Phemex is the newest Bitcoin derivatives exchange that is on the block. This Phemex review will show whether it is worth trading on.
Phemex is looking to offer the ability to offer institutional-level derivatives trading for traders at large. The Wall Street team of the past hopes to put their trading expertise into action by expanding the number of options available to crypto derivative brokers for both investors and traders.
The former Morgan Stanley executives launched their new product on the 25th of November. 2019. The launch was in Singapore and since then have been trying to develop an approach that is more user-centric for the platform for trading derivatives.
They are very proud of their work. Phemex exchange has recently introduced the LINK/USD trading pair after hearing feedback from the community on new trading pairs they can include in their exchange.
What is Phemex?
Phemex is a cryptocurrency exchange platform that allows users to trade various digital assets such as Bitcoin, Ethereum, Ripple, and more. It was founded in 2019 by a team of experienced professionals from both the traditional financial and blockchain industries.
Background of Phemex
Phemex aims to provide users with a seamless trading experience by offering advanced trading tools, high liquidity, and low trading fees. With its headquarters in Singapore, Phemex has quickly established itself as a reliable and trustworthy platform in the crypto space.
Phemex Growth Rate
Since its inception, Phemex has experienced an immense growth, support, and popularity from crypto traders all over the world With thousands of customers joining Phemex from the initial day of launch.
According to the company, reason for its huge growth and success to its customer-centric approach to managing its business and operating its cryptocurrency trading platform.
The annual report to shareholders also stated that it will continue investing in the rapid expansion and growth of the trading platform, with the goal of reaching one million users registered by the date of 2020.
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Phemex Growth Rate
Phemex gives new users one of the most lucrative bonuses when they complete various tasks through the platform.
The tasks are divided into three parts and are presented below.
1. The Account opening process: Phemex offers new users the opportunity to earn a $2 bonus the first time they open an account with the platform for trading in crypto. The bonus is automatically credited to your trading account. It can be utilized to begin placing trades as soon as you are able.
2. First deposit: Phemex users also get a more bonus upon the first deposit. The maximum amount of bonus that can be earned from this process is $60. It will require a minimum deposit of 0.2 BTC to eligible.
3. Social Media Shout-outs: As part of its strategy for rapid expansion, Phemex offers users a reward of $10 for following Phemex via social media, and letting them know via your personal social media pages.
Join My Invitation Code to Receive $130 in Bonus
If you utilize my code of invitation JDNRK or click this link to register for a Phemex account, you will be able to raise the Bonus you earn for your first deposit in the amount of 0.2 BTC or more from $60 to $100.
The bonus will be automatically added to the Phemex trading account. It can be used to trade instantly.
Phemex Fees
Phemex doesn’t charge any charges for deposits, which means that you can transfer money into the exchange for free. For fees for trading, Phemex keeps it simple with -0.025 percent and 0.075 percent taker and maker fees in each case. The rates are comparable to other exchanges in the market.
Beyond that, Phemex also has a financing rate that is dependent on the leveraged portion. It is expected that an investment with a high leverage can have a significant effect on equity. This is evident in the interest rate.
The fees for withdrawal of Phemex
At present, Phemex charges a flat 0.0005 BTC for every bitcoin withdrawal. This will likely be changed in the near future. Here is a fee information table that relates to particular trading pairs.
Fees and Charges
Trading Fees
Phemex charges competitive trading fees, with fees starting as low as 0.1% per trade. There are also discounts available for high-volume traders, making Phemex an attractive option for both casual and professional traders alike.
Deposit and Withdrawal Fees
Deposits and withdrawals on Phemex are free of charge, with no hidden fees or commissions. This makes it easy for users to move funds in and out of the platform without having to worry about additional costs.
Pros and Cons of Phemex
Advantages
- High liquidity
- Advanced trading tools
- Low trading fees
- Excellent customer support
Disadvantages
- A limited range of cryptocurrencies available
- Lack of fiat currency support
How to Get Started with Phemex
How to Sign Up
The registration process to open an account with a Phemex cryptocurrency trading account is easy and quick to achieve. The steps required to complete the process have been explained in detail below.
