[Dean]

I am looking for a safe platform to trade crypto futures in the uk. I have looked at a few but there are some red flags that raise concerns about there legitimacy. PTPY.com was one that looks suspect and safetyvalue also appears to good to be true. Any advice on how to best vet a platform before depositing funds?

[Richard Berry]

At the moment, crypto futures are not allowed in the UK, so any crypto exchange offering it to UK investors you should avoid.

It is possible to trade on exchange crypto futures like Bitcoin and Bitcoin micro contracts if you are classified as a professional investor, but you will have to prove that you can answer yes to two of the three of the below questions:

1. Has your trading averaged 10 significantly sized leverage transactions per quarter over the last 4 quarters?

2. Do you have a financial instrument portfolio, including cash deposits, exceeding €500,000?

3. Have you worked in the financial sector in a professional position, requiring knowledge of derivatives trading, for at least a year?

Even then, any FCA-regulated futures brokers in the UK will ask you to prove this by sending in documentation before providing market access.

Crypto futures are banned in the UK because they are traded on margin with leverage, meaning your losses are amplified and as Crypto is a volatile asset, it can mean you can lose all your money quickly.

However, you can still buy and invest in crypto in the UK through an FCA-regulated cryptocurrency exchange. When you buy crypto, your losses are limited to what you deposited, but you should still be prepared to lose your entire investment.

You mentioned – PTPY – which does not look legit to me – it says it has 7.3m users, but the website profile does not match this. PTPY also says it has an APP on the Apple Store and Google Play, which do not exist. When you enter a phone number, it asks you to sign in and enter a password. To me, it looks like a classic lead generation tool for scams, whereby if you enter your phone number, you will be cold-called afterwards. There are also no reviews for PTPY online that would suggest.

So avoid PTPY.

Safetyvalve, which you also mention, is a scam – avoid.

You also asked about how to vet a platform before depositing funds – always follow these steps.

1. Check they are regulated by the FCA – you can do this on the FCA register.
2. Double check that you are looking at the right provider website (clone scams are commonplace)
3. Always search the internet for reviews – most reputable brands will have a page on TrustPilot, but be suspicious of lots of overly positive reviews
4. If you feel under any pressure, walk away. If you are contacted by a salesperson from a financial platform and they give you the hard sell ,that is a big red flag – you should block their number and ignore them.
5. And finally, ASK – ask your friends, ask your family, ask the internet, you can even ask us directly in the forum if you think something specific is a scam.

[Author]

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