FTX Review 2022 – The Pros and Cons of Trading on FTX Exchange

FTX is a crypto exchange that offers a wide range of financial services.

Not only can you buy and sell cryptos, but it offers derivatives, options, leveraged trading and more.

FTX a great platform for experienced cryptocurrency traders, but’s also great for amateur crypto traders too.

In this FTX exchange review we will breakdown the features of the exchange, security, deposit methods, withdrawal times, derivatives trading and much more.

FTX Exchange Review

PROS

  • FTX has a convert feature that allows you to swap from one cryptocurrency to another extremely quickly
  • Mobile app that works on both iOS and Android
  • Offers Staking and Lending which can be used to earn interest on your cryptocurrency
  • Advanced markets with stocks, leverage trading, options, futures and more
  • User interface makes it very easy for a beginner trader to begin using
  • Low withdrawal fees
  • Secure exchange with lots of security features, it’s also never had a breach or been hacked
  • FTX has a FTT token which allows users to hold and stake, you then receive benefits which provide lower trading fees

CONS

  • Fees to withdraw USD below $10000 are very high at $75
  • Due to tighter regulations the FTX.COM and FTX.US website are separate, which breaks up liquidity
  • Customer support is only offered through a ticket system, there is no live chat support

Compare FTX

Exchange

Available Countries

Rating

Sign Up

✔️USA

✔️UK

✔️Canada

✔️EU

5/5

❌USA

✔️UK

✔️Canada

✔️EU

4/5

✔️USA

✔️UK

✔️Canada

✔️EU

3.5/5

Signing Up For FTX

To sign up for FTX click here.

To create an account enter your desired email and password into the account creation boxes.

Once you’ve created your account you will have to verify the account.

FTX KYC

The KYC requirements for FTX are not the most strict compared to other exchanges like Binance, which require documents at account creation.

FTX has 2 Tiers of KYC requirements.

For Tier 1 you require:

  • Email
  • Full Legal Name
  • Date of Birth
  • Country of residence and region/province
  • Check for restricted jurisdictions
  • Phone jurisdiction

Tier 1 will allow you $2000 per day of crypto withdrawals. No crypto deposit limits.

For Tier 2 you require:

  • Full Legal name
  • Date of birth
  • Address
  • Proof of Address / phone jurisdiction
  • Description of source assets
  • Passport or other similar government issued identification
  • Facial verification

Tier 2 will allow you unlimited crypto deposits and withdrawals. You will also get unlimited fiat deposits and withdrawals.

FTX Features

FTX has a variety of financial products and features available on the platform.

I’m going to break down each of the features and my opinion of how they perform.

Spot Trading

FTX offers spot trading, which allows you to trade between cryptocurrencies with no leverage.

A spot trade is a transaction or trade that provides instant delivery on a specified date.

The FTX spot market is very liquid. Often times the 24h volume ranges into the billions.

Bitcoin, Ethereum and Solana are typically the three most popular spot trading pairs. They are usually paired against USD or USDT.

Currently there are over 100 trading pairs that you can trade on the spot markets.

ftx spot market

Futures

Futures trading is where FTX definitely excels. The markets are high volume and have deep liquidity.

FTX has one of the most popular futures trading platforms in crypto.

FTX offers over 100 futures contracts that can be traded against a stablecoin such as USD or USDT. Collateral is often based on the stablecoins.

Some of the most popular trading pairs are:

  • BTC-PERP: Bitcoin Perpetual Futures
  • ETH-PERP: Ethereum Perpetual Futures
  • SOL-PERP: Solana Perpetual Futures

Traders are offered up to 20x leverage on futures contracts. You can either go long or short Bitcoin and other cryptocurrencies. This allows for large amounts of profit to be made, from very small price movements in the coins.

FTX also offers index futures such as ALT-PERP and SHIT-PERP which track the price of various baskets of coins.

For protection, FTX has the “FTX Insurance Fund” which mitigates clawback risks. The FTX liquidation engine uses liquidation orders to close positions down, if there isn’t enough liquidity then the insurance fund comes into play to prevent customer losses.

ftx futures

Leveraged Tokens

FTX has innovated and created a new way for traders to increase exposure, whilst not having to actively risk manage.

