FTX is a cryptocurrency derivatives exchange launched by traders for traders. When established in 2019, the platform specialized in the crypto futures market, allowing traders to create contracts and buy or sell assets.
Nowadays, perpetual futures are the most popular instrument traded on the exchange, which provides several benefits over standard futures trading to crypto traders.
FTX offers more than 150 perpetual futures and spot markets, with BTC-PERP, ETH-PERP, and DOGE-PRP being the most popular.
FTX is one of the best derivatives exchanges out there, but is it the right choice for you? Here’s a detailed FTX exchange review to help you make the right decision.
Team Behind FTX Crypto Derivatives Exchange
FTX was founded by Sam Bankman-Fried, an ex-professional trader at Jane Capital, and traded in numerous ETFs, equities, currencies, and futures. Sam is also the Chief Executive Officer (CEO) of FTX.
Gary Wang is the Chief Technical Officer (CTO) and the co-founder of FTX. Before founding FTX, Gary worked as a software engineer at Google.
Sam Bankman and Gary Wang have also founded Alameda Research Ltd. Alameda Research, a leading cryptocurrency, and quantitative trading provider.
The FTX team also comprises:
- Nishad Singh – Head of Engineering
- Dan Friedberg – General Counsel
- Jen Chan – Chief of Staff
FTX Derivatives Product Offerings
FTX allows cryptocurrency traders to trade in over 20 assets and 43 leveraged tokens. It also offers straightforward spot trading, along with options MOVE contracts and prediction markets.
Let’s look at the key FTX exchange product offerings.
FTX has quarterly and perpetual futures on more than 20 cryptocurrencies, including BTC, ETH, LINK, and BNB. In addition, the exchange has Index futures as well, allowing you to trade the segment of your choice.
Index futures on FTX include large-cap coins (ALT-PERM), mid-cap coins (MID-PERP), and small-cap coins (PRIV-PERP). Additionally, you can trade privacy tokens (PRIV-PERP), exchange tokens (EXCH-PERP), and regional baskets (DRGN-PERP).
2. Leveraged Tokens
FTX provides up to 101x leverage on all FTX leveraged tokens, though the maximum leveraged position is set to 10x as a precaution. On FTX, you can trade 45 different leveraged tokens.
You can also trade and BULL and BEAR tokens that automatically rebalance every day and manage their exposure to prevent liquidation and maintain target leverage. In addition, you can choose various assets, including BTC, ETH, BNB, XRP, XTZ, and LINK.
FTX also offers Bitcoin options trading. You can trade options contracts on FTX cash that expires in USD. In addition, you can buy or sell Call or Put contracts similar to futures contracts.
4. MOVE Contracts
FTX also provides MOVE contracts that function as futures that expire based on the raw amount BTC moves in a specified time period. Hence, cryptocurrency traders can profit based on the amount Bitcoin moves, regardless of the direction. In MOVE contracts, the underlying asset’s volatility determines the contract’s value instead of its direction.
5. Spot Markets
If you want to trade cryptocurrencies more traditionally, you can trade spot markets on FTX. The FTX exchange allows spot trading for various digital assets such as BTC, ETH, FTT, BCH, PAXG TRYB, BTMX, USDT, LINK, and BNB.
6. Prediction Markets
If you’re a fan of conventional betting, you can bet on real-world events using FTX’s prediction markets. Just like standard betting, if you win, your contract will settle at 100%; if you lose, it’ll drop to 0%. This feature of FTX was used by many traders during the 2020 Presidential Elections.
FTX Supported Coin List
Here’s a list of all the supported FTX leveraged tokens in alphabetical order.
