Coinbase vs Interactive Brokers — Head-to-Head Custody Comparison

An independent, data-driven comparison of Coinbase and Interactive Brokers across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Coinbase scores 7.8 vs Interactive Brokers's 6.9. Coinbase leads in 5 of 8 categories.

Coinbase is better suited for Beginners, US-based investors, Passive holders. Interactive Brokers is better suited for Professional traders, Multi-asset investors, RIAs adding crypto.

7.8

GoodCustody Score

Coinbase

6.9

FairCustody Score

Interactive Brokers

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase	Interactive Brokers	Winner
Security	20%	8.0	6.5	Coinbase
Insurance	15%	7.0	5.0	Coinbase
Regulatory	15%	9.5	9.0	Coinbase
Fee Transparency	10%	6.0	7.0	Interactive Brokers
Track Record	15%	8.5	9.5	Interactive Brokers
Withdrawal Flexibility	10%	8.0	5.0	Coinbase
Reporting & Audit	10%	9.0	8.0	Coinbase
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.8	6.9	Coinbase

Visual

Score Radar

Visual overlay of Coinbase and Interactive Brokers across all categories.

CoinbaseInteractive Brokers

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.0 vs 6.5)

Coinbase uses Institutional cold storage system key management with 98%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Interactive Brokers uses Paxos custody partnership key management with Via Paxos in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major incidents in 45+ year history.

Insurance (7.0 vs 5.0)

Coinbase offers Crypto insurance for hot wallet portion. FDIC on USD (up to $250K). via Crime insurance policy. Publicly traded company. FDIC insurance on cash. Crypto hot wallet insured.

Interactive Brokers offers SIPC up to $500K for securities (NOT crypto) via SIPC + excess. World-class securities insurance. Crypto is NOT insured.

Regulatory (9.5 vs 9.0)

Coinbase holds NASDAQ listed (COIN), FinCEN MSB, NY BitLicense, State licenses, Multiple international licenses and is a qualified custodian operating in United States / Global. Most regulated US exchange. Publicly traded. Custodian for multiple Bitcoin ETFs.

Interactive Brokers holds SEC registered, FINRA member, SIPC member, Global regulatory licenses and is a qualified custodian operating in United States / Global. One of the most regulated brokerages globally.

Fee Transparency (6.0 vs 7.0)

Coinbase charges None in annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) per transaction. Simple interface has higher fees. Advanced trading has competitive fees.

Interactive Brokers charges None in annual custody fees with 0.12-0.18% tiered per transaction. Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw.

Track Record (8.5 vs 9.5)

Coinbase was founded in 2012 and is headquartered in San Francisco, CA. AUM: $130B+ assets on platform. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Interactive Brokers was founded in 1978 and is headquartered in Greenwich, CT. AUM: $400B+ client equity. Incident history: No major incidents in 45+ year history.

Withdrawal Flexibility (8.0 vs 5.0)

Coinbase withdrawal fees: Network fees. Minimum account: No minimum ($1). Supported assets: Bitcoin, Ethereum, 250+ cryptocurrencies.

Interactive Brokers withdrawal fees: Not available (no crypto transfers out). Minimum account: No minimum for crypto. Supported assets: Bitcoin, Ethereum, Limited crypto selection.

Reporting & Audit (9.0 vs 8.0)

Coinbase: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Interactive Brokers: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Counterparty Diversification (2.0 vs 2.0)

Coinbase is a exchange custody provider. Key management: Exchange-managed custody with institutional-grade cold storage infrastructure..

Interactive Brokers is a exchange custody provider. Key management: Exchange-managed custody via Paxos partnership..

Fees

Fee Comparison

Side-by-side fee breakdown for Coinbase and Interactive Brokers.

Fee Type	Coinbase	Interactive Brokers
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	~1.5% (Simple) / 0.05-0.6% (Advanced)	0.12-0.18% tiered
Withdrawal	Network fees	Not available (no crypto transfers out)

Coinbase: Simple interface has higher fees. Advanced trading has competitive fees.

Interactive Brokers: Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase	Interactive Brokers
45+ year track record	✗	✓
98%+ cold storage	✓	✗
Beginner-friendly interface	✓	✗
Coinbase Vault for extra security	✓	✗
Crypto alongside stocks/bonds/options	✗	✓
ETF custodian (BlackRock IBIT)	✓	✗
FDIC on USD	✓	✗
Global presence	✗	✓
Institutional-grade execution	✗	✓
Lowest crypto trading fees	✗	✓
Professional trading tools	✗	✓
Publicly traded (NASDAQ)	✓	✗

Recommendation

Who Should Choose Which?

Coinbase is better if you…

✓Are a beginners
✓Are a us-based investors
✓Are a passive holders
✓Are a mainstream adopters
✓Want: Publicly traded — maximum transparency
✓Want: Custodian for BlackRock and other ETFs
✓Want: 98%+ cold storage

Interactive Brokers is better if you…

✓Are a professional traders
✓Are a multi-asset investors
✓Are a rias adding crypto
✓Are a institutional traders
✓Want: 45+ year track record — most established broker
✓Want: Lowest crypto trading fees (0.12-0.18%)
✓Want: Crypto alongside stocks/bonds/options

FAQ

Frequently Asked Questions

Is Coinbase or Interactive Brokers better for Bitcoin custody?

Coinbase scores 7.8 vs 6.9 in our weighted Custody Score. Coinbase leads in 5 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase is best for Beginners and US-based investors, while Interactive Brokers suits Professional traders and Multi-asset investors.

What is the difference between Coinbase and Interactive Brokers?

Coinbase is a exchange custody provider, while Interactive Brokers is a exchange custody provider. Coinbase excels in Regulatory, whereas Interactive Brokers is strongest in Track Record.

How do Coinbase and Interactive Brokers fees compare?

Coinbase charges None annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) transaction fees. Interactive Brokers charges None annual custody fees with 0.12-0.18% tiered transaction fees.

Which is more secure, Coinbase or Interactive Brokers?

Coinbase scores 8.0/10 for security while Interactive Brokers scores 6.5/10. Coinbase uses Institutional cold storage system key management, and Interactive Brokers uses Paxos custody partnership.