FTX Review: Cheapest Crypto Exchange in Singapore & World!

FTX Review: Cheapest Crypto Exchange in Singapore & The World!

Articles written are independent opinions, and are not affiliated/sponsored unless specifically mentioned.

ftx exchange review

Table of Contents

Established in 2019, FTX is a new kid in the crypto exchange world. Still, with over a million active users and a daily trading volume surpassing 10 billion dollars, FTX has quickly become a force to reckon with in the crypto world.

This article will discuss what FTX has to offer, its feature set, and how well it compares in terms of fees against other crypto platforms.

What is FTX?

FTX is a trading-focused cryptocurrency exchange that offers a variety of products such as derivatives, margin trading, options, volatility products, and leveraged tokens.

The FTX platform is a perfect blend of innovative features and affordable rates that experienced traders, and professional trading organisations would enjoy.

But it also provides simple spot trading for newbies for quickly getting started.

Company Overview

FTX is a Bahamas-based cryptocurrency exchange founded by MIT graduate Sam Bankman-Fried and Gary Wang.

FTX entered the market in 2019 intending to become the world’s premier platform for trading tokens. It has quickly gained momentum and after several rounds of fundraising,

FTX is currently valued at over 32 billion dollars.

FTX.com is currently available in more than 200 countries worldwide, so there is a big chance that FTX is supported in the country you are currently residing in.

But it does miss out on some major markets, including the USA, Japan, and a few others. FTX has a unique offering for the US market called FTX.us, which has limited trading pairs and instruments but is identical to all other fonts.

FTX has a “standard” user interface and an “advanced” trading interface. Both are geared at experienced traders rather than beginners.

Advanced charting, different order types, margin and futures trading, leveraged tokens, and even a prediction market are all available on FTX.

FTX Key Features

What differentiates FTX from other exchange platforms is the number of features baked into the platform. Here is a brief rundown of some of the best features FTX has to offer:

Futures

FTX supports a crypto futures contract, an agreement between two parties to purchase and sell a particular amount of an underlying cryptocurrency at a predetermined future price on a specific date and time.

Individuals and organisations who hold cryptocurrencies can utilise futures to protect themselves against market fluctuations.

Futures also provide you access to a wide selection of cryptocurrencies without requiring you to possess any of them.

Futures on various cryptocurrencies are listed on FTX, including BTC, ETH, EOS, XRP, and USDT. Each of these coins has 3 futures, including one that expires this quarter, one that expires next quarter, and one in the perpetual future.

Spot Margin Trading

Spot margin is a type of trading that allows users to borrow additional funds for trading. You can lend out one spot token to borrow another if you have spot margin trading enabled in your FTX platform.

For example, you could lend $60,000 to borrow 1 BTC. That USD would then be locked up and maybe leased to another user; if it was, you would be paid interest.

On the other hand, you would pay interest to another user on the 1 BTC you borrowed.

Margin trading and borrowing can be accomplished in various ways, and the FTX platform automates the whole process so that users can have complete control and have an overview of their borrowing and lending amounts.

Interests are paid hourly for both lenders and borrowers and are determined by FTX.

On interest payments, FTX levies a fee. Aside from the standard FTX trading costs, there are no additional charges (see the Fees section for more details).

There is no additional cost on top of the net fee on loans, which is already enforced into the interest rates you see.

Support for Leveraged Tokens

FTX supports leveraged tokens, a sort of derivative token with no margin, requirements, risk, or liquidation. As a result, leveraged tokens provide a simple way to obtain leverage exposure.

Take, for example, ETHBEAR, a 2x ETH token. ETHBEAR increases by 2% for every 1% increase in ETH over the course of a day; similarly, ETHBEAR decreases by 2% for every 1% decrease in ETH.

Every future on FTX now has four leveraged tokens: BULL (+3x), BEAR (-3x), HEDGE (-1x), and ETHHALF(+0.5x).

In general, if ETH increases by 1% in a day, ETHBULL increases by 3%, ETHBEAR decreases by 3%, and ETHHEDGE falls by 1%, while ETHHALF rises by 0.50%.

If ETH goes down 1% during a day, then ETHBULL goes down 3%, ETHBEAR goes up 3%, ETHHEDGE goes up 1%, and ETHHALF goes down 0.50%.

If this sounds confusing, notice the numeric value associated with the token (+1) means it increases by 1% if ETH increases and decreases by 1% if the ETH decreases.

