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    FTX Review 2022: Features, Fees, Pros & Cons

    Updated: Sep 27th, 2022
    Kevin Groves
    Kevin Groves
    FTX Review 2022: Features, Fees, Pros & Cons

    A leading cryptocurrency trading platform that has taken the world by storm with its unique offering of financial products and cutting-edge trading features are FTX and FTX.US. In this review, we will provide an overview of the exchange and how it differentiates itself from other platforms by assessing its features, user interface, products, fees and more. Our methodology includes creating an account, depositing Bitcoin, trading the BTC-PERP futures contract using the desktop and mobile versions and contacting the support team.

    Our FTX Review - Quick Verdict

    FTX offers a well-balanced and innovative marketplace that caters to retail and professional traders alike. FTX is well equipped for serious crypto traders that feature advanced trading options, a wide selection of markets, assets, and more than 400 trading pairs. While the support for direct fiat-to-crypto could be improved, FTX is undoubtedly one of the best crypto exchanges for margin and futures trading we have reviewed.

    Overall Rating: 4.7/5.

    Claim 5% Trading Fee Discount

    FTX Overview

    FTX is a cryptocurrency leverage exchange that has been built by traders and designed to offer a powerful platform for professional trading firms, intermediate traders and beginners. The platform differentiates itself from its competitors by offering a wide variety of markets such as spot, derivatives, options, volatility products and leveraged tokens. There is also the world’s first cryptocurrency index futures that allow its users to capitalize on the rise or fall of a particular index in the form of a future contract. The index can be traded directly from within the FTX exchange platform.

    FTX websiteFTX website

    FTX exchange is owned by the Sam Bankman-Fried, the CEO and co-founder of Alameda Research which is a top cryptocurrency liquidity provider that gives FTX to access industry-leading order books. Alameda manages over $100 million of digital assets and trades $600 million to $1.5 billion per day across thousands of products such as derivatives through FTX exchange. Moreover, the high trading volume on the spot and derivatives markets reduces slippage. In short, this enables FTX to be one of the best exchanges for day trading crypto, combined with its competitive fees.

    Some of the most notable features on the FTX platform are listed below:

    • Futures, options, volatility, spot and leveraged tokens
    • Up to 20 times leverage
    • Competitive trading fees
    • World's first crypto index for futures market
    • Advanced charting with TradingView
    • Long or short 3x leveraged tokens
    • Fee discounts using FTX token (FTT)
    Exchange NameFTX
    Trading Pairs400+
    Fiat GatewayYes (USD, AUD, GBP, EUR etc)
    LeverageUp to 20x
    Trading Fee-0.025% / 0.0075%
    TP/SL OrdersYes
    Mobile AppYes

    FTX Pros & Cons

    FTX is a serious crypto exchange for retail and professional traders. The advantage of using FTX is the wide selection of markets and assets to trade and invest. An advanced trading platform, competitive fees with FTT staking discounts and a responsive app are top features. The only downside with using FTX is the customer support team have been known to take several days to respond to queries.

    FTX Pros:
    • Reputable, secure and stable platform for spot and leverage trading
    • High trading volume and liquidity will suit high net worth inviduals
    • Wide range of supported markets and assets to trade
    • Reliable and fast trading engine with TradingView charts
    • VIP trading fee discounts and competitions
    FTX Cons:
    • Not suitable for beginners
    • Trading fees are not the lowest
    • Customers support can take a few days to respond

    Is FTX Allowed In The US?

    FTX.com does not allow traders that reside in the USA to trade on the platform. The services are restricted to US citizens due to regulations within the country. However, FTX users can trade spot markets using FTX.US which has certain restrictions to comply with Federal and States regulations.

    Is FTX Legit?

    FTX is a legitimate cryptocurrency exchange that specializes in derivatives, index, Futures and leveraged tokens that can be traded with margin. The exchange is backed by top cryptocurrency liquidity provider Alamada Research which manages hundreds of millions of digital assets per day. FTX has seen a surge in growth in recent years and is currently ranked #3 and 4 based on derivatives and spot trading volumes according to coinmarketcap.

    FTX Compared

    Advanced features, an intuitive user interface and a mobile trading app are important features on FTX. This comparison table lists other top exchanges for crypto trading like FTX that offer world-class features.

