FTX Review: The Best Exchange for Crypto Traders

Summary: FTX is the fastest growing cryptocurrency trading platform in the world, with a broad suite of services that are fully available to Australian users. You can trade Crypto Futures, Options, Tokenised Stocks, Leveraged Tokens and much more with low fees on FTX.

By
James Glennon
on
October 20, 2021
FTX Australia
FTX Review

FTX Review

Sam Bankman-Fried, the founder of the FTX exchange, is the world’s richest crypto billionaire. A $22.5 billion net worth also makes him one of the richest people under 30. The 'new Mark Zuckerberg' was number 32 on the Forbes magazine list of billionaires. 

Bankman-Fried fortune amassed his wealth from companies that he launched in 2018 and 2019 using Bitcoin returns. The first was Alameda Research, a quantitative trading firm, and the FTX crypto trading platform

The FTX exchange is a digital currency derivative exchange. It onboards institutional, intermediate and newbie traders to the vast crypto derivatives trading sector. The FTX platform has options, derivatives, spot markets, leveraged tokens and volatility products for digital currency users.

Its use of innovative crypto services and products give the FTX exchange a hedge over other regular exchanges. Its unique trading fee structure, platform design and functionality have made it a darling of the industry. 

Consequently, its user base rose by 1000% in 2020. Its revenue has ballooned by a tenfold value in 2021. Currently, the FTX exchange has over a million users and a $12 billion daily trading volume.

FTX Landing Page

Is FTX Safe and Regulated?

At launch, Bankman-Fried operated the FTX exchange from Hong Kong. The exchange is now moving its headquarters from Hong Kong to the Bahamas. Bankman-Fried says this move is to ensure that the exchange operates under the Caribbean country's comprehensive crypto regulation environment. 

The Bahamas' Digital Assets and Registered Exchanges Act (DARE) was passed in 2020. The DARE Act facilitates digital token exchange and related service provision registration under the Securities Commission of The Bahamas (SCB).

That said, the FTX exchange was incorporated in Antigua and Barbuda. Antigua and Barbuda have a Digital Asset Business Bill for crypto exchange regulation.

FTX Fees

The FTX exchange has a tiered fee system that works best for high-volume traders. Traders that move over $35 million in trade have zero maker fees and taker fees as low as 0.045%. Low-volume traders can pay as high as 0.02% in maker and 0.07% in taker fees. 

Leveraged tokens have a 0.10% redemption charge and a 0.03% daily management fee. Use of 50X or higher leverage also exposes your trades to a higher 0.05% trading fee. To enjoy lower fees, hold the FTX token, FTT. FTT holders have a 33% trading discount.

FTX User Interface

FTX has an easy-to-use interface. It has displayed all its derivative products and their tabs on its markets page for quick access. There is also a navigation bar that links users to the most popular futures products. 

FTX has a wide range of trading charts. Its charts have TradingView integrations that support professional derivative traders in their decision making. It also has diverse trading tools for professional traders. 

You can set your limit, market, stop market, stop limit and trailing stop orders from its interface. In addition, it supports take profit and take profit limit orders.

FTX Trading UI

FTX Derivatives

The FTX exchange says it has 1100 markets on its list, up from 410 markets in 2019. This growth is because of the rise of assets on the exchange that, in turn, increases trading collateral sources. Below is a list of some of the derivative products available on the FTX platform for users in Australia.

FTX Futures Trading

Futures are simply an agreement to sell an asset in the future at a predefined value. You can speculate on the price movements of large, mid, and small-cap coins on the FTX exchange. There are over 100 futures pairs with a default trade leverage of 10X. You can, however, extend your leverage to 101X. 

Use stablecoins such as USDT and USD or fiat currency as collateral to trade futures on ultra-volatile digital currencies, such as BTC or ETH.

FTX Spot Trading

The FTX spot market supports the purchase and trade of market-matched crypto orders. You can swap over 100 trading crypto trading pairs with USD and USDT.  

FTX Tokenized Stocks

FTX introduced tokenized stock trading in 2020. They are novel crypto derivative products that allow traders unrestricted access to tokenized stocks backed 1:1 by a regulated exchange's shares. You will enjoy all the benefits of holding blue-chip stock such as Tesla, Amazon or Alibaba, including its stock splits and dividends. On top of that, you can trade your tokenized stock in the futures market with 101X leverage.

FTT Token

The FTT is the FTX exchange's native token. It is a utility token that supports the FTX exchange's trading fee program and its insurance fund. Stake your FTT on FTX and enjoy benefits such as: 

  • Free ETH and ERC 20 withdrawals
  • More referral rewards
  • Discount on maker fee and FTT fees
  • Quick access to FTX based NFT early sales
  • Votes on the FTX platform

FTT has a 350,000,000 total supply. Its circulating supply is 190,961,091 FTT. The platform has a burning mechanism that has now burned over 13,768,439 FTT from the token's total supply. Its inflationary mechanism and massive FTX exchange use case makes the FTT a valuable crypto asset. 

To this end, while FTT was selling at lows of $5 by the end of 2020, it now has a $55 value. In August 2021, it rose to its all-time high of $79.

FTT Crypto Token

Can you Trade FTX's Crypto Derivative Products in Australia?

Unlike the UK's FCA, the Australian Securities and Investments Commission (ASIC) has not banned the trade of crypto-asset financial products. To this end, you can invest in the FTX exchange's crypto derivatives products. 

The ASIC, however, warns investors to trade with ASIC regulated entities that hold Australian financial services (AFS) licenses for investor protection benefits. The regulator also says that platforms that do not onboard Aussie crypto asset products traders do forbid them from accessing their platforms. 

"These steps include removing references and links, placing additional warnings and disclosures on the relevant web pages and apps, and introducing geographically based IP restrictions (geo-blocking). This prevents more Australian consumers from accessing financial products provided by the unlicensed platform" the regulator says

The ASIC has, however, expressly banned over-the-counter (OTC) binary options trading for retail clients. To wrap up, the FTX exchange does onboard Australian investors. It has, however, restricted retail traders from countries such as the United States of America, Ontario and Japan retail traders from FTX.com. In 2020, the platform launched the FTX.US exchange for American traders that want to follow US laws on crypto derivatives trading. 

Frequently Asked Questions

Does FTX accept AUD deposits?

Yes, it does. FTX has domestic AUD deposit and withdrawal support. You can make Visa and Mastercard deposits into your FTX account. Alternatively, use bank transfers or crypto deposits. FTX also accepts PayID, Silvergate Exchange Network (SEN) and Signature SIGNET deposits.

 

Does FTX have withdrawal and deposit fees?

No. FTX does not charge withdrawal or deposit fees on cryptocurrency transactions. You will, however, pay the regular blockchain network fees. Fiat withdrawals under the $10,000 mark have a $75 fee.

Is there an FTX exchange mobile application?

Yes, the FTX exchange has an iOS and Android device compatible trading app.

Is there an FTX affiliate program?

Yes. The FTX platform assigns all new users a referral program affiliate link. You will receive 30% of all your referrals' trading fees. 

Does FTX have a demo account?

No. The FTX exchange does not have a demo account, so it is intimidating to beginner traders.

Conclusion

The FTX exchange is a unique crypto platform. It supports crypto derivatives trading, giving cryptocurrency holders access to wealth generation products that have in the past been only accessible in the traditional investment markets. Its trading platform also has groundbreaking tools that skilled investors and traders can leverage for higher returns.

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