Cryptocurrency exchange FTX enters stock trading

Crypto exchange FTX will soon allow traditional stock trading alongside cryptocurrencies, the company announced. press release (Through wall street journal). The feature is currently available to some users in the US, but aims to bring it to more traders in the coming months.

FTX said it will offer commission-free trading with access to “hundreds of US exchange-listed securities”, including common stocks and ETFs. Customers can add money to their account via credit card deposits, ACH wire transfers and wire transfers. FTX is also said to be the first exchange that allows users to fund their accounts with fiat-backed stablecoins such as USDC. The price of a stablecoin does not (theoretically) fluctuate as much as other cryptocurrencies, as it is pegged to a currency or commodity. However, some stablecoins are struggling with the recent downturn in the entire crypto market.

Instead of routing orders directly through the Nasdaq exchange, FTX Pay for Order Flow (PFOF) This is the method used by Robinhood and other exchanges. PFOF involves a broker receiving a reward in exchange for placing an order to a market maker, process critics say. raise a conflict of interest, brokers may want to direct orders to institutions that increase their profits. The practice has come under scrutiny after the GameStop share price surge that occurred last year.

Brett Harrison, president of FTX, said in a statement: “With the launch of FTX stock, we have created a single, integrated platform that allows individual investors to easily trade cryptocurrencies, NFTs and traditional stocks through a transparent and intuitive user interface. “He said. .

Robinhood, Block owned Cash App, and also allow users to trade stocks and cryptocurrencies. Mixing FTX allows you to compete directly with each platform. Earlier this month, FTX founder Sam Bankman-Fried The purchase of a 7.6% stake in Robinhood is disclosed., made him the third largest shareholder of the company. In Bankman-Fried’s 13D filing, he said he has no plans to acquire the company at this time. WSJ This type of form is usually submitted by an investor who wants to buy more shares in the company or execute an acquisition.

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