Phemex vs FTX: Comparison Of Differences & Similarities

Are you looking for a trustworthy cryptocurrency exchange that allows you to trade cryptos and futures? Today, we’re comparing Phemex and FTX. b

Phemex and FTX are two of the most popular cryptocurrency exchanges that support both sport and derivatives trading. They offer exciting features, like generous leverage, various trading pairs, and top-notch security. 

So, which exchange is better and why? Let’s find out. 

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  • Upto 20x Leverage 

  • Highest Volume of tokens

  • Leveraged tokens, Futures, Options too

  • 5% Off on Trading Fee !!

Phemex vs. FTX Crypto Derivatives Product Offerings & Leverage

Phemex and FTX both offer a wide range of trading products to choose from. Let’s compare the products and features offered by the two exchanges.  

FTX

ftx

FTX is one of the most comprehensive cryptocurrency exchanges out there. You can buy crypto directly using several fiat currencies, like USD, GBP, EUR, AUD, HKD, and more. The exchange has over 200 cryptocurrencies. 

FTX supports a wide range of crypto trading. For starters, there’s spot trading for hundreds of trading pairs. Coming to derivatives, FTX supports futures, options, and leveraged tokens. 

Other features and offerings of FTX are NFTs, staking, and borrowing/lending. In all, FTX is a complete crypto platform that enables you to do a lot of things with your crypto assets. 

 

Phemex

phemex

Phemex offers a wide range of features and services to choose from. For starters, it allows you to buy crypto directly from fiat money. You can buy three cryptocurrencies: Bitcoin, Ethereum, XRP, USDT, ADA, DOGE, Chainlink, and other cryptocurrencies using a credit card or bank transfer. 

Phemex supports fiat trading for 53 trading pairs, ranging from BTC to ETH to SOL. The exchange also has perpetual futures trading for 39 cryptocurrencies. Phemex supports two types of futures trading: USD-M and COIN-M futures. 

Apart from crypto investing and trading, Phemex also allows you to stake your crypto assets and earn interest on them

Verdict: FTX is the winner, as it offers more products and features than Phemex. 

Phemex vs. FTX Trading Fees

The trading fee is an important factor to consider when choosing a cryptocurrency exchange. The exchange you choose should not only charge a lower fee but should also have a simple and straightforward fee structure. Let’s compare the fee structures of Phemex and FTX. 

Phemex

phemex trading fees

Phemex has a unique trading fee structure. Let’s talk about all the fees charged by Phemex.

First, Phemex charges a nominal withdrawal fee on almost all cryptocurrencies, and the withdrawal fee depends on the crypto you withdraw. For instance, the withdrawal fee for withdrawing BTC is 0.0005 BTC. 

For spot trading, Phemex charges a flat 0.1% fee for Standard users and API traders. If you are a Premium or Premium trial user, you can engage in spot trading for zero fees. 

For futures trading, there is a flat market maker/taker fee of –0.025%/0.075% on all contracts. Phemex doesn’t have a tiered fee structure like most exchanges have.

FTX

ftx trading fees

FTX, on the other hand, has a tiered fee structure for both spot and futures trading. There are six tiers (Tier 1 to Tier 6). Users with a 30d volume of under $2 million are in the first tier. For them, the market maker/taker fee is 0.02%/0.07%. Similarly, users with a 30d trading volume of over $50 million are in the sixth tier. For them, the market maker/taker fee is 0.0%/0.04%. 

If you hold FTT tokens, you can claim a 3-60% discount on your trading fee. Also, FTT staking users get a market maker rebate of up to 0.003%. 

Verdict: Phemex is the winner, as it has a simpler fee structure and charges a lower fee. 

Phemex vs. FTX Funding Fees

The funding rate is a concept applicable to perpetual futures contracts only. Since perpetual contracts don’t have an expiry, their prices can vary significantly from the spot price. 

Crypto exchanges implement a funding rate to ensure the difference between the price of the perpetual contract and the spot trading pair isn’t substantial. So, when the contract price goes above the spot price, buyers pay a funding fee to sellers. When the price goes below the spot price, sellers pay a funding fee to buyers. 

