Phemex Review 2022: Features, Fees, Pros & Cons
Phemex is a world-class spot and perpetual swap platform for Bitcoin and other digital currencies. The leading international crypto exchange includes a fiat gateway to buy crypto using multiple payment options, a spot exchange for premium members, convert to swap crypto-to-crypto and the ability to earn interest through savings options.
This review will examine its features, charting interface, trading pairs, other fees, security and customer support. Our methodology includes creating an account, depositing USDT, buying Bitcoin on the spot exchange and withdrawing to a hardware wallet to experience the basic features of the platform.
https://phemex.com/
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Phemex Overview
Phemex is a cryptocurrency derivatives trading exchange located in Singapore that was founded in 2019. The company behind Phemex is led by former Morgan Stanley Executives and is one of the most efficient cryptocurrency trading and investment platforms. According to CoinMarketCap, Phemex consistently ranks among the world’s top 10 crypto derivative exchanges and has amassed more than 5 million users across 200 countries.
The exchange is best known for its lightning-fast trade execution speeds of 300,000 transactions per second and order response times of less than 1 millisecond. The leading margin exchange allows individuals to trade perpetual contracts such as BTCUSD, ETHUSD, XRPUSD, LTCUSD, XTZUSD and LINKUSD with up to 100x leverage.
Phemex allows individuals all around the world to access digital currencies through a user-friendly, safe and efficient crypto trading exchange. Notable features on Phemex are rapid trade execution speeds, 100x leverage on contract trading, and the ability to get in early on new crypto token launches via its spot market Launchpad.
To summarize, the key features and products of Phemex are:
- Beginner-friendly charting and wallet interface
- No KYC to start trading
- Spot market with access to over 200 cryptocurrencies
- Derivatives exchange with leverage up to 100x and BTC or USD settlement
- Cryptocurrency demo account to trade cryptocurrency with zero risk
- Mobile app to trade anytime and anywhere
- Launchpad program allows users to make exclusive purchases of new crypto projects
- A generous referral program that rewards you for bringing users
- Earn up to 4.5% APY interest on USDT deposits in a flexible or fixed savings account
- 24/7 customer support team
| Exchange Name | Phemex |
|---|---|
| Fiat Currency | USD, EUR, GBP, KRW, JPY & 30 others |
| Cryptocurrency | BTC, ETH, XRP, LTC, LINK & 200 others |
| Deposit Methods | Credit card, debit card, bank transfer & ApplePay, SEPA, & others (purchase only) |
| Trading Fee | 0.1% (spot), 0.06% / 0.01% (futures) |
| Mobile App | Yes (Android and iOS) |
Our Phemex Review: Quick Verdict
Phemex is a full-fledged financial asset management platform that has grown beyond the niche of a crypto perpetual contract platform. There is a good variety of investment options such as the Phemex Earn product line for users to earn interest and rewards on assets like stablecoins. With a stable and secure platform with over 200 cryptocurrencies to trade spot or with leverage, Phemex is a great choice for experienced traders that trade crypto derivatives and want to save on fees.
Visit the Phemex websitePros & Cons
Here is a list of the pros and cons of using Phemex based on our review:
- Does not require KYC to begin trading
- Stable and reliable platform with reasonable liquidity
- Fee rebate for liquidity providers that use limit orders
- Phemex Earn products to earn yield on crypto deposits
- Does not offer crypto staking services
- Phemex is not available to US residents
Review of the Top Features on Phemex
Phemex User Interface & Trading Platform
The user interface is a critical aspect for crypto traders that use technical analysis. After using the Phemex trading platform, we were impressed with the charting interface and tools. The experience was simple, smooth and features excellent technical indicators and drawing tools that you would expect. The charting software is provided by Tradingview, which most crypto traders will be familiar with. The layout is intuitive, and showcases live order books, depth charting, and a simple-to-use order form. There are several order types that include:
- Limit
- Market
- Conditional
Orders can be customized, and there are quick-select options to place an order with 25%, 50%, 75%, or 100% of available capital. Active orders are prominently displayed at the bottom of the window, and users can review order history and balance details easily.
Overall, the trading experience is ideal for intermediate and advanced traders, with access to a variety of familiar trading tools and a well-designed layout. There are fewer choices than some of the premium crypto exchanges in the market (like Binance and FTX), but overall, Phemex is still a great trading platform.
Phemex Derivatives Trading
Phemex is primarily a derivatives trading platform, which offers a large selection of perpetual futures markets. Known as “contract trading,” Phemex offers access to hundreds of markets with most contracts being equal to $1 USD. For lower-price coins, contracts may represent a larger number of coins (such as 10,000 SHIB).
Users can place orders and utilize up to 100x leverage on contract trades with both LONG and SHORT positions available. Market, Limit, and Conditional orders are available, and users can customize orders as needed. The trading platform feels similar to the spot platform, with built-in TradingView charting, live order books, and the ability to view active positions and order histories. Overall, Phemex doesn’t try to do too much, but offers the essentials for advanced traders, and does it very well.