The FTX leveraged tokens are ERC20 tokens that can have leveraged exposure up to 3x. These coins do not have a margin requirement. Buying and selling these ERC20 tokens is the same as any other coin on FTX. The leverage is automatically calculated and the coins adjust automatically.

Some of the most popular leveraged tokens on FTX are:

  • BULL/USD: 3x Long Bitcoin Token
  • ETHBULL/USD: 3x Long Ethereum Token
  • XRPBULL/USD: 3x Long XRP Token
  • BEAR/USD: 3x Short Bitcoin Token

These tokens are a great way for amateur traders to get exposure without having to manage the risk. The crypto exchange will automatically reweigh and calculate if risk has to be reduced when the position is negative or when to add more of the underlying asset when the position is in profit.

Overall Leverage tokens are a great way for traders who don’t want to micromanage their trades daily and want a way to have leveraged exposure to the underlying asset, without the chance of being liquidated.

leveraged tokens ftx

Options

FTX provides options for Bitcoin. This allows you to go long or short, with a leveraged position.

Options will limit your downsides to a set amount of risk.

When the options expire, the contract will be settled in USD.

Options are a great way to hedge your futures or spot positions, with less risk than other forms of derivatives trading.

ftx options

Lending

FTX has a lending feature which allows you loan out assets to other traders and earn interest. You can access the lending feature through the FTX wallet.

Experienced traders or professional trading firms then borrow these assets to use for crypto derivatives trading on the FTX platform.

FTX facilitates the borrowing and lending. They also protect your as

Each coin and fiat pair has varying lending rates.

During bull markets the demand for USD tends to rise sharply. This leads to high interest rates which you can earn just for lending out your USD.

Lending out USD on FTX will often provide higher interest rates than most banks.

ftx lend

Staking

Staking is a feature that can be offered through the FTX exchange.

Staking allows you to stake coins that have this feature built into their blockchain.

Not everyone coin on the crypto market has a staking feature.

FTX has its own coin called the FTX Token with the ticker FTT.

This coin can be staked on the FTX exchange for benefits.

Some of the benefits of FTX token staking:

  • Increased referral rates, get a higher percentage of referral fees
  • Lower FTX trading fees through maker fee rebates
  • Free swag
  • Free Ethereum withdrawals (limited number per day)
  • 1 free fiat withdrawal per week

Other cryptocurrencies that operate on a proof of stake system can also be staked, such as Solana (SOL), although staking these won’t give any benefits on the exchange such as a lower trading fee.

ftt staking

User Interface

The trading UI for FTX is fantastic.

Cryptocurrency trading becomes very easy with a simple and sleek layout.

On the left hand part of the screen, there is a list of cryptocurrency pairs to trade. It shows their current price, daily change and daily trading volume.

In the middle you have the graph which shows the historical price action of the crypto you are currently trading.

On the right of this we have the orderbook and market trades.

The orderbook has the bids and asks cleanly displayed. You can easily adjust the grouping to change the depth.

Market trades has a list of recently executed trades.

On the right hand side is a simple buying and selling interface.

You can easily enter the amount of cryptocurrency or USD amount. You can also move the slider to a percentage of your total portfolio to trade.

Just below this you can adjust your account leverage.

Overall the UI is what makes FTX great for experienced traders and beginners. It raises our FTX review rating up at least a point because of how good it is for crypto trading.

ftx user interface

Wallet

The FTX wallet is very simple to use.

Just above the balances lists, you’ll see a “Card Deposit” button. This allows you to instantly get fiat currencies onto the exchange quickly. Regardless of the currency you use, it will automatically be converted over into USD and be ready for use on the cryptocurrency derivatives exchange.

If you want to deposit other types of fiat currency onto your FTX account, you can scroll down and find each individual currency.

