FTX.US and Binance.US are two well-known cryptocurrency exchanges that do a solid job for traders. You may be familiar with FTX because of his high-profile sponsors, such as professional football legend Tom Brady, his supermodel wife Gisele Bündchen, and star basketball player Stephen Curry. While these celebrity endorsements help raise awareness of FTX, they do nothing for their customers.
There are a few key differences between FTX and Binance, which we will use to refer to the companies’ US operations, so be sure to consider what matters most to you before deciding on an exchange. These are the main variables to consider.
FTX vs. Binance: Cost
Trading costs can be significant on crypto exchanges and the fees can really add up for active traders. Discounts are usually offered based on your 30-day trading volume.
FTX and Binance use a maker-taker pricing structure, charging based on whether your order adds liquidity to the market (maker) or removes liquidity from the market (taker).
Here is how each exchange breaks down their fees:
Binance trading fees
|Less than $50,000||0.10 percent||0.10 percent|
|$50,000 – $100,000||0.09 percent||0.09 percent|
|$100,000 – $500,000||0.08 percent||0.09 percent|
|$500,000 – $1 million||0.07 percent||0.08 percent|
|$1 million – $5 million||0.05 percent||0.07 percent|
|$5 million – $10 million||0.04 percent||0.06 percent|
|$10 million – $25 million||0 percent||0.06 percent|
|$25 million – $100 million||0 percent||0.05 percent|
|$100 million – $250 million||0 percent||0.04 percent|
|$250 million – $500 million||0 percent||0.03 percent|
|$500 million and up||0 percent||0.02 percent|
FTX Trading Fees
|$0 – $100,000||0.10 percent||0.20 percent|
|$100,000 – $500,000||0.08 percent||0.18 percent|
|$500,000 – $1 million||0.06 percent||0.18 percent|
|$1 million – $5 million||0.05 percent||0.15 percent|
|$5 million – $10 million||0.04 percent||0.10 percent|
|$10 million – $15 million||0.03 percent||0.08 percent|
|$15 million – $30 million||0.02 percent||0.07 percent|
|$30 million – $50 million||0.01 percent||0.06 percent|
|$50 million or more||0.00 percent||0.05 percent|
While FTX fees are quite attractive compared to others in the industry, Binance has the upper hand here, particularly on buyer fees. Also, if you use BNB, Binance’s internal currency, to pay trading fees, you’ll get a 25 percent discount.
Here’s how it works: If you executed $25,000 in trades over the previous 30 days and are looking to place a new $10,000 trade, FTX will charge you 0.10 percent ($10) for a maker order or 0.20 percent ($20) for a buyer to order. Binance will charge 0.10 percent ($10) for any order type and will reduce the fee to $7.50 if you pay with BNB.
FTX gets competitive with fees on Binance if you’re making around $50 million in 30-day average volume, but for those with more typical trading volumes, Binance has the upper hand.
FTX vs. Binance: Supported Cryptocurrencies
Binance also has the advantage of the number of different cryptocurrencies that are available to trade on the exchange. Binance offers over 100 while FTX has over 20. If you are only looking for the most popular coins like Bitcoin and Ethereum, either exchange will be able to meet your needs.
However, if you’re looking to trade some of the more exotic coins, Binance is probably a better option, or you might want to look into another exchange like Coinbase, which offers over 150 coins to trade.
FTX vs. Binance: Staking Rewards
In terms of staking rewards, Binance is the default winner because FTX does not offer staking on its platform. Staking rewards provide crypto investors with the opportunity to earn income for backing a coin as part of the verification process. Exchanges deposit any income you have earned into your account after subtracting fees.
Binance offers staking in seven currencies and does not charge staking fees. If gambling is important to you, you might also consider using Kraken as an exchange, which offers gambling in 13 currencies with plans to add more in the future.
FTX vs. Binance: deposit and withdrawal fees
When it comes to deposit and withdrawal fees, Binance takes the cake due to its simpler structure. Binance does not charge any deposit or withdrawal fees on US dollar ACH transfers or wire transfer deposits. You will pay a $15 fee on domestic transfer withdrawals.
FTX charges a standard fee of $0.50 per ACH deposit, but has a few exceptions:
- An ACH deposit of more than $10 per week is free.
- Your first ACH deposit is free.
- Deposits over $100 are free.
For wired withdrawals, FTX allows you to withdraw less than $5,000 once per rolling week period for free. Additional withdrawals below that amount will cost you $25. Withdrawals over $5,000 are free and there are no bank deposit fees.
FTX vs. Binance: Customer Support
Crypto exchanges generally lack customer service, which is disappointing considering their growth in recent years. Binance customers will only be able to submit support tickets when they have questions and problems. There is no phone, email or chat support.
FTX isn’t much better, but it will have a chat option in addition to support tickets and a decent FAQ page on its website.
Binance has the edge in almost every area and is a cost leader, one of the most important factors for crypto traders. Low trading costs helped Binance win Bankrate’s award for best cryptocurrency exchange for beginners.
However, FTX is no slouch in most areas, so it can be a solid option too. They have a slight edge in customer service, but they lack the amount of coins available and they don’t offer rewards for staking.
In the end, you will need to decide which factors matter most to you, and then decide which crypto exchange best suits your needs.
Editorial Disclaimer: All investors are advised to conduct their own independent research on investment strategies before making an investment decision. Furthermore, investors are cautioned that the past performance of the investment product is not a guarantee of future price appreciation.