BitMEX Exchange Review and Comparison
By: Ofir Beigel | Last updated: 1/22/23
Bitcoin Mercantile Exchange, or BitMEX, is a cryptocurrency exchange that is best-known for its derivatives products and high leverage. It now also offers spot trading and other services. In this review, I will cover these products and services, as well as some of the platform’s pros and cons.
BitMEX Review Summary
BitMEX is a cryptocurrency exchange that focuses primarily on derivatives products, which allow users to speculate on the price of cryptos with high leverage. Although it also provides spot markets, the range of supported assets is currently small compared to competitors.
Whereas the exchange used to be non-KYC (not requiring users to verify their identity), it now enforces compulsory identity verification after running into legal troubles.
That’s BitMEX in a nutshell. If you want a more detailed review keep on reading, here’s what I’ll cover:
- BitMEX Overview
- BitMEX Services
- Currencies and Payment Methods
- BitMEX Fees
- Supported Countries
- Customer Support and Reviews
- BitMEX vs. The Competition
- Frequently Asked Questions
- Conclusion – Is BitMEX Legit?
1. BitMEX Overview
BitMEX was created by a selection of finance, trading, and web-development experts. Arthur Hayes, Ben Delo, and Samuel Reed launched the exchange in 2014, under their company HDR (Hayes, Delo, Reed) Global Trading Ltd. It is currently registered in Victoria, Seychelles.
The exchange became most popular for its derivatives products – most notably its Bitcoin perpetual swaps, collateralized with Bitcoin and accompanied by up to 100x leverage.
In May 2022, BitMEX expanded its platform to include spot trading services, in an effort to compete with major competitors such as Binance and FTX.
In October 2020, all three founders were indicted on charges of violating the U.S. Bank Secrecy Act and conspiracy to violate the law by failing to put in place the necessary anti-money laundering measures. All three pleaded guilty to the charges and agreed to pay $10 million each as criminal fines.
2. BitMEX Services
Derivatives Trading
Derivatives products are BitMEX’s claim to fame, featuring both perpetual swap contracts and quarterly futures contracts. These don’t involve directly trading cryptocurrencies; rather, you trade contracts that track the price of a certain cryptocurrency asset.
Perpetual swaps are the most popular product on the exchange, providing traders with contracts that track the price of the underlying crypto asset with no expiry. These are available for a range of different cryptocurrencies, with up to 100x leverage on some contracts.
BitMEX also offers more standard futures contracts, which are settled on a quarterly basis. These have specific expiry dates, at which all open positions are automatically settled at the market price of the underlying asset.
All derivatives contracts on BitMEX are collateralized and settled in BTC or USDT, depending on the instrument at hand.
This type of trading is very volatile, for better and for worse. It means you can generate large profits with small amounts of money, but it also means you can lose everything you’ve invested relatively quickly.
If all this sounds very confusing to you, it probably means you shouldn’t use BitMEX since this type of leveraged derivative trading is aimed mostly for experienced traders.
Spot Trading
In May 2022, BitMEX added a spot trading feature to the platform, for the first time enabling their users to buy and sell cryptocurrencies, rather than just speculate on their prices.
Spot trading on BitMEX is still limited to a handful of popular cryptocurrencies, all currently in USDT trading pairs. Two different interfaces are available for traders on the platform:
- The default spot trading interface, complete with candlestick charts, order books and a complete advanced trading experience.
- A “convert” interface, which allows users to swap between any two supported cryptocurrencies at the going market rate. The convert feature is simple and beginner-friendly, with none of the advanced exchange features from the default spot trading interface.
Instant Crypto Purchases
To complement its spot trading features, BitMEX has also added an instant purchase option that provides users with a fiat gateway onto the platform.
This feature is facilitated using third-party payment processors Banxa and Mercuryo, both of which allow customers to purchase cryptocurrency using any Mastercard or Visa bank card. Bank transfer and Apple Pay options are also available through these providers.
BitMEX Earn
Like many of its competitors, BitMEX also provides a yield-bearing feature called BitMEX Earn. This service enables users to deposit their crypto assets for fixed periods of time, earning a certain rate of return. The exchange does not appear to disclose how it generates yields on these deposits, however it is probably safe to assume they are lent to institutional borrowers with interest.
All deposits in BitMEX earn are Insured by the BitMEX insurance fund.
3. Currencies and Payment Methods
Derivatives
BitMEX derivative instruments are all collateralized with either Bitcoin (BTC) or Tether USD (USDT). This means that to trade perpetual swaps or futures contracts on the platform, you will have to fund your account with one of these two cryptocurrencies – regardless of which asset you are speculating on.
On the other hand, BitMEX provides derivatives instruments tracking the price of several assets, including:
- Bitcoin
- Ethereum
- Cardano
- Chainlink
- Avalanche
- Bitcoin Cash
- Binance Coin
- Dogecoin
- Polkadot
- EOS
- STEPN
- Litecoin
- Shiba Inu
- Solana
- Tron
Spot Trading
Fewer markets are currently available on BitMEX’s spot trading markets, however the platform intends to list more assets as time goes on. Assets currently supported for spot trading include:
Fiat Gateway
As mentioned above, BitMEX also offers a minor fiat gateway which facilitates instant crypto purchases using fiat currency. This feature is not handled by BitMEX itself, but rather third-party payment processors.
