FTX is a leading crypto derivatives platform that has partnered with the biggest crypto exchange in the world, Binance. In this article, the FTX exchange review will provide an overview of the exchange and its differences. We will be assessing its features, user interface, products, trading fees, and more.
We aim to provide the most accurate and the latest information in this FTX exchange review. However, it’s always best to regularly visit the site to stay updated with any changes they implement.
Table of contents
- FTX Exchange Review
- History Overview
- Strategic Partnership With Binance
- FTX Exchange Review
- Supported Currencies
- Fees and Charges
- FTX Exchange Security
- Pros and Cons
- Final Score
- Review Score:
FTX Exchange Review
|Available on mobile||Yes|
|Number of supported coins/tokens||26|
|Number of supported trading pairs||276|
|Native token||FTX Token (FTT)|
|Supported fiat currencies||USD, EUR, GBP, AUD, CAD,CHF, HKD, SGD, ZAR|
|HQ Location||Hong Kong|
|Company Owner||FTX Trading LTD|
FTX.com was developed by Alameda Research, a quantitative trading firm established in 2017. It manages a $100 million digital assets portfolio and is one of the top market makers for OKEx, BitMEX, and other derivatives exchanges.
Sam Bankman-Fried and Gary Wang founded Alameda Research. Bankman-Fried is a professional trader for Jane Street Capital’s international ETF desk. Meanwhile, Wang is an ex-Google developer. Concurrently, they formed a professional trading and crypto team that helped create and run the FTX platform.
Gaining notoriety for its advanced trading products and industry-first derivatives contracts, FTX exchange began to stand out from the rest of the crypto derivatives market in August 2019, when it announced that it had raised $8 million in funding from several institutional venture capital companies.
In February, FTX exchange advertised that it would be taking a fund-raising round within an equity-backed token sale. Investors could buy FTX_Equity tokens, with a minimum buy-in of $250,000 – or 125,000 FTX_Equity tokens. In total, FTX valued itself at $1 billion through the token sale.
Strategic Partnership With Binance
In December 2019, leading cryptocurrency exchange, Binance invested a large sum into FTX in a bid to own a significant equity stake in FTX.com. Although the last value is undisclosed, the multi-million dollar contract is a quality testament to the FTX.com platform and trading infrastructure.
In a press release, FTX said that the purchase by Binance was the first external investment straight into Alameda Research. Moreover, the two firms would be working closely to create better trading products and develop more strong exchange platforms.
In December 2019, Changpeng Zhao (CZ) said of the partnership:
“The FTX team has built an innovative crypto trading platform with spectacular growth. We see quite a bit of ourselves in the FTX team and believe in their potential in becoming a major player in the crypto derivatives markets.”
The partnership will focus on working on new initiatives, which the FTX team said will be announced soon.
FTX Exchange Review
FTX’s user interface is powerful. It provides full customization of all the tabs in any order to your liking. Recently, FTX launched a redesign of its trading interface, which is miles better than the old one. Now, everything is more transparent and easier to use, mainly from new users who may start with leverage trading.
Moreover, multiple interface color options give the user interface a completely different look and feel. On the left side, you will see the chart with the order book, market trades, and the order tabs on the right. The interface does a good job, and now, after the design, it is ready to compete with other high-quality trading platforms like Bybit and PrimeXBT.
FTX Key Features
As an emerging crypto derivatives trading platform, FTX has been attracting users at impressive rates. Besides, it provides a wide range of advanced trading products. Moreover, the exchange has also been the first to launch some unique and innovative trading products. Such as MOVE contracts and leveraged tokens that have helped to set FTX apart.
Meanwhile, the team caters to both retail and institutional traders. It incorporates solid trading features such as low fees and tight spreads. Also, an OTC desk, best customer service support, TradingView charts, and mobile apps.
Other key features include:
- Fiat Currency Transfers – Users can make transfers in USD, EUR, CAD, GBP, and AUD. Also, the exchange accepts credit card deposits.
- Up to 101x leverage – FTX provides excellent power, which allows traders to maximize their profit potential.
- Easy Conversions/Stablecoin Settlements – Users can quickly convert currencies inside their accounts and trade all derivatives with one margin wallet.
