Summary: Hargreaves Lansdown doesn't facilitate cryptocurrency trading but offers access through crypto-related stocks and ETFs. This approach can be costly and often underperforms direct investments in assets like Bitcoin and Ethereum. We recommend using a digital asset exchange that operates under the oversight of the Financial Conduct Authority (FCA) to ensure compliance with regulatory norms in the UK.
Our detailed research points to eToro as the best trading platform for Hargreaves Lansdown's clients. eToro distinguishes itself with a comprehensive suite of over 3,000 assets, including a wide range of cryptocurrencies, stocks, ETFs, commodities, indices, and various fiat currencies. The platform supports instant GBP deposits through Faster Payments, bank transfers, and credit cards, allowing users to purchase digital assets immediately.
- Financial Conduct Authority (FCA) registered broker with over 30 million users.
- Buy, sell and trade over 3,000 Cryptocurrencies, Shares, ETFs and more.
- Instant GPB deposits through Faster Payments, bank transfer, credit cards and more.
Don’t invest unless you’re prepared to lose all the money you invest.
Can I Buy Bitcoin with Hargreaves Lansdown?
As a Hargreaves Lansdown client, you can indirectly invest in digital currencies through crypto-related stocks and ETFs, but direct cryptocurrency purchases aren't currently supported. For direct investments in Bitcoin and other tokens, you'll need to use a digital asset exchange in the United Kingdom. It’s important to find one licensed by the Financial Conduct Authority (FCA) to ensure the safety of your assets and the platform you’re using.
How to Buy Crypto with Hargreaves Lansdown Alternative
Hargreaves Lansdown clients interested in delving into cryptocurrency trading can do so through regulated exchanges that support GBP deposits. Our recommended platform for this is eToro, known for its diverse asset portfolio and compliance with the FCA. It allows a variety of deposit methods, including bank transfers, PayPal, Skrill, Neteller, and credit or debit cards.
Clients with Hargreaves Lansdown looking to trade cryptocurrencies on eToro can easily get started with these steps:
- Account Creation: Start by setting up an account on eToro and completing the necessary identity verification.
- Selecting Currency: Navigate to the "Deposit Funds" section and opt for "GBP" as your chosen currency.
- Initiating the Transfer: Choose your preferred payment method and fund your account.
- Buy Crypto: Use the search bar to find your desired token, click ‘Trade’, input the amount you want to invest, and tap ‘Open Trade’.
Will Hargreaves Lansdown Offer Cryptocurrencies?
As of now, Hargreaves Lansdown's executive team hasn't announced plans to support direct trading of digital assets on their platform. They maintain that exposure to crypto through equities is adequate for their clients. However, it's worth noting that direct investments in digital currencies have historically shown higher returns compared to crypto-related equities. To avoid centralisation risks, as exemplified by the recent FTX incident, direct purchase of cryptocurrencies is recommended.
Digital Asset Investing Fees
For clients of Hargreaves Lansdown exploring cryptocurrency investments, understanding the fee structures is crucial to maximising investment returns. Here is an overview of typical fees encountered on digital asset trading platforms:
- Trading Fees: Platforms like eToro generally charge transaction fees for digital currencies, often around 1%.
- Deposit Fees: These can vary based on your chosen deposit method. Bank transfers and Faster Payments typically have lower fees, whereas credit or debit card deposits may incur fees up to 2%.
- Withdrawal Fees: Fees for withdrawing cryptocurrencies differ, with Bitcoin usually having a chargeof around 0.0005 BTC.
Clients of Hargreaves Lansdown considering cryptocurrency investments might find eToro appealing for its competitive fee structure and the option to deposit in GBP. eToro adheres to the regulatory guidelines of multiple international financial authorities, ensuring a secure and regulated environment for trading.
What is Hargreaves Lansdown?
Hargreaves Lansdown is a leading UK-based financial services company renowned for its investment management and financial advisory services. Founded in 1981 by Peter Hargreaves and Stephen Lansdown, the firm has grown significantly, boasting a strong reputation for providing a wide range of products and services, including individual savings accounts (ISAs), pensions, and stock brokerage services.
Hargreaves Lansdown is distinguished by its user-friendly online platform, offering clients easy access to manage their portfolios, extensive research resources, and expert market analysis. The company prides itself on its commitment to investor education and transparent fee structures, making it a popular choice for both novice and experienced investors in the UK’s financial market.
Final Thoughts
In conclusion, Hargreaves Lansdown presents a unique approach to cryptocurrency investment by offering exposure through crypto-related stocks and ETFs rather than directly trading digital currencies. While this method offers a level of familiarity and security within the traditional financial framework, it may not yield the same returns as direct investments in cryptocurrencies like Bitcoin and Ethereum.
For clients looking to engage directly with digital assets, platforms like eToro, regulated by the Financial Conduct Authority (FCA), offer a more suitable alternative. eToro's diverse asset range, user-friendly interface, and competitive fee structure make it an attractive option for those seeking to diversify their portfolio with cryptocurrencies.
Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