  • Phemex

Phemex uses the concept of Mark Price. The Last Traded Price of a futures contract should be close to the Mark Price. When the Last Traded Price goes above the Mark Price, buyers pay a funding fee to sellers. 

Phemex calculates funding rate using the following formula:

Funding Rate (F) = Premium Index (P) + clamp (Interest Rate (I) – Premium Index (P), 0.05%, -0.05%)

  • FTX

FTX uses the concept of Time-Weighted Average Price (TWAP), which refers to the average price of an asset over a time period. The exchange calculates the funding fee using the following formula:

Funding Fee = Position Size x {(Futures Mark Price – Index) / Index} / 24

Verdict: It’s a tie. 

Can’t decide between Phemex and Bybit exchange? Here’s our detailed comparison to help you

Phemex vs. FTX Liquidation Mechanism

Liquidation refers to the automatic closing of an open position when a user fails to meet the threshold maintenance margin requirements. Both Phemex and FTX have a liquidation mechanism, though they’re different from each other. 

Let’s look at the liquidation mechanisms of Phemex and FTX.

  • Phemex

Phemex uses a Fair Price Marking mechanism to manage liquidations. The triggering of a liquidation depends on position sizes and margin levels. When liquidation is triggered in Phemex, the exchange closes all the open orders for the current contract to free up funds. If the funds are not sufficient to maintain an open position, the position will be closed automatically. 

The liquidation price in Phemex depends on the total margin and leverage used. Additionally, the price also depends on the type of order — inverse contract long, inverse contract short, linear contract long, or linear contract short. 

  • FTX

FTX states that it aims to reduce automatic liquidations, but they are possible. The exchange uses a three-step liquidation mechanism:

  1. Positions are closed with rate-limited liquidation orders.
  2. The backstop liquidity provider program helps reduce the risk of bankruptcy. 
  3. The insurance fund helps prevent user losses.

Verdict: FTX is the winner, as it has a more comprehensive liquidation method.

Phemex vs. FTX Deposit & Withdrawal Fees

The deposit and withdrawal fee is another important factor to consider before choosing a cryptocurrency exchange. Let’s compare the deposit and withdrawal fees charged by the two exchanges.

  • Phemex

Phemex doesn’t charge any deposit fee. However, you need to pay a small withdrawal fee when withdrawing crypto assets. The withdrawal fee depends on the underlying crypto asset. For example, the withdrawal fee for Bitcoin is 0.0005 BTC.

  • FTX

Like Phemex, FTX also doesn’t charge a deposit fee, and you can deposit crypto assets for free. When it comes to the withdrawal fee, FTX charges a withdrawal fee only on ETH and ERC20 tokens and small BTC withdrawals. 

Verdict: It’s a tie. 

Phemex vs. FTX Trading Platform Comparison

The trading platform is one of the most crucial aspects to consider before choosing a cryptocurrency exchange. Both Phemex and FTX have best-in-class trading platforms, but which one is better? Here’s a quick comparison between the two. 

  • Phemex

Phemex has a leading-edge trading platform. For starters, it has a charting system powered by TradingView. You get access to all TradingView features, like multiple time frames, various chart types, hundreds of indicators, and drawing tools. 

On the right side of the charting terminal is a section where you can see the recent trades. On the left side of the terminal, you have the Order book and live trades. These three sections, when combined, can help you determine the market sentiment. 

At the left end of the trading terminal, you have the Order Form, where you can place Buy and Sell orders in one click. Phemex allows you to place three types of orders: Limit, Market, and Conditional. 

The bottom section of the trading terminal comprises the following sections: Active Orders, Conditional Orders, Fills, Order History, and Balance.  

On the top of the terminal, there is a Select Market drop-down menu that lets you select a trading pair in one click. 

  • FTX

The trading platform offered by FTX is quite similar to Phemex. It has a charting system powered by TradingView. It has the exact same features available in FTX, including multiple time frames, 100+ indicators, drawing tools, chart types, and more. 

