Cryptocurrency Exchange FTX Expands Into Stock Trading

Cryptocurrency exchange FTX is introducing zero-commission stock trading in the U.S.

FTX said it will now offer no-fee brokerage accounts, commission-free trading, and market and company data, to retail investors within the U.S.

As people become more familiar with cryptocurrencies, and as investing services become more easily accessible to a growing number of retail investors, FTX is counting on users growing weary of managing multiple apps and accounts. The company hopes to become a one-stop shop for retail investors.

The new trading platform, called “FTX Stocks,” will initially route orders to Nasdaq through its clearing firm, Embed. The company will not receive any payment for order flow.

FTX said that, while it may initially lose money on stock trades, it hopes to recoup those losses in other ways, including through its cryptocurrency trading service and selling its basic crypto services to other brokers and financial services providers.

Customers will have the option to fund their accounts with fiat-backed stablecoins like USDC in addition to normal dollar deposits through wire transfer or credit card payments. There will be no minimum required balances for customers to maintain and users will be able to trade some securities fractionally.

FTX made the announcement a week after the company’s owner, Sam Bankman-Fried, bought a minority stake in Robinhood (HOOD), making him the third-largest shareholder and fueling speculation that he’s interested in acquiring the company.

FTX now joins fintech brands such as Block’s (SQ) Cash App in offering trading in both stocks and cryptocurrencies. Big cryptocurrency rivals such as Coinbase (COIN) and Binance do not currently offer stock trading.