The rollout of a new feature for Interactive Brokers (IBKR +4.00%) clients was the catalyst propelling the company's stock higher on Wednesday. Shares of the next-generation brokerage rose by almost 4% that trading session on the news.
One for the crypto-heads
That morning, Interactive announced that its users can now transfer their holdings of certain cryptocurrencies into their crypto-linked accounts. The company promised that this would enable them to trade such assets at relatively low costs.
Image source: Getty Images.
Interactive claims to offer some of the lowest crypto trading fees among brokerages. It said these range from 0.12% to 0.18% of the total trade value, with a minimum of $1.75 per order. It adds no spreads or markups, the company added. It said that rival trading platforms can charge up to 2% and impose other fees.
"By enabling direct crypto portfolio transfers, we're making it easy for traders to benefit from IBKR's low-cost crypto trading and gain access to our full range of global markets within the same professional trading environment," Interactive quoted its CEO Milan Galik as saying.
NASDAQ: IBKR
Key Data Points
Solid timing
Interactive's announcement was well-timed, as Wednesday saw the continuation of a recent (albeit relatively modest) rally in cryptocurrencies.
While I don't think the expansion of the company's trading platform is make-or-break for its business, it's certainly a positive development. The more types of transactions a brokerage can offer, the "stickier" it can be for users (this also helps attract new clients). For existing Interactive investors, it'll be worth watching how enthusiastically customers embrace the new crypto trading capabilities.