On the right end of the terminal, you have information regarding the underlying currency. For example, if you select BTC/USDT, you’ll get fundamental information regarding BTC, such as 24h volume, minimum order size, minimum price increment, etc.

The lower area of the trading terminal has two sections. One is the order book that shows live, real-time traders. The other is the order form that lets you place Buy and Sell orders. FTX supports a wide range of order types, including Market, Limit, Stop Market, Stop Limit, Trailing Stop, POST, and IOC orders.

Both Phemex and FTX have a mobile app, allowing you to trade cryptos from your mobile phone. 

Verdict: It’s a tie, as both Phemex and FTX have similar trading platforms. 

Phemex vs. FTX Account Opening Process

Both Phemex and FTX offer a seamless account opening process. Let’s look at the account opening processes of Phemex and FTX, along with their KYC requirements. 

Phemex

To open an account on Phemex, you need to visit the Phemex website and click on Register Now on the top right corner of the homepage. Enter your email and password to create an account. 

Phemex doesn’t have mandatory KYC requirements, though non-verified users face several restrictions. For instance, non-verified users cannot transfer or withdraw more than $10,000 in a day. There are also restrictions on payment methods and crypto products.

FTX

FTX also provides a seamless account opening process. Visit the FTX website and click on Register in the top right corner of the homepage. Create an account using your email ID and password. You can also sign up directly with Google. 

FTX requires all its users to complete KYC in order to trade crypto. Non-verified users can use FTX but can’t trade. There are two levels of KYC in FTX. Tier 1 traders can transfer up to $2,000 daily, whereas there are no limits for Tier 2 users. 

Verdict: Phemex is the winner, as it allows you to trade cryptos without KYC.

Phemex vs. FTX Customer Support

Both Phemex and FTX offer good quality customer support. Let’s compare the customer support provided by the two exchanges.

Phemex

Phemex provides customer support via email and live chat. You can access the chatbox from the website. The support team may take a few hours to reply. Phemex also has a vast knowledge base that offers helpful insights into various topics. 

FTX

FTX provides customer support by email only. You can raise a support ticket in case of any queries. FTX has a comprehensive knowledge base that has FAQs and articles regarding all the common queries. 

Verdict: Phemex is the winner, as it provides live chat support. 

Phemex vs. FTX Security Features

Security is one of the most prominent factors to consider before choosing a cryptocurrency exchange. Here’s a head-to-head comparison of the security features implemented by the two cryptocurrency exchanges. 

Phemex

Phemex is one of the most secure cryptocurrency exchanges out there. It implements the following security practices:

  • Hierarchical Deterministic Cold Wallet System
  • System security backed by AWS
  • User account security with two-factor authentication
  • Trading engine safety

Additionally, FTX implements all the industry-standard security best practices, like IP allowlisting and SSL encryption. 

FTX

FTX also implements all the industry-leading security features, including:

  • Password strength and 2FA authentication
  • Real-time alerts for suspicious activities
  • Subaccount functions
  • Whitelisting IPs and wallet addresses
  • Manual review and chain analysis
  • Multi-signature cold storage wallets
  • Backstop liquidity fund

Verdict: It’s a tie, as both the exchanges implement robust security features. 

Conclusion

Phemex and FTX are both fantastic cryptocurrency exchanges, and there is no clear winner between the two. 

FTX has a slight edge in terms of the supported cryptocurrencies and crypto products. You can do a lot more with your crypto assets on FTX than on Phemex. If you want a lower trading fee, Phemex is a better option. Phemex also allows you to trade cryptos without KYC.

In all, both exchanges are great, and you can choose anyone as per your preferences. 

Our #1 Recommendation

  • Upto 20x Leverage 

  • Highest Volume of tokens

  • Leveraged tokens, Futures, Options too

  • 5% Off on Trading Fee !!

nv-author-image

Jack Bailey

I am John, a veteran trader turned into a trading coach. Especially in the realm of cryptocurrency derivatives which is now booming and expected to grow big.