Crypto exchange FTX U.S. gets into stock trading
Sam Bankman Fried (CEO of FTX Derivatives) testified during the House Agriculture Committee hearing titled Changing Market Roles. The event was held at Longworth Building on Thursday 12 May 2022.
Tom Williams, CQ-Roll Call, Inc.| CQ-Roll Call, Inc. | Getty Images
U.S.-based affiliate of cryptocurrency exchange FTX stated Thursday it would launch zero commission stock trading. This new service is only available to limited U.S. users on Thursday.
FTX U.S. announced the news a week following Sam Bankman-Fried’s announcement. acquired a minority stake in RobinhoodAnd two more days. RobinhoodPlans revealed for its own bigger push into crypto.
It was the news that made headlines. first reported by the Wall Street JournalThe following is the description of the S&P 500Teeters at the edge of a bear market. Stocks — and cryptocurrencies, by extension — have been in a brutal sell-off for most of this year. In April, the Nasdaq Composite experienced its worst month since 2008.
FTX U.S. is offering no-fee brokerage, commission-free trades and market data. Customers have the choice to fund accounts with fiat-backed stabilitycoins, such as USDC. This is in addition to standard dollar deposits by wire transfer, ACH and credit card. Customers won’t need to have a minimum amount of funds. Some securities will be available for fractional trading.
“Our aim is to provide a holistic investor service for all our customers across all assets,” Brett Harrison, president of FTX US said in a press release. We have designed a simple and easy-to-use user interface that allows retail investors to trade traditional stocks, NFTs and crypto.
Initial orders will be routed through Nasdaq by the product called FTX stocks. According to the company, it won’t receive payment for order flow. Robinhood introduced more retail investors to Robinhood’s market. This led to scrutiny of the back-end payments brokerages get for helping clients trade with market makers.
A spokesperson explained that FTX Stocks was part of a company-wide strategy to acquire customers. Although FTX U.S. might initially lose money in stock trades it plans to recoup these losses through crypto trading.
Harrison released that “there is clearly market demand for new retail investment experiences that offer full order routing transparency for customers and does away with payment for order flows.” We are thrilled to offer our customers more options for order execution and the tools to help them make informed routing decisions as we expand the product offerings.
FTX U.S. also joins Square Cash App and Robinhood as fintech brands. SoFiPublic offering both stock and crypto trading. Big crypto-native rivals like CoinbaseBinance and Binance don’t offer stock, but they do have the option of doing so. ending its equities product last year.