FTX Exchange Review 2021

FTX Exchange Review 2021

Daniel Chan

October 31, 2021

Cryptocurrency

What is FTX?

FTX is a cryptocurrency exchange focusing on trading, with a wide range of products including derivatives, options, volatility products and leveraged tokens. FTX's platform has plenty of features that experienced traders and professional trading firms will find invaluable, yet also offers basic spot trading that newcomers to the cryptocurrency market will appreciate.

  • Web Address: www.ftx.com
  • Main Location: The Bahamas
  • Deposit Methods: Wire Transfer, Silvergate Exchange Network (SEN), Signature SIGNET, SEPA, PayID, Credit card, Cryptocurrency
  • Deposit Fee: Free
  • Fiat Currencies: USD, EUR, GBP, AUD, HKD, SGD, CAD, BRL, ZAR & CHF
  • Mobile App: Yes
  • Cryptocurrencies: BTC, ETH, SOL, DOGE, FTT, BNB, XRP, MATIC, SHIB, LTC & 120+ more
  • Withdrawal Fees: USD: $75 fee (withdrawals under $10 000), BRL: 0.3% + R$10, All other currencies: Free
  • Trading Fees: Maker: 0.02%, Taker: 0.07% (discounts for increased trading volume and FTT holders)

My Overall Thoughts on FTX

FTX is a relatively young cryptocurrency exchange that has quickly built up a reputation as a robust and fully-featured trading platform. I had heard a lot about FTX, and I was very impressed when I opened my own account and saw the range of derivatives I can trade. These are the three main reasons I would recommend FTX to both crypto newbies and experienced traders.

1) Over 130+ cryptocurrencies are supported on FTX, so you can definitely find some coins that you are interested in investing in. The range of coins is regularly growing, as FTX adds more options to their platform.

2) Deposit to FTX in 10 different fiat currencies with no fees, and trade from only 0.02/0.07% maker/taker fees. You can discount your fees if you are a large-volume trader as well as if you hold FTT coin.

3) Spot trading is available for beginners, while experienced traders can enjoy trading futures, stocks, leveraged tokens and more. Plenty of options no matter what level of crypto experience you have.

One downside is that FTX is not available in the USA due to strict regulation. However, there is a separate site called FTX.US that is supported in the States. 

Key Features & Advantages of FTX

Users will find a lot to love about FTX, and here I have listed the best features and advantages to using this platform. Click on any of the jump links to read more information.

Negatives and Disadvantages of FTX

Although FTX is an excellent trading platform, there are a few points where they could improve. To read more about these points, click on the jump links below. 

What Services does FTX offer?

Let's take a look at what FTX offers, that has made them become such a popular cryptocurrency exchange around the world. 

Quickly and easily swap one coin or currency to another:  FTX has an easy option for those that want to quickly swap their fiat or cryptocurrency to another coin. It is right there on the home page once you have logged into your account, and it simple for even complete beginners to use. Select which coin (including fiat currencies) you want to convert from, and which coin you want. Select the quantity of the coin you want to convert from, and click Convert to finish the transaction. 

Mobile app for iOS and Android:  FTX has a fully-featured app called FTX Pro that available for mobile devices. On Google Play store it has over 500 000+ downloads and a 4.6-star rating from 6000 reviews. The interface is easy to navigate, and you still have access to all the derivatives markets that are found on the desktop site.

Over 130+ different cryptocurrencies supported:  FTX offers a wide range of over 130+ coins on their platform, which is a decent number for most investors and traders. They are regularly adding more coins as well, so if there is something you are looking for and it is not currently on FTX, it may become available later.

Staking available - earn interest on your cryptocurrency:  FTX offers staking on a few coins such as SOL, RAY and SRM. By staking your crypto, you are locking it up on the FTX exchange (you cannot sell or transfer it while it is staked) but in return you receive rewards paid in the crypto that you staked, similar to interest in a bank. For example, if you stake RAY you will receive 20% more RAY coins on an annualized basis.

Hold and stake FTX's token (FTT) for benefits:  FTX has their own coin called FTT that you can purchase on their platform as well as some other crypto exchanges. You can gain benefits for staking FTT, including trading fee discounts, waived blockchain fees (receive number of free ERC20 and ETH withdrawals per day) and increased airdrop rewards. If you don't want to stake your FTT, you can just hold FTT in your account, and you automatically receive discounts on your trading fees with as little as $100 USD worth of FTT.

NFT marketplace - buy and sell NFTs:  NFTs have become extremely popular, and FTX offers a marketplace for their users to get onboard. You can mint, buy, sell and store your NFTs on the FTX exchange. 

1% of all net fees donated to charities:  FTX is more than just another crypto exchange, they are also committed to making the world a better place. FTX was founded with the goal of donating to the world's most effective charities, and they donate 1% of all their net fees to charities. Currently they have donated over $14 million to charities which includes user donations, which they also match up to a certain limit.

FTX Pay - get paid in fiat or crypto:  With FTX Pay you can send and receive payments in crypto or fiat using a fast, secure, and low-fee payment processor. This is not only useful for sending money between friends and family, but can also be used by merchants to accept payments from users. The funds can be sent straight to an FTX account or an external wallet.

