Cryptocurrency trading platforms have evolved rapidly, offering users advanced tools, diverse financial instruments, and global access. Among them, FTX emerged as a prominent centralized exchange known for its innovative derivatives and leveraged products. While FTX’s operational status has changed significantly since 2022, understanding its structure, features, and historical context remains valuable for crypto traders evaluating similar platforms.
This comprehensive guide provides an in-depth FTX review, covering its core functionalities, benefits, limitations, security framework, fee structure, and practical steps for funding and trading—offering clarity for both new and experienced digital asset investors.
What Is FTX?
FTX was a cryptocurrency exchange founded in 2018 by Sam Bankman-Fried, a former MIT graduate and trader at Jane Street Capital. Headquartered in the Bahamas, FTX specialized in derivatives, leveraged tokens, spot trading, and options, catering to traders seeking advanced financial instruments beyond basic coin swaps.
The platform supported over 300 trading pairs including BTC/USDT, ETH/USDT, XRP/USDT, and featured its native token, FTT, which played a key role in fee discounts and platform incentives.
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Key Features of the FTX Platform
FTX stood out due to its broad product suite and user-friendly interface across desktop and mobile applications. Designed for traders of all levels—from beginners to institutional whales—it offered:
- Advanced order types (market, limit, stop-loss, trailing stop)
- Spot and futures markets
- Volatility products and options
- NFT marketplace functionality
- Multi-currency fiat support
Its global reach included support for nine fiat currencies via wire transfer: USD, EUR, GBP, AUD, CAD, CHF, BRL, GHS, and ARS. Limited support existed for JPY and TRY, with plans to expand to HKD, SGD, and ZAR.
Advantages of Using FTX
Despite its eventual collapse, FTX introduced several competitive advantages during its operation.
Competitive Fee Structure
FTX maintained relatively low trading fees:
- Maker fees: 0.00% to 0.04%
- Taker fees: 0.05% to 0.07%
These were further reduced through a tiered VIP system based on 30-day trading volume. VIP tiers ranged from 1 to 7, with top-tier users enjoying taker fees as low as 0.025%.
FTT Token Utility
Holding FTT provided additional perks:
- 15% fee discount with $10,000 worth of FTT
- 25% discount with $100,000 worth of FTT
- Staking FTT enhanced affiliate rewards
Affiliate Program
Users could generate passive income through referrals:
- Earn 25%–40% of referred users’ trading fees
- Receive a 5% rebate on personal trading costs when referred via another user
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Limitations and Drawbacks
While feature-rich, FTX had notable drawbacks.
Customer Support Constraints
Support was primarily handled through ticketing systems, lacking live chat or phone assistance—potentially frustrating for urgent issues.
Geographic Restrictions
Due to regulatory compliance:
- U.S. residents were restricted to FTX US, a separate entity
- Full platform access was unavailable in sanctioned regions
Complexity for Beginners
With an interface packed with advanced tools, novice traders often found FTX overwhelming compared to simpler exchanges.
Regulatory Framework
FTX operated under a dual-jurisdiction model:
- FTX Global: Registered in Antigua and Barbuda, later relocated to the Bahamas; regulated by the Bahamas Securities Commission
- FTX US: A FinCEN-registered money services business acquired LedgerX in 2021, becoming FTX US Derivatives, licensed by the U.S. Commodity Futures Trading Commission (CFTC) as a derivatives clearinghouse and swap execution facility
This structure allowed U.S. users to legally engage in regulated derivatives trading while maintaining global operations elsewhere.
Fee Breakdown: Trading, Deposits & Withdrawals
Understanding fees is crucial for cost-effective trading.
Trading Fees (as of 2022)
- Spot Markets: 0.04%–0.07% (makers), 0.05%–0.2% (takers) on FTX US
- Futures & Derivatives: Similar tiered model applied
Leveraged Tokens:
- Creation/redemption fee: 0.10%
- Daily management fee: 0.03%
Deposit & Withdrawal Fees
- Crypto Deposits: Free (blockchain fees borne by sender)
Bitcoin Withdrawals:
- Free for amounts >0.01 BTC/day
- $0.1% fee for smaller frequent withdrawals
Fiat Withdrawals:
- Free for transfers over $5,000
- One free withdrawal under $5,000 per week; additional ones cost $25
NFT Transaction Fees
- U.S. Platform: $1 listing fee + 2% seller commission
- Non-U.S. Platform: 5% commission split between buyer and seller
Security Measures Implemented by FTX
Security was a cornerstone of FTX’s infrastructure.
Account Protection
- Mandatory strong password policies
- Required two-factor authentication (2FA) for all accounts
- Automatic withdrawal blocks upon 2FA removal or password change
- Real-time login monitoring with suspicious activity alerts
Transaction Monitoring
- Partnership with Chainalysis for real-time anti-money laundering (AML) detection
- Surveillance of large deposits and anomalous behavior patterns
Institutional-Grade Safeguards
- Sub-account system with customizable permissions (read-only access, limited withdrawals)
- IP address and wallet whitelisting for enhanced control
- Backstop Liquidity Fund (reportedly ~$200 million in Sept 2022) to ensure market stability
How to Deposit Funds on FTX (Historical Guide)
To begin trading:
- Log into your FTX account.
- Click “Wallet” at the top menu.
- Select your desired currency (e.g., EUR, USD, BTC).
- Choose “Deposit”.
- For fiat deposits (EUR/USD), complete Level 2 identity verification.
- Transfer funds via bank wire or supported methods (ACH, debit/credit card, Silvergate Exchange Network).
For crypto deposits:
- No KYC required for blockchain transfers
- Generate a deposit address or use QR code for sending assets
Placing Trades on FTX: Step-by-Step Process
While direct API integration with third-party tools like Wall Of Traders was once possible, current best practices emphasize using secure, compliant platforms.
General steps included:
- Navigate to the trading dashboard.
- Select market (spot or futures).
- Choose order type (limit, market, stop-loss).
- Enter amount and price.
- Confirm trade execution.
Advanced strategies involved setting take-profit levels, trailing stops, and time-based triggers—features now commonly found on leading exchanges.
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Frequently Asked Questions (FAQ)
Was FTX Safe for Crypto Trading?
FTX implemented robust security measures including 2FA, sub-accounts, IP whitelisting, and Chainalysis integration. However, systemic risks related to fund mismanagement led to its downfall in late 2022.
Can I Still Use FTX Today?
As of 2025, FTX is undergoing bankruptcy proceedings. Most services are suspended. Users are advised to monitor official updates regarding asset recovery.
What Happened to My Funds on FTX?
Customers affected by the collapse may be eligible for partial reimbursement through court-supervised claims processes. The timeline and percentage vary based on holdings and jurisdiction.
Did FTX Offer Leverage Trading?
Yes—FTX provided up to 101x leverage on certain futures contracts, appealing to experienced traders but increasing risk exposure significantly.
How Did FTT Impact Trading Costs?
Holding FTT reduced trading fees by up to 25%, incentivized staking, and boosted referral earnings—common utility models now adopted across major platforms.
Why Was There an FTX US?
Regulatory requirements necessitated a U.S.-compliant version. FTX US operated independently with stricter oversight and limited offerings compared to the global platform.
Final Thoughts
Though no longer operational, FTX played a pivotal role in advancing cryptocurrency derivatives trading. Its blend of innovation, liquidity, and sophisticated tools influenced today’s exchange standards.
Traders seeking similar capabilities should prioritize platforms with transparent operations, strong regulation, and proven fund security—ensuring long-term reliability in a volatile market.
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