Supported payment methods include Mastercard and Visa debit and credit cards, as well as Apple Pay and some bank transfers.
4. BitMEX Fees
Derivatives
Fees are very competitive on BitMEX. In fact, most users will find them almost negligible relative to the chunky profits to be made if you’re a savvy operator.
The taker fees start at 0.075% and decrease as your 30-day trading volume increases, the highest volume traders only get charged 0.025% on trades. Makers get a rebate of 0.01% on each trade.
It is also important to consider the funding rate on perpetual swap contracts, which is a variable fee (or rebate) which is designed to keep the contract price in line with the underlying asset. This can be positive or negative depending on whether you have taken a long or short position, as well as whether the contract price is above or below the spot price of the underlying asset.
Check out the full fee schedule for derivatives products here.
Spot Trading
Spot trading fees begin at 0.1% for both maker and taker orders, which is highly competitive. These fees decrease for users with higher trading volumes and can reach as low as 0.03% for taker orders and 0.00% for maker orders, for traders in the highest volume bracket.
Fees can be reduced further for BMEX token stakers, depending on the quantity of BMEX staked.
A complete overview of spot trading fees can be viewed here.
Deposits and Withdrawals
Deposits and withdrawals on BitMEX continue to be free of charge, which is always very pleasing—you shouldn’t be left with any hidden costs once you’re done trading (other than the network fees).
5. Supported Countries
BitMEX itself is a registered company in the Republic of Seychelles. It’s a worldwide service except for the following countries:
- United States of America
- Province of Ontario in Canada
- Province of Québec in Canada
- Japan
- Seychelles
- Bermuda
- Crimea
- Sevastopol
- Hong Kong
- Cuba
- Iran
- Syria
- North Korea
- Donetsk People’s Republic
- Luhansk People’s Republic of Ukraine
The exchange doesn’t limit access for any locations, due to the fact that it does not handle fiat currency deposits or trading pairs. Local laws may affect your use of the service, however this is out of the exchange’s control.
6. Customer Support and Reviews
Customer support
Support is offered via an email ticket, which is pretty standard for the industry. Simple inquiries and issues can be resolved by BitMEX staff in the “Trollbox”, a public chatbox where traders can also chat with each other. While this may not be a direct line to BitMEX, it’s still really cool to be able to interact with other Bitcoin traders from within the exchange.
Aside from email tickets and the “Trollbox” you can also contact BitMEX using their social media channels or through their discord server which has a dedicated support channel. The really nice aspect of the service is the website itself, which is packed full of useful information and features. The support center gives a slick rundown of the exchange and helps educate users on complex trades.
Live updates fill the site too. An announcement box keeps users up to date with any updates and issues.
Security information is loaded into the website, which is always a must for me when I’m looking at a new exchange. With BitMEX, you can quickly find out who owns the platform and how they’re keeping funds secure.
Multisig withdrawals that only partners can sign, cold storage, and Amazon Web Services are the highlights when it comes to security.
Reviews
Given that derivatives trading isn’t widely understood by the general public, there aren’t many public reviews for BitMEX. Trustpilot only has a few reviews for the platform with an overall rating of just 2.4 stars. While this doesn’t look good, after I looked at some of the negative reviews I found many that are promoting other services so take the reviews with a grain of salt.
No horror stories have offered themselves despite a decent hunt. Reddit and similar forums tend to be more filled with technical questions and chatter.
7. BitMEX vs. Bitfinex and other competitors
BitMEX isn’t the only exchange built around supplying futures trading options. Exchanges like Bitfinex and OKCoin are considered as worthy alternatives. However, there are some differences between these exchanges and BitMEX.
Here they are in a nutshell:
- BitMEX allows higher leverage with a lower margin and smaller minimum contract amount.
- BitMEX uses the underlying index price for purposes of margin calculations, not the last traded price. This means that a malicious trader cannot manipulate the order book and cause erroneous liquidations.
- BitMEX allows customers to select the leverage they desire via the Leverage Slider or edit it manually even while in a position.
Binance Futures is now the next closest competitor to BitMEX, featuring up to 125x leverage and similar trading features.
For a detailed review between BitMEX and its competition read this post.
8. Frequently Asked Questions
Can US Customers Use BitMEX?
BitMEX states they do not accept US traders in their terms of service. BitMEX recently updated their terms and conditions so they require all customers to provide photo ID, proof of address and selfie.
Is BitMEX a Legal Company?
Yes. BitMEX is wholly owned by HDR Global Trading Limited. HDR Global Trading Limited. The company was incorporated under the International Business Companies Act of 1994 of the Republic of Seychelles with a company number of 148707. It is worth noting however that whilst the company is legal and registered the exchange itself is unregulated and its founders have been found guilty of violating the Bank Secrecy Act in the US.