Advanced markets - futures, stocks, leveraged tokens, volatility, forex:  Users of FTX are able to access a huge range of markets that cannot be found on more basic crypto exchanges. You can see the available markets in the picture below, including futures, spot, stocks, leveraged tokens, volatility, prediction and fiat.

What I Don't Like About FTX

Not available in the USA:  Unfortunately FTX is not available to residents of the USA because of stricter regulations. However, if you are in the US you can access the FTX.US platform which is similar, but it does not have derivatives trading, only spot trading is available. 

Expensive USD withdrawal fees:  FTX's withdrawal fee for USD is a steep $75 if your withdrawal is less than $10 000. This is a ridiculously high charge, but luckily for other currencies there are no fees incurred, besides BRL (0.3% + R$10).

No Live Chat support:  FTX does not have any live chat support, which I find disappointing. They only have ticketed email support, which is not as responsive as I would like. If you are after a crypto exchange that has live chat support, you can consider using Kraken.

FTX Fees

FTX Deposit Fees

It is free to deposit cryptocurrency and fiat into FTX.

FTX Trading Fees

FTX charges 0.02% for makers and 0.07% for takers, with discounts based on increased trading volume, as per the following table.

30-day Trading Volume (USD)

Maker Fee

Taker Fee

$0 - $2 000 000

0.020%

0.070%

> $2 000 000

0.015%

0.060%

> $5 000 000

0.010%

0.055%

> $10 000 000

0.005%

0.050%

> $25 000 000

0.000%

0.045%

> $50 000 000

0.000%

0.040%

If you hold FTT tokens (FTX's own coin), you also receive discounts on FTX trading fees. The discount you receive is based on how much FTT you hold, as shown in the table below.

FTT Holding (USD)

Discount on Trading Fees

$100

3%

$1 000

5%

$5 000

10%

$10 000

15%

$50 000

20%

$100 000

25%

$200 000

30%

$500 000

35%

$1 000 000

40%

$2 500 000

50%

$5 000 000

60%

FTX Fiat Withdrawal Fees

USD Withdrawal: $75 fee if transaction is less than $10 000

BRL Withdrawal: 0.3% + R$10

Other fiat currencies: No fee charged

FTX Crypto Withdrawal Fees

BTC (< 0.01 BTC): one free withdrawal per day, then user pays blockchain fees

BTC (> 0.01 BTC): free

ETH: user pays blockchain fees (unless FTT staked)

ERC-20 token: user pays blockchain fees (unless FTT staked)

All other crypto: free

If you have FTT staked, you will receive a number of free ETH or ERC-20 withdrawals each day. See the table below to see how it works.

FTT Staked

No. of free ETH & ERC-20 withdrawals per day

0

0

25

1

150

3

1 000

10

10 000

30

50 000

100

250 000

300

1 000 000

1 000

Pros and Cons of FTX

Pros
  • Over 130+ different cryptocurrencies & 10 fiat currencies supported
  • Quickly and easily swap coins and fiat currencies
  • Plenty of markets, perfect for derivatives traders
  • Mobile app for iOS and Android
  • Staking available on a few coins, including FTT which gives additional benefits
Cons
  • Not available in the USA
  • Expensive USD withdrawal fee of $75
  • No live chat support

Verdict

FTX is an excellent choice of cryptocurrency exchange for both newcomers to crypto as well as experienced traders. They have really done a great job building a platform for advanced trading, with such a variety of investment markets such as futures, forex, volatility products and leveraged tokens. The fees are very competitive, starting at just 0.02% for makers and 0.07% for takers, with discounts for large trading volume and even for just holding FTT coins.

With a variety of over 130+ coins and 10 fiat currencies, FTX is popular around the world. Unfortunately it is not available in the USA, but the good news is that there's a FTX.US site which Americans can use. The site is similar, but only offers spot trading; the regulations in the USA are much stricter, so no derivatives trading is permitted. If you are after other excellent US-based crypto exchanges, click on this link to read my article.

Frequently Asked Questions

Is FTX a legitimate crypto exchange?

Yes, FTX is a legitimate cryptocurrency exchange founded in 2019. FTX was founded with the goal of donating to the world's most effective charities. FTX, its affiliates, and its employees have donated over $10m to help save lives, prevent suffering, and ensure a brighter future.

Is FTX a safe exchange?

Yes, FTX is a safe cryptocurrency exchange, with all the usual security features you expect. FTX has also partnered with Chainalysis to monitor suspicious cryptocurrency transaction alerts in the Chainalysis Know Your Transaction (KYT) product, the real-time anti-money laundering (AML) compliance solution for monitoring cryptocurrency transactions. This combined with FTX's manual review of large or suspicious deposits and withdrawals assures an additional layer of protection. 

Can I use FTX in the USA?

Unfortunately FTX is not available in the USA, but the good news is that there's a FTX.US site which Americans can use. It is similar, however FTX.US only offers spot trading; the regulations in the USA are much stricter, so no derivatives trading is allowed.

Can FTX be hacked?

FTX is a secure crypto exchange, and has never been hacked since its establishment in 2019. However, in saying that, even the most secure exchanges have a small chance of being hacked. 

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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