How to Buy Bitcoin and Cryptocurrencies on Interactive Brokers (IBKR): A Complete Step-by-Step Guide

Introduction

Wondering how to buy cryptocurrencies like Bitcoin through Interactive Brokers (IBKR)? This guide simplifies the entire process of purchasing crypto assets on IBKR, covering everything from account setup to order execution. As of 2025, IBKR offers four major cryptocurrencies—BTC, ETH, LTC, and BCH—though direct purchases are no longer available for users in Taiwan (only crypto ETFs are accessible).

Table of Contents

1. Risks and Advantages of Buying Crypto on IBKR
2. Available Cryptocurrencies
3. How to Enable Crypto Trading Permissions
4. Step-by-Step Buying/Selling Guide
5. Fee Structure
6. FAQs

👉 Ready to start trading crypto on IBKR?

Risks and Advantages

Key Restrictions

• Asset Limits: Crypto holdings cannot exceed 10% of your total account value or $1M (whichever is lower).
• Conservative Investors: Maximum 5% allocation if your financial profile is set to "conservative."

Advantages

• Unified Platform: Manage stocks, bonds, and crypto in one account.
• Regulated Providers: Paxos and Zero Hash (NYDFS-regulated) handle custody.

Risks

• No SIPC Protection: Crypto assets aren’t covered by securities insurance.
• Third-Party Custody: Funds held by external providers (e.g., Paxos).

Available Cryptocurrencies

IBKR supports:

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Litecoin (LTC)
4. Bitcoin Cash (BCH)

Trading Modes

| Mode | Features | Best For |
|---------------|-----------------------------------|-------------------|
| Basic | Market orders only | Beginners |
| Crypto Plus | Limit orders, 24/7 trading | Active traders |

👉 Compare modes in detail

Enable Trading Permissions

Basic Mode

1. Log in to IBKR’s web portal.
2. Navigate to Settings > Trading Permissions.
3. Select Crypto/Assets and submit.

Crypto Plus Mode

1. Pre-fund your crypto account via Transfers.
2. Funds settle within 1 business day (ET: 6 AM–4 PM).

Buying and Selling Guide

Via IBKR Platform

1. Search for BTC/ETH/LTC/BCH.

2. Choose order type:

   • Market Order: Instant execution.
   • Limit Order: Set price/quantity.

Via Paxos (Third-Party)

• Simplified interface for quick trades.

Order Types
| Type | Pricing Unit | Notes |
|---------------|-------------|--------------------|
| Market Buy | USD | Instant purchase |
| Limit Sell | BTC | Set desired price |

Fee Structure

• Commission: 0.12%–0.18% per trade (min $1.75, max 1%).
• No hidden spreads or custody fees.

Volume Discounts
| Monthly Volume | Fee Rate |
|----------------|---------|
| < $100K | 0.18% |
| $100K–$1M | 0.15% |
| > $1M | 0.12% |

FAQs

Q: Is crypto insured on IBKR?
A: No—SIPC doesn’t cover crypto.

Q: Can I short crypto?
A: No, short selling isn’t supported.

Q: Minimum order size?
A: 0.00000001 units.

Q: Settlement time?
A: Trades settle instantly.

👉 Still have questions?

This guide ensures seamless crypto trading on IBKR while optimizing for security, cost-efficiency, and ease of use. Happy investing!