How to Buy Crypto with Hargreaves Lansdown
Explore why Hargreaves Lansdown doesn't support direct crypto trading and discover alternative avenues for engaging with crypto markets in the UK.
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply.
Summary: Hargreaves Lansdown's platform lacks support for direct trading of real cryptocurrencies but offers engagement with the crypto market via crypto-related stocks and ETFs. This approach, while less risky, comes with challenges like potentially higher costs and not owning the actual digital asset.
Upon reviewing several platforms, we find eToro as a commendable multi-asset broker. eToro provides access to various real cryptocurrencies, a user-friendly interface, and competitive fee structures. Notably, eToro operates under the regulatory guidance of the Financial Conduct Authority (FCA), ensuring a secure platform for cryptocurrency investments in the UK.
Can I Buy Crypto with Hargreaves Lansdown?
Currently, Hargreaves Lansdown does not facilitate the direct purchase of cryptocurrencies on its platform. Nevertheless, it provides access to crypto-associated financial products such as exchange-traded funds (ETFs) and stocks from companies involved in the crypto space, akin to MicroStrategy and Galaxy Digital Holdings.
Investors are urged to exercise caution when venturing into these investment avenues, considering potential risks encompassing management and custody hurdles. Historical occurrences like the decline of FTX can serve as prudent reminders of these inherent risks. Moreover, selecting these investment options may lead to elevated expenses (carry costs) compared to utilizing crypto exchanges in the UK to invest in assets like BTC and ETH.
How to Buy Crypto with a Hargreaves Lansdown Alternative
If you're looking for a secure route for cryptocurrency investments as an alternative to Hargreaves Lansdown in the UK, eToro is a solid choice. It aligns with the regulatory standards set for crypto asset exchanges by the Financial Conduct Authority (FCA). eToro facilitates multiple safe options for depositing GBP, including bank transfers, and credit or debit cards. It stands out for its competitive fee structure, narrower spreads, and wide variety of asset offerings compared to other platforms.
Here's a simple guide to get started with eToro:
- Head over to the eToro website and follow through with the identity verification steps, aligning with FCA regulations.
- Spot the 'Deposit Funds' button, usually found at the bottom left corner of the page.
- Enter the amount in GBP you wish to deposit and pick your preferred deposit method, be it a bank transfer or credit/debit card.
- Complete the deposit and you're all set to use the funds in your account to delve into a variety of cryptocurrencies.
What are the Fees?
When trading crypto stocks, ETFs, or other associated financial products on Hargreaves Lansdown, you may find that there aren't overt fees or initial charges. However, the platform does incorporate a fee within the spread, which is the variance between the buying and selling prices of equities and other investment vehicles, often hovering around 1%.
This fee setup is somewhat akin to that of eToro, a platform we often recommend. A distinct advantage of using eToro is the ability to purchase actual cryptocurrencies directly, broadening your investment horizons compared to the more restrictive offering of only derivatives on Hargreaves Lansdown.
Will Hargreaves Lansdown Offer Real Crypto Assets?
Currently, it seems unlikely that Hargreaves Lansdown will introduce real crypto assets in the near term. The primary hurdle is the absence of a sturdy and secure infrastructure to manage cryptocurrencies for individual and institutional investors within the UK's regulatory framework.
Establishing such an infrastructure demands substantial investment in technology and security protocols. Up till now, Hargreaves Lansdown hasn't exhibited any movements towards this direction. Hence, it's logical to assume that HL will continue concentrating on its existing products and services, which do not encompass direct transactions in crypto assets.
About Hargreaves Lansdown
Hargreaves Lansdown, established in the UK, has grown into a trusted platform for various investment and savings services. It caters to both individual and institutional investors, offering a range of product, including Stocks and Shares ISAs, Self-Invested Personal Pensions (SIPPs), and an innovative Active Savings account. The platform is lauded for its user-friendly interface, enabling easy management of investments, pensions, and savings all in one place.
The platform sets itself apart with its educational resources under the Learn section, providing valuable insights and market news to assist investors in making informed decisions. Although it doesn't support directly trading real crypto assets, it offers many other investment choices. With various account types and a wealth of resources, Hargreaves Lansdown remains a comprehensive and reliable platform for UK investors to grow their wealth.
Bottom Line
In conclusion, Hargreaves Lansdown is a solid choice for diverse investment options in the UK, but lacks direct cryptocurrency trading. It leans towards crypto-related stocks and ETFs which, while safer, may incur higher costs and don't entail owning actual crypto assets. Alternatively, eToro stands out, offering real cryptocurrency trading on a user-friendly platform, competitive fees, and under the Financial Conduct Authority (FCA)'s regulatory oversight, making it a secure and more direct option for cryptocurrency investments in the UK.
.webp)
