Phemex Review 2024: Is It the Best Crypto Exchange?
TL;DR
In this Phemex review, I’ll take this exchange to the test and help you decide whether it is a great choice.
Phemex offers trading with 250+ cryptocurrencies and up to 100x leverage, even in the US! It has a risk-free demo account. Spot trading fees range from 0.01% to 0.06% for makers.
Deposits and withdrawals are free, but withdrawal fees apply to certain coins. Phemex Earn allows users to earn up to 8% APY, making it a solid choice. It supports advanced orders, Launchpool access, and premium perks like fee waivers and faster withdrawals.
Let’s unpack this!
Phemex Overview
| Attribute | Information |
|---|---|
| Coinwebs rating | ⭐⭐⭐⭐ (4.4 stars) |
| Launched In | 2019 |
| Founded By | Jack Tao |
| Headquarters | Singapore |
| Leverage Option | 100x |
| Supported Crypto Currencies | 250+ |
| Earning APY | Up To 8% |
| Payment Options | Cryptocurrencies, Apple/Google Pay, Credit/Debit Cards |
| Customer Support | Live Chat & E-mail |
What is Phemex?
Phemex is a cryptocurrency trading platform that is more than just your typical exchange. Based and registered in Singapore, Phemex now has a global user base, attracting over 5 million users, and the 24-hour trading volume exceeds $100 million!
Phemex was founded at the end of 2019 by Jack Tao, a senior executive from Morgan Stanley, and has already accomplished so much quickly.
But, as with any trading platform that has growing pains, some areas still need development and enhancement, which I’ll delve into shortly.
It’s a noteworthy achievement, especially considering the challenging bear market conditions at the time.
Who should use it?
Here is who we think should use it:
DeFi and CeFi investors
If you have been looking for a fusion of CeFi and DeFi, Phemex might be your sweet spot. It offers the same perks of DeFi and CeFi exchanges, such as easy access to fiat currencies, deep liquidity, and speedy swaps, all while ensuring safety.
Traders who prefer anonymity
If you do not prefer lengthy KYC verifications to trade anonymously, Phemex is a good option. Although Phemex requires KYC for advanced features, the rest of the exchange can be used anonymously.
Professional investors
For pro investors, Phemex offers perpetual contracts. However, they don’t offer regular options or futures. If you’re into those, I would recommend you consider another exchange.
In addition, they’ve got options like the Learn & Earn program, crypto prediction markets (think crypto sports betting), and a lively Discord community with over 20,000 members.
Geographical availability
Pemex is available to crypto traders in Europe, Latin America, and Africa. However, there’s a list of specific territories where they don’t accept users, and it includes:
- United States of America
- United Kingdom
- Québec (Canada)
- Cuba
- Crimea
- Sevastopol
- Iran
- Syria
- North Korea
- South Korea
- Sudan
- China
- Hong Kong
- Republic of Seychelles
- Bermuda
What are the Advantages of Phemex?
Here are a few good things:
250+ supported cryptocurrencies
Phemex supports a selection of over 250+ cryptocurrency trading pairs for trading. Among the coins and tokens available for both types of trading are popular options like:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Dogecoin (DOGE)
- Cardano (ADA)
- Litecoin (LTC)
- ChainLink (LINK)
- Aave (AAVE)
- USD Coin (USDC)
- Tether (USDT)
Phemex Soul Pass
The journey into the Phemexia ecosystem kicks off with the Phemex Soul Pass (PSP), an NFT serving as your digital identity, inspired by Vitalik Buterin’s “soulbound” NFT concept.
This PSP remains in your wallet, acting as your on-chain passport. It unlocks exclusive privileges and stores your on-chain achievements and credentials based on your contributions to Phemexia.
Most importantly, it’s a prerequisite for minting xPT tokens (more on that later).
To obtain a PSP through the Phemex website, traders must achieve a 30-day trading volume of at least $10,000 across both spot and contract markets on the platform.
Skip Identity Verification at Phemex
Phemex does not require identity verification for basic site functions, including buying, selling, trading, and withdrawing. It’s a convenient feature that simplifies the user experience.
However, to have benefits like free trades and bonuses, you must verify your identity at that stage.
Highly-rated mobile app
My firsthand experience with the Phemex app was very positive. It offers a user-friendly interface and a great overall user experience.
Most of the features available on the web platform are accessible through the app. While the app functions smoothly, It’s not an ideal pick as your primary trading tool.
How to get started with Phemex?
