Robinhood has agreed to buy UK crypto firm Ziglu in a deal that marks the US investment platform’s second attempt at gaining a foothold in the UK.
But what is Ziglu and what does it offer that other providers in the cryptocurrency space don’t? What kind of reviews does it get and how does the app manage to offer interest on your cash and Bitcoin?
We answer these questions and give the app a hands-on test drive to see if the company’s ease of use claims stack up.
What is the Ziglu crypto app?
Ziglu is a UK app-based financial platform for building a crypto investment portfolio, while offering a savings account, a debit card and simple gifting options.
The firm, which raised around £5million from Seedrs in 2021, has kept a low profile until the announcement of the Robinhood move in April 2022.
Simplicity is the name of the game here and Ziglu promises that you’ll be able to buy a range of cryptos, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Cardano, LINK, Litecoin, Doge, Polkadot, Solana and Tezos in ‘five taps’.
The platform offers an exchange fee of 1.25% and you can start your crypto portfolio from just £1. Your account is also insured up to £50,000 against cyber attacks and hackers.
To sign up to use the app, which is available in both the App Store (iOS) and the Google Play Store (Android), customers need to submit photos of an approved ID document, such as a passport or driving licence, and upload a video of themselves, together with a voice recording, as part of AML checks.
Getting started with Ziglu
From my experience, setting up an account is extremely easy – as long as you’re prepared to share your personal information and ID.
However, after submitting my details it took about 16 hours for my ID to be checked and verified before I could start using Ziglu.
The website claims you’ll be up-and-running ‘within minutes’ but this wasn’t the case for me.
But as long as you don’t need to open an account urgently (why would you?) overall you should find the process straight forward and painless.
Ziglu Review
Reviews of Ziglu on the web are mixed. It has a Trustpilot score of 4.2 out of 5, yet on Google it only scores 3.5 out 5.
Several customers have complained that their accounts were unexpectedly frozen or cancelled and they faced long delays to get their money back.
To be fair, Ziglu agents have responded to all the complaints thoroughly and given reasons for why account may be cancelled and why they are required by law to hold onto funds while cases are investigated.
In terms of my experience, I would score it a healthy 4.8 out of 5.
As I’ve said above, setting up an account was easy and once notified that my identity had been verified I could use it straight away.
For the purpose of this review I deposited £25 from my bank account to Ziglu and bought some Bitcoin with it. I then set up a Bitcoin Boost account (to earn interest) and moved my crypto here.
I then cashed out of the boost account and back to GBP before withdrawing my balance and transferring it back to my bank account.
I was extremely impressed by how seamless the whole process was. My initial deposit arrived instantaneously, and I’d bought Bitcoin within a couple of taps.
I was able to set up the boost account with another couple of taps then exchange it back to fiat and withdraw my balance all within a matter of minutes.
Ziglu’s claims that their account is ideal for people new to crypto stand up well as I believe that anyone who has used online banking before would find this app a breeze to use.
It treats Bitcoin and the other supported cryptos as a currency just like any other without any of the technical complexities that often accompany digital assets on show.
The only reason I dropped the 0.2 is because when I set up the Bitcoin Boost account the home screen went blank and I was forced to restart the app to get it to work.
How much does Ziglu charge to buy crypto?
Going back to my trial £25 – the fee to buy the maximum amount of Bitcoin my balance would allow was 31p.
I then had to pay a further 1.25% to exchange it back to Sterling, but the transfer back to my bank account was free.
The total cost of my transactions came to 60p, allowing for a couple of pence movement on the value of my Bitcoin for the brief period I held it. From my experience these fees are competitive.
The app automatically calculated and deducted the fees for me, which some crypto apps don’t do requiring you to make and unnecessary calculation before withdrawing your funds.
What are the drawbacks of Ziglu?
There are very few from my experience, especially if you’re a crypto novice and you simply want to start small with your investments.
The one aspect of Ziglu that is restricting is that you can’t send your crypto to other wallets, or receive crypto to yours. This is a similar downside to PayPal’s crypto offering.
You can send crypto and cash free to other Ziglu account holders, but it would be nice to have the flexibility to move your crypto wherever you want, including to a hardware wallet for safekeeping.
The pros definitely outweigh the cons though.
Ziglu is brilliantly simple to use, and the fees are competitive. The eye-catching interest rate on both crypto and sterling together with the unrestricted access to your funds make this a stand out option in the increasingly crowded crypto account space.
Does Ziglu offer interest on my Bitcoin and other cryptocurrencies?
Slick apps promising an easy route to crypto investing are popping up with increasing frequency, so how does Ziglu stand out?
Well, the Robinhood deal is certainly a game changer for the start-up, but it’s interest rate is pretty eye-catching as well.
Both cash and Bitcoin accounts pay 5% on your holdings, with the rate available to even the smallest of savers with no restrictions on access to your funds.
So, instead of having crypto languishing on an exchange or you cash earning a paltry percentage in a bank, you can get it working harder for you on Ziglu. Interest on both your sterling and crypto is paid weekly.
The only limitation on the interest accounts, known as Sterling Boost and Bitcoin Boost, is that they are capped at £10,000 in each account.
How does Ziglu pay such a high rate of interest on cash and Bitcoin?
When you move your cash into the Sterling Account you’re actually exchanging it for a stablecoin known as TrueGBP (TGBP).
This is then used by lending companies who’ve partnered with Ziglu to service loans to institutional investors, such as hedge funds, and the returns are then paid to clients.
Stablecoins are a digital currency and lending them comes with certain risks, mainly that a borrower defaults on a loan.
The other issue is that cryptocurrencies, including stablecoins, aren’t regulated by the FCA meaning your funds aren’t covered by the Financial Services Compensation Scheme.
It’s a similar story for the Bitcoin Boost account – your crypto is loaned out and the return from borrowers is passed on to you in the form of interest.
Does Ziglu offer a credit or debit card?
Ziglu offers a debit card which enables you to spend in GBP, US Dollars and Euros.
It claims this is an ‘intelligent card’ which registers when you’ve travelled abroad and automatically pays from the relevant account.
The app also has a handy feature which allows you to split bills or send cash gifts without any charge.
Is Ziglu regulated in the UK?
Ziglu is authorised and regulated by the FCA for the issue of electronic money. It’s also registered with the FCA as a cryptoasset firm for anti-money laundering supervision, but the actually crypto services themselves are not regulated.
At the time of writing fiat currency wasn’t covered by the Financial Services Compensation Scheme, but safeguarded at ‘an EEA authorised credit institution’.
Ziglu and Robinhood
In April 2022 it was announced that Robinhood had agreed to buy Ziglu for an undisclosed sum, subject to regulatory approvals.
According to Robinhood, the deal is part of plans to expand its brand overseas.
Vlad Tenev, CEO and Co-Founder of Robinhood Markets, said: “Together with the Ziglu team, we’ll work to leverage the best of both companies, exploring new ways to innovate and break down barriers for customers across the UK and Europe.”
Over the longer term existing Ziglu customers are likely to be absorbed by the Robinhood brand.
In 2019 Robinhood announced it was expanding into the UK and had attracted hundreds of thousands of prospective clients to its waiting list, but it was forced to shelve its plans in July 2020.
