If you were to ask any experienced crypto trader to make a list of some of the most reliable exchanges, both Phemex and FTX would have a spot in a majority of traders’ lists. The two companies offer secure and easy-to-use platforms, making it harder to pick between them.
The choice between the two popular exchanges should be easier with a good understanding of things like their product offering, fees, and security features. But first, it is essential to have a little background information about each company.
Introduction: Phemex vs. FTX
FTX is also a fairly new crypto exchange that started operation in May 2019 and established the FTX.US platform in 2020. The company was incorporated in Antigua and Barbuda and now has offices in Hong Kong and other locations worldwide.
Nonetheless, it is one of the fastest-growing crypto exchanges globally as it already has over a million users and a daily trading volume that averages over $10 billion.
FTX offers a wide variety of products, including a spot market, futures trading leveraged tokens, volatility products, staking, and prediction markets.
Phemex is a relatively new entrant into the crypto exchange industry as it only started its operations in February 2019. However, the team behind it has decades of combined experience in the industry and includes ex-Morgan Stanley executives.
The company has its headquarters in the British Virgin Islands and several office locations, including Singapore. Phemex has over 2 million registered users on the platform and a 24-hour trading volume that averages over $3.3 billion.
Phemex products include both spot and derivatives market, crypto savings account, and a crypto academy that will help boost your crypto knowledge.
Phemex vs. FTX: Crypto Derivatives Product Offerings & Leverage
FTX crypto derivatives exchange is built for traders and people who understand what traders want. The exchange allows traders to buy and sell USDT, BTC, ETH, BNB, and Index futures with a maximum leverage of up to 101x, one of the highest you can get in the market.
For the FTX.US to qualify for leveraged or margin trading in the US, they need to have at least $100,00. Qualified traders will get maximum leverage of 10x, but FTX discourages beginners from using margin trading, given the high risk involved.
Both Phemex and FTX have crypto derivatives contracts that will allow you to make money with your crypto without using the traditional spot market. However, their derivatives contracts have varying leverage levels.
Phemex allows you to trade crypto derivatives such as perpetual contacts with a leverage of up to 100x. It means that with $100 worth of crypto, such as BTC, you can open a position with a total value of $10,000. Therefore, you will amplify any profits you make 100 times when the market moves your way.
With Phemex, you can open the leveraged positions with over 40 different crypto pairings, including BTC/USD and ETH/USD. Also, when trading their leveraged crypto derivatives contracts, you can make use of conditional orders, stop profit and take loss to maximize your earnings.
Phemex vs. FTX Trading Fees
FTX uses the maker and taker trading model. However, unlike Phemex, they also employ a tiered fee structure that aims to reduce fees for traders with a high trading volume. The maker and taker fees start at 0.020% and 0.070% for low-volume traders, respectively.
There are 6 tiers of traders at FTX, and those at tiers 5 and 6 with a trading volume of over $25 million will not pay any maker fees while their taker fees are as low as 0.040%. Both spot and futures trading use this tiered fee system.
Phemex tries to adopt a zero-fee trading model for their spot market to make it cheaper for traders to buy and sell cryptocurrency. Traders only need to pay a monthly membership fee to become a premium member and not incur further charges for all their transactions.
The membership fees are $9.99 per month or $69.99 for those that prefer to pay their membership fee annually. The membership fee is not mandatory as you can still trade without paying it. However, this will make the transactions more expensive for you as the exchange charges 0.1% for every transaction a standard trader makes.
Phemex employs a maker and taker price model for their contract trading like most other leading crypto exchanges. Here they will compensate market makers with a maker rebate of 0.025% for adding liquidity to the books and charge liquidity takers a 0.075% taker fee.
Phemex vs. FTX Funding Fees
Funding fees or funding rates are periodic payments to traders that go long or short, so traders can either pay or receive these fees depending on their open position. They are based on the difference between spot prices and perpetual contract markets.
At Phemex, the exchange of payment will happen every 8 hours, and the funding rate determines who will pay and who receives the compensation. Phemex uses this exchange to ensure the last traded price of the asset gets close to its mark price.
FTX’s perpetual futures have an hourly funding mechanism. If perpetual contracts are trading at a higher price than the underlying index, the traders with long positions have to pay those with short ones. FTX provides some historical funding rates on their site that you can use to understand better how the funding fees work.
Phemex vs. FTX Liquidation Mechanism
When a trader’s position loses all or nearly all the initial margin and cannot maintain the minimum required to keep the position open (maintenance margin), it will be liquidated to prevent further losses.
Phemex uses a Fair Price Marking mechanism that helps prevent forced liquidation when the margin gets below the maintenance margin level. The company does this to prevent loss of the initial margin that comes with liquidation.
