FTX.US, the United States arm of the leading cryptocurrency exchange FTX, has launched stock trading features for its users across the United States.
FTX.US President Brett Harrison revealed this latest development via a tweet on Wednesday, July 27th. He stated that;
“FTX Stocks is now live for US users! Residents of all 50 states (yes, including NY!), as well as PR and USVI, can sign up. Trade hundreds of stocks and ETFs from both the web (https://ftx.us/stocks) and the FTX US Pro mobile app.”
The move is to expand the company’s customer base beyond just the traditional cryptocurrency investors.
Harrison added that;
"Our beta users were from a pool of existing FTX US crypto users. It will be very interesting when we open it to all to see how many FTX US users start to trade stocks, and to what extent we will be able to bring new users."
FTX reviews within and outside the United States have been positive, and this could attract many stock traders to the cryptocurrency trading platform. Also, the low FTX fees also mean that the cryptocurrency exchange is growing far more quickly than any other reputable crypto trading platform.
The cryptocurrency exchange added that it intends to add options trading, although no specific timeline was provided. This latest development is set to increase the competition between FTX and Robinhood, another platform that offers both stock and cryptocurrency trading services to traders in the United States.
Last week, Robinhood Markets introduced options trading in cash accounts for eligible customers, with the company revealing that it is one of the most requested features from its advanced users.
Harrison stated that;
"If we can perfect this product during this period of slow trading volume for retail, if and when the volume picks up again, we'd be able to capitalize on that opportunity."
As part of the full launch, FTX.US users will now be able to trade stocks on the mobile app.
This latest development comes after FTX.US acquired stock-clearing company Embed Financial Technologies last month. The acquisition allows FTX.US to provide its application programming interface (API) and brokerage services to the platform.
Binance CEO Changpeng Zhao has maintained that the world’s leading cryptocurrency exchange would not be providing stock trading services.
The competition between retail-focused stock trading platforms continues to increase despite the pandemic-driven meme stock movement waned and broader markets currently experiencing a bearish trend.
Stocktwits, a social media platform, is also expanding its presence in the market after entering equities trading this month.
There might be a potential partnership between FTX and Robinhood after Sam Bankman-Fried, the co-founder of FTX, bought a 7.6% stake in Robinhood a few weeks ago. At the time, Bankman-Fried said he is excited about Robinhood's business prospects and potential ways FTX could partner with them.