    ExchangeCrypto AssetsTrading FeesRatingPromotionWebsiteReview
    FTX

    FTX

    3190.02% / 0.07%
    RatingOur 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.
    4.7/5
    StarStarStarStarEmpty Star
    5% off trading feesVisit FTXFTX Review
    Bybit LogoBybit Logo

    Bybit

    810.06% / 0.01% (leverage), 0.1% (spot)
    RatingOur 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.
    4.7/5
    StarStarStarStarEmpty Star
    Deposit bonus up to $3,000Visit BybitBybit Review
    binance futures

    Binance Futures

    100+0.02% / 0.04%
    RatingOur 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.
    4.6/5
    StarStarStarStarEmpty Star
    Up to $100 welcome bonusVisit Binance Fu...Binance Futures Review
    eToro

    eToro

    70+1%
    RatingOur 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.
    4.6/5
    StarStarStarStarEmpty Star
    None available at this timeVisit eToro

    eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. Archived, "Virtual currencies are highly volatile. Your capital is at risk."

    eToro Review

    FTX Products & Features

    FTX offers a beginner-friendly and easy-to-use margin and futures trading platform with innovative products to buy or sell. The crypto exchange primarily focuses on providing a stable and secure derivatives market for cryptocurrency margin trading, in addition to the following pros and cons:

    • FTX.US for traders that reside in the United States
    • Professional user interface for margin trading on desktop or app
    • Basic KYC to trade and withdraw up to $2,000USD worth of crypto daily
    • Low fees and tight spreads due to deep order books and liquidity
    • Up to 20x leverage on trading pairs
    • Leveraged tokens to SHORT or LONG with up to 3X leverage with no margin
    • Stablecoin Settlement using a single margin wallet
    • MOVE Contract that settles to the absolute change in price of a coin over time
    • VIP trading fee discounts with larger volume amounts and using the FTT token
    • FTX Trading competitions and events
    • 24/7 quotes for cryptocurrencies using OTC desk
    • Comprehensive guides, FAQ section and responsive customer support team

    Is FTX Regulated?

    FTX.com is a crypto trading exchange that is incorporated in Antigua and Barbuda and based out of Bermuda with supporting offices around the world. The margin trading platform is currently not regulated and US customers are not allowed to use the services. Residents in the States can use FTX.US, a partner entity serving the United States citizens and is a regulated company.

    Is FTX Exchange Safe?

    FTX uses several bank-like security features to ensure the safety of user's personal information and security of funds stored on the exchange. To date, there have been no reported hacks or security incidents which can be attributed to a high standard of security such as cold wallet storage and two factor authentication to provide a safe and secure trading environment.

    Getting Started

    To create an account with FTX, crypto traders will need to go through a registration process to setup a derivatives trading login. Users can start trading on the exchange and withdraw up to $2,000 USD per day with email verification only.

    Tier 2 and 3 account holders that complete KYC can withdraw unlimited amounts of cryptocurrency to a hardware wallet such as the Ledger X, or cash out fiat directly to a bank account using a wire transfer. FTX account holders that complete the AML/KYC process can use the OTC desk as well. There is also the option to swap crypto through FTX directly using the Ledger Live Software.

    TierKYC RequirementWithdraw Limit
    UnverifiedEmail onlyNo ability to trade, deposit or withdraw
    1Email, Full Name, Country of residence and region/provinceCrypto only $2,000 daily
    2Full Legal name, DOB, Place of birth, Proof of Address, Description of source assets, Passport/Drivers Licence, Picture holding your IDUnlimited crypto and fiat

    Deposit Methods

    FTX allows a wide range of deposit methods for traders on the platform to fund an account. These include cryptocurrency, stablecoins or fiat currency. There is the option to use a credit card to purchase crypto directly through the FTX platform the fiat/crypto market leader, Simplex. The company has pioneered the fiat onramps using a traditional bank card (e.g. VISA and Mastercard).

    Traders can transfer stablecoins to the platform such as USD, USDC, TUSD, PAX, BUSD and HUSD. FTX will credit the user's wallet using a 1:1 ratio. FTX supports 13 fiat currencies that can be deposited and withdrawn using a wire transfer such as USD, EUR, GBP, AUD, HKD, SGD, ZAR, CAD, CHF and BRL. 

    User Interface

    FTX has been designed for beginners and professional cryptocurrency traders on the platform by offering a simple, easy to navigate and intuitive user interface. The default arrangement has a side navigation bar for quick access to FTX derivatives trading products, positions, wallet to view FTX account funds, pending orders and to view trade history. 

    Screenshot of the FTX charting and trading interfaceScreenshot of the FTX charting and trading interfaceScreenshot of the FTX charting and trading interface.

    The center of the user interface features the trading chart which is integrated with TradingView and is well-known for its advanced trading features, indicators and drawing tools and chart pattern overlays. Users can right-click the chart to place limit and stop orders at a selected price level.

    Below the charting window, users can view the order book to examine the volume against the bid and ask prices. To enter a position with FTX, the order window is located in the middle. It is simple in appearance and can populate entry prices by clicking on the order book. Trade volume can be adjusted using the slider which will automatically calculate and display the liquidation price. 

