FTX Review (May 2022): Why We Don’t Like It

April 18, 2022
Reviews

FTX is a crypto exchange with competitive fees, a good selection of supported cryptocurrencies, and solid security features like subaccounts and whitelisted withdrawals. However, FTX’s customer support is lacklustre, its platform is both cumbersome and difficult to use when compared to other exchanges available, which is why I can’t recommend it as a top crypto exchange option for Canadians.

Instead, I recommend CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than FTX. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

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What Is FTX?

FTX is a cryptocurrency exchange that offers a wide range of products, including derivatives, stocks, options, volatility instruments, and leveraged tokens. The platform was founded in May of 2019, and it is currently located in Nassau, the largest city in The Bahamas.

The platform provides many advanced features, and it also averages a daily trading volume of around $10 billion, with a user base of around 1 million users. To date, FTX supports around 300 cryptocurrencies, which is a pretty large array of supported crypto when compared to other exchanges.

To start off this FTX review, let’s take a deeper look at FTX’s pros, cons and features.

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FTX Pros & Cons

FTX Pros

  • A very wide array of supported cryptocurrencies (300+).
  • Supports margin and futures trading.
  • Grants access to advanced trading markets.
  • Allows you to stake cryptocurrencies.
  • Competitive trading fees.
  • Very secure.
  • Has its own cryptocurrency token (FTT), and having FTT holdings will reduce your fees even more.

FTX Cons

  • Not available in the United States. 
  • High withdrawal fees.
  • Unintuitive and confusing to use.
  • Somewhat lacking customer support service.
  • Important information on account-related inquiries can be difficult to find.

FTX Features

1. FTX’s Desktop Platform

The FTX desktop platform offers a lot of advanced features and advanced charts that the more experienced crypto traders will find especially useful. It includes basic features such as spot trading and market orders, but it also includes advanced order types like stop-loss limit orders, stop-loss market orders, trailing stop orders, take profit orders, and take profit limit orders. You can also stake your crypto using FTX, which means that you’ll be able to earn interest and rewards on your crypto holdings by locking them up for a period of time.

This advanced functionality is great, but it can be quite difficult to understand, especially if you’re a beginner. FTX provides an overview guide of its platform to mitigate this, but it’s pretty basic: in order to master all of the features that this exchange provides, you’re going to want to spend a fair amount of time using the platform.

The platform also allows you to invest in crypto futures and even has asset classes other than crypto, letting you invest in stocks and NFTs as well. This makes FTX very versatile, as you can switch between asset classes at any time.

FTX has a tiered trading fees system, with maker fees being around 0.020% and taker fees being around 0.070% on its most basic tier. You can also conduct crypto-to-crypto trades on the platform, which is a welcome sight considering just how many crypto exchanges don’t allow you to do this (looking at you, Coinmama).

2. FTX’s Mobile App

FTX also has a mobile app called FTX Pro, which is available for both iOS and Android devices. The FTX mobile app includes all the features that are available on the desktop platform, such as spot trading, market orders, and advanced order types, making it a very strong crypto exchange app featurewise. However, as expected, it’s just as difficult to use as the desktop interface is.

As for the app’s ratings, the FTX app has a rating of 4.8 stars out of 54,000 reviews on the Apple App Store and a rating of 3.7 stars out of 150 reviews on the Google Play Store respectively, indicating moderate customer satisfaction. Critiques of the mobile app tend to mention struggling to log in to your account (and having the app shut down on you immediately after doing so, creating a loop), and failure of the app to recognize updates when installing them.

3. FTX’s Security Features

FTX takes security seriously, and it has implemented a number of features to protect its users’ funds. For one, FTX uses obligatory two-factor authentication (2FA) as an additional layer of security (with an optional 2FA and separate passwords feature for all withdrawals as well).

The exchange is also a registered Money Services Business (MSB) licensed by the Financial Transactions and Reports Analysis Center of Canada (FINTRAC). However, it’s not a registered member of the Ontario Securities Commission (OSC), so it doesn’t have a perfect track record in terms of regulation in Canada.

FTX constantly monitors user activity (with the help of a third-party partner, Chainalysis) in search of any suspicious activity. It notifies users and employs a number of risk management tools to protect its users’ funds whenever suspicious activity is found, such as preventing withdrawals for 24 hours whenever there’s a major account change (such as changing the account’s password).