Besides fair price, Phemex also applies risk limits to larger positions that often require higher margins to keep open. When liquidation is triggered, the Phemex liquidation engines will cancel all open orders for the particular position to free up more funds to help raise funds to keep the margin at the maintenance level. If this does not help, the position is partially or fully closed.
FTX uses a 3-tier liquidation system. The tiers start with a careful position closure using a rate-limited liquidation order. A unique backstop liquidity provider program jumps in to fund the accounts in danger of going bankrupt at the next tier. Lastly, FTX uses insurance funds to ensure the traders do not incur massive losses.
Phemex vs. FTX Deposit & Withdrawal Fees
Depositing and withdrawing crypto from your exchange always attracts some fees for the transaction. While they are typically small and almost insignificant in most cases, choosing an exchange that will give you better value by charging low fees is still essential.
FTX does not charge any withdrawal or deposit fees for crypto unless you are depositing/withdrawing small BTC, ERC-20 tokens, or ETH. Traders have to pay blockchain fees for these assets if they do not have FTT stakes. The first BTC withdrawal of less than 0.01 BTC will be free, but any similar or smaller transaction attracts a small fee.
FTX also tries to keep the fees as low as possible for fiat withdrawals and deposits. Deposits fees will mainly originate from the bank or other intermediaries. Withdrawals over $5,000 are free, and if you make just one withdrawal below this value per day, it will also be free.
Phemex will not charge any fees for deposits regardless of the currency or crypto you are depositing. However, you might still need to pay some fees originating from the intermediary you are using to make the deposit.
When it comes to withdrawals, the fees you pay will depend on the specific asset you are withdrawing. For example, BTC withdrawals will cost you 0.00057 BTC, ETH costs 0.0036 ETH, and you only pay 0.001 LTC to withdraw LTC.
Phemex vs. FTX Trading Platform Comparison
Both Phemex and FTX have simple trading platforms that will be easy to figure out even for absolute newbies. However, they differ significantly in the overall layout and placement of the different panels you will use when trading.
Phemex makes its trading platform more intuitive and easy to navigate by keeping everything in the same view on your desktop. The main trading interface will include the place order and order book panels, charts, and recent trades panels to allow you to keep track of your trading history.
FTX has an intuitive interface with several handy functionalities like the quick swap function that allows you to swap crypto or fiat to a different coin. The feature is on the homepage and will be hard to miss once you log into your account.
The desktop and mobile app interfaces will appeal to both novice and professional traders. Moreover, the traders can benefit from several order types, including market orders, stop orders, and limit orders.
Phemex vs. FTX Account Opening Process
Creating an account in a crypto exchange is a straightforward process that should only take a few minutes. Here is an overview of the simple steps to follow when creating an account on Phemex and FTX.
How to Open a Phemex Account
- Go to https://phemex.com/ and click the “Register Now” button at the top right corner
- Fill out the form with your email, create a password and enter the invitation code for Phemex.
- Verify your email using the code you receive
- Secure your account with 2FA and start trading
How to Open an FTX Account
- Click “Register” on the top right corner of the FTTX homepage, https://ftx.com/
- Enter your email and create a password
- Read and agree to the terms
- Click “Create Account”
- Confirm your email using the email you get
- Go to profile setting to complete KYC verification
Pro Tip: You can use the FTX promo code to get a 5% discount on FTX trading fees.
Phemex vs. FTX Customer Support
Phemex offers customer support across multiple channels, and it is available 24/7. You can get help through live chat that is available in various languages or talk to the support team via social media platforms like Twitter and Facebook. Additionally, the company has some of the most helpful Telegram communities.
FTX does not have a live chat, but it still provides multiple ways for customers to resolve their issues. They include a highly resourceful help center with several helpful articles and videos to solve most trader issues. The company also has active telegram communities and is available on most social media platforms.
Phemex vs. FTX Security Features
Both Phemex and FTX use a combination of security features to secure their platform and trader accounts, so you can be sure your funds will be safe with either company.
Phemex is a VPN-friendly exchange, and its other security features include 2FA support for login and withdrawal, Amazon Web Service cloud, several advanced firewalls, and bank-level double-entry bookkeeping.
FTX security features include anti-bot login protection, 2FA login and withdrawal, separate withdrawal password, IP whitelisting, withdrawal wallet whitelisting, and subaccount permissions.
Phemex and FTX are two fantastic crypto exchanges that will give both novices and professional traders a rewarding trading experience.
Each of the companies has its merits and demerits. Therefore, the choice will depend on what you look for in a crypto exchange. For example, FTX offers more advanced security features, higher maximum leverage, and relatively lower trading fees.
Phemex has better customer support that includes live chat and a more intuitive interface, making it easier for beginners to trade.