FTX US launches 0% commission stock trading, opens stablecoin securities payment gateway

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2022-05-20 14:35:45

Some FTX US customers are now able to trade stocks and ETF products listed on Nasdaq. It is the first cryptocurrency exchange to integrate a stock trading service into its platform.

FTX US launches 0% commission stock trading, opens stablecoin securities payment gateway

According to CoinDesk, billionaire Sam Bankman-Fried’s exchange will start testing the stock trading function for a select few users in the US tomorrow. In particular, customers will be able to trade completely free of charge without commission and can fund their accounts with USDC – the current preferred stablecoin after the LUNA-UST crash.

Most stockbrokers charge an additional transaction fee when users buy or sell shares through their exchange. Zero commission means there’s no such extra charge.

FTX.US will be the pioneer in opening trading accounts for free, with no minimum balance required and especially without any fees from users, which is unprecedented on exchanges. cryptocurrencies in the United States.

This “zero deal” for investors is reminiscent of how Robinhood pioneered the world of equities, being the first to integrate free crypto payments. Whether it’s a coincidence or a coincidence, the news was released after the CEO of FTX launched Robinhood’s lifeline when he bought back 7.6% of shares in this company. There have been many rumors in the lobby that FTX will “buy out” Robinhood.

According to a press release, FTX Stocks will be made available through the FTX US mobile app. The platform will connect trading with hundreds of companies and ETFs listed on Nasdaq. The company expects to fully roll out the service to all users by mid-summer this year.

FTX US President Brett Harrison said in a statement:

“Our goal is to provide a comprehensive investment service for clients with all asset classes. With the launch of FTX Stocks, we’re bringing retail investors to the platform, making it easy for them to trade cryptocurrencies, NFTs and traditional stock offerings on a single platform with trading intuitive and completely transparent interface.”

FTX US also revealed that its new stock offering will not bring in revenue from payment for order flow (PFOF), which has been a core element of Robinhood’s business model for the past two years. This is the compensation a stockbroker receives from a market maker (MM) in exchange for routing trades to its clients.

Besides, this move of FTX is considered a “rice bowl” of CME Group, which is the dominant group in commodity derivatives trading today and the main “gateway” for large institutional traders. in the United States began to penetrate and expose Bitcoin. CME CEO Terry Duffy was adamant in a recent press release that the FTX proposal “is clearly flawed and poses a significant risk to market stability and market participants.”

With a growing presence, FTX has been making a strong push into the traditional financial markets, increasingly interested in a crowd of investors rather than just a proprietary piece of cryptocurrency pie.

Elsewhere, such as Coinbase, has also stated that it has no intention of moving to the US securities business entirely. Since October 2021, Binance has stopped trading associated with its shares after only 1 week of listing on Nasdag because of legal controversy.

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