portal.
Search for the crypto symbol:
BTC– BitcoinETH– EthereumLTC– LitecoinBCH– Bitcoin Cash
Select Buy, then choose order type:
- Market Order: Immediate execution at current price.
- Limit Order: Set your desired price and quantity.
Order Types Explained
- Immediate or Cancel (IOC): Partial fills allowed; unfilled portion canceled instantly.
- Good 'Til Cancelled (GTC): Stays active until filled or manually canceled.
- Minute/Day Orders: Expire after set minutes or at end of trading day.
After execution, view your order history under the Activity & Statements tab. Fees will appear beneath the transaction amount.
Option 2: Use Third-Party Platform (For Crypto Plus Users)
- Access the provider’s platform via IBKR’s integrated link.
- View your portfolio: balances in BTC, ETH, LTC, BCH, and USD.
- Place trades with more flexibility and potentially more coins available.
IBKR Crypto Trading Fees: Transparent & Competitive
One of IBKR’s biggest advantages is its low and transparent fee structure:
- Commission Rate: Ranges from 0.12% to 0.18% of trade value.
- Minimum Fee: $1.75 per order, but never exceeding 1% of trade value.
- No Spread Markup or Hidden Fees: No additional charges for custody or execution.
| Monthly Trade Volume (USD) | Commission Rate | Minimum Fee |
|---|---|---|
| ≤ $100,000 | 0.18% | $1.75 or 1% (whichever is lower) |
| $100K – $1M | 0.15% | $1.75 or 1% |
| > $1M | 0.12% | $1.75 or 1% |
💬 Example: A $5,000 BTC purchase incurs a fee of just $9 (0.18%), well below the $50 cap (1%).
These rates are significantly lower than many retail crypto exchanges, making IBKR ideal for active or high-volume traders.
Frequently Asked Questions (FAQ)
Can I buy cryptocurrency with margin on IBKR?
No. Cryptocurrency positions cannot be held on margin. You must use fully paid funds.
Is my crypto protected by SIPC?
No. Cryptocurrencies are not considered securities and are therefore not covered by SIPC or FSCS insurance.
What is the maximum amount of crypto I can hold?
You can hold up to:
- 10% of your total account value, OR
- $1,000,000,
whichever is lower. Conservative investors are limited to 5%.
Can I short sell cryptocurrencies on IBKR?
No. Short selling is not supported for any digital assets on the platform.
What order types are available?
Only market orders and limit orders are supported.
What is the minimum trade size?
The smallest trade allowed is 0.00000001 units of any supported cryptocurrency.
How long does settlement take?
Cryptocurrency trades settle in real time, meaning ownership transfers immediately upon execution.
Final Thoughts: Is IBKR Right for Your Crypto Investing?
Interactive Brokers provides a secure, regulated pathway for investors who want to integrate crypto into a broader investment strategy. It’s particularly valuable for those already using IBKR for stocks and ETFs — offering unified reporting, competitive fees, and integration with a trusted brokerage.
However, it's not designed for full-time crypto traders seeking advanced tools, leverage, or access to hundreds of altcoins. For that, dedicated exchanges may be more suitable.
👉 Compare how integrated platforms stack up against specialized crypto exchanges today.
Whether you're testing the waters with a small BTC position or building a diversified digital asset portfolio, IBKR offers a reliable starting point — combining regulatory oversight with practical functionality.
Start small, understand the risks, and always prioritize security — especially when dealing with uninsured digital assets.