- 1inch Token – 1INCH
- Algorand – ALGO
- AscendEx Token – ASD
- Audius Token – AUDIO
- Avalanche Coin – AVAX
- Balancer Token – BAL
- Bao Finance Token – BAO
- Binance Coin – BNB
- Bitcoin Cash ABC – BCH
- Bitcoin – BTC
- BitMEX Token – BTMX
- Bonfida Token – FIDA
- ChainLink Coin – LINK
- Compound Coin – COMP
- Cream Finance Token – CREAM
- DMM: Governance Token – DMG
- Dodo Token – DODO
- Ethereum – ETH
- Flamingo Token – FLM
- Frontier Token – FRONT
- FTX Token – FTT
- Kin Coin – KIN
- Kyber Network Coin – KNC
- Litecoin – LTC
- Maker – NKR
- MAPS Token – MAPS
- OKB Token – OKB
- PAX Gold Token – PAXG
- Polkadot Coin – DOT
- Raydium Token – RAY
- Ripple – XRP
- Serum Coin – SRM
- Solana Coin – SOL
- SushiSwap Token – SUSHI
- Swipe Token – SXP
- Tether – USDT
- The Graph Token – GRT
- THORChain Token – RUNE
- TRON Coin – TRX
- TrueFi Token – TRU
- Uniswap Token – UNI
- WazirX Token – WRX
- yearn.finance Token –YFI
FTX Order Types
FTX has all the order types you find in other crypto exchanges. Here’s a quick overview of order types available in FTX.
- Limit Order:
A limit order is an order placed at a specified price. When the asset’s price comes at the specified price, the order is executed. A limit order is ideal if you want to buy or sell a contract at a particular price.
- Market Order:
A market order is an order that gets executed at the current market price. Thus, you can place a market order if you want to place an order at the existing price of the token.
- Stop Loss Order:
A stop-loss order is placed at a price point that’s against your active order. For example, if you place a buy order, your stop-loss order will be at a price below your buy price. Stop-loss orders help you limit your loss and manage your risk.
- Trailing Stop:
A trailing stop-loss order adjusts the stop price at a specified percent or number of points below or above the traded price. This way, you can manage your risk based on the movement of the underlying asset.
- Take Profit:
A take-profit order is the opposite of a stop-loss order. You place a take-profit order in the direction of your trade at a price point where you want to exit your trade. This way, your trade will automatically get closed once the price reaches the specified levels.
Apart from these standard order types, FTX also offers the following advanced orders to help traders better control their trades.
- Post Only: When you place a post-only order, your order will be executed only if it can enter the Order Book instead of being immediately executed. In other words, your order will be posted only if it can be counted as a “maker” order, and you can receive a maker rebate.
- IOC: Immediate-Or-Cancel (IOC) orders are the opposite of post-only orders. When you place an IOC order, your order will have to get filled instantly. If not, it’ll get canceled.
- Reduce Only: You can place a reduce-only order if you intend to reduce your current position size.
FTX Trading Fees
FTX offers low trading fees when compared with other cryptocurrency derivatives exchanges. However, like most other exchanges, FTX also implements a Market Maker and Market Taker trading fees structure.
In a nutshell, market maker orders are orders that enter the Order Book (limit orders), thereby adding liquidity to the market. On the other hand, market taker orders are orders that don’t go to the Order Book and get immediately executed (market orders), thereby taking the liquidity away from the market.
FTX charges a 0.02% fee for market makers and a 0.07% fee for market takers on all futures contracts. These trading fees are for traders with a 30-day trading volume amounting to less than USD 1 million. As your trading volume increases, the maker and taker fees decreases.
If you’re a VIP trader, you can get upfront discounts of up to 50% on all FTX trading fees. However, to become a VIP trader, you’ll have to trade at least $100 million in a month.
FTX Deposit & Withdrawal Fees
FTX doesn’t charge any deposit or withdrawal fees from its users. Therefore, you can deposit and withdraw funds without paying any FTX fees. However, note that there’s a lifetime withdrawal limit of USD 1,000 for non-KYC users.
Also, while FTX doesn’t charge any withdrawal fee, the network and mining fees will apply to all transactions. However, these FTX fees will be charged by the blockchain network you’re using to deposit or withdraw funds.
FTX Funding Rates/Fees
FTX, like all other exchanges, has a funding fee for perpetual contracts.
Funding rates are payments given to traders based on the difference between the perpetual contract market price and spot price. For example, if the futures trading price is lower than the spot price, short traders will pay funding fees to long traders. Similarly, if the trading price is higher than the spot price, long traders will pay short traders.