Phemex Earn
To compete with trading platforms such as Binance and Crypto.com, Phemex has introduced an Earn Program that allows its customers to earn up to 18% APY through Fixed and Flexible Saving options. There are 12 assets to choose from, such as ETH, SOL, or USDT, with payouts ranging from 0.3% to 18% APY. The higher-interest choices are for short-term investments only (such as 7- or 14-days), and the long-term investments offer less than 1% APY.
The funds within a flexible term can be easily withdrawn at any time to use on the spot exchange. The feature is a great way to earn interest on crypto while waiting for a trade setup, however, support for more coins needs to be added to rival the larger lending and borrowing sites such as BlockFi, Nexo and Hodlnaut which offer more choices and better rates. Overall, the Pheme Earn program offers decent short-term interest but lacks a good selection, and the long-term fixed rates are very low.
Phemex P2P Marketplace
Users that want to trade crypto directly with another user can do so on the peer-to-peer (P2P) marketplace. There is a very limited selection, but users can choose a fiat currency to trade, and select from BTC, ETH, or USDT to purchase. These transactions are moderated by Phemex, but the funds go directly to the seller, and the seller sends the crypto directly to the buyer. The selection is limited, and the user experience is subpar compared to just utilizing a fiat gateway to purchase crypto. To see how Phemex compares, read our article on the top crypto P2P platforms in the industry.
Phemex Copy Trade
Phemex offers copy trading, allowing users to follow their favorite trader and elect to mimic the trades executed by them. There are dozens of traders to choose from, each with a different trading style. Users can sort by total balance or profit-and-loss (PnL) for the month, and find traders with the most success.
Followers pay a fee to copy the trades of a popular trader, and the trader collects a share of the profits earned by followers. This is a great way to passively trade for users that are hesitant to try trading crypto themselves. However, the size of the community is much smaller compared to the most popular crypto social platforms such as eToro which is a superior option based on our experience.
Demo Account Trading
Phemex offers a testnet to allow users to practice crypto trading using a demo account without making a deposit. The simulated trading environment provides the same features and functionality as the main exchange. The Phemex testnet account can be accessed under 'Learn' along the top menu. The testnet is not 100% exactly the same as standard trading, and Phemex notes this at the top of the screen. But users can place orders, execute trades, and practice technical analysis with the TradingView charting tools. Overall, this is a great way for new crypto traders to learn how to trade without risking their own funds.
Phemex Comparisons & Alternatives
Advanced features, an intuitive user interface and high leverage trading are important features on Phemex. This comparison table lists other top-rated crypto exchanges like Phemex that offer world-class features.
| Exchange | Crypto Assets | Trading Fees | Rating | Promotion | Website | Review |
|---|---|---|---|---|---|---|
 Binance | 600+ | 0.1% | Rating | Up to $100 welcome bonus | Visit Binance | Binance Review |
 FTX | 319 | 0.02% / 0.07% | Rating | 5% off trading fees | Visit FTX | FTX Review |
 KuCoin | 700+ | 0.1% | Rating | Up to 500 USDT in bonuses | Visit KuCoin | KuCoin Review |
 Phemex | 248 | 0.1% (spot), 0.06% / 0.01% (futures) | Rating | Up to $180 bonus for new users | Visit Phemex | Phemex Review |
Trading Volume & Liquidity
Phemex is a popular derivatives trading platform that processes over $6 billion in daily trade volume, which is a lot. On the spot trading side, Phemex handles just under $500 million in daily trading volume. As for liquidity, Phemex has an average liquidity score of 585 (out of 1,000), which is above average. Higher liquidity means there is less of a risk of slippage and smaller spread fees when placing spot trades. While Bitcoin and Ethereum have great liquidity on the exchange, smaller altcoins may not.
Is Phemex Safe?
Phemex has bank-like security measures to ensure the safety of its customer's funds and personal information. Examples of security features that have been implemented include a 100% cold wallet system, multi-signature withdrawal process and Two Factor Authentication (2FA) option for all user accounts. Since Phemex was launched in 2019, the exchange has not been hacked or compromised resulting in the loss of funds or client information according to our research.
Creating an Account with Phemex
To start trading with Phemex, the registration process is very straightforward and only takes a few minutes. There is no cost to create an account or maintain a wallet with Phemex. To get started, follow these simple steps:
- Visit the website
- Click on the 'Register' button at the top right-hand corner
- Enter in your email and set a strong password
- Verify your email address using the verification code
- Login to Phemex using your new credentials
Once your account is created, users can deposit crypto and begin trading. But there are account limitations until identity verification is passed.
Phemex ID Verification Requirements
Phemex does not force its users to complete a Know Your Customer (KYC) process to begin trading cryptocurrencies on the spot exchange or derivatives market. However, individuals that buy crypto directly on the exchange through Phemex's fiat-to-crypto providers such as Simplex and MoonPay may be subject to KYC requirements depending on the payment method. Phemex still encourages all users to verify their identity before trading. Here are the steps needed to pass KYC:
- Provide personal information (name, address, phone, email, etc.)
