FTX.US, the US affiliate of the FTX crypto exchange, has launched its much-awaited zero-commission stock trading. The product, which called FTX Stocks, will only be available for US users and is set to increase the exchange’s customer base as it seeks to tap into the stock markets besides the crypto market.
Initially, the FTX Stocks product will route orders to NASDAQ through the clearing firm, Embed, which FTX acquired in June for its application programming interface (API) and brokerage services.
Before officially launching the product yesterday, FTX.US had piloted it using a selected group of clients in May this year.
The launch almost came as a surprise to a majority of the exchange’s customers since, during the pilot, the exchange did not disclose when it would open the feature to the public.
Zero-commission stock trading
In the new feature/product, FTX.US plans to offer zero-fee brokerage accounts, commission-free trading, and company and market data. That means it would monetize trades or charge fees in a manner similar to what Robinhood does.
At the time of launching the zero-commission stock trading feature, FTX.US had already listed several blue-chip stocks including the likes of Microsoft Corporation, Apple Inc., and Tesla Inc (TSLA).
In an interview with Bloomberg after launching the new feature, the president of FTX.US commented about the beta testers saying:
“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.”