Phemex 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 Phemex fees and minimum deposit requirements to help prospective crypto traders make informed decisions.
Short introduction of Phemex
The Phemex exchange is a platform for spot and contract trading of cryptocurrencies. Bitcoin (₿), Litecoin (Ł), Ethereum (Ξ), Tether (₮), Dash (Ð), Ripple, DOGE, DOT, ADA, and many other cryptocurrencies and tokens are available for trading on this platform. The exchange stands out for its low fees: 0.1% for spot, and 0.075/-0.025% for contracts (taker/maker, respectively). Premium account reduces spot fees to 0%, and there are no withdrawal limits. The only fiat currency available on the site is the US dollar. All basic deposit/withdrawal options are available, including direct transfers from bank cards. The exchange offers a demo account, educational guides with the possibility of earning cryptocurrency, and a welcome bonus for newcomers. There are investment solutions with payouts of up to 10% per annum. The platform is lightning fast and is stable. Also, there are mobile versions.
👍 Advantages of trading with Phemex:
•spot and contracts, loads of cryptocurrencies, tokens, and the US dollar;
•the ability to reduce spot trading fees to 0%;
•leverage x100 is available for contract trading;
•minimum deposit only ₿0.00000001 (or the equivalent);
•demo accounts and free premium mode test;
•extensive knowledge base, and tutorial guides with crypto payouts;
•referral program with discounts on commissions;
•investment programs with flexible and fixed deposits;
•Star Composition program gives users new opportunities;
•cold storage of funds, high levels of data protection.
👎 Disadvantages of Phemex:
•communication with technical support is conducted via email only;
•without a premium account, trading conditions are less favorable.
Phemex Commissions and Fees
The Phemex cryptocurrency exchange charges users a commission for each trade conducted on the site. Commissions are not affected by a customer's trading volume. The only factor that is taken into account when calculating their size is the presence or absence of a premium account. Standard commissions for the average user are as follows:
-
0.1% for a taker/maker on a spot;
-
0.1% for bot;
-
0.075% for a taker on contracts;
-
-0.025% for makers on contracts.
For Premium account holders the difference is that the spot fees for taker/maker positions are 0%. All users have the opportunity to get a 10% discount on the taker commission for each invited referral (the discount is cumulative only up to 30%) for 30 days.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | Up to 0.1% 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:
-
Spread – the difference between the buy and the sell price of an asset.
-
Commission per lot.
-
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 Phemex suitable for beginners?
Analysis of Phemex 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 level of the fees change if different accounts imply the use of different platforms?
Yes. Some brokers offer different trading platforms on different types of trading accounts. In this case, the size of the fee may change.
What deposit amount should a beginner start with?
Some brokers offer a minimum deposit of $1. However, it is recommended to deposit at least $300-500 to the account to be able to trade fully.
Is there a dependence between the fees and the deposit amount?
If a broker offers several account types, there is often a dependence. The more money you deposit, the higher the level of your account will be, and, accordingly, the lower the fees.
Related Articles
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.