9. Conclusion: Is BitMEX Legit?
If you know what you’re doing and want a market-leading cryptocurrency derivatives trading platform, then BitMEX is a great choice for you. For those looking for a more simple exchange to buy and sell some Bitcoin, I suggest you look into some other more user-friendly options.
The BitMEX team have used their financial and web-development experience to create a slick platform that allows smooth trading while keeping users informed.
Live update features, such as the announcement tab and the live chat function, provide that little extra bonus in making sure you never miss out on crucial news. The fees round things off to make the exchange an attractive all-around package.
Have you had any experience with BitMEX? I’d love to hear about it in the comments section below.
Bitmex
Pros
- Advanced derivatives trading services
- Extremely low fees
- Up to 100x leverage
Cons
- Not very beginner-friendly
- Limited fiat support
- Limited spot markets
Transparent operation
This is not the case.
Deleting my comment. You stupid assholes.
It was just telling the truth.
On the first sight, bitmex is a great trading platform. But things get wacky if you look closely.
Once you try to start trading seriously, you will recognice that there are lots of shady things.
The system is often overloaded during critical moments. As a result, you cannot create or cancel orders. So if bitmex decides they need cash, they manipulate the market in one direction, deactivate trading except for thir dedicated profit trading desk (which trades against their customers) and crush you.
What can you do? Nothing.
If you now think, this might happen once or twice a day, your wrong.
While we were trading, there were hundreds of situations where the system was overloaded and sometimes for multiple minutes.
Stay away, unless you plan to go long or short for a long duration (hours or days).
Hey, thanks for your comment. Note that due to cache, you probably have not seen your comment right away, but it was approved and not deleted.
Stay away from Bitmex. You WILL be Liquidated and LOSE ALL your ASSETS. They are laughing and taking EVERYONES money. PERIOD. Use ANY other exchange and DO NOT EVER USE MORE THAN 10x Leverage! YOU WILL BE LIQUIDATED 100% AND LOSE 100% OF YOUR MONEY.
you are looser
I have similar experience with bitmex, you need at the very minimum 130 usd or so in stop loss distance to btc price, otherwise most of the time the price will simply dive towards your stop loss price. This is possible only with huge fake volumen, as my contract size is rather small. this is not just that “they know where the stops are placed”, its often happening as you put your stop loss order. During the night us/eu time where traders are not awake to buy into their stop loss hunts, i had a position taken out more then 130 usd to the dollar almost. Only to bounce back up to the exact price of the evening.
Other things they do is disable their exchange to you cant market buy into btc dumps or pumps.
When your position is close to be liquidated, IF they didnt shut down market trading, i tried to liquidate part of the position with a market order, but before you have time to adjust the margin, they stop run your position, and not only this, but with a market buy/sell often much beyond the price peak. I got mine executed more than 50 dollars beyound what the price had listed.
Another thing they do is run stoplosses just before the price is about to reverse. Very simply put, the bots give up to drive price lower/higher, and bitmex simply executes the liquidations at that point.
Total fraud. The exchange is working but dont trade with higher leverage than 10 or so, as the exchange is designed to hunt your stops.
Hey Shawn,
Thanks for sharing your experiences.
Personally, I don’t think it’s wise to use any leverage at all when trading an asset as volatile as Bitcoin. As far as I’m concerned, such positions are only useful for hedging (or advanced option plays).
I haven’t used Bitmex myself so can’t really comment on what goes on in their order book. A stop loss $130 from your position does seem highly likely to get hit though, given Bitcoin’s high volatility. That’s less than a 2% move from the current price…
Bitmex.com is an absolute fraud. I plead with the admin of this site to take another look and update his review.
First of all it is obvious that most of the volume is fake, generated by bitmex itself. There are only about 8K-10K people online and they claim they generate 5 billion dollars in volume every day, which is a complete lie to keep suckers coming in.
Second, you will get liquidated, and they will take your money. What bitmex does is they open the opposite position as you. So if you go long, they will open a short. And since they see every customer’s liquidation price and stop price, AND they can move their mark price as they please, AND they are unregulated, they very often do so to hit your liquidation price and bankrupt your account.
Third, when you get liquidated, YOU LOSE MUCH MORE THAN THEY TELL YOU. They say that’s because of “risk” to their platform, which is nonsense. If you leverage 10x, you will lose when price falls just 5%, not 10%!
The only thing Bitmex is good at is FOOLING people. Their CEO went on CNBC to talk to completely clueless anchors, and now people think they are legitimate. PLEASE DO YOUR RESEARCH – THIS IS A FRAUDULENT COMPANY.
THEY REFUSE TO ACCEPT US PEOPLE so that they do not have to deal with US LAW. If they had accepted US people, THEY WOULD BE SHUT DOWN AND INCARCERATED immediately given the fraudulent operation they are running.
People are just getting the hang of this and the true nature of the scam that Bitmex is running. PLEASE SPEAK UP if you have been a victim of this scam.