Registration Process
The first step to register for a Phemex registration is to go to Phemex.com/register. Phemex.com/register page. There, you will have to input your
Email address and
A secure password that you can quickly remember.
After that, you will have to verify the legitimacy of your address by clicking the link that was sent to your inbox. If you don’t get that email on your account, make sure to check your junk mail folder.
Your Email Security
It is vital to warrant that only you have access to the registered email used to sign up on Phemex since the email you use will be used to notify you of OTP codes as well as security notifications and updates including 2FA authentication, security alerts, as well as security warnings, in event of hacking of your Phemex account.
Phemex Login Process
The process of logging in to Phemex is simple and secure. Phemex makes use of 2FA authentication as well as OTP (one-time-password) and many other security measures in order to warrant the security of your accounts is not able to be compromised
For your first login procedure for Phemex Follow the steps below.
1. Go to Phemex.com (It is essential to ensure that you are at your original Phemex page and are not being directed to a fake hackers’ page trying to obtain your login information)
2. When you arrive on Phemex.com’s homepage, click on “Login”. Phemex.com website, you can click”Log In” and then click the “Login” button
3. Input the email address address and password that you set up your Phemex account with.
4. A prompt box will pop up asking users to input an OTP (one-time-password) that was sent to your email address.
5. Visit your email address and take a copy of the OTP code, then insert it into the appropriate box for you to sign in.
Once you have logged in, it is important to upgrade the security settings on your account by filling in your:
- Security settings for your account and configurations
- Make sure you activate your Phemex account to enable 2FA security features.
Methods to Withdraw and Deposit Phemex
Phemex wallets are able to accept withdrawals and deposits with credit and bitcoin. However, there was there is no opportunity found for how to deposit directly USD through the platform as of the moment of the time of writing the Phemex review.
Prior to with Phemex you must purchase Bitcoin. The users can do this through Phemex after registration or put BTC into the BTC wallet and then work toward a marketplace from that point. To make trades on Bitcoin settle contracts customers must first be able to fund the Bitcoin trading accounts with an account that has been pre-deposited with funds. To trade USD settlement contracts customers can transfer BTC via a wallet into the USD trading account at a real-time rate.
However, the withdrawal process is easy. All one has to do is type in their wallet address, as well as the amount of bitcoin that needs to be withdrawn, and then complete the process using normal 2FA functions. However, there seems to be no Bitcoin address white-listing option similar to other exchanges such as Coinbase. This could be viewed as an issue with security.
Supported Currencies
Phemex is an extremely new cryptocurrency exchange, which focuses on derivatives of cryptocurrency. Phemex has the following features:
BTC/USD (Bitcoin/US Dollar)
ETH/USD (Ethereum/US Dollar)
XRP/USD (XRP/US Dollar)
LINK/USD (ChainLink/US Dollar)
XTZ/USD (Tezos/US Dollar)
LTC/USD (Litecoin/US Dollar)
GOLD/USD (Gold/US Dollar)
These diverse trading options (although not as extensive as those offered by Binance) gives Phemex traders the opportunity to diversify their portfolios and invest in various cryptocurrency pairs.
The Gold/USD pair gives traders the opportunity to protect their crypto assets and put money into safe havens in the midst of experiencing increased volatility in the market for crypto.
Phemex Supported Currency Drawbacks
There are some issues I have discovered in this Phemex list of cryptocurrencies that are supported.
1. Phemex Does Not Support Fiat Currency Trading:
In contrast to some of its counterparts, Phemex is not able to trade in any currency that is fiat. All transactions are conducted and concluded in BTC.
2. Phemex Does Not Support Options Trading:
Phemex currently only supports the trading of crypto perpetual futures contracts. Therefore, if you had like to be able to access the market for crypto options you will have to research other cryptocurrency brokers.
