A crypto guide must provide reviews of all of the exchanges out there, so that you can find the right one for you. This review of Phemex consists of four parts: general info, fees, deposit methods and security.
Phemex is an exchange from Singapore that launched on 25 November 2019. It focuses on crypto derivatives and supports five different languages: English, Russian, Spanish, Japanese and Korean.
An exchange's trading volume is very important for any user of such exchange. A large trading volume often (but not always) correlate with deep liquidity. When the liquidity at a platform is deep, it means that it will be less difficult for you to find a buyer to your sell order, or a sller to your purchase order. On the date of first writing this review (21 April 2020, right in the middle of the finanial crisis caused by COVID-19), Phemex had a 24 hour trading volume of USD 405.6 million according to Coinmarketcap. This gave it place no. 50 on Coinmarketcap's list of exchanges in the world based on reported 24 hour trading volume. This trading volume is very impressive, in particular considering that the exchange has only been around for 5 months!
How come Phemex has become so popular then? Well, we guess you'll have to see for yourself. There could be numerous different reasons. On its own website however, Phemex presents a quite nice overview over its own platform and the platforms of two of its main competitors: BitMEX and Bitfinex. This is the overview:
We'll let you draw your own conclusions based on the above.
Gold/USD Trading Pair
As of 30 March 2020, you can trade the trading pair Gold/USD at Phemex. This could be a helpful trading pair to have access to, especially in particularly volatile times. You can trade Gold/USD with up to 100x leverage.
As is customary for newer exchanges, Phemex also offers a few bonus offers in order to attract customers. We are not sure for how long these bonus offers will continue to be valid. In any event, the bonuses available are USD 2 (just for registering an account at the platform), USD 10 for doing a social media shout-out, and USD 60 if you register and deposit 0.2 BTC to the exchange. A nice set of offers in our opinion:
Phemex also offers leveraged trading on its platform. This means that you can receive a higher exposure towards a certain crypto’s price increase or decrease, without having the assets necessary. You do this by “leveraging” your trade, which in simple terms means that you borrow from the exchange to bet more. You can get as much as 100x leverage on this platform.
For instance, let’s say that you have 10,000 USD on your trading account and bet 100 USD on BTC going long (i.e., going up in value). You do so with 100x leverage. If BTC then increases in value with 10%, if you had only bet 100 USD, you would have earned 10 USD. As you bet 100 USD with 100x leverage, you have instead earned an extra 1,000 USD (990 USD more than if you had not leveraged your deal). On the other hand, if BTC goes down in value with 10%, you have lost 1,000 USD (990 USD more than if you had not leveraged your deal). So, as you might imagine, the balance between risk and reward in leveraged deals is quite fine-tuned (there are no risk free profits).
This platform is not only available from your desktop, you can now also access it via your mobile. Most traders in the crypto world today carry out their trades via desktop (around 70% or so). However, there are naturally people out there that want to do it from their smart phone as well. If you’re one of those people, then this platform can still be for you, seeing as it has a native mobile application (unlike e.g. BitMEX).
Phemex Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen crypto and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can see that it feels right to you. This is the trading view at Phemex:
Phemex Trading fees
Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. We call makers for “makers” as their orders make the liquidity in a market. Takers are the ones who “take” this liquidity by matching makers’ orders with their own.
At Phemex, takers are charged 0.075% per order. This is difficult to compare to the global industry average taker fees for regular centralized exchanges, as the instruments traded at the different exchanges are also different from each other. In any event, 0.075% is a fair fee.
When it comes to the makers, their fee is -0.025%. This essentially means that each maker get paid to trade. To clarify, let’s say that you are the maker in an order where you purchase a derivatives instrument for USD 1,000. This means that instead of paying USD 1,000, you will only have to pay USD 997.50. This is a very competitive trait indeed.
There is a final thing worth mentioning here, and it's Phemex's Premium Membership. If you purchase their Premium Membership (prices are USDT 9.99 USDT for 30 Days, USDT 19.99 for 90 Days and USD 69.99 USDT for 365 Days), you don't have to pay any trading fees at all for their spot trading service (margin trading still involves fees though). Premium Membership also entails a few other benefits.
Phemex Withdrawal fees
When withdrawing BTC from the Phemex trading platform, you will have to pay 0.0005 BTC. To our knowledge, the only empirical withdrawal fee study that has been made was the one we at Cryptowisser.com made some time back. That study showed that the industry average BTC-withdrawal fee was 0.000812 BTC per BTC-withdrawal. Phemex's withdrawal fees are 40% lower than that global industry average BTC.
To summarize, both the trading fees and withdrawal fees charged by this platform are very competitive.
Deposit Methods and US-investors
Phemex does not accept any other deposit method than cryptos, so new investors are restricted from trading here. If you are a new crypto investor and you wish to start trading here, you will have to purchase cryptos from another exchange first and then deposit them at this exchange.
To find an exchange where you can deposit fiat currency, just use our Exchange Filters and we’ll help you through it.
According to information from the exchange, US-investors are not permitted to trade here. The exchange ensures that no US-investors are on-boarded by screening for US IP-addresses. If you're from the US and want to find an exchange where you can trade, just use our Exchange Filters and we'll help you.
We run all exchange-websites in Mozilla’s Observatory-test (https://observatory.mozilla.org/). The score in such test is one of many indicators of the exchange’s security. Phemex received a B-score in this test. B is very impressive, particularly in light of most exchanges in our Exchange List only receiving F-scores. Good work, Phemex!
Finally, we hope you have enjoyed reading the above review. We also recommend checking out the following exchanges. They are well established in the industry and have also received excellent ratings from the visitors on our site: