Press Release

Phemex Exchange Review

Phemex Exchange Review

Table of Contents

Phemex is a top-5 futures trading exchange that provides traders of all levels with a professional trading platform.

About

Phemex is a  top-5 futures trading exchange that provides traders of all levels with a professional trading platform. The platform boasts an impressive global user base with 5 million users from over 200 countries. Phemex offers a robust trading platform and registers 10 billion USD in daily trading volume. Phemex is well known for its diverse and high-quality pairs, with over 200 contract trading pairs and over 200 spot trading pairs. On Phemex, proficient traders can benefit from leverages up to 100x with contract trading pairs, while newcomers enjoy a smooth start with industry-leading low credit card fees and a grid trading bot feature that automatically executes buy & sell orders at pre-set prices. Phemex further prides itself on its unparalleled transaction speed and can process 300,000 transactions per second.

Phemex is a semi-centralized exchange founded with the goal of bringing centralized features such as trust to the somewhat chaotic crypto world. The exchange’s founders drew on their knowledge of traditional finance and learned how to build a reliable and efficient trading platform. To address the shortcomings of traditional finance, the founders thought of a new and fair financial paradigm where equality is the name of the game, and everyone can have access to the same opportunities and freedoms.

Phemex’s founding team embraced blockchain technology to support their vision of a reimagined financial system. The team quickly noticed that while crypto celebrates the ideals of free finance and individual sovereignty, platforms lacked “maturity.” Phemex was, therefore, born based on the ideals of the crypto ecosystem but with added security, trust and transparency. 

Security is at the core of crypto, and Phemex delivers. Using an innovative cold wallet system, Phemex ensures users' funds' safety at all times. Additionally, any user can use the Proof of Reserves tool on Phemex to verify the secure storage of their assets.

Phemex acknowledges exchanges' crucial role as trusted partners in fostering crypto communities and has devised a comprehensive plan dedicated to uniting and empowering users. With this objective in focus, Phemex introduced its SocialFi feature Pulse in March 2024, turning traders’ online presence into tangible rewards connected to the advantages of its Web 3.0 ecosystem. 

Trading on Phemex

  • Contract Trading;
  • Spot Trading; and 
  • Copy Trading (Trading Bots)

Phemex Fee Structure

A centralized exchange has two main types of fees: maker fees and taker fees.

  • Maker fee: when adding liquidity to the order book, you are deemed as a market “maker.”
  • Taker fee: when you take liquidity out of the order book, you are deemed a market “taker.”

In most instances, exchanges charge higher taker than maker fees to incentivize traders to add liquidity rather than take it away. Phemex follows this convention for its contract markets but charges a standard fee for makers and takers in their spot markets – this gives Phemex an edge over its competitors.

Phemex fees are as follows:

  • Spot markets: 0.1% maker and 0.1% taker fees
  • Contract markets: 0.01% maker and 0.06% taker fees.
  • Withdrawal fees: Phemex withdrawal fees are low but differ for each coin. A complete list of fees is available on the “Fees & Conditions” page.

With Phemex’s VIP Program, users receive discounts on fees depending on their VIP level, with the highest level VIPs able to essentially trade for free.

Phemex VIP Program

Traders can apply for the Phemex VIP program to enjoy rewards and discounts on trading fees. VIP benefits include:

  • Fee discounts: pay lower trading fees;
  • Account priority;
  • Unlimited Sub-Accounts;
  • 1-on-1 Account Managing services;
  • Exclusive rewards and bonuses;
  • Product suggestion priority,
  • Phemex customized merchandise and gifts.

Phemex recently introduced a comprehensive update to its VIP program with new classification indicators.

Contract Trading

One of Phemex’s largest set of markets is “contract” trades. Contract trades are perpetual futures markets that allow traders to trade the price of crypto without having to actually own or hold the underlying asset.

Contract markets are available in USDT-M Perpetual, USD-M Perpetual, and COIN-M Perpetual, meaning traders can use either USD, USDT, or cryptocurrencies as collateral for margins. Phemex offers 225 contract pairs, with more being listed regularly. In COIN-M denominated market, traders can only use Bitcoin (BTC) or Ethereum (ETH).

