FTX US launches fee-free stock trading

FTX US launches fee-free stock trading

FTX US unveiled its equity platform on Thursday, allowing retail investors to trade traditional listed stocks and ETFs alongside crypto and non-fungible tokens (NFTs).

The company – the US subsidiary of Bahamas-based crypto exchange FTX – will now offer trading and investing in hundreds of US stocks and ETFs within its existing crypto trading app.

FTX USA President Brett Harrison cited the company's growing number of retail users and demand for diversified investments.

“On any given day, a person might want to buy some Bitcoin, or they might want to buy some Tesla,” he told Blockworks. "They're not going to want to open two different accounts ... and move their savings between two different applications to make these types of investments."

The offering, called FTX Stocks, will initially route all orders through Nasdaq to ensure transparent trade execution and fair pricing, according to the company. It is scheduled to begin in private beta for select US customers selected from a waiting list.

FTX Stocks will have fee-free brokerage accounts, fee-free trading, and free market and company data. The company does not require any minimum customer balances.

The launch also marks the first time that retail brokerage accounts can be funded with fiat-backed stablecoins, as well as traditional USD deposit methods such as bank transfers and credit card deposits, the company said.

FTX US currently offers a majority of stocks in the S&P 500 and Nasdaq 100 as well as several ETFs, Harrison said, adding that the company will look to "rapidly expand" that universe over time.

“We have a theory that we think is pretty well supported by Robinhood's success, for example, that by having more options in an app we can help attract and retain our customers and give them a better experience,” Harrison said. FTX founder and CEO Sam Bankman-Fried acquired a 7.6% stake in Robinhood last week.

The launch comes as FTX US has focused on financial inclusion beyond crypto. The company recently chose Chicago as its headquarters and announced a program focused on supporting the city's underbanked communities.

As part of its partnership with nonprofit organization Equity And Transformation, FTX US's year-long program will provide $500 per month in additional income, financial literacy education, a fee-free bank account and a Visa debit card for 100 Chicagoans.

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The article “FTX US launches commission-free stock trading” is not financial advice.