Leveraged Tokens are popular for several reasons, including:

Managing Risk: The tokens will automatically reinvest any gains back into the underlying asset; for example, if your leveraged token position generates money, the tokens will automatically put on 3x leveraged positions with that money. This significantly reduces risk and maximises profit.

Managing Margin: On a spot market, you may buy leveraged tokens exactly like regular ERC20 tokens. You don’t have to worry about collateral, margin, liquidation prices, or anything else; all you have to do is spend $10,000 on ETHBULL, and you’ve got yourself a 3x leveraged long currency.

ERC20 Tokens: ERC20 tokens are used in leveraged tokens. That implies you may withdraw them from your account, unlike margin positions. You open your wallet and transfer leveraged tokens to any ETH wallet. This means you may keep your leveraged tokens in your possession and transmit them to other platforms that offer them, such as Gopax or BitMax.

Options

FTX has a feature that allows you to trade crypto options long or short with leverage. The procedure is identical to that of FTX futures trading or binary options trading.

The contract is settled to an amount in US Dollars equal to the expiry price at the moment of expiration. Traders can speculate and use a leveraged position to go long or short.

Support for MOVE Contracts

MOVE is a market volatility trading contract that allows customers to trade market volatility. It is the absolute value of how much a coin’s price changes in US Dollars during a given time period, such as the DAILY.

In the transaction, the direction of the trade is unimportant. The total monetary amount that goes in, either way, is all that matters.

FTX MOVE contracts are a terrific approach for novices and fundamental traders to trade future volatility and participate in the markets.

FTX Wallet

Every FTX account comes with an inbuilt wallet app that enables you to keep track of your balance, your deposits, and withdrawals.

You can deposit or withdraw right from this app as well as convert them to other currencies. For example, if you have Litecoin and wish to convert it to Ethereum, click the ‘CONVERT’ button and input the amount you want to convert.

A price will be displayed; simply click ‘CONVERT’ to confirm it.

As of April 2022, FTX has no conversion fees.

FTX Pay

FTX Pay is a quick, secure, and low-fee payment processor that allows you to make and receive payments in crypto or fiat.

Retailers may use this to receive payments from users and move money between friends and family. The money can be paid to an FTX account or a third-party wallet.

Mobile app

FTX launched support for mobile applications for both IOS and android for trading on the go.

The app has all the features that you would get on the web version, so it comes in handy for traders who are constantly on the move.

FTX Earn

FTX Earn, formerly known as Blockfolio, is a cryptocurrency platform that allows users to earn compound interest on their currencies.

FTX Earn allows users to earn interest on their money no matter which token they are invested in. FTX will directly deposit your profits from staked coins (which are computed hourly) into your FTX investment account.

The interest you earn will be compounded on both the principal and the interest you’ve previously earned.

After you have opted into the program, any cryptocurrency you have put on FTX, as well as any fiat amount you may have on your account, will receive yield instantly.

The first $10,000 USD in your deposit wallets will receive an annual percentage yield of 8%. Amounts kept in excess of $10,000 USD will earn a 5% annual percentage yield.

If you have a balance of $10,000 USD in your FTX wallet, you will receive an 8% flat APY rate.

But if you have $5,000 USD in Bitcoin and Dogecoin, as well as $10,000 USD in your account. You will get 8% APY on the first $10,000 in assets placed, regardless of asset type, and 5% APY on the second $10,000, for a total APY of 6.5% on my deposit.

One thing we love about FTX is how you have complete control over your principal and interests and can initiate withdrawal at any moment. FTX earn has become a popular feature and it is accessible all around the world except for the US.

FTX Foundation

Not exactly a feature, but we thought it’s worth a mention. FTX was formed with the intention of giving to the world’s most effective charities, and they contribute 1% of all net earnings to them.

They have currently contributed over $14 million to organisations, including user donations. FTX understands its moral obligation to the world and is dedicated to improving the planet.

FTT Token

No FTX review will be complete without talking about the FTT token which forms the foundation of the FTX ecosystem. The coin is created to boost network effects and token demand while also reducing its circulating quantity.

Users who trade on the FTX platform can use FTT to get trading fee discounts. This results in cheaper FTX futures trading costs and narrower OTC spreads.

This token may also be used as collateral for future holdings, hence increasing FTT’s utility and demand. Instead of clawbacks, FTX’s insurance fund will deliver a net gain during major market moves, and this portion of the gain will be shared among its holders.

As the backbone of the FTX platform, the FTT token promises to be more valuable in the future and prompts users to get hefty discounts when investing in the coin.