Fees:

  • Maker fee: 0.01%
  • Taker fee: 0.06%

Phemex contracts offer 100x leverage on many assets, including BTC and ETH.  

Spot Trading

Spot Trading on Phemex gives traders access to 218 token pairs with up to 5x leverage.

Fees:

  • Maker fee: 0.1%
  • Taker fee: 0.1%

NOTE: Phemex provides a comprehensive fee structure on its “Fee Rate” page.

Copy Trading and Trading Bots

Traders can set up bots that automatically “copy” a trade of a certain “top” trader on the Phemex platform. Phemex provides a list of “top traders'' who rank highest so that users can choose a dependable trader. Phemex deems a “top trader” as one that has a proven record of a PNL sheet of over $20,000 and an ROI (return on investments) above 200% over the last 30 days.

 Using Phemex’s trading bots is easy. Traders first select a trader they want to copy on the “Copy Trading” page. Traders are limited to 100 copy users to mitigate any market price impact. The “Copy Trading” interface provides statistics on trader performance and includes their total balance, over PNL, and their monthly PNL. Users can also activate futures grid trading bots to automate their trading strategies and have the system automatically take profits without requiring constant manual execution.

Phemex caters to experienced traders by providing the Futures Martingale Bot, a sophisticated tool engineered for strategic cost averaging. Additionally, the Signal Trading feature enables seasoned traders to automate their tactics using signals from TradingView webhooks. This allows for the direct synchronization of preferred triggers from TradingView with their Phemex account, ensuring a streamlined integration of data that sharpens the accuracy of trade executions.

Phemex Lending Protocol

Phemex has recently launched its Lending Protocol, which boasts low borrowing rates without any hidden fees or extra charges, complemented by a competitive and clear loan-to-value ratio. The platform has infused $22 million into liquidity to initiate this service. This enables users to take out loans by leveraging their holdings, avoiding the need to liquidate assets, and benefiting from some of the most advantageous borrowing terms in the market, with borrowing APYs starting as low as 3.57%—a significant contrast with the double-digit rates seen in other platforms.

Phemex assures users that they will retain complete control of their funds, with the liberty to withdraw and reallocate at their discretion.

Additionally, the platform offers users the opportunity to contribute to lending pools, earning attractive APY returns that act as a stable source of passive income. This comprehensive solution provides access to stellar borrowing rates and allows users to earn by providing liquidity with their assets, accruing real-time APR. 

Buy Crypto on Phemex

Acquiring crypto on the Phemex exchange is simple. The exchange offers a quick and easy one-click buy and sell process, with payment in over 80 different fiat currencies. Users can only buy USDT with credit cards.

Users can also buy the following crypto through a fiat balance on the platform: USDT, BTC, USDC, and ETH.

Phemex offers the lowest EUR credit card purchase fee among all exchanges and no transaction fees for USD deposits!

Pulse

Phemex has taken the crypto community by storm with the introduction of Pulse, its innovative SocialFi platform. Pulse reimagines social media for the Web 3.0 space, creating a decentralized community hub that blends Telegram's group dynamics with Twitter's interconnectedness. 

Building on user feedback, Phemex has rolled out an enhanced version of Pulse, fine-tuning the platform to better reward quality content. New features like 'Cast' allow users to share valuable insights, while 'Tip' enables the community to reward meaningful interactions.

As of May 15th, users can also step into the role of moderators, helping to cultivate the dynamic and captivating Pulse community while earning meaningful rewards.   

Programs 

Phemex has a range of programs and incentives on offer for its users.

Collaborator Program:

Through the Collaborator Program, Phemex strengthens and aligns important relationships with key partners such as influencer affiliates.

Phemex believes that the platform and its affiliates should work the same team toward the same goals. To that end, the exchange brings Phemex Collaborators onto the same team by sharing platform ownership.

Through this ownership structure, significant contributors are aligned and incentivized to prioritize the growth and success of Phemex.