Please note that the exchange doesn’t take the funding fee. Instead, it’s given to the opposite contract holders. So FTX funding rates keep on changing. Follow this page to track real-time funding rates on FTX.
FTX Trading Platform & Tools
FTX has one of the most robust, advanced, and versatile derivatives trading platforms in the crypto space. They’re easy to use and come with all the features essential to provide a smooth and seamless trading experience.
Let’s delve into the trading platforms and tools provided by FTX.
- Desktop Trading Platform
The FTX, a desktop trading platform, comes with various features and functionalities that set it apart from other cryptocurrency exchanges. All the trading products, including leveraged tokens and contracts, discussed earlier can be accessed using the desktop trading platform.
Despite being feature-rich, FTX’s desktop platform is user-friendly and easy to use. So even if you’re a beginner trader, you can easily learn to use the platform and start derivates trading. This makes FTX ideal for both beginners and experienced traders.
- Mobile App
FTX offers a mobile trading app that comes with all the functionalities found in the desktop app. Hence, you can take and manage positions on the go. FTX’s team has done a great job compiling all FTX’s trading platform features into a mobile app while ensuring a seamless customer experience.
You can manage all your trading operations, including carrying out technical analysis, placing and closing trades, and depositing and withdrawing funds from the mobile app. The app is available for both iOS and Android devices.
- Trading View
FTX leverages the trading view chart kit to provide an insightful derivatives trading experience to traders. The charting interface is clean and supports all chart types, such as line, candlesticks, Heikin-Ashi, and more.
You also access various drawing tools and indicators to carry out seamless technical analysis and make informed trading decisions.
The trading view also has the order management panel where you can place all types of orders.
- Analysis Tools
FTX comes with robust analysis tools that support both technical and fundamental analysis. Let’s highlight some analysis tools available in the FTX trading platform.
- Various built-in indicators, screeners, and drawing tools for in-depth technical analysis
- Create and import your own indicators, custom tools, and EA
- Get news services delivered directly to the platform
- Price alerts, conditional orders, and limit orders for trading precision.
- Order history to analyze your past trades
FTX Deposit and Withdrawal Methods
FTX supports a wide range of deposit methods and cryptocurrencies to fund your trading account. You can navigate to the wallet option in your FTC account and select the leveraged token or cryptocurrency you want to deposit.
Some tokens accepted by FTX include Bitcoin, Ethereum, USDC, Litecoin, Tether, TUSD, Bitcoin Cash, and PX.
FTX doesn’t support fiat currencies. So if you don’t hold any cryptocurrency assets, you’ll need to convert your fiat currencies into cryptocurrency and then place an order.
FTX has a pretty straightforward withdrawal method. You can pick a crypto asset in which you want to withdraw your profit and follow the instructions provided to you.
FTX Account Types & Limits
Check for restricted jurisdictions
|No ability to trade, deposit or withdraw, just to explore the site.|
Country of residence and region/province
Check for restricted jurisdictions
|2000 USD daily
9000 USD daily if higher trade than transfer volume*
Enhanced diligence may be required
|2||Full Legal name
Date of birth
Proof of Address/phone jurisdiction
Description of source assets
Passport or other similar government-issued identification
|Unlimited crypto and fiat withdrawals|
FTX uses a tier-based system to categorize trading accounts. There are three tiers based on the account’s KYC. Let’s look at each tier, its KYC requirements, and the associated withdrawal limit.
KYC requirements for Tier 0 account owners are:
- Check for restricted jurisdictions
Withdrawal Limit: USD 1000 lifetime
KYC requirements for Tier 1 account holders are:
- Country of residence and province/region
Withdrawal Limit: USD 2,000 daily, and USD 9,000 if the daily trading volume is higher than transfer volume.
KYC requirements for Tier 2 account owners are:
- Full legal name
- Date of birth
- Proof of address and phone jurisdiction
- Passport or other government-issued identity verification
- Facial verification
- Description of source assets
Withdrawal Limit: Unlimited crypto and fiat deposits and withdrawals
How To Start Trading On FTX Exchange?