- Provide a picture of government ID (such as driver’s license or passport)
- Take a selfie picture
Once the information and documentation are submitted, Phemex will need to verify. This could take up to a few days.
Fiat Deposits & Withdrawals
Phemex has partnered with several fiat gateways to buy crypto using a credit/debit card or bank transfer directly from the Phemex website. Currently, the interface allows the purchase of Bitcoin, Ethereum, Tether and 30+ other coins. Purchased funds are credited to your Phemex wallet to trade or withdraw to a hardware wallet. Note: Fees may be high through the gateway services, charging up to 5% per transaction.
Supported Coins
Phemex supports 200+ spot cryptocurrency assets that can be bought and sold on the exchange such as BTC, ETH, XRP, LTC, LINK, XTZ, LTC, ADA, DOGE and USDT. There are also nearly 100 derivatives markets available. While the selection is decent compared to some exchanges, the list of accepted coins is quite limited compared to other trading platforms such as Binance, Huobi and Kucoin which have over 500 coins to trade.
What Are The Fees?
Spot trading fees
Phemex spot exchange is available to all users who can buy or sell crypto. The spot trading fees utilize a Maker-Taker fee schedule, with discounts available to high-volume traders. Fees start at 0.1%, which is one of the lowest in the industry. The trading fee is very competitive in the market and is similar to other exchanges such as Binance. High-volume traders can take advantage of no Maker fees, but the minimum trade volume is over $150 million per 30 days, which is very high.
Contracts (Futures) Trading
Phemex's contract trading fee is based on a maker and taker model and applies a fee based on whether the user places a market or limit order. Traders that provide liquidity to the order book (e.g. limit orders) will pay a 0.01% fee, which is extremely low. Traders that remove liquidity from the order book (e.g. market orders) are charged a 0.06% fee on execution, which is also very low. These fees are some of the lowest in the industry and are a big part of the reason Phemex is such a popular derivatives exchange.
Deposit & Withdrawal Fees
Phemex does not charge any fees for crypto deposits to a user trading account. A withdrawal from the Phemex wallet does incur the standard blockchain fee that varies on the crypto asset and the network load. For Bitcoin withdrawals, the network fee is 0.00057BTC which is reasonable compared to other exchanges for a standard processing time.
Phemex Mobile App
Phemex has a mobile app to allow its users to buy, trade and sell cryptocurrencies and derivatives from an iOS or Android device. The app has over 1 million downloads on the Google Play Store and a 4.5 / 5 rating with over 17,000 reviews. This is a great rating compared to other crypto exchange apps. The app is simple and easy to use that will suit beginners and intermediate traders. Using the app is similar to the desktop version and includes most of the features. Charting is very responsive and smooth which makes switching between trading pairs fast and easy.
Customer Support
Phemex offers 24/7 live chat support, as well as around-the-clock email support for users. Phemex also offers a comprehensive help center with guides, tutorials, and FAQs to help users navigate and use the platform.
The live chat support was very responsive and helpful when we asked them a question, and the help center is well-organized. There is no phone support available for Phemex. Overall, 24/7 support is a great feature that most crypto exchanges do not offer and makes it suitable for beginners that require additional assistance.
Frequently Asked Questions
Phemex appears to be a legitimate company that is registered in BVI with employees and users located all over the globe. The exchange is not regulated and is restricted in various countries with strict financial laws such as the United States and the United Kingdom which ban the use of cryptocurrency derivatives platforms at the time of writing.
Phemex does not support citizens from the United States to trade on its futures contract platform which is stated within the Phemex Terms and Conditions under section 36 Legal Compliance. This is due to strict regulations in the USA that effectively ban the use of cryptocurrency derivatives platforms due to the volatile nature of high risks involved.
Phemex is a worldwide cryptocurrency trading exchange that is available to users globally in countries such as Canada, Australia and New Zealand. The following countries are prohibited from using Phemex to trade crypto:
- Afghanistan
- Central African Republic Congo
- Côte d’Ivoire
- Cuba
- Eritrea
- Guinea-Bissau
- Iran
- Iraq
- North Korea
- Liberia
- Libya
- Panama
- Rwanda
- Somalia
- South Sudan
- Sudan
- Ukraine (Crimea)
- United Kingdom
- Yemen
- Zimbabwe
Phemex was founded by former Morgan Stanley Executives with 40+ years of combined experience in delivering HFT (high-frequency technology) with great stability. The owners of the exchange aim to bring millions of potential users into a digital currency system by enabling access to a user-friendly, safe and efficient trading platform.
Conclusion
To conclude our Phemex review, the crypto platform is packed with excellent features for traders looking to speculate on digital currencies with leverage on the derivatives exchange. The platform includes a cutting-edge user interface and advanced risk management tools and drawing tools that are available on desktop and mobile app versions. Overall, Phemex is one of the best derivatives trading platforms out there, aimed at advanced traders that want to trade with leverage.
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