Why can I sometimes not trade cryptocurrencies?
If you can’t trade cryptocurrencies, it could be due to the FCA ban for IG UK retail traders. If you’re not a UK retail trader but still can’t trade cryptocurrencies, it could be because the market has been set to ‘unlongable’.
What is the FCA ban?
The FCA announced a ban, affecting UK retail traders, on trading cryptocurrencies through derivatives like spread bets and CFDs. The ban began on 6 January 2021. You can find more information on the FCA’s website here.
This means that, if you’re contracting with our UK office, you’ll only be able to trade cryptocurrencies through CFDs and spread bets if you’re classified as a professional trader. Learn more about professional trading and check your eligibility on our professional account page.
How does it affect me?
Who is affected?
Any retail client with an IG UK account. So the ban also affects clients who don’t live in the UK, but are contracted to our UK office and therefore regulated by the FCA.
Does this affect all cryptocurrencies?
Yes this ban affects all cryptocurrencies.
Can I still trade the Crypto 10 Index?
No, the Crypto 10 Index is also covered by the FCA’s ban.
Can I still trade crypto shares?
No, crypto shares are also covered by the ban.
Why can’t I open a long position on cryptocurrency?
If you’re a UK retail trader, you will be unable to open any new cryptocurrency positions from 6 January 2021 due to the FCA’s cryptocurrency ban
If you’re not affected by the ban (if you’re a professional, for example) and still can’t go long (open a ‘buy’ position) on a cryptocurrency, the most likely reason is we have reached our internal limits on the market. In this situation, the market is set to ‘unlongable’. This means we are unable to accept any new long trades either by phone or online – but you’ll still be able to close existing positions.
Due to the risks associated with cryptocurrencies, there’s a limit to the total amount of physical cryptocurrency we can hold as a business. When this limit is reached, we are unable to purchase more cryptocurrency to hedge your position.
This is when a market will be set to unlongable. And because we don’t know when we’ll be off of our limits, it’s not possible for us to estimate when the market may become available to trade again.
Where can I see if a cryptocurrency is currently unlongable?
The best way to find out if a product has any trading restrictions is via the special info area on the deal ticket.
If you are trading on one of our mobile apps, you can see this in the ‘market info’ section. In the special information at the bottom it will display whether it is possible to take long positions on the given market.
If you are using the IG Trading platform you will need to open a deal ticket and click on the ‘information’ (i) symbol. On the old platform you will need to open a deal ticket, click on the downward-facing arrow and then on ‘get info’.
