CEX.IO 2017 Review – Why Reddit Users are Complaining About this Bitcoin Exchange?

37

CEX.io is one of the oldest Bitcoin exchanges around. It started out in 2013 in London as a Bitcoin exchange and cloud mining provider. At some point its mining pool, known as Ghash.io, was so big it held 42% of the total network mining power.

However, on January 2015 the cloud mining operations were closed and today CEX.io operates solely as a Bitcoin exchange. CEX.io is registered with FINCEN and It applies KYC (know your customer) and AML (anti money laundering) policies. This means you’ll need to verify your identity before you will be able to buy Bitcoins via the exchange.

CEX.io allows you to buy Bitcoins using your credit card, a wire transfer or a SEPA transfer (if you live in the EU).  However CEX.io transactions work a bit differentl than other Bitcoin exchanges, they are based on Fill-or-Kill orders (also known as FOK).

FOK orders are orders that are executed immediately and in full. So whatever you “agreed” to pay or get, that’s exactly what will happen. This is different than how other exchanges work where you may encounter liquidity issues. So for example, if you but 2 Bitcoins at an agreed rate on CEX.io you will definitely receive that amount, however if you but 2 Bitcoins on Bitstamp you will need to wait until someone who’s willing to sell you those Bitcoins at your requested price comes along.

However, for this to work 100% CEX.io has to charge customers a premium so that they will always be able to fulfill their orders, hence the higher exchange rate.

How does CEX.io work?

CEX.IO has a very clear explanation on their site about how this service works, here’s a summary of it:

When you enter a trade, CEX.io calculates the price and freezes it for 120 seconds.  You input the amount of money you wish to spend and you see the amount of Bitcoins you can receive. After you press the Buy/Sell Button, the system checks to see that you have enough funds available.

If the situation on the market allows the execution of your order on conditions not worse than you agreed on, the order will be filled (The order can also be filled on more favourable conditions). If there is a sudden spike in the exchange rate — preventing the execution of the order on the agreed conditions — you will be notified. After you confirm the trade, your order is matched to other orders on the exchange, and your balance is adjusted — sometimes the amount can be even greater than agreed on, but is never smaller.

CEX.io fees and charges

One of the biggest complaints users have about CEX.io is the amount of fees and “hidden charges” they take. CEX.io takes a 7% fee for the service which is charged from the amount of fiat currency you pay. So if you buy $1000 worth of Bitcoins you’ll get only $930 worth. This means that the high exchange rate you see on CEX.io already includes the service fee within it, and no other fees will apply.

However the fee stated above is only relevant if you want to do a direct purchase with CEX.io. The exchange also supplies trading services in which different fees will apply. In order to trade you’ll need to fund your CEX.io account with either a bank account (no commission on CEX.io’s part) or a credit card (3.5% + $0.25 commission). Also, once entering a trade you will need to pay up to a %0.2 transaction fee depending on your part in the trade.

CEX.io Buying Limits

There are four different account limits on CEX.io – Basic, Verified, Verified Plus and Corporate.

Basic accounts can buy up to $500 worth of Bitcoins per day and $2000 worth of Bitcoins a month.

Verified accounts can buy up to $10,000 worth of Bitcoins per day and $100,000 worth of Bitcoins a month.

Verified plus and Corporate accounts have no limitations on the amount of Bitcoins that can be bought.

In order to become verified you’ll need to supply a government issued id and personal information about yourself.

cex.io account limits

Customer support and user reviews

Perhaps one of the most controversial issues about CEX.io is the user reviews it gets online. Both TrustPilot and Bittrust give CEX.io an average rating of 3 out of 5 stars. Reddit also had a very short and worried review about the exchange. However most people don’t actually read the detailed reviews they just look at the ratings, so I decided to do just that.

It seems that the majority of dissatisfied user reviews are either complaining about the hidden fees (i.e. high exchange rate), the identity verification process or the site’s customer support. The first two issues are usually related to people not understanding the fine print, and CEX.io has made it much clearer in the past few months how much will you pay for your coins. As can be seen below:

cex.io fees

Regarding support I ran a test. I clicked on the “help” icon that’s available on each page of the site and wanted to see how fast I can get a response. The support rep answered within 20 seconds and gave me a pretty detailed response (even though it was a canned response). So personally I was pretty happy with that.

support response

Most of the bad reviews that were on TrustPilot also received a response from CEX.io so it’s good to see that the company cares about its reputation. And finally, the short reddit review I read didn’t shed any new light on the exchange. Most people on Reddit said they didn’t have any issues with it, and the original poster just didn’t understand the identity verification process.

Conclusion – Is CEX.io a Good choice?

Until today I have used CEX.io several times and haven’t had any issues. I think it’s a solid exchange, with the only downside being the 7% fee they charge for buying Bitcoins. In the past year or so the exchange has leap frogged froward and has become on of the leading Bitcoin brokers around. The user interface is very intuitive and even complete newbies will manage to buy Bitcoins with it. As long as you are aware of the fees and the verification process needed to buy more substantial amounts of Bitcoin you’re good to go.

CEX.io

CEX.io
8.15

Fees

7/10

    Ease of use

    9/10

      Support

      9/10

        Reputation

        9/10

          Pros

          • Established company reputation
          • Easy buying process
          • Fast support

          Cons

          • Extensive verification process
          • Relatively high fees

          37 Comments

          1. Vedran Devcic on

            Ease of use

            8

            Total scam!

