Cryptocurrency exchange FTX US has recently announced that it will soon allow for traditional stock trading alongside its crypto-based offerings. The new service, known aptly as FTX Stocks, is only available to a select number of users in the United States for now, with a wider rollout to more regions is expected in the coming months.
“Our goal is to offer a holistic investing service for our customers across all asset classes,” said FTX president Brett Harrison in a statement. “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.”
FTX says that Stocks will offer commission-free trading with access to various US exchange-listed securities, including both common stocks and ETFs (exchange-traded funds). It will also allow users to deposit their money to their accounts via credit card deposits, ACH transfers, as well as wire transfers. In the press statement, the company highlights that it is the first exchange to let its users fund their accounts with fiat-backed stablecoins such as USDC.
“There is clear market demand for a new retail investment experience that offers full order routing transparency to customers and does not rely on payment for order flow,” Harrison states. “As we grow the product offering and capabilities, we are excited to give our customers even greater choice for order execution, as well as the tools they need to make informed routing decisions.”
The company’s move to include traditional stock exchange follows suit of other companies such as Robinhood, Block’s Cash App and Public.com. However, unlike its competitors, FTX notes that it plans on routing orders directly through the Nasdaq exchange, instead of using the payment for order flow (PFOF) method. The latter practice previously came under scrutiny following last year’s Gamestop stock surge, whose lasting effects recently led to the demise of Melvin Capital, an investment firm that was caught up in the fiasco.
(Source: FTX via PRNewswire)