In our expert FTX review, we cover all the key details you need to know about the popular FTX exchange. Learn about its main features, how it works, and more.
- Effective Mobile Support with FTX Exchange
- Understanding the Trading View at FTX
- FTX and Leveraged Trading
- OTC Desk at FTX
- FTX is Available to Investors in the United States
- Fees at FTX
- Deposit Options
- Security at FTX
What is the FTX exchange, and how does it work? You’ll find out in our in-depth FTX review.
If you’ve never heard of FTX, it’s a popular crypto exchange launched in early 2019, registered in Antigua and Barbuda. It’s based around trading derivatives, which are instruments priced according to the value of other assets (such as bonds, stocks, and commodities).
In a crypto trading context, the value of derivatives comes from specific cryptocurrencies’ prices. Traders are able to take part in derivatives trading linked to approximately twenty cryptocurrencies at FTX. That’s an impressive advantage, considering so many alternative derivatives exchanges offer ETH and BTC trading only.
Effective Mobile Support with FTX Exchange
For most crypto traders, a desktop computer is the most convenient and practical way to work. The critical data you need to view can fit onto a bigger screen comfortably, allowing you to read without straining your eyes or becoming confused. Charts may display quickly and more clearly, too.
But not all traders prefer desktop computers — some choose to trade through their mobile devices instead. If this applies to you, there’s good news: the FTX exchange is compatible with smartphones and tablets. You can download it from either Google Play or the App Store.
Understanding the Trading View at FTX
No FTX review would be complete without exploring its trading view. This is a major element of the FTX website, displaying a specific cryptocurrency’s price chart and its present price. You can find up-to-the-minute insights here, and place orders on the relevant crypto courtesy of the buy and sell boxes.
The majority of platforms also present you with your order history, to help you keep track of your previous activities. All of this is contained in the same trading view on your desktop.
However, while FTX’s trading view is outstanding, you may feel it’s not ideal, based on your personal preferences. Fortunately, you can adjust the settings to create a trading view that suits you better.
FTX and Leveraged Trading
If you choose to sign up with FTX, you can take advantage of leveraged trading. The maximum level is three times the relevant amount, which is lower than at some other exchanges offering leverage levels as high as ten times the amount.
You need to think carefully before trying leveraged trading for the first time. Yes, it can generate significant returns for you, but the potential losses could be equally large.
For example, imagine if you had $10K in your trading account (a very healthy balance) and decided to place $100 on Ethereum’s value increasing. If you were to do this with 100x leverage, you would receive $1000 if the value rose by 10 percent. But if Ethereum’s value were to drop by 10 percent, you would lose $1000 instead.
It’s worth keeping this in mind when you think about leveraged trading at the FTX exchange. Don’t rush into a decision.
OTC Desk at FTX
FTX provides Over The Counter (OTC) trading. How does this work?
Imagine if you had a high volume of a particular crypto (BTC, for example). Now, if you wanted to sell that full amount of BTC, you could do it on a regular platform like other traders.
However, many would choose to execute bigger trades outside the standard market place because they could impact the relevant crypto’s market price.
Additionally, the order book might be a little too thin for executing the trade. Over The Counter trading is a solution to this issue, and it’s available at FTX for you to try now.
FTX is Available to Investors in the United States
Why are US citizens denied the option to join such a large amount of exchanges? This is down to the Securities Exchange Commission (SEC).
The United States prohibits foreign businesses to solicit investors on its shores, unless said businesses have registered with the SEC. Ignoring this rule can lead to severe legal action, as proven by numerous cryptocurrency exchanges that have been sued (e.g. EtherDelta and Bitfinex). USDT (Tether) was also accused of misleading its investors.
Sadly, if you’re based in the United States and interested in trying cryptocurrency trading, FTX isn’t the exchange for you.
Fees at FTX
FTX imposes a trading fee on you with each order you place. This is typically a percentage of your order’s value.
FTX divides between ‘takers’ (those who take orders from the book) and ‘makers’ (who place limit orders on the books).
This crypto exchange charges a taker fee of 0.07 percent, which lines up with the average at derivatives exchanges. But FTX charges makers no fees, which is a huge advantage.
You won’t be charged any withdrawal fees by FTX itself, but network fees will be imposed. As a result, you will only pay network fees to miners when withdrawing from FTX. Even this is lower than the industry average, and highly competitive.
These reasonable fees help to give FTX a valuable edge.
At FTX, you can make asset deposits in a variety of ways. Options include debit card, wire transfer, and cryptocurrencies.
As FTX accepts deposits in fiat currencies, this exchange is considered suitable for entry-level traders: you can take your first steps in the crypto trading world with no need to own any crypto coins at the point of signing up and adding funds to your account.
Security at FTX
Last but not least: security. It’s a fundamental element of our comprehensive FTX review.
This exchange has been designed to provide users with a high standard of security, and utilizes the latest measures to minimize traders’ risk. You can execute trades without the worry of potential problems caused by data breaches. Nothing is guaranteed, of course, but the team behind the scenes is making every effort.
This brings our FTX review to a close. We hope this helps you make the right decision for your crypto trading goals, whether you’re a newcomer or a seasoned investor.