Online trading major IG Group is planning further changes to its cryptocurrency offering to UK clients.
According to a post by one of the administrators of the IG Community forum, the company will soon stop offering cryptocurrencies to UK retail clients. Shortly before that, IG will be raising margins for cryptocurrency trades. The margin changes are effective Monday, February 22, 2021.
Let’s recall that, as of 6 January 2021, new FCA rules mean that traders are no longer able to trade cryptocurrencies using derivatives like spread bets and CFDs if an IG client is classified as a retail trader.
Now, the broker has taken further steps regarding restricting the crypto offering. The company says it has now reached its internal product limit for exposure to cryptocurrencies, and as a result will be removing cryptocurrencies from its offering to UK retail clients.
Below is the full announcement:
On 6 January we restricted UK retail clients from increasing their exposure to cryptocurrencies, in accordance with the ban imposed by the Financial Conduct Authority (FCA) on the sale of crypto derivatives. We have now reached our internal product limit for exposure to cryptocurrencies, and as a result will be removing cryptocurrencies from our offering to UK retail clients. Ahead of this, we will also be increasing margin requirements.
Please ensure that you close all your open spread bet and/or CFD positions on cryptocurrencies by no later than 3pm on Wednesday 24 March 2021, from which point we will start to close any positions still open based on our prevailing bid/ask prices. This action is taken in accordance with Term 28(3) of the latest version of the applicable customer agreement governing your account(s) with IG.
In addition, from 3pm on Monday 22 February we will be increasing margin requirements for existing positions on cryptocurrencies to 100%. Markets affected are as follows:
- Bitcoin cash
- Bitcoin cash/Bitcoin
- Crypto 10 index
Please note this is a business decision but all feedback regarding cryptos is being noted by myself and passed to our senior team.