FTX vs Robinhood (2024): List Of Differences !!

For an experienced trader, FTX and Robinhood are two distinct crypto exchanges, and picking between them is pretty obvious, but the same is not true for beginner traders.

FTX is a Bahamas-based centralized crypto exchange that has been in the market since 2019. The exchange currently has one of the highest daily trading volumes that crosses the $10 billion mark and has millions of active traders almost every day.

Robinhood launched in 2015, with one of its primary goals being to give traders access to financial markets without paying any commission. The exchange already has over 13 million registered users and is one of the best options for those that prefer to trade on their mobile devices.

If you are unsure which platform to choose between these two, our in-depth comparison below will make your choice easier.

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FTX vs Robinhood Product Offerings

The product offering is one of the main differences between these platforms as FTX has a more comprehensive product offering for crypto traders, while Robinhood only focuses on spot trading.

FTX

The FTX platform supports more than 300 digital assets, one of the highest coin offerings among all crypto exchanges. Traders can form trading pairs with primary digital assets or altcoins.

Traders can use the platform for both spot and derivatives trading. Their derivatives market will include more than 250 futures contracts (quarterly and perpetual contracts). Also, FTX has leveraged tokens, BTC options, MOVE contracts and prediction markets.

FTX users can also open leveraged positions with a maximum leverage of 20x, allowing them to amplify their potential gains easily.

Robinhood

Robinhood supports crypto, stocks and funds, gold, options and a cash management product. However, their crypto market only allows for spot trading. There are no crypto futures or futures options.

The exchange supports at least 7 digital assets, including ETH and BTC, for their spot market. However, they also provide real-time data for 9 other crypto assets.

FTX vs Robinhood: Trading Fees

At first glance, Robinhood might seem the obvious choice between the two companies when it comes to trading fees since they do not charge any commission.

However, commission-free does not mean you will incur zero cost when using the platform, hence the need to understand all the costs involved in executing a trade on each platform.

FTX

FTX uses a maker-taker fee schedule for both their spot and futures market. Additionally, they also charge traders according to their 30-day trading volume, and so the more you trade, the lower the fees you pay.

Trading fees on the platform start at 0.02% and 0.07% in maker and taker fees for traders with a zero 30-day trading volume. High-volume traders will not pay any maker fees, and their take fee can be as low as 0.04%.

Robinhood

Robinhood does not charge any commission, but the traders will still need to pay an order flow fee that depends on a particular trade.

FTX vs Robinhood: Deposit & Withdrawal Fees

Deposit and withdrawal fees are also crucial when picking between the two exchanges as it determines the overall cost of using the platform.

FTX

FTX allows you to fund your account with both crypto and fiat currency. Crypto deposits and withdrawals are free of charge. However, you still need to pay the network fee when withdrawing from FTX.

Fiat deposits are also free, but the method you are using will often charge you a small commission. The exchange supports several payment methods, including bank transfer, wire transfer, Silvergate and credit card.

Fiat withdrawals over $5,000 are free of charge, but the exchange will charge you for smaller withdrawals. The charges depend on the currency, but USD withdrawals will cost 25 USD.

Robinhood

Robinhood allows you to deposit both crypto and fiat. Crypto deposits are free, and you only need to copy the address from your account. Also, you will not need to pay anything for withdrawals besides the network fees.

The exchange will allow you to use Apple Pay, ACH Transfer, credit/debit card, and Google Pay for fiat deposits. Any charges you pay will emanate from these third parties that facilitate the deposit.

FTX vs Robinhood: Trading Platform Comparison

The ease of use and trading experience you get on any crypto exchange will largely depend on the trading platform.

FTX

FTX has one of the best trading platforms among all crypto exchanges. The platform includes some customizable panels that will allow you to adjust your layout to suit your specific preferences.

Since FTX uses TradingView charting systems, traders access all the basic indicators and several chart types. Traders also get to use several advanced order types, including stop-loss limit orders, stop-loss market orders and trailing stop.

FTX allows traders to handle their transactions on the web and via their mobile app. Also, the platform provides the Quant Zone to enable traders to automate their trading and create trading bots.

Robinhood

Robinhood focuses on giving traders a fast, simple, and streamlined trading experience. While the exchange has all the basic functionalities that beginner traders will need to execute their trades, some more experienced traders might find some of the tools they are used to missing.

The trade entry process is straightforward as there is nothing to do besides choosing the asset you want to trade and the amount before executing the trade. The exchange allows you to use trailing stops and stop-limit orders.

However, there is no customization on the Robinhood platform, whether using the web or mobile app. You cannot set custom order sizes or choose specific time periods on the charts.

FTX vs Robinhood: Account Opening Process

Setting up an account on FTX and Robinhood is not very hectic. However, you still need to know the exact steps to follow whether you will need to do KYC verification or not.

FTX

FTX makes it mandatory for traders to verify their identities before trading on the platform. KYC has become increasingly mandatory, and even some platforms like Binance that made it optional a few years ago now make it compulsory before using their platform.

FTX traders that provide the basic information required for tier 1 verification will get a daily withdrawal limit of $2,000. At the same time, those that get tier 2 verification that also requires address verification have no withdrawal/deposit limits.

How to open an FTX account

• Click the registration button on ftx.com.
• Fill out the registration form by entering your email and password.
• Agree to the terms and click “Create Account”
• Verify your email
• Go to your profile and do KYC verification

Robinhood

Robinhood provides some specific requirements that you need to meet to open an account on their platform. They include having a social security number, a legal US residential address, and a permanent US resident. If you have everything they need, the process will only involve a few steps.

How to open a Robinhood account

• Go to Robinhood.com and click “Sign Up”
• Enter your first and last name
• Create a password and click “Continue”
• Fill out the other information required and submit your application
• Your application will be reviewed in a few days

FTX vs Robinhood: Customer Support

FTX and Robinhood will offer multiple customer support channels to cater to their customers. Also, both platforms have some handy materials on their help page and blogs that can also be very useful for traders having difficulties.

FTX does not offer live chat support, and they also do not provide a phone number that traders can call when having issues on their platform.

However, they have a highly useful email ticket support system that ensures speedy resolution of customer issues. Additionally, they have some highly active telegram communities that are often quite helpful.

Robinhood offers all its customer support through the app or web. Additionally, they also have a chatbot that can guide traders through issues. Traders can contact their customer support team via social media and even enter their phone number and wait for a callback.

FTX vs Robinhood: Security Features

FTX offers industry-standard security features and also includes several protocols that are unique to the platform. Their security features include 2FA, optional password for crypto withdrawals, external backing for the hot wallets, and they use some of the best custodians in the industry.

Robinhood also takes security seriously, and they use several protocols to secure their web and app-based platforms. For example, mobile app users can set up fingerprint and facial recognition as an extra security layer for their app.

Additionally, Robinhood also has 2FA, and any login attempt from a new device requires a 6-digit code verification. Robinhood is a member of SIPC (Securities Investor Protection Corporation), which protects member assets with up to $500,000.

Conclusion

FTX and Robinhood are two excellent trading platforms for beginner traders looking to learn the skill and experienced ones who want an advanced platform to execute more complex trade strategies.

However, FTX is better for those who want to try both spot and derivatives trading or amplify their earnings by trading with a margin.

For traders that prefer spot trading and are also more into trading into other markets such as stocks and funds, Robinhood is a good platform.

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