Here is an overview of the amount you can save with FTT investments:

FTT holdings  Discount of FTX trading  Discount of FTX OTC
$100 3% 0
$1,000 5% 0
$5,000 10% 0.0025%
$10,000 15% 0.0050%
$50,000 20% 0.0050%

FTT token is also available on other popular crypto platforms like Binance.

Depositing and Withdrawing

FTX has an ever-increasing list of supported fiat currencies. FTX supports 10 fiat currencies, including the lights of the USA, SGD, and EURO, with support for others, including soon.

Here is a list of fiat currency-supported

Fiat Currency Deposit Withdrawal
USD
HKD
GBP
AUD
ARS
EUR
SGD
TRY Soon! Soon!
ZAR Soon! Soon!
CAD
CHF
BRL

You can either deposit money through a wire transfer or using your debit card. However, for our Singapore readers, popular digital wallet methods like Straitsx are currently not available.

Depositing money using a credit card is only limited to US dollars.

Converting your fiat to USD

You can also use the ‘Convert’ button next to other fiat currencies on the FTX wallet to convert them to USD.

The real exchange rate and OTC bank account charges will be used to convert fiat funds into USD Stablecoins.

You can also withdraw currency to any of the ones listed above. But there is a small fee that you have to incur—more on that in the Fees section of the article.

Depositing crypto into FTX

You can also deposit cryptocurrency on FTX.

Make sure you’re signed in to your account and select the “wallet” from the drop-down menu by pressing the large blue button with your email address on it.

Then you’ll get a list of all the cryptocurrencies available on FTX by clicking the deposit button when you’ve found the one you want on the exchange.

FTX Fees

FTX Deposit Fees

With the exception of ETH, ERC-20 tokens, or small BTC withdrawals, there are no fees on deposits or withdrawals. FTX users have to pay the blockchain fees for all ETH and ERC20 tokens.

The amount here is not specified and presumably depends on the blockchain congestion levels.

FTX Trading Fees

The pricing structure of FTX is based on a tiered basis, with reduced fees for big volume traders.

For its futures and spot markets, FTX charges a minimal trading fee ranging from 0.02% to 0.07%, based on a maker-taker basis.

Traders who utilise market orders to ‘take away liquidity’ will be charged taker fees, which are very low compared to other exchanges.

For more details, see the below table.

Trade volume in last 30 days  Maker Fees Taker Fees
<1,000,000 0.02% 0.07%
>1,000,000 0.015% 0.06%
>5,000,000 0.01% 0.055%
>10,000,000 0.005% 0.05%
>15,000,000 0.00% 0.045%
>35,000,000 0.00% 0.045%

A 0.10% creation and redemption cost, as well as a 0.03% daily administration fee, apply to leveraged tokens.

The trading charge increases by 0.05% for every 50x leverage or above, with half of the FTX fees going to the Insurance Fund.

However, you can save money on FTX trading costs if you possess FTT tokens (FTX’s own coin).

The amount of FTT you have determines the discount you receive, as stated in the table below.

FTT Tokens Held (USD) Percentage of Discount on Trading Fees
$100 3%
$1,000 5%
$5,000 10%
$10,000 15%
$50,000 20%
$100,000 25%
$200,000 30%
$500,000 35%
$1,000,000 40%
$2,500,000 50%
$5,000,000 60%

FTX Fiat Withdrawal Fees

All fiat transactions above US$5,000 are free of charge.

On top of that, one withdrawal of less than US$5,000 each 7-day period is free. If you have a minimum of 25 FTT tokens which as of April 2022 is valued at around US$950, you will get an additional free withdrawal.

If your withdrawal is less than US$5,000 and you do not match the requirements for a free withdrawal, you will be charged the following:

Fiat Currency Fee
USD 25 USD
CHF 30 CHF
HKD 250 HKD
CAD 100 CAD
GBP 75 GBP
EUR 32 EUR

Withdrawal in BRL: 0.3% + R$10

FTX does not charge any further fees for withdrawals in other currencies so users from Singapore can use free withdrawal.

FTX Crypto Withdrawal Fees

Crypto Fee
BTC If less than the minimum threshold of 0.01BTC, you have to pay blockchain fees (one free withdrawal per day).

 

For greater than 0.01BTC, you do not need to pay any fees.

ETH & ERC-20 Tokens You pay blockchain fees unless you have FTT staked
All other cryptos Free

You will receive a number of free ETH or ETC-20 withdrawals each day if you have staked FTT.

