Today, we will be reviewing one of the most popular exchange platforms for cryptocurrency prediction and futures markets – FTX. We will assess its unique features, discuss its current trading opportunities, and evaluate the overall functionality provided to customers.

What is FTX?

FTX is one of the top 5 global derivative exchanges by daily volume. It is also a reputable liquidity provider and a platform that allows you to trade digital assets in various unconventional ways. FTX gives its users access to a wide range of derivatives trading markets while offering them many unique financial products and extensive functionalities.

PROS

✓ Low overall fees
✓ Guaranteed liquidity
✓ An advanced tool for professional traders
✓ No reported hacks
✓ Mobile app

 

CONS

UI not suitable for new users
✗ Unoptimized customer support
✗ High flat fee for withdrawing
✗ Location restrictions

FTX’s Tradable products

One of FTX’s most prominent features is the tradable products that it offers to clients.
You can buy the so-called Futures on the platform, a market order for buying or selling an asset at a predefined price. Currently, there are supported futures for more than 20 cryptocurrencies, including BTC, ETH, LINK, and others. FTX also allows you to use Index Futures (large-cap, mid-cap, and small-cap) and trade exchange tokens, privacy tokens, and regional baskets.

FTX Native token – FTT

FTX’s ecosystem runs on its native token – FTT. Customers can use it to pay less trading fees and receive certain benefits (such as socialized gains). FTT can also be used as collateral for futures trading (available for trade on Binance).
If you are interested in trading leverage tokens, the platform will give you many opportunities to customize your market orders. Currently, FTX offers a default 10x leverage on most cryptocurrencies and derivatives, that can go up to 20x for certain coins and tokens. There are three main categories of leverage tokens that you can use.

Hedge tokens – Hedge tokens allow you to take a short position on most supported cryptocurrencies on the platform. If, for example, you decide to buy an ETH Hedge token, once the price of ETH goes down by 8%, your ETHHEDGE will go up 8%.

HALF tokens
– If you are unsure how the market will move in the future and want to increase the safety of your investment, you can use the so-called HALF tokens. If, for example, you buy an ETH HALF token, when ETH goes down by 10%, your ETHHALF will go down by 5%.

BULL & BEAR tokens are high-risk leverage ERC tokens that allow you to increase your trading margin by 3x. BULLs are used for long positions, while BEARs for shorts. For example, if ETH futures go up by 1%, ETHBULL goes up by 3%, while ETHBEAR goes down by 3%.

FTX MOVE & Options Contracts

One of FTX’s most prominent features is the tradable products that it offers to clients.
You can buy the so-called Futures on the platform, a market order for buying or selling an asset at a predefined price. Currently, there are supported futures for more than 20 cryptocurrencies, including BTC, ETH, LINK, and others. FTX also allows you to use Index Futures (large-cap, mid-cap, and small-cap) and trade exchange tokens, privacy tokens, and regional baskets.

FTX’s Features & Exchange tools

Apart from the wide range of derivative markets, FTX offers many innovative and valuable exchange features. 

The FTX Liquidation Engine will gradually send traders liquidation warnings to close positions below the 4.5% maintenance margin. Customers can also enable the usage of “stop-loss,” as well as see the estimated liquidation price of their current position. 

FTX has a mobile app, which is currently available for Android and iOS devices. It provides users with the platform’s full functionality and offers a “Rest API,” which can be used for crypto trading automation. 

The FTX insurance fund’s role is to prevent customer losses in case of unforeseen market drops. As a customer, the higher leverage you use, the higher insurance fees you will pay. For sudden market movements, FTX will automatically close your losing position and compensate you for your losses. Around 5% of FTT is put aside in case the insurance fund runs out of money. When the market goes up, and the FTX insurance fund starts making net gains, those gains are divided among FTT token holders as “Socialized gains.”

The FTX Quaint Zone is a unique tool on the platform, which serves both as a forum, where FTX users can build and share their trading strategies, and a feature that allows you to create predefined market orders on your account. It offers a range of customizable options, including an indication of a trigger, an action, or other monitoring rules. The system will check whether the conditions are met every 15 seconds, and the respective pre-set actions will be executed. 

