FTX Australia Review 2021 | Leverage Futures Trading(Coin,Stock,Forex)

 

 

Quick Summary : 

 

1. FTX is a Top5 global crypto derivative exchange founded in May 2019.

 

2. FTX offers Futures, Spots, Stocks, Leveraged Tokens, Volatility, Prediction, and Forex.

 

3. FTX is a strategic partner with Binance.

 

4. Offers Abundant liquidity, fast execution, and tight spread.

 

5. Outstanding features, user interface, trading fees, and products.

 

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Founders of FTX

Sam Bankman-Fried founded FTX exchange, and he was a trader on Jane Street Capital, managing the international ETF desk, reflecting the depth of understanding of the financial industry.  Meanwhile, the current CTO is Gary Wang, a former Google software engineer who plays an important role.

 

Before founding FTX exchange, Sam and Gary founded Almameda Research Ltd, which manages cryptocurrency liquidity providing, quantitative trading, and OTC services for FTX. This has resulted in crypto venture funds investing in FTX exchange aggressively.

 

 

 

 

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The Key Features of FTX Exchange!

 

 

 

 

 

FTX has been a desirable crypto derivatives trading platform by providing a wide range of advanced trading products. It offers spot and futures market and Stocks, Leveraged Tokens, Volatility, Prediction, and Forex pairs! 

 

FTX team satisfies both institutions and retail investors by low trading fees, tight spreads, fast execution speed, user-friendly interface, OTC services, ease of deposit and withdrawal, and more! 

 

 

1. Convienient to Convert Stablecoins.

 

- FTX exchange supports multiple stable coins such as TUSD, USDC, PAX, BUSD, and HUSD!

 

 

2. Offers Up to x101 Leverage.

 

- Leverage can allow traders to use up to X101 leverage to maximize their profit!

 

 

3. Support Fiat Currency Transfers.

 

- Users can freely interchange a variety of stable coins 1:1 as 'USD' on FTX!

 

 

4. Awesome Customer Service.

 

- FTX operates chat groups in over ten languages to help traders from all around the world!

 

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Products in FTX exchange!

 

 

1. Futures

 

- FTX is Top10 Derivative Exchange in terms of the trading volume. 

 

- It means it has abundant liquidity and a tight spread for the traders.

 

- More than 300+ futures contracts are available for the users! 

 

 

 

2. Spot

 

- FTX provides more than 100+ pairs of altcoins which you can trade with USDT & USD!

 

- FTX has been consistently listing a wide range of cryptocurrencies! 

 

- Popular digital assets like BTC, ETH, XRP, ADA, BCH, and BNB are all available!  

 

 

 

3. Stocks 

 

- FTX offers tokenized stocks through CM - Equity, fully regulated in Germany.

 

- Traders can trade stocks like popular stocks like Tesla, Google, Robinhood, and Coinbase. 

 

- After converting Stablecoins to 'USD,' you can trade any sorts of stocks you like.

 

- It has efficiently minimized the barrier between asset classes, crypto & stocks.

 

 

 

4. Leveraged Token

 

- Leveraged tokens are developed upon ERC- 20, Ethereum Blockchain Network.

 

- It enables you to increase the exposure to the crypto market without margin & leverage.

 

- There are 70+ leveraged tokens that you can choose! For more information, click here! 

 

 

 

5. Volatility

 

- Volatility Tokens are ERC-20 tokens that track the volatility of the crypto market.

 

- FTX MOVE contracts get their exposure to an asset's volatility.

 

- BVOL = 1X Long Bitcoin's Implied Volatility
 

- IBVOL = 1X Short Bitcoin's Implied Volatility

 

 

 

6. Prediction

 

- Prediction is a derivative financial instrument to bet on certain significant events.

 

- For example, Trump 2024 and Olympics 2021. You know what it is, right?

 

- It is more of an entertaining purpose rather than trading crypto.

 

 

 

7. Fiat

 

- FTX supports fiat deposit and withdrawal via bank transfer.

 

- Traders can trade foreign currency via USD Perpetual Futures.

 

- The supporting fiats are USD, EUR, GBP, AUD, HKD, SGD, TRY, ZAR, CAD, CHF, BRL, NGN.

 

 

 

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How to register an FTX account? 

 

 

 

1. Click "Register" at the top right of the exchange.

 

2. Enter your email and password.

 

3. Click "Sign Up" to register and receive a verification email.

 

4. Secure your account by setting 2FA, Google OTP.

 

5. Click "Settings" and complete KYC verification for higher withdrawal limits.

 

 

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How to do FTX KYC?

 

 

- Level 1 Identity Verification form requests 'Full name', 'Country of Residency' and 'State,province,or region'. After the KYC, individuals can unlock the 2,000 USD daily withdrawal limits! 

