PHEMEX Becomes First Crypto Exchange To Offer Zero Fees For Spot Trading
Phemex, a Singapore based crypto exchange has launched a premium membership offer with zero trading fee for spot trading in order to lure customers. The offer is being seen as a challenge to the existing players like Binance and Coinbase which garners the highest customer base. Phemex exchange was started by a group of ex-Morgan Stanley executives last year with the aim of offering a pure hasslefree trading experience.
The premium membership offer is scheduled to go live by 15th May with a monthly membership fee of $9.99 USDT and there will be no limit on swapping. At present traders can swap their USDT against Bitcoin, Ethereum, XRP, Link, Litecoin, and Tezos.
The Era of Zero is coming! Today we announce our plans to launch Membership-based cryptocurrency Spot Trading services with ZERO trading fees! 🚀
All current and new registered users will receive a 7-day free Premium Membership Trial!
— Phemex (@Phemex_official) May 13, 2020
The exchange is also offering a 7-day trial period for new as well as existing customers. Along with the 7-day free trial, the platform is also offering a 3-month membership at $19.99 USDT and a yearly membership at $69.99 USDT.
Jack Tao, the CEO of Phemex exchange explained the idea behind the premium membership offer saying,
“As a company, our goal is to transition into a more comprehensive financial service provider, one that always puts its customers’ needs first.
We believe that our new membership spot trading program perfectly exemplifies this philosophy.”
Although Phemex is a Singapore based exchange, it’s available globally for trading. The firm is registered in the British Virgin Islands and maintains its global operation through a remote workforce in China, Japan, US, and Korea.
Phemex Becomes the First Exchange to Offer Zero-Trading Fee
A majority of the revenue for crypto exchanges come from trading fee, thus letting go of a sure-shot capital generating method would have required a lot of thought process. While zero-trading fee in the traditional financial market is more common, especially for ETFs, Options trading and online stock, it’s not that common for crypto exchanges.
In fact, Phemex is the first such exchange to offer a zero-trading fee. Phemex claimed that the decision was based on the community demand and they are looking to capture a global market with its phenomenal transaction processing engine. The exchange claimed that they are the fastest derivative platform all thanks to its CrossEngine which has the capability to process around 300,000 transactions per second.
At the moment Binance has the biggest share in the spot trading market with 50% of all trading being done through the exchange, while BitMex captures a majority of the derivative market. And the popularity of crypto trading has soared significantly from the last year, as the first quarter of 2020 registered an increase of 104% for spot trading and a mammoth 314% for the futures trading and a combined trading volume of $8.8 trillion in the first quarter itself.