Benefits of the Collaborator Program include:

  • Earn real-time through a commission system that truly pays out;
  • Earn up to 50% commission of referrals;
  • Hold vePT and boost your commission to 60%; and
  • Enjoy an additional 10% rebate bonus from sub-affiliates.

Broker Program:

The Phemex Broker Program empowers brokers with an all-in-one platform and profitable incentives. By joining the Program, brokers will enjoy the following advantages:

  • Industry-leading commissions: brokers can earn up to 50% commissions based on their users’ trading volume of Phemex.
  • Smooth onboarding: brokers can onboard users and earn commission as soon as they receive their Broker ID.
  • Cross-Promotional Opportunities: joining the program allows brokers access to new users by tapping into the exchange network.
  • 1-on-1 Dedicated Support: Brokers receive immediate customer service at all times, and top priority is given to their concerns.

Brand Ideology

Phemex prides itself on its 3T ideology:

  • Trustworthy: Since its establishment, user funds have never been hacked or placed at risk, and the exchange maintains an incident-free record.
  • Transparency: Phemex is the first exchange to offer Proof-of-Solvency, which they update on the 25th of each month. Users can also confirm the secure storage of assets and liquidity with Phemex’s Proof-of-Reserves.
  • Together: Phemex is an ever-growing community, estimating that over 21,000 members will hold its PSP within the first few months of its inception.

The First Semi-Centralized Exchange

After Phemex’s founders looked at the benefits of a centralized exchange, they noticed that including features of decentralized finance (DeFi) could greatly benefit the user. In this way, Phemex is establishing itself as the First Semi-Centralized Exchange.

The exchange identified the global need for traders’ autonomy and financial freedom, and after introducing Phemex, it is giving them that which they needed so desperately.

Phemex strives to listen to its users and have their voices heard. As such, Phemex is pioneering the integration of decentralized decision-making with the efficiency of centralized platforms with its Web 3.0 project – Phemexia.

Through this hybrid approach, users can benefit from the convenience and liquidity characteristic of a CEX, all while actively engaging in the autonomous governance offered by a DEX. 

Phemexia: The Web 3.0 Colony

Phemex is stepping beyond the bounds of traditional centralized exchanges by introducing its Web 3.0 ecosystem, Phemexia, including a utility token, a governance token, and an identity bound-NFT. 

In the near future, users will be able to stake their platform tokens for governance tokens and wield voting rights in the Phemex DAO thereby participating in decision-making processes related to platform operations, growth strategies, partnerships, and treasury management. 

At its core, Phemexia implements a decentralized governance structure to empower a growing group of builders, partners and stakeholders to make key decisions on platform activity. According to Phemex, Phemexia is a “decentralized society that liberates, empowers and increases the wealth of its members.”

Elements of Phemexia

Phemex’s Web 3.0 ecosystem, Phemexia, consists of three main elements:

  • The Phemex token (PT) – a utility token;
  • The Phemex Soul Pass (PSP) – a non-transferable NFT; and
  • VePT – a governance token accumulated by staking PT.

Phemex Token (PT) and VePT

Phemex issued its own platform utility token – Phemex Token (PT) on November 30, 2023.

PT is an on-chain ERC20 token and confers various benefits and use cases, such as covering trading, gas, deposit, and withdrawal fees on Phemex.  Since PT is Phemex’s utility token and represents ownership of Phemex, users can stake it in return for vePT (vote escrow Phemex Token) to actively participate in decentralized platform governance.

Phemex DAO

The Phemex DAO will be the platform’s decentralized communal decision-making mechanism. After the launch of the Phemex Token, 40% of the token supply and the remaining tokens from pre-mining will be sent to the DAO treasury to be managed by DAO members.

Phemex’s governance structure will be decentralized and community-driven. Decision-making power is distributed between vePT token holders, working groups, and core contributors. Phemex will be managed by four working groups focused on operation, treasury management, growth and partnerships.

The Phemex Web3 Whitepaper provides full details on the Web 3.0 ecosystem.