hedgewithcryptohedgewithcrypto
AboutContact

    Binance vs. FTX 2022: Which Is Better For Traders?

    Updated: Nov 24th, 2022
    Jacob Wade
    Jacob Wade
    Binance vs. FTX 2022: Which Is Better For Traders?

    FTX and Binance are two of the best crypto exchanges in the world and are possibly the most comprehensive crypto trading platforms available today. With each exchange executing billions of dollars in daily trading volume and offering deeper liquidity than any other crypto exchange, these two behemoth exchanges offer the best value in the crypto space today.

    Binance vs. FTX - Comparison Overview

    Binance and FTX are top-notch exchanges that are ranked #1 and #2 in the world by trade volume, and it’s not even close. Both crypto exchanges offer many advanced trading features, as well as comprehensive derivatives trading platforms, making them two of the best-leveraged platforms for day traders. Both support hundreds of cryptocurrencies, and thousands of pairs, carry very low trading fees, offer NFT platforms, and allow users to borrow and lend their crypto as well.

    Binance is designed for all types of traders, from beginners to advanced day traders. FTX is specifically designed for advanced traders, being built “for traders, by traders” and offering more than just crypto trading. Overall, traders and investors alike can’t go wrong with either platform and comes down to personal preference. While FTX has slightly lower trading fees, Binance offers a much broader range of features and products that will suit a wider audience. However, Binance does offer a $50 free welcome bonus which will attract new customers that use this referral code.

    BinanceFTX
    Website
    PromotionUp to $100 welcome bonus5% off trading fees
    Fiat CurrencyAUD, USD, EUR, GBP, SGD & UGXCrypto & 13 fiat currencies
    Supported Cryptocurrency600+319
    Max. Trading Fee0.1%0.02% / 0.07%
    Mobile AppYesYes
    US Residents AllowedYesN/A
    Overall Rating
    HedgewithCrypto Score
    HedgewithCrypto Score
    4.8/5Our ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    StarStarStarStarEmpty Star
    Visit Binance
    HedgewithCrypto Score
    HedgewithCrypto Score
    4.3/5Our ratings take into account the ease of use, fees, deposit methods along with the exchange's reputation. All ratings are determined solely by our editorial team.
    StarStarStarStarEmpty Star
    Visit FTX
    ReviewRead our full Binance reviewRead our full FTX review

    Binance Overview

    Binance is the world’s largest cryptocurrency provider in terms of trading volume and liquidity, with over $75 billion in daily trading volume executed. With over 90 million users in 200 countries around the globe, Binance has become the go-to crypto exchange for new users and active traders alike.

    Binance is a reliable place to buy Bitcoin and over 600 other cryptocurrencies with an intuitive mobile app, world-class trading tools, access to derivatives and leveraged trading, and an entire library of educational videos and articles to help new users get up to speed on all things crypto.

    Binance Pros
    • Deep liquidity for both spot and derivatives trading (up to 100x leverage)
    • Intuitive and well-designed iOS and Android mobile apps for trading on-to-go
    • Very low trading fees (0.1%) with rebates available
    • Access to crypto borrowing and lending
    Binance Cons
    • High fees when buying crypto using fiat through third-party partners.
    • Trading platform may be too complicated for beginners.

    FTX Overview

    FTX is an advanced crypto trading platform that was built in 2019 by billionaire Sam Bankman-Fried. Since then, FTX has quickly become one of the best cryptocurrency exchanges for derivatives trading where up to 125x leverage can be applied to long and short positions. With some of the most advanced trading tools in the market, FTX is a clear leader in crypto trading for experienced and professional traders.

    FTX Pros
    • Huge selection of advanced trading tools that will satisfy experienced and advanced traders.
    • Deep liquidity derivatives trading with low maker (0.02%) and taker (0.07%) fees.
    • Very reliable platform stability, even during volatile markets.
    • Simple-to-use NFT marketplace.
    FTX Cons
    • Only has up to 20x leverage trading
    • Limited number of staking coins available
    • Mobile app has technical issues at times

    Binance vs FTX: Supported Countries

    FTX and Binance are available worldwide, with customers in over 150 countries around the globe. Due to both platforms offering derivatives products, users from the United States, Canada, China, Singapore and others may not be able to use the standard platforms.

