I asked permission to trade crypto GBTC and IB replied like idiots

Kattermussen, you sound like the bully in the room picking on anyone to make you look tough or smart. It trades on the pinks. Just because someone trying to assist you doesn’t know the price of each 200,000 plus products they offer globally but correctly tells you what you need to do to trade it doesn’t mean you should berate him. Sad.
  • Cryptocurrency Products Offered by IBKR
    https://ibkr.info/article/3060
    …Stocks/ETFs US GBTC (PINK)- Grayscale Bitcoin Investment Trust BCHG (PINK)- Grayscale Bitcoin Cash Trust ETCG (PINK)- Grayscale Ethereum Classic Trust ETHE (PINK)- Grayscale Ethereum Trust GDLC (PINK)- Grayscale Digital Large Cap Fund LTCN (PINK)- Grayscale Litecoin Trust Non-US B…
 
klattermusen said:
I know what pink sheets are but GBTC does not meet the criteria of a penny stock by any reasonable measure.
More...

It trades on an unregulated exchange. So yes, the only difference was the IB CS should have said "pink sheets" instead of "penny stocks". You're making a problem out of nothing as everything else he said still holds true.

Benzinga's definition you posted states "Penny stocks, also referred to as micro-cap stocks, nano-cap stocks, small cap stocks, or OTC stocks, are common shares of small public companies that trade for less than one dollar per share."
This thing trades OTC.

The fact that this small slip-up bothered you so much says a lot. You bored or what?
 
The real "idiot" part of IB is "For trading US Penny Stocks, you also need to be 2 factor authenticated in both Trading Platform and Client Portal access"

2 factor authentication? That's completely over the top esp if the customer chooses to opt out.

And a $30+ stock/fund like GBTC should not be seen as a penny stock no matter where it trades. Thats archaic.
 
pointbob said:
The real "idiot" part of IB is "For trading US Penny Stocks, you also need to be 2 factor authenticated in both Trading Platform and Client Portal access"

2 factor authentication? That's completely over the top ...
More...

Not hardly.
Pennies are pennies because no one else will have them. :confused:
$Revenues/$Regulatory_Burden is ridiculously high.
IB is simply throwing in a tiny, tiny little trading hurdle, to keep out the high-cost, needy, "whiny little bitches" who might be tempted to pay Tim Sykes slip fees.

iu
 
klattermusen said:
IBKR needs to update it's concept of a penny stock to reality.

"

Penny Stock Definition - Investopedia
www.investopedia.com › ... › Penny Stock Trading
Nov 17, 2020 — A penny stock typically refers to the stock of a small company that trades for less than $5 per share. ..."


If i tell you I'm trading penny stocks - Do you think i'd be trading a leveraged fund like GBTC?

You might as well call UCO a penny stock then.

It's not "where it trades" that makes it a penny stock. It's the fact that it trades in "pennies".
More...
%%
Maybe right.
BUT since IBKR make$ its money as a broker/lender/etc, maybe there is a real good reason for thier answer?? Still sounds like they are trying to do you a favor\risk wise???:caution::caution::caution::caution::caution::caution::caution::caution:
 
You can thank IBKR! GBTC is an ETN and trades at the pinks.
The ridiculous premium turns it into a product that mimics the long end of the forward curve.

It's definitely not suited for retailers who don't understand all the mechanisms behind it.
 
Instead of GBTC which is not listed (OTC) & has a high mgmt fee -another Bitcon play is RIOT (NASDAQ) avg vol 14M.

Than there is MSTR (NASDAQ) avg vol 640k. This is a software company that holds hold 70,740 bitcons worth >$1B.
 
Last edited:
klattermusen said:
SO I wanted to trade GBTC and saw I needed to get trading permission for US futures crypto. Ok I did that and days later still no permission. I even asked customer support for help and they think crypto is a penny stock.

WTF?

"Dear Mr. Klattermusen

For trading US Penny Stocks, you also need to be 2 factor authenticated in both Trading Platform and Client Portal access. Since you have opted out from trading platform access so you may not able to request trading permission.

You can refer below steps to enable 2 Factor Authentication for trading platform.
- Within Client Portal, go to Settings > User Settings >Security > Secure Login System > Secure Login required for trading.
- Check the radio button "I Only want to use my Secure Login Device When logging in"
- Click Continue to make the changes.

For further information on SLS (Secure LogIn System) Opt out, please refer below weblink:
LINK../slsoptout.htm

Once enabled then you can submit trading permission request for US Penny Stocks. Please follow below steps to request trading permission:

If you need any further information, please let me know.

Regards,
Atul J
IBKR Client Services"
More...
Dannon, Heineken, SoftBank, Tencent,Ahold, ect trade on Pink. IBKR worries traders OTC get screwed by crazy spreads or the stocks get pumped making inexperienced traders cry to IBKR. GBTC has been the only way to trade Bitcoin that’s reasonably priced.
 
MrMuppet said:
How about you just buy actual Bitcoin?? That's the only way to trade Bitcoin that's reasonably priced. GBTC has a ~30% premium over spot...and you can't even short it.
More...
Most noobs don’t have $20k plus to play. GBTC has been a great trade even with the premium. Citron thought MSTR was the best way, others PYPL and SQ $180-$240 and $170 to $230 since their relative Bitcoin announcements. Edited to add. “Elon says no to Bitcoin”.
 
You must log in or register to reply here.
Back
Top