Now that we’ve discussed the product offerings, support coins, order types, and platform features of FTX, let’s talk about how you can get start futures trading on FTX.
Here’s a step-by-step guide to FTX derivatives trading.
1. Open an FTX Trading Account
FTX offers a seamless registration process. First, as discussed, you can open a Tier 0 account with only your email address. Then, head to FTX’s registration page, fill in the required details and open an account.
2. Add Funds to Your FTX Account
If you want to add funds to your FTX account, you’ll need to activate the two-factor authentication (2FA) using the Google Authenticator. Once you do that, you can add funds to your crypto trading account.
FTX allows you to deposit funds using a wide range of cryptocurrencies. In addition, the platform allows you to change these currencies to USD automatically.
3. Place Your First Order
Once you have funds in your account, you’re ready to place your first trade. You can choose to trade from the many leveraged tokens and trading products available on the FTX exchange.
For instance, let’s stick to the most basic example of BTC/USD or BTC/USD depending on the currency you used to fund your account. Then, click on the contract you want to trade, and an order book will open.
There, you can place a Buy or Sell order based on whether you want to go long or short. You’ll be asked to choose a type of order – Limit or Market –, and you can select any one of them based on your preferences. You can also select advanced order types, including reduce-only, IOC, and Post Only.
You’ll also need to enter the amount of BTC you want to buy.
Once you have entered all the information, you can go ahead and hit the Buy or Sell button. For example, if you placed a Market Order, your order would be executed at the current market price. If you placed a Limit Order, it’d be executed once the price reaches your specified levels.
4. Exit Your Order
Exiting a trade is as important as entering a trade. Once you enter a trade, you need to determine when to get out of a trade if the trade goes in your direction or the other way.
There are two ways to exit a trade. First, you can manually close your position and take the profit or loss. Second, you can place a Stop Loss or Take Profit order.
If you’re a beginner, it’s advisable to use Stop Loss and Take Profit orders to ensure you don’t miss out on profits or end up incurring hefty losses.
That’s it. Congratulations on completing your first trade on FTX.
FTX’s Native Token (FTT Token) Review
Like other exchanges, FTX also has its own ecosystem utility token – the FTT token (FTT). Crypto traders who trade using the FTT token can receive major benefits, including:
- Low fees with up to 33% discounts on all fees generated of futures and spot markets
- 10% addition to the FTX insurance fund (socialized gains)
- Low fees with up to 5% discount on fees levied on other uses of the FTX platform
Please note that the FTX token FTT isn’t available in the US. However, you can leverage the token and avail of VIP benefits of FTT is supported in your country or jurisdiction.
FTX Security Features
FTX implements various security features and measures on its trading platform to provide a safe, secure, and seamless trading derivatives experience to its users. First, let’s delve into the key security features of FTX’s cryptocurrency derivatives exchange.
- Offline Cold Wallet Storage: FTX uses multi-signature offline cold wallet storage to store user’s funds. These wallets are highly secure and require all the keys from signatories to access the funds.
- 2FA Security: To deposit funds, users need to activate the two-factor authentication option. It adds a layer of security to your account and alleviates the risk of fund theft or other issues.
- Cutting-Edge Trading Platform: Lastly, FTX has one of the most advanced crypto trading platforms in the cryptocurrency space built on the latest cutting-edge technologies.
- FTX Insurance Fund: FTX offers an FTX insurance fund to protect traders from massive losses in case of price volatility. The insurance fund avoids auto-deleveraging in traders’ positions. Like other exchanges, FTX uses an insurance fund to help traders cover all uncovered losses.
Customer Support FTX
Customer support is one of the key factors in choosing a cryptocurrency trading exchange for both beginner and professional traders. FTX understands the importance of good customer support, as they have a team of highly skilled support executives.
While FTX doesn’t offer phone support, you can contact their customer support team on two channels – Telegram and WeChat. The response time is quite fast, and you can expect to get a response within a few hours. Furthermore, the customer support FTX team is knowledgeable and qualified to answer all your queries.
FTX has a resource center that comprises blogs and frequently asked questions. In addition, FTX also has YouTube training sessions. You can find answers to almost all common questions and queries on these resources.