 

- Tier 2 KYC Verification requires uploading proof of identity and residential or business address. Tier 3 KYC Verification requires uploading recent bank statements that you will use for fiat transactions.

 

 

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 FTX Trading Fee & Charges!

 

- FTX charges no deposit or withdrawal fees as well as fees on futures settlements.

 

- OTC trading and trading from your wallet is also free as the fees are levied on the spread.

 

- Leverage tokens have creation & redemption fees of 0.1% and daily fees of 0.03%.

 

- The trading fee for Spot & Futures =>  Maker : 0.02% Taker: 0.07%.

 

- You can get a trading fee discount by fulfilling the 30D Volume requirements.

 

 

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Deposit and Withdrawal

 

- FTX supports deposits and withdrawals in both fiat and cryptocurrency.

 

- Supported fiat: USD, EUR, GBP, AUD, CAD, CHF, HKD, SGD, and ZAR.

 

- Instant Interbank service is available for USD, EUR, AUD, and BRL.

 

 

 

- Supported crypto: BTC, ETH, BCH, BNB, LTC, FTT, BTMX, TRYB, USDT, USDC, TUSD, PAX, HUSD, and BUSD. The withdrawal fees can be waived if you hold the FTT tokens. 

 

 

 

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What is FTT Token?

 

FTT is the exchange token that incentives holders offer 'lower trading fees' and 'more fee rebates.' FTX exchange also buy-back 1/3 of their trading revenue and burns the token. Buring tokens imply less amount of tokens are circulating, leading to an increase in price due to supply and demand mismatch.

 

 

 

 

Hence, the FTX exchange has also enabled users to utilize the FTT token as collateral for all futures! So you can hold your capital on FTX in FTT and still able to trade with it. This may potentially drive more price appreciation! 

 

 

 

 

Tax law in Australia.

 

How Australia taxes Cryptocurrency?

 

The Australian government does not see Bitcoin and other cryptocurrencies as money nor foreign currency. Instead, the ATO classes crypto as property, and as an asset for capital gains tax (CGT) purposes.

 

 

Capital gains tax (CGT) is the tax you must pay on any capital gain made upon sale of the asset. It includes Selling Crypto, Exchanging & Trading Crypto, Buying Goods and Services(if not seen as a personal use asset), Gifting Crypto, Stablecoin Trades, Buying Goods.

 

Trading or exchanging crypto

This means that when you trade one cryptocurrency for another, you're effectively receiving property rather than money in return for the first cryptocurrency. Therefore, you need to keep a record of the value (in Australian dollars) of the cryptocurrency you receive.

 If the cryptocurrency that you received can't be valued, you will have to take into account the market value of the crypto you sold at the time of the transaction.

 

Trading stablecoins

 

The ATO considers stablecoins like Tether (USDT) or Binance USD (BUSD) to be just like any other cryptocurrency, and therefore CGT applies.

 

 

Capital gain = selling price - buying price - fees

 

Note: Both the sale price and cost base are always in AUD. When calculating your cost base, don’t forget to include any brokerage/trading fees.

 

 

To encourage long-term investing, if you hold your crypto for at least one year then you can get a 50% discount on the capital gains. This is called the ‘capital gains tax discount’ or ‘CGT discount’. And even if the market value of your cryptocurrency changes, you won't make a capital gain or loss until you actually dispose of your holdings.On the other hand, if the proceeds from the disposal of the cryptocurrency are less than what you paid to acquire it initially, you will experience a capital loss. If you make a loss on the trade then you can deduct it from other profits or even carry over the loss to future years.

 

In Australia, even capital gains are taxed at your marginal income tax bracket and form part of your assessable income. There is no special tax rate for CGT.

 

The 2020 tax brackets for Australian individuals are as below:

Taxable income	Tax on this income
$0–$18,200	Nil
$18,201–$37,000	19 cents per dollar over $18,200
$37,001–$90,000	$3,752 plus 32.5 cents per dollar over $37,000
$90,001–$180,000	$20,797 plus 37 cents per dollar over $90,000
$180,001 and over	$54,097 plus 45 cents per dollar over $180,000

 

Source: ATO

 

 

Cryptocurrency Transaction Record Keeping

 

To make sure how to calculate the tax, we recommend  that you record gains and losses when you sell cryptocurrency.

 

Conclusion

FTX exchange has its edge by offering brand-new trading instruments like stocks, leveraged tokens, options, and more! Along with 100+ pairs of cryptocurrencies listed and low trading fees, they have rapidly hooked new users worldwide. It is suitable for beginners as it is easy to use, secure, and offers fantastic customer services :) 

 

Suppose you want to trade stocks, forex, and leveraged tokens. In that case, we recommend you to sign up for a free FTX account (5% discount) by clicking the banner below and take advantage of lower trading fees and an excellent user interface!