In November 2022, FTX announced a liquidity crisis and a high probability of collapse. FTX and FTX.US filed for bankruptcy on Nov. 11 amid liquidity concerns and allegations regarding misuse of customer funds. We can’t recommend using FTX at this time.
With unlimited access to the internet and computing devices, most financial investments are executed via digital platforms. These platforms are currency exchanges where people can trade their currency pairs for instant profits. In the cryptocurrency world, FTX is one of the most popular crypto exchanges for buying, selling, and trading cryptocurrencies.
|Supported Fiat Currencies||USD, Euro, GBP, AUD, CAD|
|Supported Countries||Most of All|
|Transaction Fees||Maker-> 0.020% – 0%
Taker-> 0.070% – 0.040%
|Withdrawal Fees||up to 0.10%|
|Customer Support||Help Center, Submit requests, and mail support|
In this FTX review, every factor driving this platform’s latest popularity has been explored. Unlike other FTX reviews, this article provides an in-depth evaluation of why people prefer FTX Exchange to trade crypto derivatives and master profit-making techniques.
What Is the FTX Trading Platform?
FTX is an online digital exchange for cryptocurrency and crypto derivatives. It is designed to support the trading of BTC options and other popular crypto derivatives. FTX helps gain access to the best spot trading practices and enables fund transfers via fiat and stable cryptocurrencies, such as Ethereum, Bitcoin, and Litecoin. It supports a selected range of stablecoins and altcoins.
FTX helps retail and institutional traders diversify their crypto trading portfolios with its trading services. The platform provides multiple trading products and options. Furthermore, FTX services are developed to stay dedicated to professional traders in the market. In other words, the platform offers services to experienced traders.
FTX platform also runs an OTC service. This service helps interested traders make large crypto purchases. Through the FTX mobile app, traders can buy large crypto volumes and manage their FTX user accounts on the go. Considering the volume, it is counted among the best derivatives exchanges.
How Does FTX Work?
The platform wants everyone to hear its business model out loud. The platform does not shy away from being transparent in its operations. On FTX, users can settle their futures trading in US dollar fiat currency. This means that the platform makes around $300 profit from trades worth $9,000.
All trades denominated on FTX are underlined with crypto coins. This helps the platform stay operational and profitable as a crypto exchange.
Is FTX Regulated?
The FTX.com website is properly protected by SSL security. The web app provides an exclusive cryptocurrency trading experience. The company running this platform is registered in Antigua and Barbuda. It is headquartered in Hong Kong.
However, the FTX trading platform is not regulated for US customers. The platform does not allow its services for people in the United States.
According to a recent Mozilla Observatory test, the FTX website gained a B+ score in security. This is considered an imposing score in the crypto space. FTX also uses two-factor authentication (2FA) for bolstering transactional data security. With Authy, Google Authenticator, or SMS-based OTP authentication, the platform helps in protecting user accounts at every step of the process. Users can also generate separate passwords for deposits, trades, withdrawals, and other services. Under the ‘login’ section, FTX also provides additional permissions for managing and creating various sub-accounts.
The team behind the FTX crypto exchange is exceptionally specialized in crypto advancements. Engineers run the platform from MIT and Berkeley with years of experience working for Google, Facebook, and other giant tech firms.
Today, FTX is a huge name in the cryptocurrency space and has partnered with firms like True USD, Circle, and FBG Capital to support the large volume trade activities of its users.
Who Owns FTX?
Sam Bankman-Fried founded FTX in 2018 and is currently the CEO of the company. Sam was a trader working at the international ETF desk on Jane Street Capital. Gary Wang, the company’s current CTO, joined Sam and helped him with his expertise as a Google software engineer. Before establishing the platform, the duo founded Alameda Research in 2017. This research company helped provide quantitative trading analysis for every cryptocurrency liquidity provider. Today, Alameda also assists FTX in protecting their order books.
The 24/7 OTC services by FTX are curated by Alameda, which is closely responsible for incubating and launching FTX. The exchange has successfully raised $8 million from three funding rounds. In March 2020, FTX gained a major investment from Liquid Value Capital.
FTX Exchange Overview
- Professional Crypto Traders and Investors
- High Daily Trading Volume
- For non-US Users
- Bitcoin (BTC) Options
- 45 Leveraged Tokens
- MOVE Smart Contracts
- 20+ Perpetual Swaps
- Trade Execution
- Market Predictions
- Predictive Analytics
FTX Key Features
- FTX is an emerging platform used for crypto derivatives trading. In fact, it is making this segment of trading popular. FTX attracts people at a high rate thanks to its advanced trading features and next-gen trading products.
- In 2020, the exchange launched a number of innovative products for crypto trading. The platform provides support to leveraged tokens since it allows about 45 various leverage tokens. Besides, it is growing and offering leverage trading on S&P 500. It also enables MOVE contracts for traders who are using FTX exclusively.
