FTX cryptocurrency exchange for spot and derivatives trading: review, commissions, reviews

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FTX is a crypto exchange for spot, derivatives trading with up to 110x leverage. It features deep liquidity and tight spreads. A specialized liquidation system significantly reduces the likelihood of distribution of losses. Transactions are settled in stablecoins. Instant opening of a position with up to 3X leverage (tokens with leverage) is available. FTT (FTX Exchange Traded Token) provides holders with benefits in the form of discounts on commission fees and tighter spreads on OTC trading.

Official website: https://ftx.com/.

At the moment, the FTX exchange regularly holds contests and tournaments, and distributes bonuses. So, from November 11 to 25, 2020, a tokenized share trading competition with a prize pool of $ 500,000 is being held. Prizes are BRK.A (Berkshire Hathaway), TSLA and AAPL shares, Tesla Model S cars, iPhone 12.

The Btcnewsweb.com editorial staff offers an overview of the functionality and advantages of the FTX exchange.

FTX exchange

Key Features

Exchange nameFTX
Official sitehttps://ftx.com/
Year of foundation2019
Country of registrationAntigua and Barbuda
CEOSam Bankman-Fried
Exchange typeCentralized
MarketsDerivatives, spot
ServicesFutures, spot, stocks, toned assets, indices, options, OTC, margin trading, leveraged tokens, MOVE contracts
Mobile appYes (Android, iOS)
Working with fiat moneyYes
VerificationMandatory after withdrawing a total of $ 1000 from the account
Account protectionTwo-factor authentication, suspicious activity tracking, IP whitelisting, wallet addresses whitelisting, insurance fund
Trading commissionIn detail
Commission for deposits and withdrawalsNo
MarketsBTC-PERP, ETH-PERP, BTC / USD, ETH / USDT, TSLA, AAPL, BABA shares, and others, in total over 730 derivatives and 300 spot pairs
Fiat MoneyUSD, EUR, AUD, HGD, PLN, GBP, TRY, ZAR, CAD, CHF, BRL
Exchange tokenFTT
Trading volume 24h (12.11.2020)$122 783 087
Deposit and withdrawal methodsCryptocurrencies, bank cards
Types of ordersMarket, Limit, Stop Market, Stop Limit, Trailing Stop, Take Profit, Limit Take Profit
Margin tradingYes
Russian languageYes
Reference materialshttps://help.ftx.com/
Social networkshttps://www.facebook.com/ftx.official/,
https://twitter.com/FTX_Official, https://t.me/FTX_Russian_Official; https://www.youtube.com/c/FTXOfficial/
Supportcontact@ftx.com

Registering and setting up an account on the FTX exchange

An FTX account is created by clicking the “Register” button at the top of the page.

To register, you will need to enter an email address, a referral code (if you have one, you will be given a 5% discount on the commission using it) and come up with a complex password. Immediately after registration, you will be prompted to enable two-factor authentication. It is recommended to do this immediately or a little later to protect your account more reliably.

FTX account settings are opened by clicking on the username at the top and then on the “Settings” item in the drop-down menu.

What you can do on this page:

  • Change Password.
  • Connect two-factor authentication.
  • Activate a payment password, which will be requested every time you make financial transactions.
  • Whitelist the addresses of wallets to which funds should be directed during withdrawal.
  • Create additional credentials for the same login so that trusted users can log in with your account.
  • Verify your identity to increase your withdrawal limits.
  • Copy a referral link or create a referral code.
  • View information about your commissions.
  • Choose leverage and collateral.
  • Manage sub-accounts.
  • Create key
  • Customize interface and notifications

Verification

There are four levels of verification (KYC checks) on the FTX exchange. Features of each of them:

  • Level 0. Email is required. Withdrawal limit is a total of $ 1000.
  • Level 1. E-mail, surname, name, region of residence. Withdrawal limit – $ 2000 per day. But if the trading volume exceeds the amount of withdrawals, then $ 9000.
  • Level 2. Surname, first name, address of residence, place of birth, documents to confirm this data, a photo with a passport and a leaflet with the current date, information about the source of funds. There are no limits on the withdrawal of cryptocurrency.
  • Level 3. A document confirming the place of residence (lease agreement, receipt for utilities, etc.), a fresh bank statement that will be used to deposit or withdraw fiat money. There are no limits on the withdrawal of cryptocurrencies and fiat money.

Every input and output transaction is necessarily checked by Chainalysis. Also in cases of controversy, FTX may request additional information.

FTX exchange functionality

Refill

Go to the wallet by clicking on the account name and selecting the appropriate item. You must have 2FA enabled to be able to fund your account.

Click “Deposit” next to the currency of interest. If it is a cryptocurrency, then the address to which you need to transfer coins from an external wallet will appear (if necessary, you can click “Show QR Code”). Cryptocurrency can also be bought with a credit card using the Simplex service.

As for the deposit and withdrawal of fiat money funds, it is done with the participation of a third-party OTC service. A third level of verification is required to use the function.

Trade

The Markets section contains a list of all available trading pairs and assets. At the top are categories for selecting the desired asset type. FTX offers a wide range of trading options, from perpetual and quarterly futures, fiat money-backed spot markets, to leveraged tokens and volatility trading products.

Select a financial product and click on it. The trading terminal will open.

In the order placement form, you must select the direction, value and volume. It is also possible to select a complex order type in the drop-down menu. By clicking on the tabs at the top of the order form, you can switch between buying and selling. In the extended order form, you can open complex positions at the same time, such as a limit order, stop loss, take profit, etc.

