FTX.US and Binance.US are two well-known cryptocurrency exchanges that both do a solid job for traders. You may be familiar with FTX because of its high-profile endorsers such as pro football legend Tom Brady, his supermodel wife Gisele Bündchen, and all-star basketball player Stephen Curry. While these celebrity endorsements help increase awareness of FTX, they don’t do anything for their customers.
There are some key differences between FTX and Binance – which we’ll use to refer to the U.S. operations of the companies – so be sure to consider what matters most to you before deciding on an exchange. Here are the biggest variables to consider.
FTX vs. Binance: Cost
Trading costs can be significant at crypto exchanges and the fees can really add up for active traders. Discounts are typically offered based on your 30-day trading volume.
FTX and Binance both use a maker-taker pricing structure, which charges based on whether your order adds liquidity to the market (maker) or removes liquidity from the market (taker).
Here’s how each exchange breaks down on its 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’s fees are pretty attractive compared to some others in the industry, Binance has the advantage here, particularly on taker fees. Plus, if you use BNB, Binance’s in-house coin, to pay trading fees, you’ll get a discount of 25 percent.
Here’s how it works: If you’ve 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 taker order. Binance will charge 0.10 percent ($10) for either order type and will reduce the fee to $7.50 if you pay with BNB.
FTX does become competitive with the fees at Binance if you’re doing about $50 million in average 30-day volume, but for those with more typical trading volumes, Binance has the edge.
FTX vs. Binance: Supported cryptocurrencies
Binance also has the advantage in the number of different cryptocurrencies that are available to trade on the exchange. Binance offers more than 100, while FTX has more than 20. If you’re just looking for the most popular coins such as Bitcoin and Ethereum, either exchange will be able to meet your needs.
If you’re looking to trade some of the more exotic coins, however, Binance will probably be a better choice, or you may want to look at another exchange such as Coinbase, which offers more than 150 coins to trade.
FTX vs. Binance: Staking rewards
In terms of staking rewards, Binance is the winner by default because FTX does not offer staking on its platform. Staking rewards give crypto investors the chance to earn income for supporting a coin as part of the verification process. Exchanges deposit any income you’ve earned into your account after subtracting fees.
Binance offers staking on seven coins and does not charge staking fees. If staking is important to you, you might also consider using Kraken as an exchange, which offers staking on 13 coins 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 because of its more straightforward structure. Binance doesn’t charge deposit or withdrawal fees on ACH transfers in U.S. dollars or on wire transfer deposits. You will pay a $15 fee on domestic wire withdrawals.
FTX charges a standard fee of $0.50 per ACH deposit, but has a few exceptions:
- One ACH deposit over $10 per week is free.
- Your first ACH deposit is free.
- Deposits over $100 are free.
For wire 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 above $5,000 are free and there’s no fee for wire deposits.
FTX vs. Binance: Customer support
Crypto exchanges are generally lacking in the way of 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 you will have a chat option in addition to support tickets and a decent FAQ page on their website.
Binance has the advantage in nearly every area and is a leader in cost, one of the most important factors for crypto traders. Low trading costs helped Binance win Bankrate’s award for the best crypto exchange for beginners.
FTX isn’t too far behind in most areas, however, so it can be a solid choice as well. They have a slight advantage in customer service, but they’re lacking in the number of coins available and don’t offer staking rewards.
In the end, you’ll need to decide what factors matter most to you and then decide which crypto exchange best meets your needs.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
Read More:FTX Vs. Binance: Which Crypto Exchange Is Right For You? | Bankrate