    But both platforms offer a stripped-down version of the exchange to comply with those regulations, with Binance.US and FTX.US catering to U.S. residents. While Binance has over 90 million registered users, FTX has just passed 5 million users, making Binance by far the larger exchange in terms of its customer base.

    Binance vs FTX: Trading Volume & Liquidity

    In terms of trading volume and liquidity, Binance and FTX are ranked #1 and #2 in the world, respectively. With over $100 billion in combined daily volume, both exchanges are professional-level trading platforms. High average liquidity for most large-cap cryptocurrencies means that high-volume traders and institutional traders can place large orders and avoid excess slippage.

    Binance and FTX trading volumesBinance and FTX trading volumesBinance and FTX trading volumes.

    Binance vs FTX: Features, Products & Services

    Binance and FTX are very similar platforms, offering a wide range of features for traders of all types. These include low trading fees, several advanced trading tools, a comprehensive derivatives trading platform, and even an NFT marketplace. Here are a few of the shared features available on both Binance and FTX.

    Supported Currencies

    Binance supports over 600 crypto assets listed across over 1,600 trading pairs, which is far more than most crypto exchanges. It’s no wonder Binance has far more trading volume than any other exchange, and with so many coins to choose from, Binance also offers decent liquidity for even some of the smallest cryptocurrencies. FTX also offers a decent selection of coins, with over 250 cryptocurrencies available to trade. FTX also supports 13 fiat currencies to buy crypto. In contrast, Binance only supports 5 currently.

    Selection of coins on BinanceSelection of coins on Binance

    For the derivatives exchange, Binance offers a similar number trading pairs to FTX, with 200+ available. That being said, FTX also offers traders tokenized stocks and volatility products, which are not available on Binance. However, these unique markets are not very popular with inexperienced traders.

    winner

    Winner: Binance. Overall, Binance offers far more crypto and derivatives trading pairs for serious crypto traders. Moreover, the spot and margin exchange have deeper liquidity than FTX. Although, for traders that want to trade more than just crypto and speculate on unique markets, FTX is a decent option.

    Margin Trading (with Leverage)

    Binance and FTX offer comprehensive and well-developed derivatives trading markets. Both exchanges are solid choices for experienced and advanced traders alike with a multitude of supported trading pairs, features, and a variety of robust trading markets to contend with.

    Accessible through the main Binance website, Binance Futures is a platform that specializes in futures, margin, and derivatives crypto trading. Traders have the option of applying leverage up 100x on long and short positions on a multitude of trading pairs, including those against the popular USDT. This is where traders will have access to:

    • Perpetual or Quarterly Contracts that are settled in USDT or BUSD.
    • Perpetual or Quarterly Contracts that are settled in cryptocurrency.
    • Binance Leveraged Tokens.
    • Binance Cryptocurrency Options.
    Screenshot of Binance Futures and trading pairsScreenshot of Binance Futures and trading pairsScreenshot of Binance Futures and trading pairs.

    In comparison, FTX offers a wider breadth of margin trading on its derivatives exchange. In addition to the leveraged spot and futures trading (up to 20x) and leveraged tokens, FTX also offers volatility products, tokenized stocks, and MOVE contracts.

    • Spot. Optional leverage up to 10x can be applied to over 240 trading pairs.
    • Futures contracts. Stablecoin settled futures contracts that can be set for the current quarter, following quarter, or perpetually. A backstop liquidity provider is in place and over 250 trading pairs are supported.
    • Leveraged tokens. Four leverage options to choose from such as Bull (3x), Bear (-3x), Hedge (-1x), and Half (1/2x).
    • MOVE. Futures contracts that represent the absolute value of the amount the price of a coin moves over a time period.
    • Options. Similar to futures trading where the holder is not obligated to buy or sell at the future price.
    winner

    Winner: FTX. Binance and FTX are solid choices for margin and derivatives crypto trading, however, FTX is the slightly better option for crypto day traders due to its wider range of markets and cutting-edge features.

