A practical guide to understanding Interactive Brokers' cryptocurrency trading platform, how Paxos and Zero Hash power the infrastructure, and what you need to know about costs, security, and trading dynamics.
Interactive Brokers (Nasdaq: IBKR) is a global automated broker that has steadily integrated digital assets into its multi-asset trading platform. As of mid-2026, the firm manages approximately $930.3 billion in client assets and offers cryptocurrency trading alongside stocks, options, futures, bonds, and funds—all from a single unified interface[reference:0][reference:1].
Rather than building its own crypto custody and execution infrastructure from scratch, Interactive Brokers partnered with two regulated third-party providers: Paxos Trust Company and Zero Hash LLC. These firms handle trade execution, custody, settlement, and compliance monitoring[reference:3].
Interactive Brokers does not custody your crypto directly. Your digital assets are held in a segregated account in your name at either Paxos or Zero Hash, outside of IBKR's own balance sheet[reference:4]. This structure is designed to isolate crypto assets from the brokerage's core operations.
Interactive Brokers has built its crypto offering around four distinct advantages[reference:5][reference:6]:
Understanding the roles of Paxos and Zero Hash is essential to grasping how Interactive Brokers' crypto offering works. Both are regulated financial institutions, but they have different histories and regulatory structures.
Paxos is a regulated blockchain infrastructure provider. It holds a trust charter from the New York Department of Financial Services (NYDFS) and has been operating in the digital asset space since 2015[reference:7]. In December 2025, Paxos converted to a nationally chartered trust bank supervised by the Office of the Comptroller of the Currency (OCC)[reference:8].
Paxos provides trade execution, custody, and settlement services for Interactive Brokers clients. It is also the issuer of the Paxos Standard stablecoin and the gold-backed Pax Gold (PAXG) token[reference:9].
Zero Hash is a crypto and stablecoin infrastructure platform that provides regulated brokerage infrastructure across 50+ U.S. jurisdictions, including 49 Money Transmitter Licenses and a NYDFS BitLicense[reference:10]. In March 2026, Zero Hash helped Interactive Brokers launch crypto trading in Europe, potentially reaching over 450 million people in the European Economic Area[reference:11][reference:12].
Zero Hash's platform manages execution, settlement, custody, compliance monitoring, and liquidity aggregation within a single framework[reference:13]. The company has raised $104 million at a $1 billion valuation, and Interactive Brokers has also invested in Zero Hash[reference:14][reference:15].
The custodian assigned to your account—Paxos or Zero Hash—depends on your account type and country of legal residence[reference:17]. Both offer regulated custody, but the specific provider may vary by jurisdiction.
Interactive Brokers offers a broad and growing selection of cryptocurrency tokens through Paxos and Zero Hash.
In July 2026, Interactive Brokers added nine new tokens through Zero Hash and three through Paxos[reference:18][reference:19][reference:20]:
Pax Gold is a gold-backed digital token representing fully allocated, physical gold held in professional vault facilities[reference:21]. It is available through both custodians.
One of Interactive Brokers' primary selling points is its low-cost structure for cryptocurrency trading.
Interactive Brokers charges up to 85% less than competitors[reference:27]. Recently launched crypto offerings from traditional brokers charge as much as 0.75%, and some platforms charge up to 1.20% or more[reference:28]. Dedicated crypto exchanges often charge 2.00% or higher.
For a $1,000 crypto trade at 0.15% (mid-range), the commission would be $1.50. Since the minimum is $1.75, you would pay $1.75. For a $10,000 trade at 0.15%, the commission would be $15.00 (well below the 1% cap).
Interactive Brokers does not add spreads or markups to the cryptocurrency price. The price you see is the price you get, plus the disclosed commission.
Understanding the practical mechanics of trading on Interactive Brokers' crypto platform is essential for effective execution.
Interactive Brokers supports market, limit, and stop-limit orders for cryptocurrencies, with real-time execution and full order book transparency[reference:31]. Clients can place non-marketable limit orders.
