Interactive Brokers
Exchange CustodyInteractive Brokers is one of the largest and most established brokerages globally offering cryptocurrency trading alongside stocks, options, futures, and forex. SIPC member. Institutional-grade execution and lowest crypto trading fees.
Quick Verdict
With a Custody Score of 6.9/10, Interactive Brokers is ranked #6 of 10 among exchange custody providers. Its strongest category is Track Record and its weakest is Counterparty Diversification.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 6.5 | 20% | 1.30 |
| Insurance | 5 | 15% | 0.75 |
| Regulatory | 9 | 15% | 1.35 |
| Fee Transparency | 7 | 10% | 0.70 |
| Track Record | 9.5 | 15% | 1.43 |
| Withdrawal Flexibility | 5 | 10% | 0.50 |
| Reporting & Audit | 8 | 10% | 0.80 |
| Counterparty Diversification | 2 | 5% | 0.10 |
| Total | 100% | 6.9 |
Key Features
- ✓45+ year track record
- ✓Crypto alongside stocks/bonds/options
- ✓Institutional-grade execution
- ✓Lowest crypto trading fees
- ✓Global presence
- ✓Professional trading tools
Fee Breakdown
| Setup Fee | Free |
| Annual Custody Fee | None |
| Transaction Fee | 0.12-0.18% tiered |
| Withdrawal Fee | Not available (no crypto transfers out) |
| Notes | Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw. |
Security Details
Key Management
Paxos custody partnership
Cold Storage
Via Paxos
SOC Compliance
SOC 2 Type 2
Penetration Testing
Yes
Incident History: No major incidents in 45+ year history
Insurance Coverage
Coverage
SIPC up to $500K for securities (NOT crypto)
Carrier
SIPC + excess
Details
World-class securities insurance. Crypto is NOT insured.
Regulatory Status
Licenses
- SEC registered
- FINRA member
- SIPC member
- Global regulatory licenses
One of the most regulated brokerages globally.
Pros & Cons
Pros
- 45+ year track record — most established broker
- Lowest crypto trading fees (0.12-0.18%)
- Crypto alongside stocks/bonds/options
- Institutional-grade platform
- Global regulatory compliance
Cons
- Cannot withdraw crypto — must sell
- Limited crypto asset selection
- Crypto not SIPC insured
- Complex platform — not beginner-friendly
- Crypto is secondary to traditional assets