Estimated reading time: 12 minutes
In this article, we will review Phemex, a relatively new Bitcoin trading exchange that offers professional-level derivatives trading to beginners as well as advanced traders. Eight ex-Morgan Stanley executives launched Phemex on the 25th of November 2019 in Singapore. Phemex has a user-centric approach and quite exciting features, so buckle up.
Use DDLJW invitation code and get a discount on the fee.
Table of Contents
Phemex Review: Summary
- Phemex exchange is a registered Money Service Business with the Financial Crimes Enforcement Network Department.
- KYC is not required to start trading on Phemex.
- Users can trade Perpetual Contracts with up to 100X leverage.
- This platform provides multiple advanced orders for trading.
- Users can create sub-accounts on Phemex. Each account can have its own account balances and permissions.
- Users can practice trading cryptocurrencies without putting their own capital at risk with a Phemex demo account.
- Premium members can engage in ZERO FEE spot trading.
- Phemex provides its users with an opportunity to earn up to 8.5% APY interest income on crypto assets.
- A 24/7 live chat option is available on the platform.
- Users can trade anywhere and at any time with the Phemex mobile app.
What is Phemex?
Launced in 2019, Phemex is a Singapore-based cryptocurrency and derivatives trading pltform led by former Morgan Stanley executives. It has been serving around 2 million active users in over 200 countries, Phemex supports 37+ trading pairs with up to 100x leverage. Moreover, it was the first major exchange to pioneer an optional premium membership model for zero spot trading fees.
How to get started with Phemex?
Create an account on Phemex by following these easy steps:
- Go to the Phemex website
- Press the ‘Register’ button on the top right-hand corner
- Fill in your email address and set a password
- Use DDLJW invitation code and get a discount on the fee.
- Enter the verification code to verify your email address
- Use your new credentials to log in on Phemex
How to deposit funds on Phemex?
You can transfer cryptocurrency directly to the Phemex wallet following these steps:
- Log in to your Phemex account
- Click the ‘Assets’ option on the top right corner
- Click the ‘Deposits’ button and choose the cryptocurrency
- Copy the unique wallet address for the chosen coin
- Use your personal crypto-wallet to scan the QR code or copy and paste the address to commence the transaction. Choose the intended amount and send it to your Phemex wallet.
Leverage on Phemex
Leverage trading involves using borrowed funds or other financial assets for amplifying the returns. Although this strategy can amplify the potential returns, there is a potential risk for losses as well.
You will be able to trade Perpetual Contracts with up to 100X leverage on Phemex. The first step is to allocate a specific portion or margin of your funds to open a position. After this, select the amount of leverage for trading.
If you don’t want to deal with leverage trading’s complexity, you should check out our guide to leveraged tokens.
Contracts Trading
A contract includes a seller, buyer, and set price. Contract trading lets you trade on the price movement of an asset at a predetermined price and date. You can secure profits or hedge various other investments while trading in volatile markets. Contract trading helps in multiplying returns, but they can be risky. You can make daily profits through contract trading.
Phemex contracts follow a maker and taker model. Takers who extract the order book’s liquidity will incur a 0.075% fee for each execution (e.g., market orders). Makers who contribute quotes to the order book will get rebates for every execution (e.g., limit orders).
It is crucial to consider funding fees while trading contracts. Phemex charges a funding fee every 8 hours. This fee can be negative or positive, which may result in possible gains or losses. Short holders will pay a percentage of their position to the longs when the funding rate is negative. Alternatively, long holders will earn interest on their position.
Spot trading
Only Premium users can engage in spot trading with Zero Fees. Standard users must pay a transaction fee of 0.1% as makers or takers. The Traders who utilize an API transaction will have to incur a 0.1 % transaction fee.
Phemex Review: Orders Types
Limit order
In this type of order, you set a limit price. Choosing a limit order means you will sell or buy only at the specified price. The order gets fulfilled if the limit price is achieved.
Conditional order
Only Premium Users can make use of conditional orders on Phemex. These orders are kind of similar to limit orders. The only distinguishing feature is that conditional orders have a trigger price. The order is not even activated or triggered until your specified price is reached. Conditional orders are useful for advanced and professional traders.
Market order
Selecting a market order involves the immediate filling of your order at the best available price. This order is executed from the order book. After which it is filled at the best available price.
Stop-Loss and Take profits
Whether in profit or a loss, you can set a predetermined point of exit for your trades to limit your risk. Traders who don’t want to check up frequently on their open positions can rely on this tool.
Phemex Premium Membership
After registering an account, Phemex users are eligible for a 7-day free Premium Membership trial. However, the Full Premium account provides extra features that are not available otherwise. The features that you can enjoy as a Full Premium user are as follows:
- Trading the crypto spot exchange
- Executed orders on the spot market incur ZERO trading fees
- Manage risk on the spot market with advanced orders (i.e., conditional order types)
- Gifting a 30-day full Premium trial to your family and friends
Zero-Fee Spot Trading
- $9.99 USD for 30 days
- $19.99 USD for 90 days
- $69.99 USD for 1year
Use DDLJW invitation code and get a discount on the fee.