- The platform enables fiat currency transfers for USD, EUR, and GBP. The FTX exchange has security enabled for protecting credit card deposits. The platform also offers nearly 100x leverage on trades that maximize their profit potential. Converting stablecoins and issuing settlements is easy on FTX. Users can exchange and trade various types of crypto derivatives with a single-margin wallet. In institutional-grade trading services, FTX enables deep liquidity and protected order books. It allows unlimited withdrawals and has a high liquidation fund. The OTC desk also offers the best customer support features, such as trading resources, knowledge materials, market navigators, live chat, and support for more than ten languages.
- The FTX technical team enables various features for retail traders and institutional traders. It helps them incorporate low trading fees and tight spreads. The platform has an OTC desk, which is an essential feature for customer service. The extensive support of this team also helps in gaining access to TradingView charts. The platform is also available in the form of mobile apps on iOS and Android devices.
Products and Services Offered by FTX
Various tradable products are available on FTX. The platform also identifies the need for unique trading services. It has closed multiple gaps in the crypto market by creating an exchange experience that makes crypto trading diverse and innovative. From crypto futures and leveraged tokens to Bitcoin options and MOVE smart contracts, the platform has a lot to offer.
FTX helps in trading futures as quarterly or perpetual trades. More than 20 popular cryptocurrencies are available for futures. It has been listed in the Index Futures, allowing users to invest in various sections of the market in an easy way.
The platform enables 101x leverage on orders. It places this maximum leverage for every trading account. A 10x leverage is set by default and designed as a safety precaution. More than 45 different leveraged tokens are present on the trading platform. They are relatively straightforward, helping users to leverage the BULL and BEAR techniques.
BTC options is a unique trading segment on FTX. This service enables users to trade various Bitcoin options through smart contracts. FTX, a cryptocurrency derivatives exchange, enables cash payments in USD for traders who are putting high-volume funds in BTC options. Based on the ‘right to buy’ position and the ‘right to sell’ position, users can make instant profits by shorting Bitcoin options.
FTX has a pioneering smart contract called MOVE. MOVE contract helps FTX users enable futures trading with raw BTC and moves these funds under a specified time period such as quarterly, monthly, weekly, or daily.
FTX Review: Pros and Cons
|The KYC process for this platform is easy and helps increase the trading limits.||Leveraged tokens on FTX are risky investments.|
|The platform specializes in crypto derivatives trading.||FTX is a relatively new platform in the crypto space.|
|FTX also guarantees liquidity for all its users.|
|FTX charges low fees on all its tradable products and services.|
|The platform also allows cryptocurrency purchases via credit cards through the Simplex gateway.|
FTX Account Registration and Login Process
In this FTX exchange review, the following steps provide a simple explanation of how to register and log in to a user account on the platform. This registration process is straightforward and easy to follow. Similar to signing up, the platform has made its registration process simpler than other exchanges.
- Click on the “Register” tab at the top right of the home page.
- Fill in the name and email address.
- Generate a password.
- Complete these fields and click on “Sign Up” in the pop-up registration window.
- Check the email inbox for a confirmation email.
- Verify email address with 2FA.
- Click on “Account Security” and select Google Authenticator or SMS for authentication.
- Deposit funds and get a maximum withdrawal limit of $1,000 prior to the KYC verification.
- Click on the “Settings” tab and complete the KYC verification process to get higher withdrawal limits.
FTX Account KYC Process
For individual traders, the platform allows a Level 1 KYC, which involves Identity Verification. This KYC form verifies the full name of the user, the country of residence, as well as the state, province, and region of trading. With this KYC, the user gets another $2,000 extension to the daily withdrawal limits.
The tier-2 KYC verification is for institutions. In this form, the users must upload proof of identity and documents supporting the proof of address documents. This KYC verification also includes uploading recent account statements from the bank account used for depositing fiat funds into FTX.
Similar to various centralized exchanges, FTX is secure and legit.
No deposit or withdrawal fees are charged by the platform. FTX also does not charge fees on future settlements. The OTC trading services are executed with the FTX wallet. Hence, almost everything is free of cost on FTX. Although check the below table to know the trading fees as per 30-day volume:-
|Tier||30 D Volume (USD)||Maker Fees||Taker Fees|
According to this FTX exchange review, leveraged tokens are charged execution and redemption fees of 0.10%. The platform also charges a 0.03% daily management fee on these trades. By leveraging 50x, the trading fees may size up by 0.02%. Similarly, 100x leverages can increase the trading fees to 0.03%, which could be recouped with the FTX insurance fund. Besides, traders avail discounts on holding FTT tokens. FTX has set lower trading fees for users trading high volumes.
Since the volatile crypto market, traders should keep an eye on the estimated liquidation price. Click here for more fee details.
Accepted Payment Methods
FTX supports credit card funds transfers. It uses Simplex as the online payment gateway for credit card deposits. The platform currency supports various fiat deposits and withdrawals. However, it does not support Indian National Rupee (INR). This integration may soon occur as Binance has also invested in the platform.
FTX Native Token – FTT Token Details
FTX’s native token is called FTT. This token is developed to help in managing utility payments via FTX. Like other exchanges, FTX has its own ecosystem and the FTT utility token. With the FTT token, FTX provides benefits such as lowered FTX trading fees or the FTX insurance fund. The platform also helps in performing weekly buy-backs or burning these trade exchange tokens for perks such as:-
- 10% net additions to the insurance fund.
- 33% cut on trading fees.
- 5% fees remitted on the FTX token payments.
FTX Supported Currencies
Being a new entrant, FTX does not shy away from expanding its digital asset portfolio. The platform caters to various needs of the crypto trading sector. FTX supports various financial assets for deposit, withdrawals, and trading processes. It supports a good number of fiat currencies.
It also supports a wide range of popular digital cryptocurrencies. People interested in depositing or withdrawing fiat currency directly into the crypto derivatives exchange can use this platform extensively. Although below are the fiat currencies that are supported by FTX:-
- US Dollar (USD)
- European Euro (Euro)
- Great Britain Pound (GBP)
- Australian Dollar (AUD)
- Canadian Dollar (CAD)
FTX also helps users in trading multiple cryptocurrencies with perpetual swaps. These are available for 15 assets. The platform also helps leverage 45 crypto tokens, the list of which changes quarterly.
FTX offers best-in-market indices for unique alt-coins and Bitcoin options. It also supports MOVE contracts, Futures contracts, and spot trades with the following cryptocurrencies:-
- FTX Token (FTT)
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Tether (USDT)
- Binance Coin (BNB)
Besides the 45 leveraged tokens, FTX also leverages BULL/USD (3x long BTC) and BEAR/USD (3x short BTC). It supports Bitcoin options trading and BTC MOVE contracts with liquidated funds.
FTX Supported Countries
FTX provides services to many countries, but FTX does not onboard or provide services to corporate accounts of entities or residents of the United States of America, Cuba, Sevastopol, Crimea, Iran, Afghanistan, Syria, North Korea, Antigua, or Barbuda. Also, FTX does not provide services to personal accounts of residents of the United States of America, Iran, Crimea and Sevastopol, Cuba, Afghanistan, Syria, North Korea, or Antigua and Barbuda. There may be partial restrictions in other jurisdictions, including Malaysia, Hong Kong, Thailand, and Canada.
FTX Customer Support
Customer experience on the platform is good. The platform has a skilled team of technical and operational specialists. The trade experts behind FTX Customer Support help maximize trades via multiple resources.
The trading materials and knowledge resources by FTX help users expand their trading capabilities in the crypto market. They improve their crypto derivatives trading skills. The FTX Help Center is primarily used for accessing trading guides. Different key areas and multiple FAQs are available with appropriate answers.
The FTX blog section is also quite helpful for novice traders. It contains detailed articles on using the latest trading practices. FTX also runs a YouTube channel for informative videos.
The support team at FTX generates user-based data that helps improve their prominence on social media channels such as Twitter, Facebook, and WeChat Group. Telegram groups in multiple languages are available to support traders in Chinese, Russian, French, Korean, and Spanish. A highly responsive live chat service and email contacts are also a part of FTX customer support.
FTX mobile app has similar features that help retail and institutional traders with high liquidity levels. It ensures that customers do not face issues with deep order books or unlimited trades and high-volume withdrawals. The OTC desk at FTX is also used for supporting iOS and Android users with their crypto account management around the clock.
In simple words, FTX is a diversified crypto exchange. It is primarily used for crypto derivatives trading. FTX has gained popularity for its Bitcoin options trading. With 45 or more FTX leveraged tokens, this platform grabs the interest of hundreds of traders around the work. The crypto exchange has various benefits, from 101x leverage to 20+ perpetual swaps.
However, the platform is unavailable for cryptocurrency traders in the United States. The platform is also considered risky for leveraging altcoins. Despite this, FTX has a solid liquidity level. It can back trades worth millions of dollars. Despite market volatility, the exchange has options to offer to its users. All things considered, FTX has the best offerings for professional crypto traders across the globe.
However, this review does not constitute investment advice.
Here are the answers to some common questions on FTX:-
Is FTX Exchange Legit?
Since 2019, FTX has been a legit crypto exchange platform. It is used by millions of users around the world. It is regulated by the Hong Kong financial authority.
How Does FTX Exchange Work?
FTX helps users make instant profits with a leveraged token. It also enables BTC options trading, which is a safe way of making BTC market movements profitable for traders.
How Safe Is FTX?
FTX is protected with a 2FA process. This authentication is also backed by an extensive multi-tier KYC process. Users need to complete KYC to begin trading.
Has FTX Ever Been Hacked?
There have been zero instances of cyber hacks and customer losses on the platform. The exchange is currently handling the majority of its operations on Google Cloud. Overall, the platform offers good security features.