    Earning Yield on Crypto

    FTX and Binance offer ways to earn crypto interest on holdings via staking and interest-earning accounts. While FTX staking is limited to FTT tokens with a return of 8% APY, Binance offers flexible, locked and DeFi staking on over 120 assets under a fixed, or flexible arrangements. Coins that can be staked on Binance include BNB, LUNA, SHIB, SOL, KSM, ATOM, VET and many others. Binance is one of the better staking platforms that have no additional fees.

    Binance interest account and ratesBinance interest account and ratesBinance interest account and rates.

    When it comes to earning interest on crypto, both FTX and Binance have interest savings accounts. With Binance, there is the option to choose from a Fixed Deposit or Flexible Deposit which provides slightly different crypto interest rates. Binance also offers dual investment, DeFi farming, Launchpool, and crypto savings accounts. All interest-bearing accounts can be quickly accessed on Binance Earn.

    winner

    Winner: Binance. Binance's earn products are far more comprehensive than FTX. There is a greater selection of assets to stake, lend, and earn interest compared to FTX which is very limited. Overall, Binance is the clear winner and one of the best ways to earn crypto interest.

    Binance vs FTX: Trading Experience

    Both Binance and FTX are designed with advanced traders in mind, and this is evident when looking at the trading experience on each platform. The user interface for both platforms offers a wide selection of technical charting tools and software, as well as the ability to customize it to a user’s liking.

    Binance offers a comprehensive view of the markets, with live order books, customizable watch lists, and built-in Tradingview charting that offers hundreds of indicators and drawing tools. The order forms offer quick access to spot and margin trades, as well as multiple order types to fur control trades.

    Screenshot of the Binance trading interfaceScreenshot of the Binance trading interfaceScreenshot of the Binance trading interface.

    New crypto investors may feel overwhelmed with all of the options available, and some market knowledge is required to place trades on Binance. That being said, there is a “Convert” feature that allows users to simply swap between one crypto and another, without complicated charts or order forms.

    Similarly, FTX has a very advanced trading platform that is also powered by Tradingview charts. This allows users to overlay technical indicators and drawings within the chart to plan a trading strategy. Users can quickly view an asset list, chart details, live order books, and customize their order form.

    Screenshot of FTX trading interfaceScreenshot of FTX trading interfaceScreenshot of FTX trading interface.

    While the variety of trading options is similar to Binance, FTX does not show the active Unrealized Profit and Loss of an open trade like Binance does. But outside of that difference, FTX and Binance both offer multiple order types, leveraged trading, TradingView charting, and customizable dashboards.

    While FTX offers access to a wide selection of markets, Binance offers far more, with over 1,500 pairs to choose from. But switching between spot trading, futures trading, and other asset trading are simpler on FTX, with a well-designed menu built into the trading window.

    winner

    Winner: Draw. Advanced traders would do well on both Binance and FTX, as they both offer a wide selection of trading tools and a huge selection of crypto. Users that want access to the biggest selection of crypto would prefer Binance, while users that want a more intuitive trading interface and access to other trading products will prefer FTX.

    Mobile App For Android & iOS

    Binance offers a comprehensive and intuitive mobile app for both Android and iOS devices. On the Android marketplace, Binance has a rating of 4.6/5 based on over 900,000 customer reviews. The FTX app is also available on both Android and iOS, and while it is a bit simpler to use, it has a rating of 4.0/5 based on over 170,000 reviews. Based on our reviews, the FTX is not as intuitive and responsive as the Binance app, which has been battle-tested by millions of users.

    Screenshots of the Binance mobile appScreenshots of the Binance mobile appScreenshots of the Binance mobile app.
    winner

    Winner: Binance. The FTX app is better designed from a UI perspective, but the Binance app has far more functions, is more intuitive and has a higher rating overall from current users.

    Buying & Selling NFTs

    Binance and FTX offer NFT marketplaces that allow users to buy, sell, and mint NFTs. While neither platform is competing directly with independent marketplaces such as OpenSea, they both offer a decent selection of popular NFT collections. Binance supports BSC and Ethereum network NFTs, while FTX supports both Solana and Ethereum network NFTs. Binance charges a 1% fee for buying or selling an NFT, and creators receive a 1% royalty on all sales within their collection.

