Coinbase customers residing in the US or UK can trade US-listed stocks after creating a Coinbase Capital Markets (CCM) brokerage account and completing onboarding.
Stock transactions on Coinbase Capital Markets vs. Coinbase crypto transactions
Aspect | Stocks | Crypto |
|---|---|---|
Main feature(s) | Stocks represent ownership in a company’s public equity or shares. Stocks are traded through brokerage accounts like Coinbase Capital Markets brokerage accounts and orders are executed on national market exchanges like NYSE and Nasdaq. | Digital assets are traded on platforms like Coinbase and decentralized exchanges. |
Available 24/5, Monday through Friday, excluding holidays | Available 24/7, including weekends and holidays | |
Settlement times | Transaction Date + 1 day (i.e., T+1), or 1 business day after the trade date. This means cash from a sale of stock won't be available for withdrawal or trading until one business day after the sale. | Can be near-instant settlement, depending on the blockchain, with no need for intermediaries |
Transaction fees and commission may be charged by broker-dealers or other intermediaries for trades, transfers, or other activity. For more information see the CCM Fee Schedule. | Transaction fees (maker/taker) and network fees, such as gas fees | |
Custody | Held in Coinbase Capital Markets brokerage accounts, fully disclosed to Apex Clearing Corporation (“Apex”). Apex is the custodian and clearing firm for Coinbase Capital Markets’s brokerage service. | Stored in wallets (custodial or non-custodial) |
One-time orders and limit orders | Market, limit, stop-limit, TP/SL, bracket, and TWAP orders | |
Income generation | Some stocks offer dividends | Staking offered for some cryptocurrencies in select locations |
Public information and transparency | Driven by regulatory reporting requirements. For example, Nasdaq- & NYSE-listed companies are required to file with the SEC and release audited financial statements, hold quarterly earnings calls, share information on their corporate actions, and are typically assessed by external analysts covering their company. Information typically exists in the Investor Relations section of the company website or on the SEC website (“Search Filings”). | Driven by the inherent nature of decentralized networks and open ledgers, and supplemented by community governance and documentation. For example, all on-chain transactions are recorded real-time on the public ledger (on-chain transaction activity). For many instances, on-chain governance and Decentralized Autonomous Organization (DAO) treasuries offer transparency. Development and future direction are discussed in community forums and social channels. |
Stocks held in Coinbase Capital Markets brokerage accounts at Apex are protected by SIPC up to certain limits. Your cash balances will be held by Coinbase, Inc. for stock trading in your Coinbase Capital Markets brokerage account. Cash balances held by Coinbase Inc., while not SIPC insured, are held in pooled custodial accounts at FDIC-insured banks or NCUSIF-insured credit unions. | Crypto is not protected by SIPC insurance. Cash balances are held by Coinbase Inc. in pooled custodial accounts at FDIC-insured banks or NCUSIF-insured credit unions. Coinbase One members receive protection for unauthorized sends ranging from $5,000-$500,000. |
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Disclosures
All securities and investments are offered by Coinbase Capital Markets Corp, member FINRA/SIPC. Securities services offered by Coinbase Capital Markets Corp are separate from digital asset services provided by Coinbase Inc., and any affiliates. SIPC does not apply to digital assets or cash held in your Coinbase Inc. or affiliate account. Additional information about your broker, Coinbase Capital Markets Corp, can be found on FINRA’s BrokerCheck (https://brokercheck.finra.org). Execution, clearing and custody of all securities are provided by Apex Clearing Corporation.
For UK customers, stock trading is offered by CB Payments Ltd (CBPL), which is authorized and regulated by the Financial Conduct Authority (FRN: 1045733). CBPL is authorized to arrange access to Coinbase Capital Markets Corp and Apex Clearing Corporation for execution, clearing, and custody.
Futures products and services are offered in the U.S. by Coinbase Financial Markets, a member of NFA and is subject to NFA’s regulatory oversight and examinations. Access to the referenced financial products requires user eligibility, and may not be available in all jurisdictions. The risk of transacting in futures can be substantial and may not be suitable for everyone. Not investment advice or a recommendation to trade a particular contract or to employ a particular strategy.
Outside the U.S. (excluding India and Australia)
Outside U.S., derivatives are available only to eligible users in select jurisdictions and are offered by Coinbase Bermuda Ltd., a Class F entity licensed by the Bermuda Monetary Authority. All trading and investment strategies involve risk, including loss of capital, and may not be suitable for all. Leverage in derivatives trading can work for you or against you.
India
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.
Coinbase India Private Limited is registered with FIU-IND to provide virtual digital asset services.
Australia
In Australia, derivatives trading is offered by Coinbase Australia Pty Ltd ACN 654 922 442 ("Coinbase Australia"). Any advice provided is general in nature and has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice having regard to your own circumstances. Derivatives Trading is high risk and you may lose your entire balance. Before making any decisions about whether to use a product, you should read the applicable Product Disclosure Statement, Financial Services Guide and Target Market Determination.
Coinbase Australia is licensed and regulated by the Australian Securities and Investments Commission ("ASIC"), AFSL No. 569752. Coinbase is also registered and enrolled with the Australian Transaction Reports and Analysis Centre ("AUSTRAC") as a virtual asset service provider and a remittance service provider.
This article is for informational purposes only and does not constitute the provision of investment advice. The customer assumes full responsibility for its trading activity and should consult its advisors for its specific situation. This material is not (i) an offer, or solicitation of an offer, to invest in, or to buy or sell, any interests or shares, or to participate in any investment or trading strategy, (ii) intended to provide accounting, legal, or tax advice, or investment recommendations. The information is believed to be current as of the date indicated and may not be updated or otherwise revised to reflect information that subsequently became available or a change in circumstances after the date of publication. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. Recipients should consult their advisors before making any investment decision.
"Funds" in this article is a generic term and may refer to exchange traded funds (ETFs) and/or mutual funds. Securities products are subject to availability and may change at CCM's discretion. See the most up-to-date information on CCM's product offerings.