FTX vs Binance: Pros & Cons and Verdict

FTX and Binance are two prominent crypto exchanges. They have their history, uniqueness and vision. This article will compare their trading fees, deposits and withdrawals, unique features, products, advantages and disadvantages.

Binance is the largest cryptocurrency exchange, and it was founded in 2017. Since then, Binance has grown into a powerful force and introduced its token, Binance Coin (BNB). The platform offers unique features, high security, a wide array of cryptocurrencies, NFTs, Futures, loans and a Binance Visa card.

The trading experience on Binance is fantastic and a destination for both experienced and newcomer users. On Binance, you can purchase cryptocurrency via bank deposits, credit cards, Peer-to-Peer (P2P) trading, and third parties like Banxa and Simplex are also supported.

The fee structure of Binance is quite lucrative. Below, you can see an illustration of their maker/taker model.

We will discuss this thoroughly later in the article and visualize how using the BNB token affects trading fees. To summarise our thoughts on Binance for those who are in a hurry:

Binance has a great fee model. If you use BNB you get an additional 25% discount on fees. Binance uses top-tier technology and is highly-secure. You can trade, deposit, withdraw, store (always use cold storage) and earn on Binance. For US customers, there’s a dedicated website www.binance.us

Binance vs FTX: Binance Summary

Do we recommend using Binance? Yes, absolutely. If you want to buy Bitcoin, daytrade, deposit fiat, buy NFTs, and take out a loan, Binance is the destination for all. Let’s see what FTX has to offer and why it became so popular:


FTX was founded in 2019 and only recently emerged as a prominent player in the market. Compared to its competitor, FTX offers the lowest fees, free fiat deposits, stock investments, Bitcoin perpetual, leveraged tokens and many more unique features.

FTX is a highly-secure cryptocurrency exchange, it has never suffered a hack, and they are well-insured. FTX also gained momentum when the buzz spread about them listing “gem”, low market cap crypto game coins.

Let’s take a look at FTX’s fee structure. Note that they offer a unique program for professional traders:

As you see from the chart, their fees are significantly lower than their competitors—for example, Binance, Coinbase and Gemini. There are additional discounts available for FTT (FTX Token) holders. The respective chart will be shown further down in the article.

Lastly, before summarising the introduction of the article, here’s our key takeaway about FTX exchange:

FTX is a prominent cryptocurrency exchange that gained a lot popularity in the recent years. FTX has its own uniqueness and offers one of the the lowest fees, free fiat card deposits, stock investments and an amazing professional trading program. Lastly, FTX card and borrow/lending is also possible on the platform. We would advise purchasing Bitcoin on FTX if you want to do so with fiat.

Binance vs FTX: FTX Summary

Our overall winner? Depends on your needs. Both exchanges require KYC, and they share the majority of the features. It is a tight battle, but we firmly believe that FTX has the upper hand.

For US customers, Binance and FTX have custom solutions. You can freely trade, deposit & withdraw and store crypto by entering either Binance.us or FTX.us.

FTX vs Binance: Pros & Cons and Verdict


Let’s look deeper at Binance vs FTX and compare their essential aspects, including trading & futures fees, security & hacks, FTT & BNB ecosystems, volume and how FTX and Binance compare to Coinbase.

First off, we created an excellent table that shows the advantages and disadvantages of both exchanges:

Advantages of FTX

  • Variety of trading products (Perpetuals, volatility contracts and cryptocurrency indexes)
  • Lowest trading fees & fee-less fiat deposits
  • Excellent VIP programs and perks & additional benefits for FTT holders
  • Advanced trading options, including futures and the ability to trade on margin
  • Stock investment opportunities
  • No Bitcoin withdrawal fees

Disadvantages of FTX

  • Requires KYC (Know-Your-Customer) for fiat deposits & after fiat deposits funds are withheld for one week so you can not withdraw immediately
  • Leveraged tokens are risky investments on the FTX exchange
  • Average customer support
  • Relatively new crypto exchange

FTX is one of the best places to purchase your Bitcoin and alternative cryptocurrency. It is suitable for both beginner and advanced users.

FTX offers many unique features and a rich ecosystem that is continually growing. Compared to Binance, it has better fees.

Advantages of Binance

  • An extremely diverse selection of cryptocurrencies & average trading fees
  • Additional perks for Binance Coin (BNB) holders. For example, trading fee discounts
  • Numerous opportunities like loans, liquidity farming, Futures, vaults and more
  • One of the most secure and oldest crypto exchanges
  • Binance Chain DEX

Disadvantages of Binance

  • High withdrawal fees & trading fees not as good as on FTX
  • KYC (Know-Your-Customer) verification is mandatory
  • A centralized exchange & Average customer support
  • Binance ran into regulation problems in several countries

Binance is a top-tier exchange and is often a popular destination for beginners. The advantages of Binance are that it is secure, offers a large variety of cryptocurrencies, has reasonable fees and offers unique features like loans, liquidity farming, a Binance Visa card, etc.

Compared to FTX, we would say that it falls short. Binance has huge withdrawal fees, which can be seen as an incentive to make people keep their assets on the exchange (unsafe).

FTX Fees vs Binance Fees


This section of the article will discuss fees related to trading, depositing and withdrawing. Additionally, what benefits do FTX’s and Binance’s tokens offer?

FTX Fees Review


As we have already mentioned, FTX’s trading fees are the lowest on the market, which is 0.020% for makers and 0.070% for taker fees. Compared to Binance, which takes 0.1% as maker and taker fees, FTX comes out as a clear winner.

