FTX US president, Brett Harrison, revealed that this offer will be available to citizens of all 50 states, including Puerto Rico and the Virgin Islands, to exchange stocks of leading companies such as Apple (AAPL), Tesla (TSLA) and Amazon (AMZN), as well as trade ETFs on FTX’s website and mobile app.
The initial form of this service was first announced by FTX two months ago. However, for now, the offer is only available to some priority customers.
In June 2022, Mr. Harrison outlined the company’s long-term target to become an all-in-one investment platform, not just limited to crypto. In addition to stock trading services, it also provides the first real-time 24/7 future margin to American users. Mr. Harrison stated:
“For most clearinghouses today, margin is done once per day, five days per week. We’re proposing to do this real-time, every 30 seconds, 24/7, and that is a novel aspect of our application.”
While announcing plans for its stock trading services, FTX also declared it would not receive payments under the PFOF model, for which Robinhood has been criticized.
Basically, Payment For Order Flow (PFOF) is a form of compensation, usually in terms of fractions of a penny per share, that a brokerage firm receives for directing orders for trade execution to a particular market maker or exchange. Most investors claim that PFOF only creates unfair competition which affects negatively traders and retail traders.
Instead, FTX will route all transactions directly through Nasdaq as a substitute for a third-party market to increase transparency and ensure that users receive their stocks at the most affordable price.
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