FTX US Introduces Stock Trading Function For Select Users
FTX crypto exchange’s US arm is launching its new stock-trading service for a limited number of users in the country.
The new stock-trading service is released through FTX Capital Markets, which is a FINRA member broker-dealer.
The official announcement detailed that the platform aims to expand its functionality to all US users over the next months. FTX Stocks will empower users to trade and invest in hundreds of US exchange-listed securities, including stocks and exchange-traded funds (ETFs).
Initially, the new platform will route all orders via Nasdaq in a bid to provide “transparent trade execution and fair pricing.” There will be no commission charged for stock trading, and FTX Stocks will not receive any payment for order flow. It will also make fractional share trading available in a certain securities. FTX US will also enable payment for stock purchases in “fiat-backed stablecoins” such as USDC.
The move highlights the company’s ambition to to attract the investors also outside the crypto space, even if it means entering a more strictly regulated arena.
FTX US President Brett Harrison explained that the key is to make every investing service available for its users.
“Our goal is to offer a holistic investing service for our customers across all asset classes. With the launch of FTX Stocks, we have created a single integrated platform for retail investors to easily trade crypto, NFTs, and traditional stock offerings through a transparent and intuitive user interface.”
Just over a week ago, news broke that FTX CEO Sam Bankman-Fried acquired a 7.6% stake in the online trading platform Robinhood. While clarifying that he has no intentions to influence the latter’s management or strategy, the FTX CEO said he is viewing the stake as an investment.
As part of the latest move, FTX US made a formal request with the Commodities Futures Trading Commission (CFTC) to modify its existing non-intermediated model for cryptocurrency derivatives, and allow the platform to circumvent the financial companies that currently enable such trades. The application is currently under review.