Pros of FTX: What we like about the platform

Easy swap between currencies

FTX makes it easy to convert your cash or cryptocurrency to another coin swiftly. We love how intuitive the whole process is, even for people with little to no prior knowledge of cryptocurrency.

You can see the live exchange rate right on your homepage and can decide on whether you want to move ahead with the conversion.

To swap a currency, log in to your FTX account and choose which coin you want to convert from (including fiat currencies) and which coin you want to convert it to.

Choose the quantity of the coin you wish to convert from and click Convert to complete the transaction.

Over 300+ different cryptocurrencies supported

There is hardly any shortage of choices when choosing which crypto you want to invest in. As of 2022, FTX has over 300+ currencies, including the most popular ones like Bitcoin (BTC), Ether (ETH), Solana (SOL), Litecoin (LTC), Ripple (XRP), Dogecoin (DOGE), and many more.

In addition to this, FTX is constantly updating their list; currently, they are offering the much-hyped Apecoin (APE), so if you have any crypto in mind, it is most likely to be available on FTX.

NFT marketplace baked into FTX

NFTs have been a hot topic since their inception in 2019, and there has been no turning back.

People have made millions in NFTs, and FTX allows its users to exchange NFTs as well.

You can buy, mint, sell, and store your NFTs on the FTX exchange.

Lowest Fees

FTX, like many other crypto exchanges, has a volume-based pricing system, which can benefit individuals that create significant volume or provide liquidity to the exchange market.

So for individuals making transactions of high volume, the FTX’s fees will be comparatively better than other mainstream exchange platforms.

And starting at 0.02% and 0.07% maker-taker fees, FTX is definitely the cheapest crypto exchange out there.

Advanced trading

FTX offers advanced trading options for crypto traders – something not many crypto exchanges offer, especially at these competitive rates.

You can spot trade, margin trade, trade futures, options, and more!

However, to take advantage of margin trading in FTX.US, you’ll need at least $100,000 in your account, which can be a bit extravagant.

FTX Cons: What we don’t like about them

Not available in the USA

This may come as a surprise that despite being available in almost 200 countries, FTX is currently not available in the US.

This is due to regulatory bodies not allowing FTX to offer all of its services in the States.

However, for US citizens, FTX offers a stripped-down version called FTX.US, which offers many of the same features but under the supervision of the regulatory bodies.

FTX.US is very limited, offering only 24 cryptocurrencies and lacking many of the advanced features that international users love.

Limited live customer support

We are disappointed that FTX doesn’t offer live chat support. They only provide ticketed email assistance, which isn’t as quick as we would like.

If you’re looking for a crypto exchange with amazing customer support, FTX is not the one for you.

But where credit is due, there are helpful articles and many online materials to help you solve your problem.

Customer Satisfaction

One main concern with FTX and most other trading platforms is poor customer satisfaction. FTX’s customer support is the most common source of user complaints.

The length of time it took for customer service to react to support inquiries was a frequent topic among the complaints.

As previously stated, FTX does not specify how long it takes for consumers to receive responses to these tickets. Some customers reported major problems, such as waiting months for their withdrawal requests to be authorised.

Is FTX Crypto Exchange Safe?

For any investors, it is important to decide if the exchange platform they are invested in is safe and with their time. Thankfully, to ensure the confidentiality of users’ personal information as well as the safety of funds placed on the exchange, FTX utilises a number of security procedures.

  • Cold wallet storage and two-factor authentication (2FA) have so far prevented any hacks or security breaches, maintaining a safe and secure trading environment.
  • FTX has implemented industry-standard security measures to safeguard its consumers, including:
    • Customised hot and cold wallet technology; full external backup of all hot wallet money;
    • Collaboration with top-tier custodians.

 

Regulations

The cryptocurrency exchange was founded in Antigua and Barbuda, but it is headquartered in the Bahamas, where it is licensed and regulated.

Personal security

FTX has several security features in place to protect its users from cyber attacks and malware.

Although not all of the security features are disclosed, some of the main options are listed below:

Withdrawal Lock

When a user’s account status changes, such as when two-factor authentication (2FA) or password is changed, FTX temporarily disables withdrawals from the account for a 24-hour period.

It also sends an email to the user notifying the recent changes and prompting them to connect to customer support in case there is unauthorised access.

Two-factor authentication

In order to transact in any way on any registered account, FTX requires the use of a 2FA solution.

This provides an extra layer of security even in case of security breaches. 2FA is also available for cryptocurrency withdrawals.