Is FTX Exchange Safe & Legit?
Yes. FTX is one of the most renowned cryptocurrency exchanges in the world and is completely safe and regulated. In addition, it deploys bank-like security features to ensure the safety of user’s funds and personal information.
There haven’t been any security breaches or hacks at FTX, which demonstrate the highest security standards. Therefore, you can expect a safe and secure crypto trading derivative environment and experience on FTX.
Does FTX work in the US & Canada?
As of June 2021, FTX doesn’t provide services to personal accounts of residents in the US, Cuba, Iran, North Korea, Syria, Crimea & Sevastopol, and Antigua & Barbuda. In addition, while FTX provides services in Canada and Hong Kong, partial restrictions may be there.
Similarly, FTX doesn’t offer corporate accounts of entities in the US, Crimea & Sevastopol, Cuba, Iran, Syria, and North Korea.
Is Binance or FTX better?
Both Binance and FTX are some of the most popular cryptocurrency exchanges out there. Both offer trading in various leveraged tokens and underlying assets.
However, Binance is primarily a spot exchange where crypto investors buy or sell cryptocurrencies or hold them in the Binance wallets. FTX, on the other hand, is a crypto exchange that mainly focuses on perpetual futures and leveraged tokens. That said, it also supports spot trading.
Binance gets the upper hand over FTX in terms of trading products and supported cryptos. It currently supports 237 cryptos, compared to only 43 supported by FTX.
However, FTX has an edge when it comes to trading fees. Lastly, Binance charges a withdrawal fee of BTC 0.0005, compared to BT 0.00035 charged by the client.
Coming to the FTX platform, both Binance and FTX have cutting-edge trading platforms with the best features, functionalities, and user experience. However, FTX has a few additional features that are quite helpful. One of the key features is the position calculator to manage your risk and reward better.
If you’re an institutional trader, algorithmic trading is certainly an essential aspect of your trading routine. Therefore, the effectiveness of APIs that facilitate algorithmic trading can be a key factor in choosing the right crypto exchange.
While both FTX and Binance have extensive APIs for algorithmic trading, the FTX API is more favorable to work with. However, Binance uses random ways to layout data and isn’t as intuitive as FTX.
However, the area that truly makes a difference is security. Binance has been the largest cryptocurrency exchange in terms of traded volume since 2017. And thus, it has attracted the attention of some of the most sophisticated hackers worldwide.
One of these attacks was successful, and USD 40 million in funds were lost. However, the owner CZ covered the losses from his own pockets, and the users weren’t affected.
FTX has had a clear track record in terms of security to date. It also deployed some of the most advanced security measures to ensure a safe and secure trading experience for its users. Therefore, FTX is the go-to exchange for professional traders and institutional traders for whom security is the priority.
Overall, there’s no clear winner between Binance and FTX. If you’re looking for a crypto exchange for spot trading and holding crypto assets, Binance can be an ideal pick. On the other hand, if you’re looking for a dedicated crypto derivatives exchange that offers seamless leverage trading on Bitcoin futures contracts, you can opt for FTX.
FTX Review Recap: Pros and Cons
We’ve covered all the aspects of the FTX exchange that could affect your decision. However, grasping so much information at once can be overwhelming. So let’s make things easier for you.
Here are the pros and cons of the FTX cryptocurrency exchange.
- One of the lowest fees in the cryptocurrency market
- A comprehensive range of trading options to choose from
- Best-in-class safety and security
- Innovative market approach
- Advanced trading platform with cutting-edge features and functionalities
- Mobile app for iOS and Android
- No spams or breaches reported to date
- UI not user-friendly for new users
- Restricted in the USA
- No option to whitelist IPs
FTX Review Summary
Overall, FTX is one of the best cryptocurrency exchanges out there. It offers a wide range of trading products to trade from, with competitive trading fees, 101x leverage, and multiple withdrawal methods.
It comes with an advanced training platform that makes it ideal for everyone from beginners to institutional traders.
And if security is your priority, look no further as FTX implements one of the strongest security measures in the crypto space.
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