Options

FTX options trade in much the same way as futures. You can open a long or short position on them using leverage. FTX options settle in USD. An option is a contract in which the owner has the right (but not the obligation) to buy or sell an asset on a specific day at a specific price. Two key types of options are supported: puts (sell) and calls (buy).

You can trade options at https://ftx.com/options. It is allowed to create an option with individual parameters: type (call or put), exercise cost, expiration time, quantity.

Leveraged Tokens

Each of the leveraged tokens is a separate position on futures contracts. The token price is usually tied to the value of the position on the underlying asset. Tokens comply with the ERC-20 standard. You can buy and sell them on the FTX spot markets. A BULL token corresponds approximately to an increase of 3x, a BEAR token -3x, etc. Such assets are rebalanced daily, as well as whenever the leverage reaches 4x.

Margin trading

The FTX crypto exchange uses flexible cross-margin (in USD). All futures are denominated in base coins. USD is used to make secured transactions on FTX as easy as possible. In this case, you can use different assets as collateral and combine them at your discretion, for example, ETH, FTT USDT, BTC, fiat currencies in any combination. This has a significant advantage: you no longer need to use only BTC or USDT for collateral.

On the FTX exchange, the user can trade any futures without manually distributing funds between them. It is enough to replenish the wallet with collateral and trade any futures of interest, and the system automatically uses collateral to maintain open positions.

In addition, you can isolate your positions by opening them on separate sub-accounts. Sub-accounts are created in the settings, in the future you can transfer funds between them at your discretion. You can switch between sub-accounts in one click through the upper right menu by clicking on the name of the account.

Quant Zone

Quant Zone is a page on FTX where any user can form trading strategies and share them with other members. Each strategy is based on rules – instructions for creating orders on a cryptocurrency exchange. The rules are commands, for example, “sell a certain amount of cryptocurrency with a 2x leverage if the rate rises above a certain value”, etc.

The user needs to set a trigger and action to create a rule. This is done at https://ftx.com/quant-zone/rules/new. No special programming knowledge is required. All possible triggers are available by clicking on the question mark at the end of the “Trigger” line, you just need to select the one you need and edit it, and then form the appropriate action.

OTC

FTX maintains its own OTC portal where you can get instant OTC quotes 24/7 for most major coins. Any user who has passed verification can use the services of the portal. A separate account is not required for this.

Enter the information and click Get Estimated Price. Immediately get a real-time quote that you can trade. The quote is valid for about fifteen seconds. However, with high market volatility, it may be canceled even earlier.

The site only processes bank transfers, the amount of which is not less than $ 10,000. There is no commission.

Additional features and services

Here are some other options that FTX offers:

  • Leaderboard. List of leaders in terms of trading volume for the month. The user’s nickname can be displayed in a dummy form, it depends on what settings he has set.
  • Volume monitoring. Comparison of declared and actual trading volumes on major competing crypto exchanges.
  • Competitions. The page https://ftx.com/competitions contains the currently relevant contests, their rules and prize pools.
  • Listing of tokenized shares (Vote). Here the holders of the FTT token vote for the listing of certain assets on the exchange.
  • Staking. In the https://ftx.com/staking section, you can use locked and unlocked SRM and MSRM tokens for staking, thereby participating in the Serum ecosystem. Income: 4% per annum. Distributed every hour. At the same time, 2% is issued in blocked SRMs, and the other 2% in unblocked ones.

Commissions

The FTX trading commission structure is multi-tiered. The levels depend on the user’s trading volume for thirty days.

Standard commission rates (for both spot and futures):

  • Level 1 – maker 0.020%, taker 0.07%
  • Level 2 – maker 0.015%, taker 0.06%
  • Level 3 – maker 0.010%, taker 0.055%
  • Level 4 – maker 0.005%, taker 0.05%
  • Level 5 – maker 0.00%, taker 0.045%
  • Level 6 – maker 0.00%, taker 0.04%
FTX exchange commissions

Please note that the maker fee will be zero throughout 2020 to encourage users to shape the market.

FTT Token

FTT is FTX’s own token. It is planned to be the backbone of a growing ecosystem. Developers will regularly buy back and “burn” 1/3 of all FTT fees charged. In addition, the token is used as collateral on FTX.

FTT holders are entitled to a share of the profits of the FTX insurance fund. Finally, they receive substantial discounts on commissions and reduced spreads on OTC trades.

Discounts on commissions for FTT holders:

Advantages and disadvantages

Pros ✅

✅ A multifunctional platform that combines almost all the necessary functionality for trading and managing funds.

✅ Support for fiat currencies.

✅ Own token that provides bonuses to its owners.

✅ Low commission fees.

✅ Possibility of making money on staking.

✅ Detailed background information on all aspects of work.

✅ Bonuses and contests to encourage participants.

✅ Referral program.

Cons ❌

❌ Verification is required to work with fiat money and withdraw more than $ 1000.

❌ Not many fiat currencies are supported.

❌ The site is not available in all countries, for example, it is prohibited to use it for citizens of the United States and a number of other jurisdictions.

Conclusion

Despite the fact that the FTX derivatives exchange was launched recently, it has already created a certain information resonance around itself. It is ranked in the top 10 futures exchanges in terms of actual trading volume. The site is actively aimed at developing and attracting users, as evidenced by contests and tournaments, the absence of commissions for makers until the end of 2020.

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