Security features built-in

Many security features are built into the FTX platform; some of them are listed below:

Whitelisting IPs

You have the option of selecting your account’s security permissions when generating your API Keys on FTX. You can allow several IP addresses which you can authenticate in case you forget your passwords.

Sub Account Logins

FTX has offered the ability to configure your logins, which you can then use to grant access to your account to other users with varying levels of access.

Whitelisting Wallets

When a whitelisted address is used in connection with an FTX account, withdrawals are only allowed from defined accounts.

You can only cancel your account or shorten the time it takes for it to be whitelisted by contacting an FTX administrator.

Monitor suspicious transactions

To keep track of suspicious crypto transactions, FTX has worked with the “Chainalysis’ Know Your Transaction” (KYT) company.

This allows the exchange to use anti-money laundering (AML) compliance tools to track bitcoin transactions in real-time.

Human review

Using KYT with manual monitoring of large or suspicious deposits and withdrawals offers an extra degree of security.

Backstop liquidity

The FTX Backstop Liquidity Fund has an estimated asset value of $200 million, based on the price of FTT on May 24, 2021.

FTX User Interface

Crypto trading can be challenging, especially for users who are just getting started and may not have the expertise needed for crypto trading.

So it is essential how the overall user interface of the platform performs as it can make or break the experience for the end-user.

FTX provides a straightforward, easy-to-navigate, and intuitive user interface that has been developed for both new and experienced cryptocurrency traders on the platform.

A side navigation bar is included in the default setup for rapid access to FTX derivatives trading products, positions, wallet (to display FTX account money), pending orders, and trade history.

There are more advanced features as well in the UI, like a trading chart, which is integrated with TradingView and offers extensive trading capabilities, indicators, sketching tools, and chart pattern overlay, making the platform intuitive and easily accessible.

Users can also place limit and stop orders at a certain price level by right-clicking the chart.

Users may view the order book underneath the charting window to compare the volume to bid and ask prices.

The order window in the centre of the screen is where you input a position with FTX. It has a straightforward design and can populate entry pricing by just clicking on the order book.

The liquidation price is automatically calculated and shown when the trade volume is altered using the slider.

FTX also enables traders to manage their holdings by providing a variety of order mechanisms for entering and exiting trades.

In comparison to other leveraged trading platforms, FTX offers a wide range of order types that will appeal to a wide range of traders.

Overall, the FTX user interface is well-designed and appropriate for a wide range of traders and skill levels.

Beginners will feel right at home with many essential features clearly labelled. Advanced users will also appreciate the tools they have to make their trading decision easy.

Opening an FTX Account

It’s straightforward to open an account with FTX. The exchange takes you through the procedure step by step from start to finish. If you have experience opening any other crypto accounts, the process is almost identical.

You’ll need to enter your email address and establish a secure password to get started. You will also be prompted to add a 2-factor authentication(2FA) if you want to set that up.

In order to trade crypto or make deposits, FTX needs new clients to authenticate their identities after creating an account.

In several countries, depositing money will require you to provide a valid government ID card to prove your identity.

Users who have not been verified can just log in to their accounts and browse the platform but can not make any trade.

Final Verdict

Whether you are a newbie to cryptocurrencies or a seasoned trader, FTX offers a fantastic choice of cryptocurrency exchange with many advanced tools that will help you with your trading.

FTX has also done an excellent job of developing a refined trading platform featuring a wide range of investment markets, including futures, currency, volatility products, and leveraged tokens.

Fees start at just 0.02% for makers and 0.07% for takers, with savings available for significant trading volumes and holding FTX’s own FTT tokens.

FTX also supports over 300+ cryptocurrencies and 10 fiat currencies, making it one of the most versatile crypto exchanges in the world.

Because of all their amazing features and highly competitive prices, we’ve listed them as one of the best crypto exchanges in Singapore, and believe them to be one of the best crypto exchanges globally!

If you are looking for a reputed crypto platform that offers the lowest fees, FTX can be worth checking out.

We are partnered with FTX Global to bring you a 5% discount on your trading fees!

Click here to sign up with FTX.

Looking for more sign up bonuses that FTX might offer?

We update the latest promotions on our page for FTX referrals here.

Disclaimer: Each article written obtained its information from reliable sources and should be purely used for informational purposes only. The information provided by Singapore Financial Planners and its affiliated parties is not meant to be construed as financial advice. Singapore Financial Planners shall not be held liable for any inaccuracies, mistakes, omissions, and losses incurred should you act upon any information listed on this website. We recommend readers to seek financial planning advice from qualified financial advisors. 

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