Follow these steps to create a Phemex account within minutes:
More details
Pemex is geared toward experienced investors looking for advanced features. It offers trading with 250+ cryptocurrencies, up to 100x leverage, and a demo account. While spot trading fees range from 0.01% to 0.06% for makers, deposits, and withdrawals are generally free, making it a solid pick for pro users.
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100x leverage.
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APY up to 8%.
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Low fees.
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Top mobile trading app.
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Fiat-to-crypto buys.
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Complicated fees.
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Crypto withdrawal charges.
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Minimum withdrawals.
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No lending services.
Step 1: Visit the website
Start by visiting the website; on the main landing page, you will see the signup options. Tap [MetaMask] to sign up.
Step 2: Sign the wallet pop-up
After that, you will see a metamask pop-up on your screen. Tap [Sign] to move forward and finalize the process.
Step 3: Start exploring the exchange
Congratulations, you are all set to get started.
Key Features
Let’s explore key features:
Usability and design
My first impression is that the design makes navigating easy, with simple drop-down menus and access to features.
The user-friendliness caters to beginners, and I didn’t encounter any confusion or difficulty while moving across various sections—an issue I’ve previously noted in my Huobi Global review.
The trading interface integrates seamlessly with TradingView. I enjoyed the ability to customize the interface. You can move and resize different sections per your preference, providing a tailored trading experience.
If you’re new to trading or prefer simpler investment options, Kraken and SwissBorg are excellent picks.
Spot Trading
Phemex provides over 250 spot trading pairs, which should satisfy most traders.
If you’re new to trading, the interface may seem daunting, but Phemex offers excellent support for demo trading and Academy. I tested the trading engine behind Phemex, powered by CrossEngine and TradingEngine. It handles a whopping 300,000 transactions per second.
When it comes to placing trade orders, it was a seamless experience. It also has the option to use market orders for instant execution and limit orders for specific price points. It has choices like:
- Market orders are executed instantly and filled at the best market price.
- Limit orders: You get instant execution if the price reaches your set value. Plus, you can choose how you want the order executed, whether it’s GoodTillCancelled (GTC), ImmediateOrCancel (IOC), or FillOrKill (FOK).
- Conditional orders: These are quite similar to limit orders, but here’s the catch: traders can set a trigger price, adding another layer of control to their trades
Phemex Derivatives Trading
It currently supports 150+ USD-M and Coin-M perpetual contracts. However, they have plans to introduce USDC Perpetual contracts shortly.
Let’s take a closer look at their derivatives trading platform:
- Leverage: The 100x leverage trading was a total degen play when trading. Like their spot trading, Phemex’s charting interface relies on TradingView, making technical analysis simple.
- Order Types: Phemex offers flexibility by allowing traders to choose from different order types, including Limit, Market, and Conditional orders.
For derivatives traders who want more control over their trades, Phemex provides advanced order settings:
- Reduce-only: This order type is a handy tool for risk management, ensuring that the trader’s position only decreases and won’t accidentally increase.
- Post-only: Post-only orders delay immediate execution and are especially useful for securing a Marker Rebate.
- Bracket Order: These orders help traders limit losses and lock in profits. It surrounds an order with two opposite side orders, creating a protective bracket.
- Good til Cancelled (GTC): GTC orders stay open until filled or canceled by you. You can choose ImmediateOrCancel (IOC) for partial order fills at the target price or FillOrKill (FOK) for instant full order execution at the target price, or it’s canceled.
Phemex Sub-Accounts
Phemex sub-accounts allow you to set up multiple accounts within your main account, offering the flexibility to manage long and short positions separately.
It’s handy for various purposes, such as hedging positions, deploying trading bots, or experimenting with different trading strategies.
What I found particularly good is that you can access and oversee the main account and all sub-accounts on a single screen.
Plus, you can dive into each sub-account to access data and statistics, giving you a detailed view of the trading history specific to that sub-account.
Pemex is quick regarding the number of sub-accounts you can create; they support up to 20 sub-accounts.
Phemex Earn
While testing Phemex, I found two ways to make the most of my Bitcoin and Tether on the exchange.
- Flexible Saving: This is super user-friendly. You can earn interest on your crypto without locking it up. You can deposit and withdraw whenever you like while making a good return. Move your funds from your Phemex spot wallet to your Flexible Savings account, and you’ll start earning interest immediately.
- Fixed Saving: This gives you even higher interest rates on your BTC and USDT, but there’s a catch. You must agree to keep your funds locked up for a specific period before accessing your earnings. Keep in mind that you can’t make early withdrawals from Fixed Saving.