3. Phemex Does Not Support Crypto to Crypto Pairs:
As of the date of this article, Phemex has no cryptocurrency to crypto pair, such as Bitcoin/Ethereum (BTC/ETH) through its website. Instead, all cryptocurrency pairs are linked to USD. If you are seeking trading crypto pairs you will need to investigate other brokers for crypto.
However, despite those minor negatives that are mentioned, it is a good choice. The Phemex Exchange platform seems reliable and an excellent option for traders who trade in crypto.
Buying and Selling of Phemex
Because it is a derivatives-based platform, there is not any actual exchange of BTC between sellers and buyers. Instead, the contracts are settled in the underlying asset and then listed in USD.
Like other exchanges Phemex provides three types of orders: Market as well as ‘Limit’ and ‘Conditional’. The trader has the feature of choosing one of these options to either trade or shut a trade. Traders also have the choice of choosing how much leverage they wish to utilize. In order to execute an order traders have the choice of choosing from three options FillOrKill, ImmediateOrCancel and GoodTillCancelled. Learn more about the different types of transactions here. If you are new at trading, you should go through our guide on the desirable ways to exchange Bitcoin.
Phemex Supports All Trading Styles
The Phemex platform is also able to support different types of trading styles such as high-volume trading, long-term trading and scalping, hedging and algorithms on its platform. This makes the platform highly flexible as well as stable and designed for various kinds of traders, including institutional traders.
Trading Gold/USD On Phemex
On March 30, 2020 Phemex came into the list of trading platforms for cryptocurrency which allowed users to diversify their portfolio of crypto trading into commodities trading.
The Gold/USD currency pair through the Phemex platform is able to trade with Bitcoin with a maximum leverage of approximately 100x.
The traders can utilize this pair to protect themselves from risk assets or as a safe place to go during times of extreme volatility as well as price fluctuations in the market for cryptocurrency.
Leverage Trading Phemex
As of the date when this review was written, Phemex Review, Phemex offers 7 different trading pairs through its platform. Phemex allows the use of up to 100x leverage in its futures trading. This means that a fluctuation of 10% may lead to a 1000% increase or depreciation of any capital.
Here is what they are:
BTC/USD, leveraged 1:100.
USD/ETH with a leverage of 1:20
The leverage is 1:20.
Link/USD leveraged at 1:20
The leverage is 1:20.
LTC/USD leveraged to 1:20
GOLD/USD leveraged at 1:100
This allows traders to increase the risk they take to price volatility. Currently, Phemex offers perpetual contracts. It is the same as Bybit and BitMEX. The contracts do not have a date for expiry, but they will automatically be settled.
What is the significance of 100x leverage trading for the trading platform?
Following the 2017 bust and boom cycle numerous investors and traders began to be drawn to the concept of together leverage or margin to trade cryptocurrency instruments. Since then, numerous exchanges have sprung up to address this growing demand in the market and Phemex is not an exception.
As we have mentioned the platform permits 100x leverage or margin on all trades. In simple terms, it means that the trader borrows funds from an exchange to purchase a financial product (Bitcoin). It is an exchange loan which is used to purchase greater Bitcoin contracts than a person would normally be able to.
Margin Requirement
Phemex provides the industry standard margin requirements for trading and keeping them open.
For GOLD/USD and BTC/USD For opening new trades in these pairs requires an opening margin of at least 1. To keep the position open, you require an ongoing margin of 0.5 percent or more.
For ETH/USD and XRP/USD, LTC/USD The trader must have a minimum margin of 5% or more for opening a trade. You also need the maintenance margin to maintain the trade open.
Risk Management and Negative Balance Protection
Phemex provides users with numerous tools to protect their trading accounts and reducing risk. This includes:
1. Sub-Account Isolation: This option lets you create a different margin requirement or leverage as well as an individual trading balance on your sub-accounts. The way it works is that trades on one account don’t impact any leverage level, balance, or the margin you have available for trading on the other.
2. Stop-loss and Take Profits This feature allows you to reduce your risk by establishing a predetermined time of departure for your trades regardless of whether they are either a profit or loss. This is a crucial feature for traders who don’t want to sit around and check their positions every day.
