Phemex is the newly launched crypto derivatives trading platform and has generated a lot of interest around it. In less than six months of existence, the exchange is posting an average daily trading volume of above $350 million, which is a significant feat in itself.
According to its founding members, Phemex differs a lot from its peers and aims to bring professionalism, trust, and efficiency in the trading process, which this marketplace lacks currently. It lists itself as a direct competitor to some of the established crypto derivatives platforms like BitMEX and Bitfinex.
Now, given all these factors and successes in a short time, is Phemex worth trading on, and is it a legit exchange? Let’s check it out in this review guide.
What is Phemex?
Phemex was established on 25th Nov 2019 by eight former Morgan Stanley executives and is registered in Singapore. It aims to become the world’s most trustworthy cryptocurrency derivatives exchange platform with a customer-first approach.
The name Phemex is derived from a Greek word Pheme (Fama) which means the public’s voice and MEX stand for mercantile exchange.
It currently offers to trade in perpetual swaps of major coins and has plans to list traditional financial products including S&P 500 stocks, indices, forex, commodities, energy, and many more.
Phemex is conceptualized and developed keeping in mind the evolving needs of the crypto margin trading market and ensuring a high availability rate. Further, it claims to be the fastest crypto derivatives trading platform in the market. Its trade engine can handle up to 300,000 transactions per second and has a latency rate of less than 1 millisecond, which means instant trade order execution.
It not only focuses on retail users but also facilitates smooth onboarding for traditional institution players by providing state-of-the-art FIX API and sub-account functions.
Leverage Offerings, Supported Coins, & Contracts
Phemex offers trading in six different crypto pairs including BTC/USD, ETH/USD, XRP/USD, LINK/USD, XTZ/USD, and LTC/USD, all quoted in BTC and settled in USD.
Separately, it also offers to trade in the GOLD/USD futures contract.
On BTC/USD and GOLD/USD futures contracts, it offers up to 100X leverage. And, up to 20X leverage on the rest of the crypto pairs.
- Order Types
Phemex offers three types of orders including a market order, limit order, conditional order, stop-loss order, and take-profit order.
Advanced order function includes post only order and close on trigger order.
- Platform Trading Fees
Phemex follows a maker fee-taker fee rate structure. It charges a taker fee of 0.075% and offers a rebate on maker fee of 0.025%.
Now, speaking of funding options, it only accepts bitcoin to keep things less complicated. And, regarding deposit limits, Phemex wallet and trading account have a minimum deposit limit of 0.00000001 BTC.
The minimum withdrawal limit is 0.002BTC and charges a withdrawal fee of 0.005BTC.
Phemex has a simple and intuitive trading platform and offers both web-based and mobile trading platforms. The trading interface includes an order book, chart window, order form, contact details, recent trades, depth chart, trade account. The trading interface is fully customizable and can be arranged through drag and drop at your preferred place to get the best view.
The platform boasts a minimalistic design interface which makes it suitable for use for every class of trader. You can easily select the trading pair from the drop-down options menu present on the top left corner beside the Phemex logo. Once you select the pair, your trading screen gets updated with the relevant data and chart. Let’s look at the other features of the platform:
- TA tools and chart
Phemex’s charting feature is powered by Tradingview, one of the most used charting solutions by beginners and professional investment traders. It gives you access to all advanced technical indicators and tools which help you in doing advanced technical analysis.
You can place multiple indicators and tools on the chart at once, to have a better understanding of the price levels. Also, it features a professional chart, where you can select bar, candles, and lines chart type in multiple time frames ranging from 1 min to 12 months.
- Order book
Phemex features a vertically arranged order book, which is quite easy to read and understand. You can easily analyze the trading activity and using the depth chart, you can easily determine the market sentiments.
In the contract details window, you get the latest price of the contract, 24-hour turnover, volume. open interest, funding rate, and predicted rate.
How To Start Trading On Phemex
Phemex does not require KYC documents of its users and has a pretty straightforward registration process.
For creating an account, click on the “Register” button present on the top right corner of the website. Now, fill-up the form providing your valid email id, password, and then click on “continue”. Fill the six-digit verification code sent to your email account to successfully set up your trading account.
Now click on “go-to assets” to continue and fund your either BTC or USD trading account, as per your requirement. Your wallet balance will be updated after the successful transfer of funds to your Phemex bitcoin wallet.
Next, click on the “Trade” option to start your trading journey.
Customer Support & Assets Security
Phemex focuses on a user-oriented development approach for customer support. It offers a 24/7 multilingual online customer support desk though email, live chat, and different social media channels. You can even reach the Phemex CEO directly on Telegram and Twitter.
Apart from this, it offers a knowledge base that helps you to understand the platform in a better way.
Asset security: It uses a hierarchical deterministic cold wallet system which helps to assign a separate cold wallet address to every user. And, every transaction passes through 2-levels of human scrutiny to prevent any system manipulation.
Withdrawal requests are processed three times a day and are manually scrutinized by both founders and employees to prevent any lapses.
System security: It deploys and secures its machines on Amazon Web Services (AWS) Cloud and uses several firewalls to separate different zones and machines for meeting different trading purposes.
Trading engine security: The Phemex trading platform consists of two core components, CrossEngine and the TradingEngine. Both are written on C++, which speed and provide stability to the platform in this high-frequency trading environment.
User account security: Phemex uses two-factor authentication and bank-level double-entry bookkeeping to ensure account security. The double-entry bookkeeping prevents tampering of data and also helps to detect data manipulation much faster.
Conclusion: Is Phemex Safe & Legit?
Phemex turns out to be a very different exchange compared to any other crypto margin platform in the market. And, every aspect of the exchange is designed, keeping users in mind. The founders are more accessible and involved in the daily crucial functions of the platform like supervising withdrawal requests, reaching out to customers, etc.
For new users, as well as professional traders, it gives a certain degree of comfort when they know the founder’s profile, their accessibility, and involvement. Now, let’s check out some of the pros and cons of Phemex.
Pros Of Phemex Exchange:
- Very transparent and reliable exchange
- Highly scalable and fat trading platform
- Experienced founders
- High leverage
- Deep liquidity levels
- Competitive trading fees
- No KYC verification needed
- Low deposit limit
- Strong security infrastructure
- Suitable for all types of traders
- Good customer support
In my view, Phemex is worth considering for the crypto margin trading. It provides a seamless trading experience and gives the ability to trade in a multi-asset environment. With the integration of L3 market data soon, the Phemex will be way ahead compared to any other margin trading platform in the market.