PT Token
Phemex has a PT token as a utility coin for its platform. While the precise details of PT’s utility are still somewhat limited, it’s expected to offer benefits similar to tokens on other major crypto exchanges, like Binance, including trading fee discounts.
Phemex token aims to unlock a range of advantages and use cases, such as staking rewards, trading incentives, and participation in Phemex DAO governance.
Interestingly, Phemex adds a twist to traditional governance: instead of using PT tokens for voting, you can stake them to earn “vePT” governance tokens, which are then used for vote.
This innovative approach enables governance and increases demand for the platform token through staking.
Phemex Copy Trading
When exploring Phemex’s Copy Trading feature, I found it benefitting both new and experienced traders in several ways:
- For Beginners: Learn from experienced traders while earning money, similar to an apprenticeship.
- Diversification: Traders can focus on their strengths, like Bitcoin, and let others handle other assets.
- Experienced Traders: Experienced traders can share their strategies and profit from followers.
Phemex’s copy trading feature makes finding and following traders on the platform easy. Each trader’s profile includes essential metrics like total P&L, monthly ROI, and monthly P&L.
Experienced traders can broadcast their trades, allowing others to copy their moves manually or through an automated system.
In return, they get extra commissions, follower growth with Phemex’s support, VIP services, holiday gifts, exclusive prizes, and special customer support.
Phemex Launchpad
Phemex also offers a launchpad, introducing new Web3 projects for users to invest in before they hit the public market. However, I believe there’s room for improvement in providing more detailed project information and aiding users in research.
Phemex’s launchpad has featured just two projects without information on upcoming ones.
This area is less active compared to some competing exchanges.
Phemex Security
For Phemex, security is paramount, and I’ve put it to the test. Their approach consists of:
- Firstly, they’ve implemented a Hierarchical Deterministic Cold Wallet System, which keeps users’ crypto off the exchange, significantly reducing the theft risk.
- Secondly, each user gets a unique cold wallet deposit address, and all deposits are regularly consolidated in the company’s multi-signature cold wallet using offline signatures.
- Thirdly, Phemex reviews withdrawal requests thrice daily, involving operators and founders in the scrutiny process.
- Finally, they use various security measures on the Amazon Web Service (AWS) Cloud, including firewalls, network access controls, and multiple levels of security, to safeguard their machines and systems.
Plus, user accounts benefit from two-factor authentication for an added layer of safety during critical operations like login, funding, or password changes.
Deposits and Withdrawals
Phemex offers many options for buying crypto and partnering with third-party providers. You can use:
- Credit/debit cards
- Union Pay
- Bank Transfer
- SEPA, Apple Pay
- POLi
- Bpay
- IDEAL
You can open an OTC account on the platform if you need to deposit or withdraw fiat currency. They’ve teamed up with Legendary Trading, a US-based FinCEN-regulated money transmitter, allowing for wire transfers.
These transfers can be as low as $50, catering to larger and smaller accounts. However, do keep in mind that wire transfers come with a $30 fee for transactions under $10,000.
For cost-efficient fiat deposits and withdrawals, I recommend using an exchange like Binance, SwissBorg, or Kraken, which natively support bank transfers. Once you’ve acquired crypto, you can transfer it to Phemex for trading, saving money in the long run.
Phemex Customer Support
Phemex offers support through its Help Center, which has a rich repository of articles and guides, providing valuable assistance. And honestly, I found it impressive.
I did tests incognito, posing as a regular customer needing assistance, to ensure unbiased results.
Over three days, their support team handled a stuck withdrawal and it was resolved within minutes. I usually don’t expect exceptional support from exchanges outside the top ten.
If I had to suggest an improvement, it would be to enhance the Help Center with more detailed, step-by-step guides, images, and tutorials, especially for newcomers looking to learn trading.
Fees and Costs
Here is a breakdown of fees on Phemex:
- For spot trading: Both makers and takers are charged a fee of 0.1%, which amounts to 0.1% of the transaction value when placing or taking an order.
- For contract trading: Makers are charged 0.01% of the contract value when providing liquidity to the market, while takers pay a fee of 0.06% when removing liquidity.
- For withdrawals: Phemex does not impose any withdrawal fees for crypto transactions from your account. Therefore, the only fees you need to consider when withdrawing are the network fees, not collected by the exchange.
Interestingly, the VIP program can lower these fees and offer fee discounts based on trading volume, with separate discounts for spot and contract trading.
