FTX US has opened its no-fee stock trading offering to all US users, as it seeks to reach more customers.
The exchange had earlier allowed selected users to test out its stock trading option. With a full launch of the trading service, the exchange is looking to expand and attract more retail investors.
FTX US President Brett Harrison noted that despite the global financial market downturn, launching and perfecting the product during this period of slow trading volume will be more beneficial for the exchange, as it looks to count its reward when trading volume picks up again.
The Stock Trading Gameplan
While announcing plans about its stock trading offering, FTX specified it will not receive payment for order flow (PFOF), for which Robinhood has been criticized.
FTX will route all trades directly through Nasdaq rather than a third-party market maker, which will foster transparency and ensure that users receive their shares at the best possible price.
The stock trading service will be offered at no cost. Users will not be charged any commission for trading and will not be required to hold a minimum balance before accessing the full product.
As crypto adoption continues to grow in the US, FTX said it will offer crypto payment options to users. They will be able to fund their brokerage accounts with fiat-backed stablecoins such as USDC.
FTX US President hinted at plans to introduce options trading to users soon. In a recent interview with The Wall Street Journal, he said:
What we eventually want to offer is an everything app for financial services.
FTX in Robinhood’s Territory
FTX US competitor Robinhood grew in popularity among retail investors following the meme stock wave of 2021. However, unfavorable market conditions have seen its revenue fall 48% from $522 million to $299 million year over year.
As financial pressures on the investment company increased, rumors surfaced that FTX was considering a deal with Robinhood. In a statement issued to TechCrunch, FTX CEO Sam Bankman-Fried, who has a 7.6% stake in Robinhood stated:
“We are excited about Robinhood’s business prospects and potential ways we could partner with them…That being said there are no active M&A conversations with Robinhood.”
Meanwhile, the Bankman-Fried-led FTX has been on a spending spree to bail out distressed crypto firms.
The FTX CEO told Reuters that the exchange was liquid enough to invest up to $2 billion to prevent a contagion from affecting the whole crypto industry.