Interactive Brokers offers bidirectional stablecoin funding via USDC, PYUSD (PayPal USD), and RLUSD (Ripple USD)[reference:36][reference:37]. Clients can fund their accounts and transfer to external wallets near-instantly, 24/7, including weekends and holidays[reference:38]. Stablecoin deposits convert automatically into U.S. dollars[reference:39].
Interactive Brokers limits clients from opening new cryptocurrency positions above certain thresholds to ensure cryptocurrencies remain a complement to the core business:
Eligible clients can transfer supported cryptocurrencies from external wallets directly into their IBKR-linked crypto accounts without liquidating existing positions.
Security is a critical consideration for any cryptocurrency trading activity. Interactive Brokers employs a multi-layered security approach.
Your crypto assets are custodied with regulated partners—Paxos Trust Company or Zero Hash LLC—not with Interactive Brokers itself[reference:42][reference:43]. Both custodians are:
Interactive Brokers provides multiple layers of account protection[reference:46]:
Digital assets held with Paxos or Zero Hash are not protected by SIPC (Securities Investor Protection Corporation)[reference:49][reference:50]. Additionally, crypto assets custodied with Zero Hash or Paxos will not have any margin value in your IBKR account[reference:51].
While the custodial structure provides strong asset protection through regulated, segregated custody, you should be aware that:
| Feature | Paxos Trust Company | Zero Hash LLC |
|---|---|---|
| Regulatory status | OCC-chartered trust bank; NYDFS-regulated[reference:52] | NYDFS BitLicense; 49 state Money Transmitter Licenses[reference:53] |
| Primary role | Execution, custody, settlement, stablecoin issuance | Execution, custody, settlement, compliance, liquidity aggregation[reference:54] |
| Token coverage | BTC, ETH, LTC, BCH, SOL, AAVE, UNI, PAXG | All Paxos tokens + ADA, XRP, DOGE, AVAX, LINK, SUI, and 9 new tokens[reference:55] |
| Geographic reach | U.S. (federal trust charter) | 50+ U.S. jurisdictions + Europe (MiCAR)[reference:56] |
| Stablecoin support | Issuer of PAXG, supports USDC, PYUSD, RLUSD | Infrastructure for USDC deposits and conversion[reference:57] |
| SIPC protection | No[reference:58] | No[reference:59] |
Note: The custodian assigned to your account depends on your account type and country of legal residence.
Situation: Alex is an existing Interactive Brokers client with a $50,000 account. He wants to buy $5,000 worth of Bitcoin (BTC) through the platform.
Preparation: Alex requests Crypto Plus trading permission, which is approved overnight. He transfers $5,000 from his IBKR securities account to his dedicated crypto account (held with Paxos, based on his account type).
Trade execution: Alex logs in to IBKR Desktop, searches for BTC, and selects the crypto product. He places a limit order to buy BTC at the current market price. The order executes at $60,000 per BTC.
Cost calculation:
Outcome: Alex now holds approximately 0.0833 BTC in his crypto account. He can hold it, trade it further, or withdraw it to an external wallet at any time. The BTC is custodied with Paxos in a segregated account in Alex's name.
Lesson: The process is integrated into IBKR's existing platform, with transparent, low-cost pricing. However, Alex must be aware that his BTC holdings are not SIPC-protected and cannot be used as margin collateral.
Trading cryptocurrency on Interactive Brokers—or any platform—involves significant risks that you should carefully consider before participating:
This article is for educational purposes only and does not constitute financial, legal, or tax advice. All trading decisions are your own. We strongly recommend consulting with a qualified financial advisor and only trading with capital you can afford to lose entirely.
Commissions, token availability, and regulatory frameworks change over time. Always verify the latest information from Interactive Brokers' official website and the websites of Paxos and Zero Hash. For current crypto prices and market data, use reliable sources like CoinGecko or TradingView.