In the crypto sphere, the crypto-derivatives are the new gold mine. Along with other exchanges, crypto derivatives exchanges are competing fiercely to take a bigger slice of the market.
For traders, this means access to a wide range of trading options, better derivatives products, quality services, and lower fees.
In the last few years, many new and traditional crypto exchanges have entered the crypto derivative trading segment. But, only a few exchanges have been able to match the expectation of the traders.
FTX vs Binance Futures: A Comprehensive Comparison
FTX is the fifth-largest crypto derivatives trading platform by trading volume. It was founded in 2018 by veteran trader Sam Bankman-Fried and is backed by leading crypto VC firms including Binance.
The platform offers derivatives trading in over 150 perpetual and quarterly futures markets, leveraged tokens, options with leverage of up to 101X.
Binance is the leading crypto exchange platform in the market and leads the chart in both the spot and derivatives market by trading volume.
The exchange has a wide range of product offerings in the derivatives segment that includes perpetual futures contracts, leveraged tokens, vanilla options. It offers leverage of up to 125X.
Binance vs FTX: Supported Derivatives Products & Leverage
FTX offers trading in the following derivatives product:
- Futures: Over 150 perpetual futures contract and quarterly expiry futures market
- Leveraged tokens: Leveraged position on 45 different ERC-20 tokens with a maximum leverage of up to 3X
- Options: Bitcoin options contract, settled in USD
- MOVE: MOVE contracts are a unique offering from FTX. These are futures contracts that let you trade on Bitcoin and profit regardless of the direction. It comes with daily, weekly, and quarterly expiry.
FTX offers up to 101X leverage. But, based on your trading preferences, you can set the leverage amount of 50X, 100X, and 101X from the settings page.
Now, coming to Binance, it has the widest range of derivatives trading options in the market. The product list includes:
- USDT-M Futures: These are perpetual and quarterly futures contracts, margined and settled with USDT. The default leverage level is 20X and the maximum leverage level is 125X.
- COIN-M Futures: These are perpetual futures contracts that let you gain exposure to a cryptocurrency without owning it. The contracts are margined and settled in cryptocurrency. The maximum leverage offered is up to 125X.
- Binance Vanilla Options: These are European-style Option contracts that let you take trade positions on Bitcoin. Settled with USDT, the leverage level depends on the strike price and time to expiry of the option.
- Binance Leveraged Tokens: The Binance leveraged tokens (BLVT)are tradable assets on the spot market that gives users leveraged exposure to the underlying asset. Each BLVT represents a basket of perpetual contract positions. The leverage of such contracts ranges between 1.25X to 4X.
Winner: Binance has a wide range of product offerings and offers higher leverage on all products.
FTX vs Binance Fees
FTX doesn’t have any deposit and withdrawal fees and also has no fees on futures settlement.
On Leveraged Tokens, the creation and redemption fee is 0.10%, and a daily management fee of 0.03%.
For the Futures and Options market, FTX has a tiered fee structure based on 30-day trading volume. For Level 1, less than $1 million trading volume, the maker fee is 0.02% and the taker fee is 0.07%. The fees gradually reduce with an increase in trading volume.
In addition to the trading fee, on the leverage of up to 50X, the trading fee increases by 0.02%. And, for 100X leverage, the trading fee increases by 0.03%.
FTT token holders are offered a discount on a range from 3% to 60%.
Binance has a flat fee structure on all types of trades. It also follows a tiered-fee structure based on 30-day trading volume. For level 1 (VIP 0) having a trading volume of less than 50 BTC, it charges you 0.1% as a trading fee.
When paying through the BNB token, users are offered a discount of 25% on the trading fee.
Winner: FTX has a lower trading fee structure.
Binance vs FTX: Volume & Account Opening Process
The account opening process on FTX is simple but you need to meet the KYC requirements for enjoying a greater user-experience. You can sign-up on FTX using your email-id and password.
In a level 0 account, a non-verified account, you can trade and make a withdrawal of up to $1000. To enable full withdrawal and access to all the trading features without limits, you need to complete the identity verification process.
To trade in the futures segment on Binance, you need to separately register with the Binance Futures platform. Binance is a non-KYC exchange and doesn’t require you to complete any type of identity verification process. The exchange allows quick registration using your email-id.
Winner: Binance offers ease of access
Security Features: FTX vs Binance
FTX follows stringent security checks to prevent unauthorized account access. It includes:
- Mandatory password strength and two-factor authentication
- 2FA authorization for placing withdrawal requests and changing withdrawal password
- Withdrawal lock after 2FA removal or password change
- Tracking & monitoring website traffic and user activity for notifying any suspicious activity.
Additional security features include whitelisting IP addresses and wallet addresses.
Binance too has a multi-tiered security architecture for securing exchange infrastructure. For securing users’ accounts, it uses two-factor authentication to prevent any unauthorized account access and uses cold and hot wallet combinations to secure users’ funds.
Winner: Both exchanges offer top-notch security features
FTX provides extensive customer support to its users and helps customers to navigate through the platform.
You can write directly to the customer support team at email@example.com and firstname.lastname@example.org (for Korean users)
Also, it provides customer support through FTX Telegram communities which is available in over 10 communities. It also has a separate chat group for trading discussion and quant zone discussion.
Binance has a virtual chatbot feature, which directs you through the commonly faced issues on the platform. You can also raise a support ticket via an online form on the website. The customer support team is very responsive.
Winner: FTX with its multi-lingual customer support team has an edge over Binance.
Binance vs FTX Futures: Which One is Better?
FTX and Binance are both good platforms for crypto derivatives trading. Both platforms offer flexibility, safety, and wide trading options to users. It entirely depends on the trading preference of users, which exchange to select.
Speaking of Binance, its wide range of product offerings, higher leverage, and ability to integrate trading-bots using API keys gives it an advantage over other crypto platforms. The Binance Futures platform is suitable for experienced and professional traders.
FTX with its wide product offering, low trading fee, and solid customer support makes it suitable for both beginners and professional traders. However, KYC verification of users is a negative point for the platform as it affects the privacy of users.
Therefore, whatever platform you choose, will offer the best user experience.