OVEX is a cryptocurrency exchange from South Africa that has been up and running since February 2019.
OVEX offers trading in 26 different cryptocurrencies and one fiat currency (the South African Rands - ZAR). Exchanges with a smaller number of supported cryptos generally only support the bigger crypto projects, which have all been subject to numerous due diligence processes and that are – in most cases – properly vetted. We feel that so is the case with OVEX's supported cryptos as well. Accordingly, we deem the risk for any crypto supported by OVEX to be a scam as quite low. But, remember, it is never zero.
On the date of first writing this review (4 September 2020), the platform's 24 hour trading volume according to Coinmarketcap was USD 411,089. This trading volume is unfortunately very low. We would ideally want to see the trading volume go up at least 100 times before recommending any prospective trader to open up an account here.
Let’s say that you hold a very large amount of a certain cryptocurrency. You want to sell that amount. Should you do that on a regular trading platform like everyone else? Maybe not. One of many reasons for executing large trades outside of the normal market place is that large trades may affect the market price of the relevant crypto. Another reason, which is connected to the foregoing, is that the order book might be too thin to execute the relevant trade. A solution to these problems is what we call OTC-trading (Over The Counter).
OVEX offers OTC-trading, which might be helpful to all the “whales” out there (and maybe also to all the “dolphins”). OVEX also highlights a number of advantages of their OTC-trading service: deep liquidity, 24/7 support, low fees, several supported assets, possibility to leverage trade and more.
OVEX Trading View
Every trading platform has a trading view. The trading view is the part of the exchange’s website where you can see the price chart of a certain cryptocurrency and what its current price is. There are normally also buy and sell boxes, where you can place orders concerning the relevant crypto, and, at most platforms, you will also be able to see the order history (i.e., previous transactions involving the relevant crypto). Everything in the same view on your desktop. There are of course also variations to what we have now described. This is the trading view at OVEX:
It is up to you – and only you – to decide if the above trading view is suitable for you. Finally, there are usually many different ways in which you can change the settings to tailor the trading view after your very own preferences.
OVEX Trading fees
Every time you place an order, the exchange charges you a trading fee. The trading fee is normally a percentage of the value of the trade order. Many exchanges divide between takers and makers. Takers are the one who “take” an existing order from the order book.
OVEX charges what we call flat fees, meaning that both the takers and the makers pay the same fee. In this case, that fee is 0.50%. These flat fees are substantially above the global industry averages for centralized exchanges. Sure, industry averages have historically been around 0.20-0.25% but we now see new industry averages emerging around 0.10%-0.15%. Regardless of whether you compare with the historic or new industry averages, OVEX's trading fees are way above though.
OVEX Withdrawal fees
OVEX charges a withdrawal fee of 0.0004 BTC per BTC-withdrawal. This fee is below the global industry average, seeing as the current global industry average is around 0.0006 BTC per BTC-withdrawal.
Deposit Methods and US-investors
In addition to depositing cryptocurrency to the platform, OVEX also lets you deposit fiat currency. However, only through wire transfer (not credit or debit card). If you need an exchange also offer credit or debit card payments, please refer to our Exchange List and use our Exchange Filters to filter out suitable exchanges for you.
Seeing as fiat currency deposits are possible at this trading platform, OVEX qualifies as an “entry-level exchange”, making it an exchange where new crypto investors can start their journey into the exciting crypto world.
Why do so many exchanges not allow US citizens to open accounts with them? The answer has only three letters. S, E and C (the Securities Exchange Commission). The reason the SEC is so scary is because the US does not allow foreign companies to solicit US investors, unless those foreign companies are also registered in the US (with the SEC). If foreign companies solicit US investors anyway, the SEC can sue them. There are many examples of when the SEC has sued crypto exchanges, one of which being when they sued EtherDelta for operating an unregistered exchange. Another example was when they sued Bitfinex and claimed that the stablecoin Tether (USDT) was misleading investors. It is very likely that more cases will follow.
It is unclear whether OVEX permits US investors or not. We have not been able to understand their Terms and Conditions. We urge any US investors to form their own opinion on the permissibility of their trading at OVEX though.