    Binance NFT marketplaceBinance NFT marketplace
    winner

    Winner: Binance. While both NFT marketplaces are fairly new, FTX offers a simpler user experience, however, Binance supports far more NFT collections on their platform.

    Binance vs FTX: Trading Fees

    Binance and FTX have a tiered fee structure that offers very low trading fees, with FTX offering slightly lower fees overall. Binance transaction fees are 0.1% for makers and takers compared to 0.02% (maker) and 0.07% (taker) on FTX. Both platforms also offer discounts to high-volume traders and holders of their native exchange tokens.

    MarketBinance FeesFTX Fees
    Spot tradingFrom 0.1% / 0.1%From 0.02% / 0.07%
    Leverage tradingFrom -0.01% / 0.02%From 0.02% / 0.07%

    Crypto derivatives trading on Binance offers lower transaction fees. There are even rebates for Binance Coin (BNB) holders and high-volume traders, ranging from -0.01% (maker) to 0.02% (taker). FTX leveraged trading follows the same fee structure as spot trades, offering 0.02% (maker) and 0.07% (taker). There is up to a 60% discount to FTX Token (FTT) holders, including maker rebates as low as -0.0030%.

    winner

    Winner: FTX. Both Binance and FTX offer some of the lowest fees in the industry, and even over rebates to market makers that hold a substantial amount of native exchange tokens. Institutional investors and high-volume traders save the most here, but even retail traders can save big money compared to other popular exchanges.

    Binance vs FTX: Security

    Both FTX and Binance offer very secure platforms, following best practices for asset and data protection. That being said, Binance was hacked in 2019 and lost $40 million worth of customer assets within a hot wallet. While all clients were reimbursed, the hack consisted of phishing scams to taking control of high-value customer accounts. But since then, Binance has grown to be the largest crypto exchange in the world (by far, and has not suffered any more losses.

    Binance and FTX offer many account security measures, including two-factor authentication (2FA), whitelisting, and both keep a majority of crypto in offline cold storage. Data is protected via SSL data encryption, and access to servers is under 24/7 surveillance.

    winner

    Winner: Draw. While crypto hacks are always a risk when using an exchange, both FTX and Binance offer some of the best protection in the industry, and insurance funds to recoup any losses if there is a breach.

    Binance vs FTX: Comparison Scores

    To conclude our comparison of which exchange is better between FTX and Binance, each crypto exchange has been scored using simple evaluation criteria as shown below.

    COMPARISON CRITERIAWINNER
    Supported CoinsBinance
    Leverage TradingFTX
    Earning Interest on CryptoBinance
    Trading ExperienceDraw
    Mobile AppBinance
    NFTsBinance
    Trading FeesFTX
    SecurityDraw

    Final Verdict

    Binance and FTX are both highly reputable crypto exchanges that offer best-in-class derivatives and spot trading, as well as a wide range of features catering to advanced traders. With over $100 billion in combined daily trading volume, Binance and FTX have gained the world’s trust, and continue to process more transactions than most other crypto exchanges combined.

    The NFT marketplace on each platform won’t impress serious investors, but the crypto yield farming features on Binance Earn surpass FTX’s offerings. As such, users looking for passive income options should choose Binance. Overall, you can’t go wrong with either exchange, which is why they are both two of our top-rated exchanges.

    In short, choosing between Binance and FTX comes down to preference and trading style. Binance is a great option for both new crypto investors and intermediate traders that want access to one of the largest selections of cryptocurrencies on the planet, while FTX is better suited for advanced crypto traders that want to create custom trading strategies and programs. Overall, Binance is a slightly better platform and a solid alternative to FTX due to its plethora of features and products that will suit various types of users.

    You might also be interested in

    Jacob WadeJacob WadeJacob Wade

    Jacob Wade has been a nationally-recognized personal finance expert for the past decade. As a cryptocurrency enthusiast and investor since 2020, Jacob enjoys researching and writing about the latest in crypto and blockchain technology. Jacob's work has been featured in several publications like CBS News, MSN Money, Forbes, NASDAQ, Yahoo! Finance, Go Banking Rates, The Balance, Investopedia, New York Times and AOL Finance.

    Share this post
    Or copy link