FTX also allows you to create subaccounts, which is a great feature if you want to trade on behalf of a company or group or if you have multiple people accessing the same account. These subaccounts have different levels of permission that can be modified by the main user: for example, they can restrict the login’s access to only one subaccount (or let it access all accounts), create read-only logins that can’t do any transactions on the site (but can view and/or download the account’s trading history), or create logins that are allowed to withdraw and transfer funds between accounts. These subaccounts also have mandatory 2FA as well (with the exception of read-only logins), leaving no stone unturned.

The platform also demands that all withdrawal wallet addresses be whitelisted, which prevents non-approved external wallet addresses from being used.

The platform also underwent a successful US GAAP financial audit in 2020 and plans to go through more security audits on a regular basis.

4. FTX’s Customer Support

FTX’s customer support is lacklustre, as you can only reach the platform by ticket submission, by email, and by its Telegram chat groups. Their business hours are also not listed on their website, meaning that your guess on when your inquiry will be answered is as good as mine.

FTX does provide an extensive FAQ section on its website, but they lack important information on key inquiries (like whether or not they have an insurance policy, for example).

The platform also has a social media presence, and you’ll be able to contact them through channels like Twitter, YouTube, and Instagram. However, be aware that the customer support that you’ll get from these channels will be very basic at best.

  • Ticket submission: ftx.com/support
  • Email: support@ftx.com
  • Telegram chat group: https://t.me/FTX_Official 

5. FTT, FTX’s Own Crypto Token

FTX has its own cryptocurrency token called FTT, which you can use to get a discount on trading fees in case you hold it in your FTX account. Here are the different discount rates you can get, depending on how many FTT tokens you hold:

FTT Holding (USD)FTX DiscountAdditional Privileges
$1003%N/A
$1,0005%N/A
$5,00010%N/A
$10,00015%N/A
$50,00020%N/A
$100,00025%N/A
$200,00030%N/A
$500,00035%N/A
$1,000,00040%Become Tier 4
$2,500,00050%Become VIP 1
$5,000,00060%Become VIP 2

VIPs at FTX receive a number of benefits, some of which include lower fees, higher API limits, being granted access to a direct line with senior technical support for API questions, and admin whitelisting of withdrawal addresses.

Cryptocurrencies On FTX

FTX currently supports around 300 different cryptocurrencies, which is quite a selection of supported crypto when compared to other exchanges. Some of the more popular cryptocurrencies that you can trade on FTX include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), XRP (XRP), Bitcoin Cash (BCH), Chainlink (LINK), Cardano (ADA), Polkadot (DOT), and Binance Coin (BNB).

FTX Fees

Trading Fees

As mentioned previously, FTX’s trading fees are very competitive even at the lowest trading volume tier. Here are the different fee tiers on FTX, depending on your monthly trading volume:

Tier30-Day Volume (USD)Maker FeeTaker Fee
1$00.020%0.070%
2> $2,000,0000.015%0.060%
3> $5,000,0000.010%0.055%
4> $10,000,0000.005%0.050%
5> $25,000,0000.000%0.045%
6> $50,000,0000.000%0.040%

Deposit & Withdrawal Fees

FTX doesn’t have any deposit fees, but it does charge a small fee for fiat withdrawals. Here are FTX’s withdrawal fees:

  • USD withdrawal fees: 25 USD
  • CHF withdrawal fees: 30 CHF
  • HKD withdrawal fees: 250 HKD
  • CAD withdrawal fees: 100 CAD
  • GBP withdrawal fees: 75 GBP
  • EUR withdrawal fees: 32 EUR
  • BRL withdrawal fees: 0.3% + R$10

3 Exchanges I Recommend Over FTX

FTX isn’t a bad exchange, but it’s also not the best in Canada. This is because FTX’s customer support is lacking, it’s not currently available in the U.S., and the platform is not as beginner-friendly as some other crypto exchanges available to Canadians.

Here are three exchanges that I recommend over FTX:

  1. CoinSmart: With trading fees of just 0.2%, quick deposits and withdrawals, and best-in-class customer support, there’s no questioning why CoinSmart is one of the most popular exchanges in Canada. Get your $50 signup bonus with CoinSmart here.
  2. Bitbuy: With trading fees as low as 0.1%, tight spreads, and a well-rated mobile app, Bitbuy is my go-to exchange for making large purchases due to its extremely low fees. Get your $50 signup bonus with Bitbuy here.
  3. Newton: With zero deposit and withdrawal fees, instant account verification, and a beautiful website and app, I recently signed up with Newton and have been loving it every step of the way. Get your $25 signup bonus with Newton here.

