FTX Cryptocurrency Exchange Review 2022: One-Stop Shop for Crypto

GOBankingRates Score

4.1
Quick Take: FTX is a leading derivative exchange, offering futures, spot markets, options and other innovative products like leveraged tokens and move contracts. Although U.S. users don't have access to the FTX exchange, they can trade cryptocurrency on FTX.US. The platform is easy to use and offers different market orders, from basic to advanced ones. Trading fees are tiered, and some withdrawals and deposits can be made for free.
  • Products
    4.5
  • Fees
    3.5
  • Cryptocurrencies Supported
    4.3
  • Security
    4.0
How did we calculate this?

Pros

  • Intuitive interface and mobile app
  • Broad selection of trading products
  • Built-in automated trading
  • Ability to stake in the exchange using FTT

Cons

  • FTX platform is comparatively new
  • No demo account
  • KYC rules restrict activity
  • Full global exchange not available in U.S.

The world is becoming an entirely digitized financial marketplace where computing power and internet speed enable instantaneous transactions. This is accomplished through digital platforms called cryptocurrency exchanges.

A cryptocurrency exchange is where you can buy, sell and trade cryptocurrency and other assets, such as non-fungible tokens, in anticipation of turning a profit. This is where the FTX exchange comes in. Here’s a quick overview of the FTX cryptocurrency exchange and its key features.

What Is FTX Exchange?

FTX is a centralized cryptocurrency exchange offering leveraged tokens, MOVE, options, futures and spot markets as some of its services. It’s a leading cryptocurrency exchange that enables users to trade many innovative products, including trading pairs.

The user-friendly interface and mobile app appeal to cryptocurrency investors of different experience levels because of their ease of use and variety of available order types. Users can place market orders, limit orders, stop orders and more.

FTX will need to verify your identity before you can trade. You’ll have deposit and withdrawal limits based on the membership tier you qualify for. Tier 1, which has the lowest level of verification requirements, can withdraw up to $10,000 worth of cryptocurrency or fiat currency per day and $300,000 per lifetime and make up to $500 in ACH deposits per 10-day period. Tier 2 members have no withdrawal limits and can make ACH deposits of up to $5,000 in a 10-day period.

You can deposit and withdraw funds via wire transfers in 11 fiat currencies, including USD, EUR, AUD, SGD, CAD, BRL, CHF, ZAR, HKD, TRY and GBP.

Fees

Users pay fees for some activities they carry out on the FTX platform:

  • Spot market trading fee: Ranges from 0.05% to 0.20% for takers and 0% to 0.10% for makers based on volume
  • Margin borrowing fee: Varies
  • Wire withdrawals: $25 each after first withdrawal of less than $5,000 each week; no fee for withdrawals above $5,000
  • Wire deposits: $0
  • ACH deposits: 50 cents after first ACH deposit over $10 each week; no charge for first ACH deposit or ACH deposits over $100

FTX doesn’t charge cryptocurrency fees for deposits or blockchain transfers, and it pays the withdrawal blockchain fee for most tokens.

Can You Use FTX in the United States?

FTX does not provide services to U.S. residents. That means residents of the U.S. can’t access the global cryptocurrency exchange FTX provides on FTX.com. However, FTX.US, a separate platform that is not owned by FTX, is available in the U.S.

FTX Key Products

In seeking to create a diverse and innovative cryptocurrency trading platform, FTX has launched a robust variety of capabilities on its platform.

Futures

FTX offers quarterly and perpetual futures on over 20 popular cryptocurrencies, including bitcoin (BTC), ethereum (ETH), ripple (XRP), EOS.IO (EOS) and tether (USDT). The exchange also lists index futures, allowing you to invest in various market sectors with ease. This can include large-cap, mid-cap and small-cap coins. You can leverage up to 20x on most of the derivatives offered by FTX.

Leveraged Tokens

Even though a 10x leverage is the default for safety reasons, the FTX platform allows you to get 20x leverage. Leveraged tokens, also called bull and bear tokens, are ERC-20 assets that will automatically manage your exposure to the crypto markets and rebalance daily to maintain the target leverage.

With leveraged tokens, you increase your potential profit up to 3x while avoiding the liquidation risk. What’s more, there is no margin requirement for the leveraged tokens provided by FTX.

Options

Options are open positions that give the right — and obligation — to buy or sell a contract at a future strike price. Like with futures, you can go long or short with options using leverage. Options contracts offer you the chance to reap profits even in volatile markets. You can configure strike prices and expiration dates as you see fit.

Currently, FTX only supports bitcoin and ethereum options.

Move Contracts

MOVE contracts allow you to estimate the volatility of assets over a period of time. Volatility is the measure of how far the price of an underlying security will move. Provided the price of the digital asset moves in either direction, you earn a profit.

Spot Markets

The FTX exchange offers a long list of spot trading pairs. This enables you to trade in some of the leading cryptocurrencies in the world, including bitcoin, ethereum, ripple, chainlink and solana, as well as cryptcurrency and fiat currency pairs.

Regulations

The FTX cryptocurrency exchange is not regulated or available in the U.S. However, FTX.US is registered with Financial Crimes Enforcement Network as a money service business.

Celeb Affiliations

The FTX platform has several high-profile affiliations, including celebrity athletes Tom Brady and Stephen Curry, who now owns a portion of the platform. FTX incorporates philanthropic management and aims at serving the community, which helps boost the trust of its clients and investors.

How Does FTX Exchange Work?

FTX is a digital exchange platform where you can trade cryptocurrencies and crypto derivatives. The platform supports many different cryptocurrencies, including bitcoin, ethereum, litecoin, chainlink and ripple.

If you’re looking for a trading platform that will offer you both retail- and institutional-level diversity, FTX might be the way to go. On top of providing a variety of different innovative trading products, FTX also focuses on professional high-stake traders.

Additionally, the FTX platform runs the OTC service concurrently. This aims to allow you to make cryptocurrency purchases that are as large as you can handle. The fact that you can use the FTX mobile app to trade as you wish in large volumes of cryptocurrency adds value to FTX’s offerings.

Final Take

Whether you are a beginner or a professional trader, FTX is worthy of consideration. With several innovative trading products, FTX is seems well positioned to lead the way into the future of cryptocurrency trading. Plus, it’s continuously evolving to come up with new products.

FAQ

Cryptocurrency exchanges are unfamiliar to many investors. Here are the answers to some common questions about FTX.
  • What does FTX stand for in cryptocurrency?
    • FTX is not a cryptocurrency. Rather, it's a digital exchange where users can trade cryptocurrency.
  • Why can't FTX be used in the U.S.?
    • U.S. law restricts the use of unregulated derivatives trading platforms like FTX. However, the FTX.US spot trading platform is available to U.S. users.
  • What happens if I try to use FTX in the U.S.?
    • The FTX platform detects users' locations and verifies identification, including location, via documents users must provide in order to trade. The platform won't establish a trading account for U.S. users.

Daria Uhlig contributed to the reporting for this article.

Editorial Note: This content is not provided by FTX. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by FTX.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Lydia Kibet is a freelance writer specializing in personal finance and investing. She's passionate about explaining complex topics in easy-to-understand language. Her work has appeared on GOBankingRates, Investopedia, Business Insider, The Motley Fool and Investor Junkie. She currently writes about investing, banking, insurance, real estate, mortgages, credit cards, loans and more. Connect with her on Twitter or moneycredible.com.

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