3. The Trailing Stops feature elevates the stop loss tool to a new level, giving you the ability to specify a certain number of pips that you would like the stop loss you are using to trail the open position by.
There are a myriad of other tools that are similar across the internet with the sole purpose of helping you to manage the risk of being in danger in all circumstances.
Phemex Negative Balance Protection
The protection against negative balances is an important feature of risk management that Phemex employs to safeguard its customers from accruing losses that are greater than the initial deposit.
This feature is automatically applied to your account whenever you have a high level of leverage, are with massive drawdowns, and you have no margin to keep your open positions.
This feature will ensure that Phemex will immediately begin closing and liquidating your open trades beginning with those with the largest drawdown to let you free up some margin for the rest of your open trades to continue running.
Understanding the concepts of overleveraging, margin requirement and protection against negative balances is essential for your trading experience since a misuse of any of these options could cause massive losses.
A Note for US Investors
However, US traders are barred from the platform. In accordance with their terms of service, users who are located in those states, including the United States of America or Quebec (Canada), Singapore, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Sudan (or other jurisdictions that are restricted) are not allowed to transactions on the platform. Review the list of cryptocurrency exchanges in the USA.
Phemex Trading Platforms
Phemex is a Phemex Trading platform developed with simplicity in mind. It is appropriate for new and experienced traders.
With the latest technologies for web-based development as well as security and security, the Phemex broker company was able focus on providing desirable trading platforms available in the cryptocurrency industry. This platform is safe as well as stable and reliable to use regardless of the level of volatility in the crypto market.
Since its inception, Phemex has yet to report any instances of the platform crashes or freezing, unlike the other big crypto brokers such as Bitmex.
Desktop Support
Phemex provides the desktop edition of their trading platform for traders to trade from any part of the world.
The platform has an extremely simple and easy-to-use interface that is ideal for both novice traders and experienced traders.
The Phemex platform is equipped with a variety of instruments for technical analysis and indicators that traders can use to effortlessly conduct their own technical analysis.
You can also create and import custom indicators into the platform.
Phemex makes it easy to manage and monitor all of your running and open positions using an easy-to access panel that is located at the lower right on your display.
The platform also offers prices alerts as well as conditional orders, and limit orders to aid in decisions in trading.
You can export your trading data to different programs for a more accurate understanding of your trading performance over an interval of time.
All of these features and other features allow you to trade on the cryptocurrency marketplace in the most efficient and efficient way that has ever been possible for traders who are retail.
Phemex Sub-Accounts
Phemex is also among the few platforms for trading in crypto that allow its users to manage and create several sub-accounts within their trading platform.
They come with crucial features that benefit traders handling their trade accounts. They can also try different strategies, separate their funds used for trading, and generally do better on the marketplace.
They also deliver traders with the option of altering the trading environment of their individual accounts. So, traders can modify the permissions, leverage balances, and margin levels of individual accounts to fit the trading strategy used to trade with them, without affecting other accounts.
How to Switch Between Your Phemex Sub-Accounts
Phemex offers users a simple method to manage and change between the lists of sub-accounts. Follow the steps below to open the account, change between and manage your sub-accounts with Phemex.
1. Visit Phemex.com/subaccounts.
2. From here, you are able to add, remove, alter, or switch between the settings of sub-accounts.
Another way to procure access to the subaccount page is to go to:
1. Log into your Phemex account.
2. Click on your profile’s name in the upper right-hand corner. click on Subaccounts.
It will take you to the sub-accounts page, where you can do what you like using your account list.
If you trade through the Phemex sub-account, it’s crucial to be aware that you are only able to trade using the funds that you have moved into the account. This means that, regardless of the circumstances, you can not lose more funds than you put into the account.
Mobile Support
Phemex also gives its users the option to create new trades, shut old ones, or monitor and adjust an open trade while in the field.
Their customized mobile trading application is among the top for security performance, speed, and stability. This app is available to both Android users as well as iOS phones at no cost on the Google Play Store and iPhone App Store.
