AAX Fees and Minimum Deposit - TU Expert review
After considering a crypto exchange’s security, examining its fees is the next crucial step. Lower fees translate to higher potential profits. Newcomers to crypto trading may also want to consider the minimum deposit required to start trading, as they might prefer to begin with a smaller investment.
Traders Union analysts have assessed AAX fees and minimum deposit requirements to help prospective crypto traders make informed decisions.
Short introduction of AAX
AAX, operated by Atom International Technology Ltd., presents itself as a cryptocurrency exchange based in China. However, the platform's lack of proper regulation poses significant client risks.
Following the collapse of FTX and the ensuing market turmoil in November 2022, AAX abruptly suspended withdrawals. Despite assurances that client assets were safe, the exchange never resumed normal operations. To further complicate matters, Hong Kong authorities arrested two company executives a month later: Liang Haoming, a director and shareholder of Weigao Capital, and Thor Chan, the platform's founder and former CEO.
Recent investigations by blockchain security firm Cyvers revealed the suspicious movement of over ETH 24,000 which is approximately $55.6 million from wallets associated with AAX.
Given the evidence of mismanagement, fraud, and illegal activities, AAX has been blacklisted.
👍 Advantages of trading with AAX:
•the exchange offers a large selection of popular cryptocurrencies and coins;
•spot and futures trading, futures with x100 leverage;
•low fixed commissions for trading operations and withdrawals;
•referral program with two types of bonus payments;
•the platform's own token, which makes trading more profitable;
•high level of information security (complies with CCSS);
•LSEG technology for trading with a delay of up to 90 microseconds;
•terminal in the browser, mobile application, API and FIX;
•high-quality and stable service with large trading volumes
👎 Disadvantages of AAX:
•no demo accounts;
•no call center;
•no license data is available.
AAX Commissions and Fees
One of the main advantages of the crypto exchange is low commissions on trades. The platform does not charge commissions for deposits and OTC trading. The conditions for spot and futures are as follows:
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0.06%/0.1% for maker/taker for spots;
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0.02%/0.04% for futures maker/taker.
If the client has a sufficient amount of AAB token in his account, he can use it to pay commissions. This is the crypto exchange's own token, which is actively traded. The advantage of paying with AAB is that the client gets a 20% discount on commission. To do this, you need to have a token in the account and activate the option to pay commission with it when the trade is being made.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | Up to 1% per order | Yes |
A broker is an intermediary between a trader and an exchange. Therefore, brokers charge fees for their services. The fees may have different structure.
There are the following fees in the Crypto market:
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Spread – the difference between the buy and the sell price of an asset.
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Commission per lot.
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Commission per trade.
Broker fees may differ depending on the trading account type. For example, on some accounts spread is used as a trading fee, and on others – commission per lot.
Why is it important to consider the minimum deposit at a cryptocurrency exchange?
Accessibility: The minimum deposit helps traders determine if they can afford to start trading on an exchange.
Risk Management: Exchange-set minimum deposits ensure traders have sufficient funds to cover potential losses and fees, preventing financial overextension.
Platform Suitability: The minimum deposit amount can be an indicator of the exchange’s target audience and trading volume, aiding traders in selecting a platform aligned with their goals.
Cost Considerations: Assessing minimum deposit requirements helps traders account for trading expenses.
Are the fees and minimum deposit requirements at AAX suitable for beginners?
Analysis of AAX shows that the broker has a rather high minimum deposit. It could pose a problem for traders, who are only starting their path in trading. Nevertheless, the fees are low. Therefore, the broker will be a good choice for professional traders.
FAQs
Can the minimum deposit differ depending on the trading account type?
Yes. Brokers often encourage clients to deposit large amounts to the account by offering better trading conditions.
Why do some brokers set a high minimum deposit?
Many companies with high minimum deposits are focused on working with professional traders with experience and large capital. Therefore, they set a high entry threshold.
Can the level of fees differ for cent and standard accounts?
Yes. On cent accounts, the fees are generally lower than on standard accounts.
Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.