    Screenshot of the FTX order entry and orderbookScreenshot of the FTX order entry and orderbookScreenshot of the FTX order entry and orderbook.

    FTX allows traders to manage their positions by offering several order methods to enter a position and exit the trade. Compared to other leveraged trading platforms, the selection of order types on FTX is excellent and will suit a variety of traders. The available orders include:

    • Limit order
    • Market Order
    • Stop Market
    • Stop limit
    • Trailing stop
    • Take profit
    • Take profit limit
    • Time weighed average price (TWAP)

    Overall, the FTX user interface is robust and suited to various types of traders and skill levels. The charting window is responsive and includes excellent charting tools for serious traders. For more information on the best crypto charting software, read this article.

    Trading Derivatives

    FTX offers a number of cryptocurrency derivative products that can be traded on the exchange using a single margin wallet. The trading products offered include:

    • Futures – users on the platform can trade futures on coins such as BTC, ETH, EOS, XRP, and USDT. Each coin has three futures contracts: a contract that expires this quarter, a contract that expires next quarter and a perpetual future.
    • Leveraged Tokens – tokens that can be bought and sold with up to 3X leverage that requires no margin requirements.
    • Options – contracts that give the holder the right but not the obligation to buy or sell at a future strike prices. Often referred to as 'calls' and 'puts'. Advanced traders can use options to hedge their open positions against price volatility.
    • MOVE – contracts that represent the absolute value of the amount the price of a coin moves over a time period. 
    • Spot – trades that follow the underlining price of the asset without margin or collateral

    Futures

    FTX has over 100 futures pairs that can be traded using a stablecoin such as USD or USDT as collateral. This means that profits and losses are based on USD prices without needing a bank account. There is also the option to use the same fiat currency as collateral for all of the contracts. The popular FTX Futures pairs by daily trading volume include:

    • BTC-PERP - Bitcoin Perpetual Futures
    • ETH-PERP - Ethereum Perpetual Futures
    • XRP-PERP - XRP Perpetual Futures
    • LTC-PERP - Litecoin Perpetual Futures
    • BCH-PERP - Bitcoin Cash Perpetual Futures

    Users can trade the futures pairs with margin up to 20x to long or short Bitcoin and other coins by taking advantage of comparatively small price movements. It also provides flexibility of a portfolio for greater exposure and make the capital go further than the user would be able to fund on their own. Each position on the futures exchange is backed by the FTX Insurance Fund which activates when an account is at risk of liquidation and to mitigate the risk of clawbacks.

    FTX perpetual futures pairsFTX perpetual futures pairsFTX perpetual futures pairs.

    Leveraged Tokens

    FTX has developed an innovative asset for advanced cryptocurrency traders called Leveraged Tokens. These are ERC20 tokens that have leveraged exposure up to 3x applied to the trading pair. There is no margin requirement from the user's FTX account balance to start trading leveraged coins. There are even EFTs that have leveraged exposure to numerous existing and popular cryptocurrency assets.

    A few examples of FTX leveraged tokens include:

    • BULL/USD - 3x long Bitcoin token
    • BEAR/USD - 3x short Bitcoin token
    • ETHBULL/USD - 3x long Ethereum token
    • ETHBEAR/USD - 3x short Ethereum token

    Using FTX leveraged tokens can help a trader with risk management. The derivatives exchange automatically reinvests any trade profits back into the underlying 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. 

    FTX leveraged tokensFTX leveraged tokensScreenshot of the available FTX leveraged tokens.

    As an example, if the user traded a 3x long ETH position and the ETH price fell over 33%, the position would be liquidated. However, a position on the ETHBULL asset 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.

    To start trading leveraged tokens on FTX, 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. 

    Options

    FTX provides a feature to trade crypto options long or short using leverage. The process is similar to futures trading on FTX, or binary options. At the expiration time, the contract is settled to an amount in US Dollars equal to the expiration price. Traders can speculate and opt to go long or short with a leveraged position.

    FTX options chartingFTX options chartingFTX options charting.

    MOVE Contracts

    MOVE is a contract that allows users to trade market volatility. It represents the absolute value of the amount the price of a coin moves in US Dollars over a time period such as the DAILY. The direction of the trade is irrelevant in the trade. All that matters is the total dollar amount that moves in either direction. FTX MOVE contracts are a great way for beginners and fundamental traders to participate in the markets by trading future volatility.

    Spot Markets

    Traditional traders can purchase a number of popular digital assets on the exchange similar to a spot trading exchange. FTX currently lists over 200 trading pairs that be swapped using USD or USDT such as BTC, ETH, LINK, FTT token, PAXG and XRP.