            I verified my account, my master-card and visa. I sold BIT coins for USD to withdraw some cash. And my withdraws keep getting rejected without explanation both to Master-card and VISA so i had to BUY bitcoins again and send them to my wallet to withdraw it on another market… needless to say i lost a lot of money in process of buying USD then selling it again for BIT coin….

          2. SaurabhHarwande on

            Worst exchange on face of this planet. I am lucky my account was never verified and they did not go the opportunity to steal my money. The article says CEX.io is a good choice but surely they themselves have written this article or paid for it. As you can see in comments section many have lost money to them and I was just saved because they though I am a poor scum because I did not belong to a first class country and hence ignored my account and service requests.

            • Zsofia - 99Bitcoins support on

              Hey, this is not a paid review and as you can see we allow people to leave their negative feedback as well on the site, so everyone can draw their own conclusion. Earlier this year when we tested their services we have not experiences such problems.

          3. Fake review – How much did cex.io paid you in this sponsorship??

            They will never explain you what the charges are

            confirmation for ID takes over 3 months and if you try to withdraw, you will NEVER be able to withdraw any money!!

            • Zsofia - 99Bitcoins support on

              Hi Brian, this is not a paid post, we have tested Cex.io services earlier this year directly.

          4. Been 2 weeks and they still have not transfered my funds to me by bank transfer really not good as they send me messages stating it will happen sood and thats the only feedback i get

          5. Fees

            1.1

            Reputation

            4

            I wire transferred 10,000 usd to CEX.IO and they rejected the transfer. However they didn’t return the funds, nor respond to my emails asking where the money is! It’s been over two weeks now and still no word. I am realizing slowly that this company is a scam…you cannot have that bad of customer service. I am going to contact the financial oversight commission in the UK which governs this type ofl institution and complain. Wish me luck!

            • Dani Dawood on

              Fees

              0.1

              Ease of use

              0.3

              Reputation

              0.2

              Hi ser
              I am also lost with them 430 Eur i send to support many emails but to now no answer one week gone ans no answer from them i don t know what i have do i am really nervous
              i thing i lost my many and this company are scam 100%

          6. s a scam too will not let me withdraw my ether they are stealing support non exist just sends form letters

          7. I would keep it simple. Cex.io is scam. I definitely do not recommend anyone using. Use any other exchanges but them.

          8. Maria Sapp on

            Fees

            1.4

            Ease of use

            0.6

            Support

            0.5

            Reputation

            1.2

            I initially had a positive experience with them. However, in the past few days their customer service/chat has been non-existent. Two of my transactions disappeared completely and I’ve gotten no response to my emails and messages. Would not recommend.

            Also, their site is also non-intuitive and hard to use for beginners.

            • BRUCE WISEMAN on

              Support

              0.8

              CEX.io will not return my funds. They have jerked me around for weeks. Personally, I think they have financial problems – that or the worst customer support in the universe. I would urge people to STAY AWAY FROM THEM

          9. I just want to buy etherium classic…I’m in the usa.

            Any suggestions? I find nothing on google

          10. Support

            0.2

            the csv export is total bullshit. when the comment says “Sell order #XXXX” there is no way to get the exchange rate/price for that order. so if you want to stay compliant with your taxes you need manually browse the orders on cex.io. last time when I tried it the web frontend for that function was broke!!!! I’ll never trade there again.

          11. Aminadhabu Arati on

            Fees

            10

            This cex.io is sucking,i trusted them but am unable to withdraw.I have tried to contact them but in vain they are not responding. Who will help me recover my bitcoins. my verdict is cex.io a big fraud.

            SCAM ALERT!

            • Reputation

              1.4

              Totally agree. You cant even widthraw your money to the credit card. They tell you call Visa ????. As of being the most expensive exchange out there. That’s correct! Just withdraw your money via the cryptocurrency and get to any otger exchange. I would not even recommend any other exchange. Just pick a random one and you ll already be better off than Cex.io.

          12. Fees

            0.1

            Ease of use

            0.1

            Support

            0.1

            Reputation

            1.5

            The worst exchange and business I have ever dealt with.
            Fess are about 3x as much as other exchanges, I was OK with this as long as it works.
            I have been trying to withdraw money for a week.
            My bank considers them an illegal entity, and rejected payments from them, now I have to take 3 more pictures of my personal information, then wait another 3 days for verification.
            Customer service is garbage, its rare they send even 1 email a day.
            I wish I never trusted these bastards.
            SCAM
            SCAM
            SCAM

            • Zsofia - 99Bitcoins support on

              Hi John, thanks for your feedback. I am sorry to hear your story, we have not experienced such issues with Cex.io so far, they have been responsive to our queries in the past and we didn’t have a problem withdrawing money.

              • Aminadhabu Arati on

                I have problem withdrawing several times but in vain. this is scam,i want my bitcoins back from them

          13. Fees

            3

            Ease of use

            6

            Support

            9.5

            Reputation

            10

            I use CEX.io unfortunately for me its the only option i have to buy bitcoins.. and since you need bitcoins to get other cryptos… that’s my only option.

          14. Fees

            6.5

            Ease of use

            8

            Support

            8

            Reputation

            8.5

            Hey, great article as always. :D

            Just wanted to ask about this passage because I think a ‘0’ is missing: “Verified accounts can buy up to $10,00 worth of Bitcoins per day and $100,000 worth of Bitcoins a month.”

          15. Hi Ofir,

            Excellent review, I think 7% is too much if you make many transactions. Also, when I click on your link to see the website, no https is implemented on the site, crucial to have SSL when you buy with a credit card.

            Best Regards,

          Leave A Reply