Phemex Sub-accounts Feature
On Phemex, you can create sub-accounts. Each account can have its own account balance and permissions. This feature lets the traders create sub-accounts for different trading strategies. Setting a limited balance to each sub-account is also possible. The sub-account system lets you transfer the balance freely between the accounts. Therefore, every new strategy can be tested by the traders.
Phemex demo account
You can practice trading cryptocurrencies without putting your own capital at risk. Phemex demo account simulates a trading environment that provides the same functionality and features as the main platform.
Phemex Bonus
You can earn attractive bonuses for completing numerous tasks that are on the platform. The Phemex platform offers upto $100 welcome bonus for its new users.
Use DDLJW invitation code and get a discount on the fee.
Phemex Deposit and Withdrawal Fee:
Phemex charges 0.025% maker fee and 0.075 taker fee from its users. Moreover, there are minimum deposit requirements and a minimum withdrawal limit.
You also have to pay a standard blockchain fee for withdrawals. This fee may vary depending on the crypto asset and network load.
Is Phemex Legal?
Phenex exchange is an entirely registered Money Service Business with the Financial Crimes Enforcement Network Department.
Phemex Review: Security
Phemex applies a Hierarchical Deterministic Cold Wallet System. This system assigns a separate cold wallet deposit address to every user. Periodically, Phemex gathers all the deposits to the multi-signature cold wallet through offline signatures.
The exchange uses Amazon Web Service (AWS) Cloud to ensure the security of its servers. Additionally, Phemex also utilizes firewalls for separating the trading zones within its internal network. Further, the platform has a hierarchical deterministic cold wallet system with 2-level human scrutiny offline signatures.
Phemex claims that traders experience zero downtime due to its recovery system. The recovery system supposedly gives users 99.9% high availability. However, this platform hasn’t been around for a long time to conclude anything.
Phemex Mobile App
Phemex app is available for both Android as well as iOS mobile operating systems. The app has many features, inbuilt tools, and functionalities. Therefore, this app is easy to use anywhere and at any time. A few key features are listed below:
- The trading interface is simple to understand and navigate for beginners as well as experienced traders.
- Trading view charts are available for decision making and price analysis.
- Various drawing tools and built-in indicators are at one’s fingertips for technical analysis.
- The app also provides multiple timeframes, which makes it useful for both long-term traders and scalpers.
- Buy stop orders, advanced order types, and limit orders are available here.
Carry out all the trading activities on the Phemex platform with the help of the Phemex app. Download the app using this link.
Use DDLJW invitation code and get a discount on the fee.
Phemex Review: User Interface
The user interface is significant for traders who use technical analysis. In regards to Phemex, the tools and charting interface are impressive. The experience is smooth, simple, and flawless. Moreover, Phemex provides excellent drawing tools and technical indicators. Additionally, TradingView has provided the charting software.
On to the left, beside the Select Markets option, users can see the available pairs. Once you select a pair, the order entry window gets displayed. Here you can place trades using crypto perpetual contracts or spot exchange. Phemex has numerous order types that include:
- Limit orders
- Conditional orders
- Market orders
The order window displays amount percentages. The order window for contract markets also has a leverage slider.
On the right, the order book is visible. It displays all the prices for which people are willing to buy or sell the selected cryptocurrency.
Phemex Review: Customer Support
A 24/7 live chat option is available on the platform. You can also reach out to Phemex on Twitter, Facebook, Telegram, and the following email addresses:
- Support- [email protected]
- Product Feedback- [email protected]
- Report issues and Bugs- [email protected]
- Complaints- [email protected]
Phemex Review: Pros and Cons
Pros
- Provides up to 100X leverage
- Feature of creating sub-accounts
- KYC is not needed
- Multiple advanced order types are available
- Basic user interface
- Focused on community
Cons
- A relatively new platform, launched in 2019
- Doesn’t support crypto to crypto pairs
- Lower liquidity compared to other derivative exchanges
Phemex Review: Conclusion
Although Phemex is a relatively new platform, it provides users with a lot of opportunities and benefits. There are comparatively fewer drawbacks here. This exchange is straightforward to understand and easy to use. Phemex’s specialty is that it lets the users create sub-accounts. This might give Phemex a competitive edge over the other trading platforms.
Frequently Asked Question
Is there a Phemex mobile app?
Yes, the Phemex app is available for both Android as well as iOS mobile operating systems. The app has many features, inbuilt tools, and functionalities. Therefore, this app is easy to use anywhere and at any time.
Which are the countries that Phemex supports?
Phemex is not available only in the United States, Cuba, Quebec, Singapore, North Korea, Sevastopol, Sudan, Iran, Syria.
Are conditional orders only for premium members on Phemex?
Yes, only Premium users can make use of conditional orders on Phemex. These orders are kind of similar to limit orders. The only distinguishing feature is that conditional orders have a trigger price.
Which cryptocurrencies are available on Phemex?
The exchange supports Bitcoin, Ethereum, Ripple, ChainLink, Tezos, Litecoin. Phemex also provides a GOLD/USD trading pair for contracts.
