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Summary: Residents of the United Kingdom can easily buy hundreds of cryptocurrencies with Faster Payments (FPS) by going through an FCA-licensed digital asset exchange. FPS payments are instantly credited to crypto trading platforms allowing UK investors to purchase digital currencies within a minute of depositing funds.
After a thorough evaluation of over 20 digital asset exchanges in the UK, our team has determined that eToro is the best platform for FPS payments. eToro is regulated and licensed by the FCA and offers cheap and instant Faster Payments deposits to buy and sell over 3,000 cryptocurrencies, stocks, ETFs and other assets.
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Can I Buy Crypto with Faster Payments?
Yes, you can buy crypto using the Faster Payments service, which enables quick and direct GBP transfers from your bank to some of the best cryptocurrency exchanges in the UK. This method stands out for its efficiency and speed, allowing you to almost instantly top up your exchange account. To get started, ensure the exchange you choose not only supports Faster Payments but also follows the Financial Conduct Authority (FCA) guidelines for your security.
How to Buy Crypto with Faster Payments FPS
For investors keen on diving into the crypto market, it's essential to choose a platform that's regulated and facilitates GBP transactions seamlessly. eToro, favored by many in the UK for its comprehensive offerings, is a standout choice. This platform doesn't just stop at crypto; it also provides access to over 4,500 assets, including shares in companies deeply embedded in the crypto space like Coinbase and MicroStrategy.
Here’s a simple guide to buying crypto on eToro using Faster Payments:
- Sign Up with eToro: Start by registering on the eToro platform. You'll need to complete an identity verification process to fully activate your account.
- Deposit Funds: After logging in, locate and click the ‘Deposit Funds’ button. This is usually found in the lower left part of the interface.
- Choose Your Deposit Method: Select 'GBP' as your currency of choice. For depositing funds, you can use the Faster Payments Service, ensuring a swift and hassle-free transfer.
- Purchase Crypto: With your account funded, simply use the search feature to find your desired cryptocurrency. Follow the prompts to finalize your purchase.
What are the Fees?
Understanding the fee structure is crucial when buying crypto in the UK, especially when using Faster Payments. The fees you might encounter include GBP deposit charges, withdrawal fees, and trading costs, which typically consist of commissions and the spread.
eToro stands out for those investing from the UK, thanks to its competitive fee strategy. For UK bank account users, eToro offers attractive GBP deposit rates and lower trading commissions. It operates on a spread fee model, which is about 1%, making it a cost-efficient choice. This is particularly appealing compared to platforms like Coinbase, where the spread can exceed 2%.
Is Faster Payments Crypto Friendly?
Yes, the Faster Payments service welcomes those looking to engage with cryptocurrencies. It streamlines the process of transferring GBP directly to regulated crypto exchanges within the UK. These platforms are under the close watch of the Financial Conduct Authority (FCA), ensuring they adhere to high standards of security and regulatory compliance. This setup not only speeds up the process of moving funds but also provides a safety net against financial risks, such as fraud and money laundering.
In essence, using Faster Payments to fund accounts on regulated exchanges means you can invest in cryptocurrencies more securely and with peace of mind. It's a straightforward, fast, and safe way to navigate the crypto market, backed by the assurance of meeting legal and regulatory requirements.
In sum, the Faster Payments service offers a gateway for UK investors into the crypto world, ensuring swift, secure GBP transfers to FCA-registered exchanges. Platforms like eToro, with their broad asset offerings and compliance with regulatory standards, exemplify the seamless integration of traditional banking with the digital asset space.