FTX Claims A Spot Amongst The Best Crypto Derivatives Exchanges
Within months of opening their doors to Crypto traders across the globe, FTX secured respect and praise from many influential voices within the space. The CEO of FTX, Sam Bankman-Fried is no stranger to the world of trading. Previously, a quantitative trader at Jane Street Capital, Sam is also known to have been a whale, trading from the shadows on Bitmex. Apart from the clean interface and great order execution, there are a number of perks to trading with FTX.
The Beauty of subaccounts
I don't know about other traders out there but subaccounts are essential for me. FTX enables users to create multiple subaccounts. For instance, an account to trade BTC exclusively or an account created for short positions only.
Having the privilege of subaccounts helps to organize your trading account in ways that without, would be an absolute nightmare. For instance, you can move profits and funds between accounts. I personally created an account where I store emergency funds, in case a position becomes in danger of a margin call.
Funds can then be moved effortlessly within seconds to the account that is in danger. Profits from trades on multiple accounts can also be moved to one account, set apart as a "storehouse" account and later withdrawn. Once you have traded with subaccounts you will be ruined forever, there is no going back to trading a single account, which only offers one leverage setting and one direction trades.
On FTX traders can open a long position in BTC on one account, while having a short open on another subaccount. This is a major perk that exchanges like Bitmex do not even consider for their clients.
Zero Withdrawal Fees
Well, that says it all doesn't it! Absolutely no withdrawal fees at all. If you are a newbie trader this should be highly attractive to you. New traders often start trading with very small accounts, as they are more willing to learn the ropes with a small amount of capital at risk.
For instance, if you deposited 0.005 BTC and trade a profit of 0.0001, you could withdraw that 0.0001 BTC with no fee and maintain your small trading balance of 0.005 BTC. If you were trading on Bitmex, you would have zero profit, as the withdrawal fee is 0.001 BTC. That is around $7 at the current BTC price. Most exchanges charge 0.0003 - 0.0005 BTC.
Even when you are trading with 0.50 BTC and up, having to pay 0.001 BTC every time you want to withdraw profits does get annoying. I like to take profits immediately after closing a trade, so those fees do add up, as I withdraw multiple times in a month.
FTX Options Trading And Index Tokens
FTX offer a wide variety of instruments and trading pairs, as well as options trading. For me personally, options trading is not something I enjoy or practice.
It is too much like gambling in my opinion. For traders who are familiar with ETF's, which are commonly used to expose clients to an entire basket of shares such as the Top 20 Financial shares or the Top 40 Industrial shares, FTX offer a similar product. The 3X MIDBULL/USD token, for example tracks the top medium cap coins/tokens index.
These products are generally sought out by traders or investors who do not wish being exposed to one particular coin or project. For example, say you were holding a particular coin that just got hit with some bad news and consequently lost 40% of its value. You would now have taken a big knock, however if you were holding an index token, the gains of the other listings would have offset your loss significantly. Whatever your trading preference, FTX is definitely a noteworthy option.
