Zero-commission stock trading will be rolled out by the U.S. affiliate of FTX. The service was limited to a small group of U.S. users.
FTX U.S. made the announcement a week after the company's owner, Sam Bankman-Fried, acquired a minority stake in Robinhood.
The news comes as the S&P 500 teeters on the edge of a bear market. Cryptocurrencies and stocks have been in a sell-off for most of the year. It was the worst month since 2008.
Commission-free trading and company data will be offered by FTX U.S. Customers will be able to fund their accounts with stable coins likeUSDC, as well as normal dollar deposits through wire transfer or credit card. Customers will not have to maintain minimum balances. Some securities will be traded fractionally.
FTX US President Brett Harrison said in a news release Thursday that their goal is to offer aholistic investing service for their customers across all asset classes.
FTX Stocks will initially route orders through the stock exchange. The company will not be paid for the order flow. The back-end payments that brokerages receive for directing clients' trades came under scrutiny as more retail investors joined the market.
The company is using a new customer acquisition strategy and FTX Stocks is part of it. FTX U.S. may initially lose money on stock trades, but it hopes to recover those losses through its trading service.
Harrison said in the release that there is clear market demand for a new retail investment experience that offers full order transparency to customers and does not rely on payment for order flow.
FTX U.S. is one of a few brands that offer trading in both stocks and coins. Last year, the equities product was discontinued by the big rivals.
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