Phemex Exchange Review

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Phemex is a professional-grade Cryptocurrency exchange offering both Bitcoin spot and options trading. The exchange offers an innovative zero-fee trading model where fees are not charged per transaction. Phemex also offers Bitcoin, Ethereum, and Chainlink Perpetual futures. The exchange is built by ex-Morgan Stanley executives, aiming at providing institutional-grade trading tools and security. Derivatives trading allows traders to increase their exposure to certain assets and the ability to “short”.

Key Features of Phemex

  • Free trades on Spot Exchange (Premium account)
  • Institutional grade trading and security
  • Robust trading insurance
  • Free deposit fees
  • Ability to Leverage up to 100X margin
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Phemex Spot Exchange & Free trades

Phemex Zero Fee trading

One of the key advantages of Phemex exchange is the ability to have free zero fee trades. This concept groundbreaking for the cryptocurrency exchange industry because the previous model charged trading fees for both buy and selling crypto. This feel would add up over time, with many traders paying thousands of dollars to cryptocurrency exchanges. With Phemex, these traders can take advantage of the zero fee trading model and only pay a monthly premium of $9.99 USD per month. This is a huge game changer for cryptocurrency daytraders and technical analysts.

Phemex is also offering a 30 day free trial for the Premium account. To take advantage of this, users need to make a deposit over 0.02 BT and complete a transaction over 1000 USD. Check out the free 30-day Premium Membership here.

I think that this is a trend and responsibility of exchange is to reduce fees for small capital users And, for the institutional clients, they willing to pay more fees, but to have a better service, like data-wise, analysis wise, right? So that’s two different groups. So we, and we announced our zero fee permission, they just to benefit our retail customers.

Jack Tao, CEO of Phemex

Bitcoin Perpetual Futures

The core trading product offered by Phemex is cryptocurrency derivatives trading such as Bitcoin Perpetual Futures. Derivatives are financial tools that derive value from the underlying product – in this case cryptocurrencies such as Bitcoin. Phemexexchange trades contracts based on the underlying asset instead of the asset themselves – this allows higher leverage and more types of products. Phemexallows up to a 101X max leverage on derivative products. This means a 1% change in the price of Bitcoin could result in 100% change in the funding amount – potentially allowing traders to double or nothing on the exchange. This type of leverage is popularized by the BitMEX exchange which also allows 100X leverage.

Phemex Trading take profit orders and stop-losses

Take Profit and Stop loss triggers on Phemex

One of the key advantages of Phemex is use of stop-loss and take profit orders. These orders allow professional traders to fine-tune their trading strategies and set up opportunities to take profit or stop-loss. By default, Phemex has quick options to take profit at 25%, 50%, 75% and 100% profit. These can be set when the initial position is established with a clear indication the mark price and estimated profit or loss. It’s important to remember that when take profit or stop losses are triggered, the position will be sold as a market order – meaning that the algorithm will automatically match a trade even if it’s not at the same price.

Phemex Trading Fees

The trading fees on Phemex is set at 0.025% for makers and 0.075% for takers. There is no addition transaction fee for the exchange, so users can trade even small quantities without fear of having overwhelming fees. Taker fees are higher as the exchange promotes users to fill the order books and establish higher liquidity for the exchange.

Funding rate shown on Phemex

Funding fee is feature that is extremely important to take into consideration on Phemex. Funding rate is paid directly to holders of either long or short positions depending if its “negative funding” or “positive funding” rate. On Phemex, the fee is charged every 8 hours and can be negative or positive – meaning it’s possible to gain or lose money every 8 hours. If funding rate is negative, shorts holders will pay longs a percentage of their position. In the example above, the funding rate is -0.0094%, so short holders will be charged 0.0094% of their entire position. This also means that long holders will gain interest on their position.

Phemex Welcome Bonus

The exchange currently offers a welcome bonus of $72 USD for new signups via bonus funds. This can be obtained via doing simple tasks such as following their social media or funding the account with ₿0.2 in a single deposit.

Phemex offers $72 USD as a welcome bonus for new user registrations

Sub-accounts feature

Phemex sub accounts

Phemex offers an easy method to create sub-accounts – each with their own individual account balances and permissions. This feature allows traders to isolate their different trading strategies from each other – as it is possible to set a limited balance to each sub-account. Balance can be transferred freely between the accounts via the sub-account system. Traders can create new accounts for each new strategy they want to test out. In addition, sub-accounts can be used for trading bots – so automated trading can be done within controlled limits. \

Is Phemex Exchange Safe?

There are two key factors to consider when evaluating if Phemex is an safe exchange to trade on – exchange fund protection and leveraged trading insurance. The most important consideration is if the exchange is safe from hackers- this is because crypto exchanges typically a huge b

Phemex processes withdrawal requests 3 times/day, and each request is rigorously scrutinized by both operators and founders. Based on our sophisticated Wall Street risk control experience, we are able to detect any malicious actions and quickly act to protect the assets of our users and platform. Qualified withdrawal requests are also processed via offline signature, thereby all assets remain100% stored in a cold wallet system with all operations conducted offline.

Phemex Team

The core of Phemex team is comprised of ex-Morgan Stanley executives and developers. CEO Jack Tao has worked at Morgan Stanley for 11 years with experience developing Equity trading algorithms in the US. This work is pivotal to Phemex’s long term growth strategy and mission to bring professional trading tools to the cryptocurrency space.

Phemex Core Team

Conclusion: Phemex Exchange Pros and Cons

Pros

  • Developed by ex-Morgan Stanley Executives
  • Industry trend-setting Zero Fee Trading
  • Sub Accounts and easy to use APIs
  • Top tier exchange and wallet security
  • No KYC for small withdraws

Cons

  • Relatively new, only launched a year ago.
  • Regional restrictions without providing alternatives for users from those jurisdictions.

References:

AltcoinBuzz – Phemex Exchange Highlights.
CoinExchangeReviews- Phemex Review

Is Phemex Exchange Regulated

Phemex is currently looking for regulation via the Monetary Authority of Singapore (MAS) and SEBA for custody of customer assets. Similar to other derivatives exchanges such as BitMEX, PheMEX is currently not regulated.

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