Although a relatively new platform, FTX has entered the scene with a bang, partnering with Binance, which is one of the world’s largest crypto exchanges. This review is written with the intention to provide an accurate and unbiased overview of the FTX platform, assessing its features, user-interface, fees, trading products, and how it differentiates itself from the rest.
Built for traders, by traders; FTX is a crypto-to-crypto derivatives exchange that is built to be intuitive enough for the beginners while serving as a powerful platform for professional trading firms. Having Alameda Research (a top currency liquidity provider) backing up all its exchanges, it was from day one that FTX was able to access all industry-leading order books.
It is through FTX exchange that Alameda Research manages over 100 million USD worth digital assets and trades 600 million to 1.5 billion USD/day across thousands of products (all major and altcoins along with their derivatives).
Additionally, in comparison to other top-rated crypto exchanges, advance features, mobile trading options, and intuitive interface makes it sit atop many others with only the likes of Bybit sitting atop it. FTX exchange offers world-class features that make it a strong competitor in contrast to Binance and Plus500.
Get 5% off FTX Trading Fees
The User Interface of FTX is quite easy to navigate through with a clean and simple layout. The top bar allows the user to navigate to options such as trade Tokens or Future. You can also click on the wallet to check your token balance/s or to make a withdrawal.
Also, there is a navigation window on the left that has a few similarities as well as additional options where users can view trade history, positions, and open orders. The trading charts (by TradingView) are described as clean, intuitive, and smooth. To enable active users to maximize profits and mitigate risk, TradingView will be providing them advance trading tools, offering them a large range of tools and time frames for drawing trend lines, chart patterns, and add indicators. This will allow the traders to time their trade orders perfectly using a stop order, limit, or a market order.
The users of FTX are provided with first class index funds as well as the most popular cryptocurrencies. The indexes include
- Exchange Token Index
- Altcoin Index
- Shitcoin Index
- DeFi Index
- Midcap Index and more
Compare key features of the FTX Exchange with other top cryptocurrency spot and futures markets.
Just like with other leverage trading exchanges for cryptocurrency, the ‘leverage’ offered by FTX exchange allows for trading more than the worth of actual balance by borrowing some amount from the exchange that is predefined.
Most importantly, FTX is one of the few exchanges that are offering 101 x leverage, so the option of ‘leverage’ allows for taking advantage of comparatively small price movements, to propel the capital of the user beyond what they could fund on their own (by more than 101 times), or to allow the traders to control their portfolio for greater exposure.
The futures trading on FTX exchange can be traded by selecting the option from the top menu in the asset list. There are three different types of futures for any coin:
- A contract expiring by the end of the current quarter
- A contract expiring by the end of next quarter
- A perpetual future contract
As stated on the website of FTX, in comparison to the other major cryptocurrency futures, the ones listed on their website differ in the following ways:
- To avoid large price dislocations, FTX futures have extremely cautious and calculated margin calls.
- To mitigate the risk of clawbacks and when an account is at risk of liquidation, there is a unique backstop liquidity provider insurance program that activates at the right time.
- Stable coins are used for the settlement of futures on FTX, hence they can be used as collateral to settle profits and losses as well as for all the futures. This means that without any need for linking to a bank account, you are actually provided with a legitimate dollar-based price settlement and exposure. It is also easy for the users to shift their position around as they have the benefit of using the same base fiat currency as collateral for all contracts.
The Leveraged Token is an innovative asset developed by FTX for its users which are ERC20 tokens that already have leveraged exposure applied to the assets of the cryptocurrency; this helps the traders with risk management.
All trade profits are reinvested into the assets that are being traded by the exchange automatically. So if a user’s leveraged token is in profit, a 3x leverage position will be automatically put on the token. But in case the situation turns unfavorable, the risk will automatically be reduced by the leveraged tokens.
The leveraged tokens of the FTX can be purchased on the spot market like normal ERC20 tokens since they are actually ERC20 tokens. And unlike margin positions on other exchanges, a user can withdraw them from their account. All a user has to do is go to their wallet and send the token to any ETH wallet. Best of all, FTX Leverage Tokens requires no margin at all.
Many traders avail excessive leverage and are exposed to losing their entire capital without any proper risk management which can be a problem for everyone due to clawback so this is a risk that needs to be mitigated, and thankfully, FTX does that quite efficiently. If a user wishes to trade leveraged tokens, they can find the asset list in the Token tab on the top menu. The traders get leveraged exposure to the crypto asset of their choice on both, long and short side without any risk of liquidation due to the unique construction of the tokens.
A variety of deposit methods are accepted by FTX Exchange which include:
- Bitcoin Cash
- Fiat + much more
A user can start trading by firstly making a deposit. Click on the wallet which can be found on the top menu and locate the asset user wishes to trade in. But before that, the user will have to activate 2-Factor-Authentication unless already activated. The user must locate the asset, click on deposit and follow the instructions given afterwards. If a user doesn’t own any cryptocurrency, they must first purchase cryptocurrency using an exchange for fiat-to-crypto.
One good news for the users is that there are no deposit or withdrawal fees. Moreover, in comparison to other trading platforms, FTX charges quite a small amount. The fees for future and spot markets is based on a tiered structure as per the trading volume of the user. This means that more a user is trading, the less trading fee they will pay.
The maker fee is when you are submitting an order in the books and the taker fee is when you take the order. There is a creation and redemption fee of 0.10% along with a daily management fee of 0.03% for leveraged tokens. The more a user decides to leverage, the higher their trading fee will become by a similar margin (0.01% for 10x leverage). Half of this fee will be allocated to FTX insurance funds.
The exchange users on FTX are awarded discount on trading fee by up to 30% by merely holding a specific amount of the native token of the exchange (FTT) that is valued in USD. The current FTT holdings for a user determine the amount of discount which is further elaborated in the table below:
If a user wants to increase the limit for withdrawal over 1000 USD/day, they need KYC verification. The withdrawal limit can further be increased by meeting the requirements of additional verification which is based on a tier system. For that, additional documentation needs to be submitted.
FTX exchange is ideal for the users who:
- Are professional traders and want to be listed on the leaderboard of FTX exchange.
- Want to avail as much as 101 x leverage.
- Want to use advanced tools and are familiar with TradingView charts.
- Want to trade the world’s first cryptocurrency leverage tokens and index futures.
- Want to maximize profits with competitive trading fees.
- Want a trading exchange that offers cutting edge features with innovative options.
By offering unique and innovative trading products in the space of Future and Leveraged Tokens, FTX exchange has set itself apart from other crypto trading exchanges. If you believe you need to make a switch to a platform that can hedge your profile with advanced future indexes, futures, and leveraged tokens, then FTX exchange is perfect for you. You can get started with a free account right now.
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