According to user reviews, FTX has a relatively high security level, with a two-factor authentication process and the option to use a separate password for withdrawals. Your account limits will be determined by the KYC information that you provide, starting at $1000 daily with email registration. By confirming your name and country, the limits will be increased to $2000. Your withdrawal limits will be lifted by providing your full personal information, including your address and ID.

 

FTX Pros & Cons

Low overall fees

FTX offers its customers some of the lowest fees on the cryptocurrency markets. There are no charges for OTC quotes and no percentage fees for deposits and withdrawals. Taker fees start at 0.07% and maker fees at 0.20% (which get lower depending on your FTX account tier.) For the usage of certain prediction markets and leveraged tokens, additional fees will be applied (usually no more than 0.10% for each transaction.).

Guaranteed liquidity, a lot of supported cryptocurrencies & various trading options

Backed by Alameda Research, FTX is one of the top liquidity providers in the cryptocurrency market. With various liquidity automation tools, the platform will provide you with derivative trading options for over 80 cryptocurrencies. Occasionally, the company also offers political and social events prediction markets. FTX has integrated with some of the leading financial providers, including Simplex and Circle. If you wish to deposit using your debit or credit card, the funds will be credited to your account within seconds (can be withdrawn 7 business days after the initial deposit.) While you may face some additional fees when purchasing through a bank card, in most cases they will be less than 3%.

 

An advanced tool for professional traders

If you are trading cryptocurrencies in high volumes, FTX will upgrade your account to VIP. This will reduce your trading fees, give you access to dedicated account managers, and allow for more flexible limits. Moreover, you will be allowed to communicate with senior developers regarding your queries and receive early access to new products.

 

 

No reported hacks, scams, or serious security breaches

Up until now, there have not been any reported scams or hacks on the platform. The FTX developers’ team is constantly fixing occurring software issues and maintaining the platform daily to ensure a seamless user experience. 

Reliable API

Despite the high traffic on the network, the API is working flawlessly to prevent any technical difficulties and potential transaction delays. 

 

UI not suitable for new users/Unoptimized customer support

In case of technical difficulty or a transaction problem, the customer support team can be contacted only through an email or on FTX’s Telegram and WeChat groups. Responses are often delayed, which could result in potential losses. The platform’s UI is not very suitable for new users, as the tools used for derivatives trading are more advanced and complicated than those for standard market orders. 

 

High flat fee for withdrawing a lower amount of money/Complicated fee structure

The company offers a tiered taker/maker fee structure, which will change as your activity on the platform increases. FTX also charges a funding fee, which is given to the holders of the opposing contract. A 0.10% fee will be taken for both the creation and redemption of leveraged tokens, with a 0.03% daily management fee. For 50x leverage, trading fees increase by 0.02%, and for 100x, by 0.03%.  For any sum below $10,000, fiat withdrawals will come with a flat $75 fee. 

 

Location restrictions

Some of FTX’s services have been forbidden for certain locations and countries. Currently, the platform does not provide services for the residents of the United States of America, Crimea and Sevastopol, Syria, Iran, Cuba, and North Korea.

Prediction Markets are unavailable for personal and corporate accounts (and entities) in the USA (available only on the local platform), Canada, the European Union, Hong Kong, the UAE, Cambodia, Turkey, and the United Kingdom.

Overview

If you are looking for a platform with various leverage trading opportunities and derivatives markets, then FTX will meet most of your expectations. The exchange is easily accessible for experienced traders and offers a wide range of useful features. While margin trading comes with certain risks, FTX will provide you with the right set of tools to control your investments and automate most of your market orders. FTX’s API is built to withstand large daily volumes, so technical difficulties should not occur often. 

Up to this point, there have not been any major security breaches on FTX, which is another indication that the platform is well-sustained by the development team. Moreover, the exchange is continuously introducing new financial products and features. If you are looking for a solid liquidity provider and unique various new market opportunities, FTX will provide you with an advanced crypto platform, which can assist you with your trading activities and help you optimize your profits.

Score 4.5/5

Nothing on this website should be perceived as financial, investment or trading advice. We urge you to do your own research prior to investing and we highly recommend that you consult a certified financial advisor.

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