Here’s a quick summary of these three exchanges:

Best Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

Trusted by 200,000+ Canadians.

★★★★★

Rated 4.9/5

Lowest Fees

Trading fees: 0.1% – 0.2%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5

How To Withdraw From FTX

To withdraw fiat (cash) from FTX through an SEN account, follow these steps:

  1. Go to your FTX wallet.
  2. Click on the “Withdraw” option on the USD row.
  3. Click the “Withdraw via SEN” option.
  4. Click the “Request a Withdrawal” option.
  5. Enter the amount and your 2FA code.
  6. Click Submit.

To withdraw crypto from FTX, follow these steps:

  1. Tap on the wallet of the coin you wish to withdraw. 
  2. Tap Withdraw. 
  3. Enter the amount you wish to withdraw.
  4. Paste in the address of the wallet/exchange to which you are sending, or tap to use a QR code.
  5. Review the transaction.
  6. Authenticate and verify your withdrawal via email.

In Summary

FTX is a crypto exchange that specializes in cryptocurrency trading and allows you to trade more than one asset class, has a good selection of supported cryptocurrencies, has solid security features like subaccounts and whitelisted withdrawals, and has a plethora of advanced trading features. However, not having a strong customer support service is hard to forgive when it comes to the crypto exchange world, and because of its difficulty, only the most experienced crypto investors will be truly able to get the most out of this platform.

Because of these cons, I instead recommend using CoinSmart, Bitbuy or Newton, since they all offer more features and charge lower fees than FTX. For the best possible crypto trading experience, you can’t go wrong with any of these three platforms.

CLAIM MY $50 BONUS
Offer ends May 19.

FTX FAQs

Is FTX Safe & Secure?

Yes, trading with FTX is completely safe and secure. They have solid security measures in place, such as mandatory 2FA (with optional 2FA for all withdrawals), subaccount creation and withdrawal whitelisting.

Is FTX Legit?

Yes, FTX is legit for several reasons: it has a daily trading volume of around $10 billion, it has around 1 million users worldwide, and it is licensed under The Bahamas’ Digital Assets and Registered Exchange Act in 2020 and regulated by the Securities Commission of the Bahamas.

Is FTX Legal In Canada?

Yes, FTX operates legally in Canada. It’s a registered Money Services Business (MSB) with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). However, it’s not a registered member of the Ontario Securities Commission (OSC).

Is FTX Trustworthy?

Yes, FTX is a trustworthy exchange for several reasons: it has a daily trading volume of around $10 billion, it’s been in operation since 2019 and has had over 1 million users in that time. The exchange is also regulated globally and is licensed under The Bahamas’ Digital Assets and Registered Exchange Act in 2020 and regulated by the Securities Commission of the Bahamas. It’s also a licensed Money Services Business (MSB) with the Financial Transactions Report and Analysis Centre of Canada (FINTRAC).

Does FTX Verify Accounts Instantly?

Yes, FTX does verify some accounts instantly, though if your account needs to go through the manual verification process for some reason, these are the documents you’ll need to provide:

  • Full legal name
  • Date of birth
  • Address
  • Proof of address/phone jurisdiction
  • Description of source assets
  • Passport or other similar government-issued identification
  • Facial verification

Is FTX Good For Canadians?

FTX is a decent exchange for Canadians, though if you’re looking for the best overall trading experience, I recommend using CoinSmart, Bitbuy or Newton instead. Each of them offers quite a bit more than FTX, and I’m confident you’ll have a better experience with them.

How Well Is FTX Reviewed On Reddit?

Reddit’s review of FTX is uncertain: some Redditors have good things to say, while others don’t. Of course, Redditors are known for their brutally honest opinions, so take what they say with a grain of salt.

Can I Buy Dogecoin With FTX?

Yes, you can buy Dogecoin with FTX. If you want to buy Dogecoin with lower fees, though, I suggest using CoinSmart, Bitbuy or Newton instead.

Is FTX Insured?

No, FTX’s crypto holdings are not insured.

FTX Referral Code

You don’t need a referral code to get your signup bonus with FTX. Simply sign up using our signup bonus link and then deposit $100 or more into your account.

Does FTX report to the CRA?

Yes — as a Money Services Business registered with FINTRAC, FTX is required to report to the Canada Revenue Agency (CRA). With that said, FTX is only required to report transactions larger than $10,000 to the CRA. Transactions below that amount do not need to be reported to the CRA.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5