Electronic trading major IG today provided details to its clients on how the ban on cryptocurrency CFDs in the UK will affect them.

As of 6 January 2021, new FCA rules mean that traders will no longer be to trade cryptocurrencies using derivatives like spread bets and CFDs if an IG client is classified as a retail trader. Professional traders, however, can continue trading cryptocurrencies as usual. Professionals are also eligible for lower margin rates, monthly rebates and credit facilities, amongst other features.

Clients will be able to open cryptocurrency trades as retail clients with IG until 5 January 2021. After this, such positions will be set to ‘closings only’, with no deadline to close.

As of 6 January 2021, new FCA rules mean that only professional traders will be able to trade cryptocurrencies using derivatives like spread bets and CFDs.

IG stresses that pro clients can continue trading cryptocurrencies as usual – their positions will not be impacted. This means they will still be able to trade eight major cryptocurrencies plus IG’s Crypto 10 index, magnify their exposure with leverage and go long or short – all without a wallet.

The FCA announced in October that it is banning the sale of derivatives that reference certain types of cryptoassets to retail consumers. The ban covers exchange traded notes (ETNs) and contracts for difference (CFDs) on cryptocurrencies. The restrictions will come into effect on 6 January 2021.