FCA bans the sale of crypto-derivatives to retail consumers

So the FCA has banned crypto-derivatives to retail consumers so it looks like the cryptocurrencies will have to be removed from the CFD platform. I have not seen any statement from Trading 212 on this yet. Thoughts?


so ridiculous, but if you want to walk into a betting shop and bet your house, go for it.


T212 will need to announce this and remove access but they have until 6 Jan so no panic just yet.

Would be interesting to know how many accounts this affects.

What I dont get is how you are meant to transition into being pro to able to continue trading.

Are you meant to class yourself as pro taking away your protection and giving access to higher leverage, and then use the practice account until ready?

Surely there’s a chicken / egg issue here? No we can’t give you pro status as you don’t have experience.

Are you allowed to use the practice mode still, to develop an understanding of crypto trading?

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Is this just cfd’s not investing, because im holding some crypto’s on binance?

Yeah it’s just the 9 CFDs we have, basically you can’t have leveraged products and where you don’t own the underlying asset.

Owning the actual crypto bought with your own money is still absolutely fine.

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@MitchB We’ll issue a statement soon.

one interesting statement I just read on this is:

“Retail consumers with existing holdings can remain invested following the prohibition, until they choose to disinvest. There is no time limit on this, and we do not require or expect firms to close out retail consumers positions unless consumers ask for this”

I assume that T212 will just close all positions and remove the cryptos to keep things simple but in theory they could leave existing positions open.

on a side note binance for instance allows futures and margins on crypto but I’m not sure if it is based in the UK so I’m not sure if the rules will apply to them. (or platforms like bitmex)

@trader787 We’ll follow the FCA’s guidance and let everyone hold their positions open for as long as they’d like.


Has this statement been issued yet? I can’t find it.

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I’ve just read the new notification about cryptocurrencies published on 25/11/2020 at 20:25, although I haven’t read the contents of the two links yet.

It says “on Friday the 27th, 01:00 GMT, we will suspend trading off all cryptocurrencies & liquidate all existing positions at the last available trade price”. This is completely different from the original notification published on 23/11/2020 at 10:35.

What happened to?:

Can we get an explanation for why Trading 212 have changed their mind please?

Also, the notification was only issued on the CFD platform, not INVEST or ISA. So does that mean it doesn’t relate to BTCE?

I am absolutely furious that you are forcing me into incurring a capital gains tax (CGT) liability! I have already used my CGT allowance for the 2020/21 tax year, so I’ll have to pay full tax on my profits. Is what you’re doing even legal?

Does anybody else think Trading 212’s approach to this is extremely suspect?


If this is true, it’s is very frustrating for the reasons you stated above. Considering it does not seem to be a FCA requirement to close positions that are already open, just not allow any new positons. To be honest, the whole FCA ruling stinks, but that is a rant for another day.

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I intend to see if I can get in touch with the FCA tomorrow to get their opinion on Trading 212’s actions.

“The FCA estimates that retail consumers will save around £53m from the ban on these products.”

If the FCA have introduced the ban in order to protect retail investors, I wonder what their thoughts will be about their actions causing investment platforms to liquidate positions, forcing investors into unnecessary CGT liabilities or losses.


Thank you. Please keep us posted if you do manage to get through. Hopefully @David or someone else from Trading 212 will respond on here to clarify what the situation is.

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Same thing here, it was clearly stated that we can keep our positions open as long as we want but now we get a notification that positions will be liquidated and only 48 hours before, at least we need to be informed of this weeks prior to the stated date. This is really frustrating. I’m seriously considering leaving T212 and look for another platform.

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I’m really annoyed if this is the case as it contradicts what they said a few days ago! Surely they can’t just force a closure!

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if you read this statement from t212 it makes perfect sense why they are all being closed. Crypto is on its way to a trillion dollar market cap which would mean t212 paying out the longs that’s have been hodling these last few weeks/months plus, it’s on leverage so amazing returns getting quashed

This just gets worse and worse.

It looks like bitcoin (BTC) is undergoing the generally expected price correction. If the price doesn’t recover soon, then the forced liquidation tomorrow will cause many recent investors to lose money.

In 24 hours, I’ve gone from worrying about Capital Gains Tax to panicking about losses!

This all feels like far too short notice!


If they announced this earlier I would’ve sold earlier. Announcing this liquidation just 48h ahead is ridiculous. Very disappointing.


This is very short notice to liquidate our positions at such a crucial time if this liquidation process does not get lifted and resolved this will incur a lot of us members to process forced losses and I personally will discontinue any future business with Trading212. 48hour notice is not reasonable in my opinion for such instrument(s) the FCA ban was understood although not favoured we were able to understand and work by it and liquidate our positions when we wanted to anytime before 2021 but have since resulted in a forced liquidation which i believe will overall benefit this broker and in the long run potentially lose a chunk of its customers to such drastic actions. It’s a very upsetting time within the community.


“If your firm carries out marketing, distribution or selling activities in, or from, the UK of the relevant products to retail clients, you are required to cease these activities by 6 January 2021,” said the FCA in a separate policy statement.

“Retail consumers with existing holdings can remain invested following the prohibition, until they choose to disinvest. There is no time limit on this, and we do not require or expect firms to close out retail consumers’ positions unless consumers ask for this.”

This is from the FCA, why are our positions being forcefully closed?!

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