You can deposit many via Bank transfer, such as:

  • Pound (GBP)
  • USD
  • Euros
  • Canadian Dollar (CAD)
  • Swiss Franc (CHF)

Depositing crypto onto the exchange is very easy too. Simply click the “Deposit” button next to any cryptocurrency to get your deposit address and send the amount you wish.

Withdrawing follows the same procedure, click “Withdraw” next to any cryptocurrency, enter the destination address and complete the withdrawal.

ftx wallet

Customer Support

Customer support is one of the only areas I think the FTX team can really improve the exchange.

The customer support FTX offers is through a ticket system. Response times can vary but it can often take over 24 hours to get a reply to your issue.

Although issues are rare on the platform, it would be nicer to have either a Live Chat function or Phone support.

ftx customer support

FTX Fees

The FTX trading platform has competitive trading fees when comparing with other popular exchanges.

FTX Trading Fees for Spot and Futures

For spot trading, FTX charges a maker fee of 0.02% and a taker fee of 0.07%.

Maker fees are the trading fees for “making the market” and creating the bid or ask.

Taker fees are the trading fees for buying or selling into the bid or ask.

Derivatives trading fees are the same as spot fees.

Extra Fees for Leveraged Tokens

Leveraged tokens have daily management fees of 0.03%. They also have a 0.10% fee for creation and redemption.

Futures settlement has no added fees.

FTX Deposit Fees

Depositing cryptocurrencies and fiat currencies onto FTX is free.

You may incur bank or credit card fees if you complete fiat currency transfers with a card.

FTX Fiat Withdrawal Fees

Most fiat currencies such as GBP, EURO and others have no withdrawal fees.

USD Withdrawal: $75 fee for less than $10000.

FTX Crypto Withdrawal Fees

Bitcoin: One free withdrawal per day, then you pay transaction costs

Ethereum: User must pay all blockchain transaction fees

All other cryptos: FREE!

FTX Deposit Methods

You can deposit fiat currency onto your FTX account by using a card deposit or a bank transfer.

You can also deposit digital assets directly onto the crypto exchange. This is the quickest way to get started with cryptocurrency trading on the crypto exchange.

All deposits come with no fees.

Fiat currencies have different deposit methods depending on the country.

FAQ

Is FTX Allowed In The US?

The official FTX platform of FTX.com does not allow sign ups from people in the USA.

US users can use FTX.US instead which allows spot crypto trading.

When choosing to sign up for an FTX account, make sure you are on the correct platform.

Is FTX Legit?

The FTX exchange is one of the safest exchanges available today.

Not only does it offer a trading platform for amateur and professional traders, but it also has institutional traders on the platform too.

As a cryptocurrency derivatives exchange the performance is excellent. You also have the FTX insurance fund which is a way to protect FTX users, should anything go wrong.

The FTX exchange is also backed by one of the biggest liquidity providers, Alameda Research. Alameda manages hundreds of millions of dollars worth of digital assets every day.

Overall it’s definitely a legitimate cryptocurrency exchange that serves millions of advanced traders. You can buy, sell, deposit and withdraw easily on the exchange with no issues.

How easy is FTX to use?

FTX is a very beginner friendly crypto exchange. Although it has many advanced trading features, you don’t have to make use of them.

For those looking for basic crypto trading, whether that be spot or trading futures, FTX is a great place to do it.

In our FTX review above, you can see how the user interface is easy to use and operate.

Is FTX Regulated?

FTX.com is incorporated in Antigua and Barbuda. It’s headquarters operate from Hong Kong. The trading platform is not regulated for US customers.

To use a regulated exchange, you can use the partner exchange FTX.US which is regulated and serves US customers.

Is FTX Exchange Safe?

FTX exchange utilizes many bank-grade encryption methods to store user data.

Security of FTX users funds is very important and there have been no reported hacks to date.

We never recommend storing your funds on crypto exchanges, but FTX does perform as one of the most secure exchanges we’ve used.

Funds are stored on cold wallet storage and the FTX insurance fund provides a safety net, should anything ever go wrong.

Disclaimer: All content written on this website is for informational purposes and does not constitute investment advice. We recommend you seek out professional investment advice before opening a trading account.

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