Drawbacks of Phemex
During my time testing Phemex, I encountered these drawbacks:
Fiat Support Limitations
The platform’s fiat support is restricted; However, the OTC service they offer for residents in specific regions allows for direct cryptocurrency purchases using various fiat currencies.
Additionally, users should be aware that they outsource their fiat wire transfers for cryptocurrency purchases to a third-party company called Legend Trading.
In my case, I didn’t have any issues with this, but I recommend doing some research if you plan to use traditional funds.
Fee Structure
Phemex imposes fees on fiat-to-crypto purchases and most cryptocurrency withdrawals. To be honest, these fees were manageable, but there are minimum withdrawal amounts and withdrawal fees for almost all of the 37 cryptocurrencies they support.
While encountering no issues, I noticed some users raised concerns about the withdrawal fees.
Lack of Lending Services
Phemex did not offer lending or borrowing services against your cryptocurrency holdings. This was notable for me, especially with the growing trend of lending in the crypto market.
However, Phemex indicated plans to introduce new services, including Crypto Loans and Margin Trading, without specifying launch dates.
Phemex’s Alternatives
ByBit
Although ByBit only allows you to trade 100+ tokens, it has one of the lowest trading fees of 0.01 – 0.10 %. You get the same 100x leverage option as offered by Phemex. Also, it gives you access to diverse markets, including spot, perp, and futures.
More details
Bybit is a leading futures trading platform globally, offering up to 100x leverage and attracting users who prefer to remain anonymous. With a presence in 180+ countries, it is renowned for its efficiency and unique features in cryptocurrency derivatives trading.
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The platform offers up to 100x leverage trading.
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Strong educational resources.
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Diverse markets for traders, spot, perp, and futures.
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Risk-free demo accounts to explore all key features.
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TradingView integration.
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The platform is difficult for beginners to navigate.
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It does not offer a quality spot trading feature.
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The NFT marketplace is limited in terms of options.
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Security is of the gold industry standard.
Binance
If you want better leverage, Binance is a better choice than Phemex, as it offers 125x leverage. Unlike the latter, this exchange gives you access to features like Binance Pay, Binance Smart Chain, and support for 370+ tokens.
More details
Binance is a great combination of low fees, deep liquidity and multiple cryptocurrencies and trading pairs. We have tested every aspect of it and it STILL holds its reign as the top exchange in the world. In our view, it is the perfect crypto exchange for both newbies and advanced traders alike.
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Biggest exchange in the world.
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Industry's lowest trading fees.
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Advance trading options like leverage trading.
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600+ crypto options, 150+ for the US.
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Lucrative on-site staking options.
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Hiccups in account verification.
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Less regulated than some competitors.
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The corporate structure is not transparently.
Coinbase
Coinbase is a secure and regulated exchange in the US. However, when compared with Phemex, it falls short with no leverage option. With support for 500+ tokens, it charges high trading fees of up to 0.60%.
More details
Coinbase is one of the largest crypto exchanges in the world and a widely-used platform for buying, selling, and trading over 200 cryptocurrencies. It offers trading solutions for beginner, advanced, and institutional traders alike. Take a look at what makes it an excellent option for individual traders looking to trade in cryptocurrencies and beyond.
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A wide-selection of coin offerings.
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Most secure online crypto platforms.
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Top-rated mobile app.
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Easy interface and user-friendly.
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Expensive and complex fee structure for beginners
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Higher fees as compared to other cryptocurrency exchanges.
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Slow customer support.
Phemex Review: Our Verdict
In conclusion, our Phemex review highlights the platform’s many advantages and limited drawbacks. It’s user-friendly and caters to traders of all levels. Notably, the ability to create sub-accounts and a focus on user experience make Phemex stand out.
While Phemex has the potential to compete with other exchanges like Bitmex and Bybit, the crowded derivatives market presents challenges. Bybit still leads in customer service, crypto support, and usability.
Phemex is relatively new and untested in terms of major security incidents. I hope the platform maintains its security standards as it continues to grow.
No, Phemex does not support direct USD or foreign exchange currency.
Phemex can be suitable for beginners, with a user-friendly interface and educational resources.
Phemex is accessible in the US for trading and other functionalities, but certain features may be restricted due to regulatory considerations.
Phemex restricts users from the United States, the United Kingdom, Québec (Canada), Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, South Korea, Sudan, China, Hong Kong, Republic of Seychelles, and Bermuda.