FTX offers discounts for higher-volume traders. Below, you can see the chart illustrating what fees you can expect depending on your trading volume. Remember that FTX also offers additional fee discounts for those holding FTT (FTX Token).

FTX Maker & Taker Fee Model
FTT Trading Benefits

As for the leveraged tokens, It costs 0.10% to create or redeem a token. Tokens also charge a daily management fee of 0.03%. If you trade on the spot markets, you’ll pay the same exchange fees as on all other markets.

Another critical aspect of FTX is that they don’t charge additional fees for fiat deposits. The only disadvantage is that funds won’t be transferable for a week.

Lastly, FTX has minimal fees for crypto withdrawals. Most importantly, Bitcoin withdrawals are free.

Binance Fees Review


Binance has higher fees than FTX but lower than other exchanges. For example. Coinbase (we will compare them further down in the article.

Binance’s maker/taker fee structure, including BNB discounts, is visualized in the chart below:

So if you hold a slight amount of BNB, you can get pretty good discounts that can level FTX. There are additional ways to get fee discounts:

  • Referral bonuses
  • Reaching significant person (VIP) status by trading a certain amount of assets.

Binance users may also be subject to other fees. Refer to the chart below for fees associated with withdrawal and payment types:

Payment TypeFees
Wallet N/A
Debit cards 4.5%
ACH transferFree
Wire transfer $15 for US customers
Crypto conversion N/A
Trades 0.00% to 0.1%
Buy/Sell Crypto0.50%

It’s important to note that Binance has one of the largest liquidities on the market, which FTX can not match. Trading sometimes gets frustrating when there is insufficient liquidity and orders don’t fill.

All in all, FTX has better fee rates than Binance, but the latter is a more significant, more secure and trustworthy exchange. For beginner users, we would advise you to start at Binance and move somewhere else in the future.

FTX vs Coinbase vs Binance


Many people interested in Binance vs FTX are also interested in Coinbase. First of all, let’s compare all three exchanges in a chart and see what they have to offer:

FTX

  • Incentives for holding FTT token
  • High-security levels
  • FTX US for the United States
  • Requires KYC
  • No fiat deposit fees, lowest trading fees and stock investment opportunities
  • FTX withholds fiat-bought Bitcoin for one week, and you can not transfer it
  • FTX Loans

Coinbase

  • Visa debit card with cashback (with any asset) & staking rewards
  • Coinbase Pro is great for day-trading
  • Highly-secure
  • Average customer service
  • Requires KYC
  • Crypto withdrawals are associated with extra fees
  • Native USDC token

Binance

  • Visa debit card with cashback (with BNB) & staking rewards
  • Binance is great for day-trading
  • Highly-secure
  • Good customer service
  • Requires KYC
  • Crypto withdrawals are associated with extra fees
  • Native BNB ecosystem

Coinbase is the most popular US exchange and has the highest trading fees among these three. Coinbase has its unique features, and one of them is that you can withdraw fiat from your wallet to your bank account.

This can be pretty important for many since you may want to take profits at some point. Coinbase is the one solution to all your problems.

Binance US vs FTX US


Specifically for US customers, Binance and FTX launched dedicated projects, Binance.Us and FTX.Us. Let’s find out what’s different.

FTX US Review


FTX US is an entirely different platform, and it’s essential not to confuse it with FTX.com. The main difference is the fee structure since the US version offers 0.10% for the maker fee and 0.40% for the taker fee. Here’s a better visual illustration:

FTX US trading fees

Another dealbreaker is the FTT token is not considered legal in the United States. So holding the coin will not ripe benefits for you, making it irrelevant.

Binance US Review


Binance, on the other hand, offers the same fee structure for its US customers. Also, the BNB token is legal in the United States, so you will receive the additional benefits that holding it brings.

In short, Binance US should be your priority choice if you are from the United States since it is miles better.

FTX Pro vs Binance US


FTX Pro is available on both iOS and Android devices. It promises its users to trade anywhere, anytime. Other than that, no information is available regarding its unique features or fee structures.

We believe it falls short compared to the Binance mobile application, and Binance iOS and Android apps offer superior functionality.

FTX Volume vs Binance Volume


The volume of an exchange is an essential factor for many traders. At the time of writing this article, Binance’s volume was $10 billion, and the volume of FTX was $1.5 billion, according to CoinMarketCap data.

In BTC terms, Binance’s volume was 352,711, and FTX stood at 51,038 BTC.

Binance is one of the largest exchanges in the world. It is logical to trust it more than FTX. FTX is still an emerging exchange, and it is yet not as well-established as Binance.

FTX vs Binance Futures


Binance Futures fee structure: Maker fee rates start at 0.02% and can be as low as 0.0000%. We’ve included a chart that illustrates the Binance futures fee structure.

Compared to the taker fees of competitors, only the Huobi exchange offers an equal initial taker fee rate of 0.04%.

FTX Futures fee structure: On FTX, there are no fees on futures settlement. As mentioned in the article, leveraged tokens have creation and redemption fees of 0.10% and daily management fees of 0.03%. Lastly, there are no deposit fees.

The Closing Line


All in all, FTX vs Binance comparison comes to an end. We compared their features, fee structures, US versions, advantages and disadvantages.

If you are a US customer, we advise using the Binance US since it offers better pricing and features. Remember that the FTT token is obsolete for US users.

For everyone who is not from the United States, FTX offers a better fee structure than Binance. If that’s a decisive factor for you, sign up for FTX.

Considering all the factors and nuances, we think Binance is a better option for beginners and experienced users. FTX is a great place to experiment and can be a better fit for some.

Our advice is to register on both exchanges (without filling the KYC) and experience yourself how the platforms work. In the end, it may all come to user experience!

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