- Institutional Grade Services – FTX includes top-class features such as deep liquidity and order books, unlimited withdrawals, a liquidation fund, and an OTC desk.
- Extensive Customer Support – FTX provides a wide range of features and resources aimed at helping its account holders to navigate the platform. This includes chat groups in over ten languages.
FTX supports deposits, trading, and withdrawal of an impressive number of fiat and digital currencies. For example, anyone engaged in depositing and withdrawing fiat can currently do with the following currencies:
FTX also allows its users to trade many cryptocurrencies, with perpetual swaps available for 15 assets. At the same time, it can trade over 45 tokens with leverage.
Moreover, FTX also offers unique altcoin indices, Bitcoin options, MOVE contracts, and spot trading. As a result, the following cryptocurrencies can be traded on FTX:
|Bitcoin (BTC)||Ethereum (ETH)||Litecoin (LTC)|
|Binance Coin (BNB)||Tether (USDT)||FTX Token (FTT)|
|Bitcoin Cash (BCH)||XRP (XRP)||Tezos (XTZ)|
|ChainLink (LINK)||EOS Ethereum Classic (ETC)||PAX Gold (PAXG)|
|Huobi Token (HT)||Tron (TRX)||Dogecoin (DOGE)|
|UNUS SED LEO (LEO)||Bitcoin Satoshi’s Vision (BSV)||BitMax Token (BTMX)|
|Cardano (ADA)||Algorand (ALGO)||TomoChain (TOMO)|
|OKB BiLira (TRYB)||MATIC Cosmos (ATOM)||–|
Currently, the FTX exchange supports over 20 different perpetual swaps with futures trading available for coins. Additionally, over 45 leveraged tokens are available, including BULL/USD (3x long BTC), BEAR/USD (3x short BTC), ETHBULL/USD (3x long ETH). Also ETHBEAR/USD (3x short ETH), LTCBULL/USD (3x long LTC), LINKBULL/USDT (3x long LINK), BNBBEAR/USDT (3x short BNB), and LEOBULL/USD (3x long LEO).
On the other hand, FTX also supports Bitcoin options trading and BTC MOVE contracts. Anyone looking for more straightforward trading can spot markets that support BTC, ETH, BNB, LINK, FTT, BCH, USDT, PAXG, XAUT, TRYB, and BTMX.
FTX backs fiat deposits and withdrawals in USD, EUR, GBP, AUD, CAD, CHF, HKD, SGD, and ZAR. In addition, the following cryptocurrencies can all be deposited into your FTX account.
- Bitcoin (BTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Binance Coin (BNB)
- Litecoin (LTC)
- FTX Token (FTT)
- BitMax Token (BTMX)
- BiLira (TRYB)
- USD Stablecoins (USDT, HUSD, USDC, TUSD, PAX, and BUSD)
Notably, there are no fees for crypto deposits and withdrawals as FTX pays the withdrawal blockchain fees. However, fiat withdrawals under $10,000 accumulate a $75 fee while all other transfers are fee-free.
Besides, FTX only processes wire transfers on weekday evenings, and USD wire transfers take up to one weekday to process. At the same time, non-USD transfers can take longer.
Furthermore, you can make a fiat deposit or withdrawal from your FTX wallet and select whichever fiat currency you prefer. Also, you can convert other fiat currencies to USD by using the ‘CONVERT’ button within your FTX wallet. Thus, you will see your chosen fiat currencies automatically convert into USD stablecoins.
All fiat transfers are regulated via a third-party OTC desk. Therefore, it is only available to Level 3 KYC verified users. However, the FTX team encourages users to get in touch before depositing or withdrawing fiat for the first time. It has also produced a video walk-through to explain the process.
Fees and Charges
FTX has no deposit or withdrawal fees, and there are also no fees on futures settlements. In addition, OTC trading or trading from within your wallet is also fee-free as all costs are built into the price you are quoted.
Moreover, Leveraged tokens have production and redemption fees of 0.10% and daily management fees of 0.03%. However, if you like to use the leverage of 50x, your trading fees rise by 0.02% and opting for 100x increases your trading fees by 0.03%, which is paid into the insurance fund.