Features of The Phemex Mobile Trading App
The app for mobile trading includes many inbuilt tools functions, features, and functionalities that allow with it for trading needs in the field very simple and effective. The features include:
Very clean and easy-to-use user interface for trading appropriate for novice and experienced traders.
A mobile version of chart charts of trading view to aid in price analysis and decision-making.
A variety of built-in tools, indicators, and drawers to aid your analysis of technical issues.
Accessibility of numerous timeframes which makes the application appropriate for scalpers as well as long-term traders.
It is possible to access advanced types of orders such as limit orders, and purchase stop orders.
With the application, traders are able to place fresh orders and close their running positions, check and modify their current trades, as well as make other types of transactions using the Phemex platform traveling.
Charts & TradingView
From a consumer’s viewpoint, Phemex has implemented a modular design. It allows traders to tailor the platform to suit their individual preferences. The vanilla version comes with orders, a tradingview-powered chart of live positions and the order menu. It also displays information about contracts, and recent trades as well as an order depth chart for the book as and the display of your trading account that shows the crypto and USD balance information.
The chart for trading view features various time-frames. The trader can evaluate the market, for example, the 1 minute five minutes, fifteen minute, 30 minute 1 hour, 4 hours daily, weekly monthly, 3 months and annual chart. While this is a great beginning, traders are not able to use custom time frames with Phemex. Tools for trading views are also accessible via the website. The traders can select from any of the indicators available in the system. There are no limitations to the amount of indicators that can be used on a chart.
One cool feature low-time-frame-traders would surely appreciate is the ping displayed at the top right corner of the screen, which indicates the lag time between a user and Phemex servers. Apart from that the experience of trading is like other high-end derivatives exchanges.
Is Phemex Secure?
When conducting this review, it was a joy to discover that the founders and CEO don’t hide their identities in contrast to other exchanges. Actually, they are available on the main website or on LinkedIn with the information of employees readily available. The fact that they are public on the profiles of these individuals is naturally an excellent indication.
Are Phemex an encrypting trading platform?
From a security perspective security, Phemex boasts a hierarchical Deterministic Cold Wallet System that provides distinct cold wallet account addresses to each customer. The deposits are regularly collected to the company’s multi-signature cold wallet using offline signature. The platform processes withdrawal requests 3 times each day, which may cause lengthy wait time.
The platform utilizes Amazon Web Service (AWS) Cloud to protect its servers. It is a top industry standard that increases security and safety standards. In addition, Phemex also deploys firewalls to create separate trading areas within their network.
From a technical perspective, The trading platform is composed of two major elements: the CrossEngine and TradingEngine in which it matches orders from clients in accordance with price and priority.
Phemex has also stated that users should anticipate to have virtually no downtime. Actually, Phemex claims that users do not experience any sudden maintenance times for their systems. This is because of its recovery system which provides users with 99.99 high availability. If this is able to stand over time, it will surely be considered essential for exchanges that operate 24 hours a day. But, given that Phemex can be described as a new derivatives platform that will only be tested by time what it can do to handle the threat of malicious attacks if they do occur.
Competitors – Bybit & BitMEX
Bybit is one of the most popular cryptocurrency exchanges. It is a reliable exchange with high liquidity and exceptional customer service. Bybit has been in operation since its inception in 2018 and has never been hacked, and has never experienced a system overloaded. Be sure to read our complete Bybit review as well as our comprehensive Bybit tutorial.
BitMEX is the Bitcoin trading exchange that has the highest liquidity. BitMEX has been in existence since 2014 and has never been attacked. Yet, many traders are now leaving BitMEX due to some recent issues. In particular, during extremely turbulent times, BitMEX’s order engine becomes overwhelmed. It means the traders are unable to make their orders. This is the primary reason traders are switching to Phemex & Bybit.
What Kind of Customer Service Can Phemex Offer Additional?
