A reader has asked: I would like to find a CRYPTO company in the UK whereby I have a trader or broker that can execute trades on my behalf.
The answer here is more of a warning than anything else.
There are two significant risks of being scammed here. The first is a cryptocurrency, the second is discretionary management fraud.
The FCA has banned cryptocurrency trading
The FCA has recently banned crypto derivatives trading. By which we mean trading cryptocurrencies like Bitcoin via CFDs or financial spread betting. The FCA has also banned crypto ETNs that are listed on public exchanges like the Bitcoin Tracker One and Ethereum Tracker One listed on the Nasdaq OMX in Stockholm. This has been done, as the FCA believes that trading cryptocurrencies on margin offer no value to investors and because of the share number of crypto scams operating. It is simpler to just ban them outright, so anyone offering crypto trading (in the FCA’s words) ” is likely to be a scam”.
This doesn’t mean you can’t speculate on cryptocurrencies by buying and selling them. You just have to pay full price through a cryptocurrency exchange rather than trading cryptocurrencies on margin. It’s worth noting though that cryptocurrency exchanges are unregulated so as well as losing money through crypto speculation you can also lose your money if the exchange goes bust and they lose your digital currency.
No legitimate broker will be offering discretionary cryptocurrency trading
The second point is that you should be very careful who you give authority to execute transactions on your behalf. Established and regulated UK wealth managers offer discretionary investment services whereby they can buy and sell investments on your behalf on low-risk long term investments. But will definitely not offer it on high-risk investments.
No respectable wealth manager would ever suggest that cryptocurrencies are a good investment.
If you come across anyone claiming they can make you money by trading cryptocurrency it is almost definitely a scam and should be reported to the FCA here: https://www.fca.org.uk/consumers/report-scam-us
Looking for someone to trade cryptocurrencies on your behalf will only lead you to scammers.
Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.
Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000.
Richard’s contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others.
Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues.
You can contact Richard at richard@goodmoneyguide.com