    Trading Fees

    FTX offers a low trading fee starting from 0.02% to 0.07% for its futures and spot markets which are based on the maker and taker model. FTX's fee structure uses a tiered system that benefits high-volume traders with lower fees. Traders that use market orders and 'take away liquidity' will pay the taker fees which are quite competitive compared to other exchanges.

    Volume (30d)Maker FeeTaker Fee
    <1,000,0000.02%0.07
    >1,000,0000.015%0.06%
    >5,000,0000.01%0.055%
    >10,000,0000.005%0.05%
    >15,000,0000.00%0.045%
    >35,000,0000.00%0.045%

    For leveraged tokens, there is a creation and redemption fee of 0.10% and a daily management fee of 0.03%. If you decide to use the leverage of up to 20x, the trading fee increases by 0.05% which half of FTX fees are allocated to the Insurance Fund.  

    FTX users are rewarded with a fee discount of up to 30% by simply holding a certain amount of the FTX native token (FTT) which is valued in USD. The discount amount is dependent on your current FTT token holdings as per the table below. The discount program makes FTX a better alternative to similar platforms such as Currency.com and Phemex which do not offer additional discounts.

    FTT staking rebatesFTT staking rebates

    Deposit & Withdrawal Fees

    There are no deposit or withdrawal fees for cryptocurrency coins and tokens using FTX. Withdrawal of cryptocurrency assets from the trading exchange does incur the standard blockchain network fee which is unavoidable and adjusted automatically based on market conditions. It should also be noted that staking FTT reduces the ERC-20 withdrawal fees. The amount per day depends on the amount of FTT staked.

    FTX App

    FTX also offers a mobile trading app that is supported by Android and iOS devices. FTX Pro allows users to monitor the markets and trade at anytime and any place. The app has a 4.7 star rating and been downloaded by over 10,000 users. The app includes full screen chart functionality, orders, positions and basic chart indicators. The functionality on the FTX app is similar to the desktop version. Traders can edit orders, check trade history and view market information.

    screenshot of FTX mobile appscreenshot of FTX mobile appScreenshot of FTX mobile app

    Customer Support

    FTX provides a number of channels to get in touch with their customer support team such as Telegram and Support Email. Beginners can browse through the FAQ section on the website by navigating to the 'Help' link at the bottom of the page. There is an extensive list of articles that cover a broad range of topics such as:

    • Deposit and withdrawals
    • Account and KYC Verification
    • Crypto Trading
    • FTT Token
    • FTX Trading Competitions and Events
    • Mobile App
    • OTC
    • API
    • Fees

    User's can also read FTX Exchange review website online such as from TrustPilot to understand the feedback from existing traders on the platform. Currently, there are only 14 reviews with an average star rating of 3.2/5. Although the comments appear to be from spam accounts.

    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 such as the USA, UK, Australia and New Zealand to trade Bitcoin and other assets with leverage. The platform provides 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)
    • Cuba
    • Crimea
    • Sevastopol
    • Iran
    • Syria
    • North Korea
    • Sudan
    • Singapore
    • United States

    Related: 7 Best Places To Buy Crypto In Canada?

    FTX is available for individuals in Australia to use the platform for spot and derivatives trading. It is one of the best crypto providers in Australia for leverage trading due to its accessibility, variety of trading markets and deep liquidity,

    Customers can top up their trading account and purchase digital assets using a credit card. This feature is provided by third party provider Simplex, which accepts Mastercard and VISA credit/debit cards. There is a minimum transaction of $50 and a daily limit of $20,000 USD per user which is reasonable for beginners and intermediate crypto investors.

    Verdict

    To conclude this review, FTX has separated itself from other crypto exchanges by offering new and innovative futures trading products in the futures and leveraged tokens space. With over 319 crypto assets and 400 pairs to trade across spot, futures, options, index and leveraged tokens, users will not be short of finding trade opportunities. 

    For those that want to trade on an advanced and modern platform with spot, futures and leverage tokens, then FTX is one of the best crypto exchanges for margin trading.

    Visit FTX

    Review Methodology

    HedgewithCrypto strives to provide independent, factual and unbiased reviews of cryptocurrency exchanges and trading platforms to help readers make an informed decision about picking the right crypto exchange. The review process includes examining the website and external sources, creating and funding an account, demonstrating and experiencing the features of the platform and calculating an overall weight-average rating.

    A rating between poor (1 star) and best (5 stars) with 0.1 increments is given. For further information on the criteria and categories that are evaluated, read our full exchange review process.

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    Kevin GrovesKevin GrovesKevin Groves

    Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. In 2019, he started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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