Phemex is a crypto trading service that claims to be the fastest provider in the crypto exchange and Futures trading. The company boasts of more than 1,000,000 users and over 30 integrated liquidity providers. Dealing in spot trading and futures contract trading, the company assures leverage of 100x. It charges zero fees for spot trading of cryptocurrencies and claims to offer a low-cost membership.
While the official site does not provide location info, our search reveals this company is based in Singapore. There is no location address or phone contact provided for support. An online contact form is the main support method the company provides for users.
The official website has plenty of information regarding the products, support, company info, markets, and more. But navigating can be frustrating due to the abundant info present. For instance, the fees section displays a vast amount of info on the fee structure which can overwhelm a newbie trader. Some of the main features this platform focuses on are:
- High performance with nearly 300,000 transactions occurring per second and an order response time of less than a millisecond
- Provides advanced functionalities that include FIX API for the institutional traders and sub-account for the quantitative traders
- Proper security, which includes a two-level manual offline scrutiny of user signatures for transactions
- Offers 24/7 live multilingual support and the CEO of the company is available for contact via Twitter and Telegram channel
- New users can receive a maximum of $100 as a welcome bonus
The idea behind Phemex
As per the info the company provides on its About Us section, the name Pheme (Fama) signifies fame and public voice in the Greek mythology and MEX denotes mercantile exchange. The company was started to provide a trustworthy trading platform for crypto traders. Efficient risk management and a simple trading process are the main objectives of the firm. It was started in 2019 to provide a crypto trading platform that provided a professional, trustworthy, and customer-friendly service.
The core team
According to the company info, the Phemex team consists of 8 former executives of Morgan Stanley led by Jack Taothat gathered together to create the crypto platform. This team focuses on a user-centric approach by developing powerful features that are not found in the existing crypto exchanges. The tools and features of the firm are created with the sole intent of providing reliable service as per the vendor. We could not find info on the CEO or the individual team members. The lack of info raises a red flag.
Safety of Phemex and the network
For the safety of the platform, the company claims to provide security via various methods including Amazon Web Service Cloud, firewalls, two-factor authentication, double-entry bookkeeping, and more. For wallet security, a hierarchical deterministic cold wallet system is used as per the vendor.
Pricing packages range from zero transaction fees to 0.1% based on the type of account you use. For the trading accounts which include BTC and USD, there are no charges while for spot trading, only the Premium users are not charged.
For standard users and API traders, the firm charges a 0.1% transaction fee. In the case of contract trading, there are specific charges for makers and takers. While there are no separate charges for opening an account, it is clear that the transaction charges are the main income potential for the company.
We found 63 reviews from users of this service with an overall rating of 3.4/5. Here are a few of the reviews:
From the responses received from users, we can see that the service is a scam. Complaints range from bad customer service and inability to withdraw money to not being able to access the user account.
Is Phemex a legit investment service?
Our analysis of the features, support, pricing, and other facets of the company reveals that it is not a reliable crypto platform.
Our verdictOur verdict
- Offers a diverse range of services
- Signup bonus
- No proven track record
- Lack of vendor transparency
- Supports only crypto USD pairing