Crypto Exchange Launches FTX Stock Trading for US Clients

Popular cryptocurrency exchange FTX is expanding into the traditional investment space for retail clients in the United States.

In a new message, US FTX President Brett Harrison looking at 50,900 followers on Twitter about the new feature of the platform that allows users in all 50 US states plus Puerto Rico and the Virgin Islands to buy and sell stocks as well as exchange-traded funds (ANDF).

FTX Stocks is now available for US users!

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Residents of all 50 states (yes, including New York!) as well as PR and USVI can join.

Trade hundreds of stocks and ETFs on the web and on the FTX US Pro mobile app.

Then Harrison answered several questions first particulary That the proposed actions were real, not synthetic, before Shows Clients using the standard FTX app can expect to see new trading functionality in a ‘few days’.

The entrepreneur also appeared on CNBC to explain why FTX is offering traditional financial products at a time when many traditional institutions are gearing up for cryptocurrency.

Harrison says of FTX’s approach to commissions,

“The biggest difference for us is that we are trying to use a model that does not rely on driving order flow. It is clearly a controversial practice that has led to a lot of retail liquidity moving from public exchanges to private wholesalers.

We believe that this ultimately leads to a deterioration in the quality of the market for all participants over time, and we are trying to reverse this trend as much as possible. »

Pay for Order Flow (PFOF) allows brokers to earn money while offering commission-free trades by sending retail clients’ orders to private market makers rather than a public exchange. Partial profits are made on the price differences between the customer’s initial offer and the actual selling price of the stock.

When asked how FTX intends to make money from stock trading, Harrison explained,

“It’s now free for all users. From one month on, the service will continue to be offered free for all purchases under one action. One thing we’ve learned from our own data is an astonishing amount of streaming results from partial stock purchases, those in [less than] section. Stocks are as expensive as Tesla.

From there, we’ll charge a commission on every trade, any kind going back to when things were. We believe this will lead to more transparent, fair and honest pricing as we continue to direct these orders to public exchanges, rather than having to rely on private traders or individual wholesalers as unregistered ETFs are filled from the stock market.

Harrison says the base fee structure will be 5 basis points, or 5/100 percent of a percentage, plus 2 basis points in “fair amount” transactions.

The CEO concludes by explaining how cryptocurrency buyers expect simple commission rates on their transactions and are therefore more likely to adopt the FTX model.

“Our users, especially on the crypto side, are accustomed to this simple, honest and fair idea of ​​being charged a fixed percentage of the face value of a transaction on each transaction rather than having to wonder if the pay-to-order flow degrades the quality of NBO [National Best Bid and Offer].

People really get honest prices.

In May, it was reported that FTX had contacted at least three stock trading startups regarding a potential acquisition.

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Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should perform their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets, and The Daily Hodl is not an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.

Featured Image: Shutterstock/Alisa9

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