FTX is a relatively new platform that has partnered with Binance, the largest crypto exchanges in the world. In this review, we will provide an overview of FTX and how the platform differentiates itself from other platforms by assessing its features, user interface, trading products, fees and much more.
While we aim to provide you with accurate and the latest information, it's always best that you regularly visit the site to keep updated with any changes that may occur afterward.
P.S. Read our article on the Best Crypto Margin Platforms to see if FTX made the list.
What Is FTX?
FTX is a crypto-to-crypto derivatives exchange that has been built by traders, for traders to provide a powerful platform for professional trading firms and intuitive enough for first-time users. The exchange is backed by Alameda Research, which is a top cryptocurrency liquidity provider that allows FTX to access industry-leading order books from day one.
Alameda manages over $100 million of digital assets and trades $600 million to $1.5 billion per day across thousands of products: all major coins and altcoins, as well as their derivatives through FTX exchange.
Advanced features, intuitive user interface and a mobile trading app are important features on FTX. This comparison table lists other top rated crypto exchanges that offer world-class features.
Maker - 0.025%
Taker - 0.075%
5 / 5
Maker - 0.025%
Taker - 0.075%
4.8 / 5
4.8 / 5
4.4 / 5
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FTX trading interface is simple, clean and easy to navigate. Along the top bar you can navigate to trade 'Futures' and 'Tokens' or click on 'Wallet' to check token balances or make a withdrawal. A similar navigation window on the left can also be used with a few more options to view positions, open orders and trade history.
The charts are by TradingView and are smooth, intuitive and clean. Active traders will be able to use advanced trading tools provided by the TradingView charts to maximize profits and risk. TradingView charts offer a wide range of time frames and tools to draw trend lines, add indicators and draw chart patterns to perfectly time a trade order using a market, limit or stop order.
Trading With FTX
FTX provides its users futures for the most popular cryptocurrencies and world-first index funds:
- Altcoin Index
- Midcap Index
- Shitcoin Index
- Exchange Token Index
Similarly to other cryptocurrency leverage trading exchanges, FTX offers ‘leverage’ that allows you to trade with more than your actual balance. This involves 'borrowing' a certain amount of money from the exchange.
You can use leverage to your benefit by taking advantage of comparatively small price movements, control your portfolio for greater exposure, or to make your capital go further that you would be able to fund on your own.
FTX is one of the only cryptocurrency derivatives exchanges to offer 101 x leverage. This means you can trade with 101 times more than your available balance size.
Each coin has three futures: a contract that expires end of current quarter, next quarter and a perpetual future. To start trading futures on FTX Exchange, click on 'Futures' at the top menu on the to find the asset list.
According to the FTX website, the listed futures differ from other major cryptocurrency futures in the following ways:
- FTX futures are settle using stablecoins so you can deposit a stable coin to use as collateral for all of the futures and your profit and loss (PNL) is settled in the stablecoin. This means you are provided with a legitimate USD-based price exposure and settlement, without needing to link to a bank account. There is also the option to use the same base fiat currency as collateral for all of the contracts, making it easy to shift your positions around.
- FTX futures have a unique backstop liquidity provider 'insurance' program which activates when an account is at risk of liquidation and to mitigate the risk of clawbacks.
- FTX futures have careful, measured margin calls to avoid large price dislocations.
Leveraged Tokens Trading
FTX has developed an innovative asset for cryptocurrency traders, called Leveraged Tokens. These are ERC20 tokens that have leveraged exposure already applied to cryptocurrency assets. There are even EFTs that have leveraged exposure to numerous existing and popular cryptocurrency assets.
Using FTX leveraged tokens helps trader with risk management. The exchange automatically reinvests any trade profits back into the asset being traded. This means if your leveraged token position is sitting on a profit, the tokens will automatically put on 3x leveraged positions to it. On the flip side, leveraged tokens will automatically reduce risk if the position is negative.
As an example, if you traded a 3x long ETH position and the ETH price fell over 33%, your position will likely be liquidated. However, if you instead traded the ETHBULL asset on FTX, the leveraged token would have automatically sold a portion of the position as the price of ETH started to fall. This would have mitigated the liquidation risk even after a 33% down drop in price.
As FTX's leveraged tokens are actually ERC20 tokens, you can buy leveraged tokens using FTX just like normal ERC20 tokens on a spot market. Furthermore, you can withdraw them from your account unlike margin positions on other exchanges.
To withdraw leveraged tokens, simply go to your wallet and send the token to any ETH wallet.