Similar to most exchanges Phemex offers an immediate line for customer service and an FAQ that is bundled in its benefit center. Phemex also has a phone number open for users to directly contact the CEO through telegram. This is a nice addition.
However the company is a good one, it doesn’t offer direct phone support. The company handles its technical issues with its e-mail service. If you are looking for an exchange that has perfect customer service, you should try Bybit. Bybit is present across a wide range of popular social networks. This comprises Twitter, Reddit, Facebook as well as Telegram but email is the most popular ticketing method.
As previously mentioned, as Phemex is a new trader, they have almost no reviews at the moment. Based on my previous interactions with the exchange, I am able to affirm that the support staff is fast efficient, helpful, and knowledgeable. It is yet to be determined how this will improve as the business grows, however, I am sure it will.
Phemex Affiliate Program
In contrast to the majority of other cryptocurrency companies The Phemex Affiliate program is free and available to all Phemex customers.
This program provides users with the possibility of earning around 50% commission on the total amount of fees earned and paid to their referrers. Additionally, you can earn 10% commission increases for referrals from sub-affiliates.
The unique structure of payment used by Phemex’s Phemex affiliate program results in the perfect and most lucrative commission rate ever offered by a crypto firm in the market.
Phemex Review Conclusion
We wrote in our Pheme analysis, we found that it has enough benefits and opportunities for traders in crypto with a few disadvantages. It is extremely simple to navigate as well as appropriate for both novice as well as experienced investors.
The main strengths of Phemex are one is the fact that you can create sub-accounts from your existing accounts, as well as their user-centric strategy – although it’s not for sure in the near future, as Phemex grows. These capabilities could benefit the company to receive an edge over other exchanges like Bitmex & Bybit in the future.
With a bit of work, Phemex has the potential of increasing the market for derivatives into the upper echelon. But, with the growing competition in the field of derivatives trading it could be a tough battle against the company. Phemex is a formidable rival to Bybit However, Bybit is still the accurate customer support in cryptocurrency.
It’s also crucial to keep in mind this: the Phemex Exchange platform very new and has it is yet to experience any significant hacks or large-scale security breaches. We don’t know what the company’s response to such a situation if it was to occur.
It is important to note that I would advise you to conduct your own research before you make a purchase However, at first it seems to be an attractive option that ticks the majority of trader’s boxes.
You may also want to go through my entire list of the top Bitcoin trading Platforms.
FAQs about Phemex Review
How do Trade Bitcoin without paying a Phemex fee?
You are able to trade BTC without paying any Phemex fees. It is possible to open an account with the exchange and select free cryptocurrency trading. Then, go to the product section and select “Spot Trading (zero cost) to select the digital asset you wish to trade.
Is Phemex Legit?
Phemex is a reputable exchange with its headquarters in Singapore. The company was established by eight previous Morgan Stanley Executives who have more than 40 years of experience in the field of high-frequency technology.
Is Phemex Exchange Regulated?
Phemex is a very popular exchange, however, it has not been yet regulated. Phemex is in search of regulatory oversight via SEBA along with SEBA and the Monetary Authority of Singapore (MAS).
What is Phemex?
Phemex is a cryptocurrency exchange platform founded in 2019. It offers spot trading, futures trading, and other crypto-related services.
Is Phemex safe to use?
Phemex employs several security measures to protect user funds and data. These include cold storage for the majority of funds, two-factor authentication (2FA), and encryption protocols.
What cryptocurrencies can I trade on Phemex?
Phemex supports a wide range of cryptocurrencies for trading, including popular ones like Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), and many others.
Does Phemex offer leverage trading?
Yes, Phemex offers leverage trading up to 100x on its futures trading platform. This allows traders to amplify their potential profits but also increases the risk of losses.
What are the fees on Phemex?
Phemex has competitive fee structures, with trading fees starting at 0.1% for spot trading and 0.02% for futures trading. There are also withdrawal fees, which vary depending on the cryptocurrency.
How is Phemex’s customer support?
Phemex provides customer support via email and live chat. Responses are generally prompt, and the support team is knowledgeable and helpful.