It’s worth noting that the fees for MOVE contracts depend on the price of the underlying index and not the cost of the MOVE contract.
FTX operates the following tier fee structure for all futures and spot markets:
|Tier||30D Volume (USD)||Make Fees||Take Fees|
Note: FTT holders cannot decrease taker fees below 0.015%.
Discount for FTT holders
There are fee discounts obtainable for FTT holders. In comparison, the current deals are based on your FTT holdings and range from 3% to 60%.
|FTT Holding (USD)||Discount on FTX Fees||Discount on FTX OTC||Other Privilege|
|$1,000,000||40%||0.0150%||Automatically become a Tier 4|
|$2,500,000||50%||0.0200%||Automatically become a VIP|
|$5,000,000||60%||0.0200%||Automatically become a VIP 2|
FTX Exchange Security
Like any other crypto exchange in the space, FTX highlights that security is at the top of its priorities. For this, FTX has a digital wallet to store your digital assets. Moreover, the platform also encourages users to activate two-factor authentication, which will require a code to access your trading funds and make a withdrawal.
According to the website, FTX always works with researchers to assure the security of its products and services. However, currently, the FTX website doesn’t feature a dedicated section on the security aspects of the exchange. On the other hand, you can find specific accounts of their liquidation engine and the insurance fund.
This gives us the impression that FTX has put serious consideration into the safety aspects of the platform. Furthermore, since its release, FTX has been clear of any security breaches, nor has it faced any malware threats. Therefore, it seems that FTX has enough protocols and systems in place for the security of traders.
Pros and Cons
Gathering aspects of the FTX exchange review that could influence your decision. However, taking so much knowledge at once can be devastating. So let’s make everything easier for you.
- One of the cheapest fees in the crypto market
- A wide range of trading options to choose from
- Best-in-class safety and security
- Innovative market approach
- Advanced trading platform with cutting-edge innovations and functionalities
- Mobile app for iOS and Android
- No spam or breaches reported to date
- UI not user-friendly for new users
- Restricted in the USA
- No option to whitelist IPs
- Services offered: 4/5
- Reputation 5/5
- Cryptocurrency support: 4.8/5
- Fees: 4.5/5
- Security: 4.8/5
Score : 4.6 / 5
FTX is a regulated exchange and keeps registration with the Financial Crimes Enforcement Network (FinCEN) as a Money Services Business (MSB). Also, FTX seeks a Money Transmitter License in multiple states of the US.
Yes, the exchange receives a unique backstop liquidity provider program to neutralize traders for up to a specific volume in case of liquidation.
The FTT is the local token of the FTX exchange. Traders holding FTT tokens get discounts on trading fees and receive gains from FTX’s insurance program.
Yes, FTX is a safe crypto derivative exchange. The firm has regulations and offers advanced-level security protocols.
FTX exchange currently does not support crypto traders that reside in the USA to trade on the platform. This is because the services are restricted to US citizens due to ordinances within the nation. As a result, users will need to trade using a crypto exchange in the USA.
Clients can top up their trading account and acquire digital assets using a credit card. This feature is given by third-party provider Simplex, which accepts Mastercard and VISA credit/debit cards. Besides, there is a minimum transaction of $50 and a daily limit of $20,000 per user, which is reasonable for beginners and intermediate crypto investors.
FTX appears to be a legitimate crypto exchange specializing in derivatives, index, futures, and leveraged tokens that can trade with margin. The exchange is supported by top crypto liquidity provider Alamada Research which manages hundreds of millions of digital assets per day. FTX has seen a surge in the increase in recent years and is currently ranked #6 based on trading volumes according to Coinmarketcap.
FTX has a referral program to pay its users to promote FTX services to new members. When you sign up with FTX, a unique associate link will automatically be assigned to you. When a new user signs up with your referral code, you will get 30% of their trading fees. At the same time, they will get a 5% discount on their trading fees.
Disclaimer: This material must not be used as the basis for making any investment decisions. This serves only as helpful material about the crypto exchange. Trading digital assets involve risk and can result in the loss of investment capital. Hence, always make sure to do in-depth research before engaging or investing in any crypto assets