Another advantage of trading FTX Leverage Tokens is that it requires NO MARGIN.
Many investors use too much leverage and face losing all of their capital without proper risk management. This can be a problem for everyone on exchanges due to clawbacks so in effect mitigates this risk.
To start trading leveraged tokens on FTX exchange, click on 'Token' at the top menu on the to find the asset list. The tokens are constructed in a way that enables traders to get leveraged exposure to a particular crypto asset (on both the long and short side), without risking liquidation.
FTX Deposit Methods
FTX accepts a wide variety of deposit methods including stablecoins. Currently, FT Exchange accepts deposits in:
- Bitcoin Cash
- Leveraged Tokens supported by FTX
To start trading, you can make a deposit by navigating to the top menu and clicking on 'Wallet'. Simply look for the asset you wish to deposit. You will need to activate 2 Factor Authentication first if you haven't already.
Once you found the asset that you want to deposit, click on 'Deposit' and follow the instructions. If you don't own any cryptocurrency, then you will first need to make a purchase using a fiat-to-crypto exchange.
FTX Deposit And Withdrawal Fees
There are no deposit fee or withdrawal fee using FT Exchange.
FTX offers extremely low trading fees in comparison with other crypto trading platforms. FTX fees for futures and spot markets are based on a tiered structure according to your trading volume. Essentially, the more you trade the lower trading fees you will pay. For reference: maker fees are when you submit an order and taker fees are when you take an order from the books.
For leveraged tokens, there is a creation and redemption fees of 0.10% and a daily management fees of 0.03%. If you decide to use leverage of of 50x or higher, the trading fee increases by 0.05% in which half of this fee is allocated to the FTX Insurance Fund.
FTX Exchange users are rewarded with a trading fee discount by up to 30% by simply holding a certain amount of the exchange's native token FTT which is valued in USD. The discount amount is dependent on your currents FTT holdings as per the table below:
FTX Verification & Withdrawal Limits
KYC verification for individuals are required if you want to increase the withdrawals above $1,000 USD of value per day. Additional verification documentation needs to be submitted to increase the FTX withdrawal limit which is based on a tier system.
$1000 USD lifetime
$2000 USD Daily
Unlimited crypto withdrawals
Unlimited crypto withdrawals
To get started, navigate to your user profile and click on 'Identify Verification'.
You will need to provide the standard level of identity proof documents for Tier 1 as with any other exchange such as proof of address, ID document (front and back) and a selfie with a piece of paper with the words 'FTX' and the 'current date'.
FTX Reviews & Customer Support
The customer support provided via their Telegram and thorough their support email are responsive and have replied to within a few hours which is great if you're just starting out with FTX.
There is also a fairly well detailed FAQ section on the website by navigating to the 'Help' link at the bottom of the page.
Here you will find many articles and FAQ's that have answered common questions relating to futures, leveraged tokens, KYC and any general queries.
Frequently Asked Questions
FTX has a referral program to reward its users with promoting FTX services to new members. When you sign up with FTX, a unique affiliate link will be assigned to you automatically.
When a new user signs up with your referral code, you will receive 30% of their trading fees and they will get 5% discount on their own trading fees.
FTX exchange is a cryptocurrency service for customers all around the world with translation support for English, Simplified and Traditional Chinese, Korean, and Japanese. There are a number of countries that are banned from trading on FTX due to regulatory reasons that include:
- Québec (Canada)
- North Korea
- United States
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Disclaimer: your capital is at risk
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Conclusion: FTX Exchange Review
After using FTX for quite some time, we can say that the exchange has separated itself from other crypto trading exchanges by offering new and innovative trading products in the futures and leveraged tokens space.
Like us, if you want to make the switch and trade on a platform with futures index futures and leverage tokens to hedge your crypto portfolio, then we recommend that you sign up for a free account with FTX right now.
In summary, you should trade with FTX if:
- You want competitive trading fees to maximize profits
- You like a trading exchange that is innovative with cutting edge features
- You want to trade with high leverage up to 101x
- You are familiar with using TradingView charts and advanced tools
- You want to trade the world's first cryptocurrency index futures and leverage tokens
- You are a professional trader and want to be listed on the FTX Leaderboard
Risk management tools and platform features are very important for any prospective cryptocurrency investor. The following cryptocurrency trading exchanges - in addition to the above exchange - provide advanced trading features, technical indicators and a smooth, mobile-responsive charting interface that will be suited to beginners and professional crypto traders.