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| Tier | 30-Day ADV (USD) | Taker Fee |
|---|---|---|
| 0 | <5,000,000 | 0.050% |
| B | ≥5,000,000 | 0.040% |
| M | ≥10,000,000 | 0.035% |
| E | ≥25,000,000 | 0.030% |
| X | ≥50,000,000 | 0.025% |
BitMEX doesn’t charge deposit fees or withdrawal fees for Bitcoin. Only Bitcoin network fees apply for withdrawals.
Tether USD deposits are also free of charge. However, BitMEX does charge withdrawal fees for USDT, which vary depending on Ethereum network fees.
Security
BitMEX operates multi-signature wallets, holds all funds in cold storage, and at least two employees audit all withdrawals.
Additionally, BitMEX deploys a multi-party computation (MPC) system that lets two or more parties complete a function on encrypted data without any information leaving the encrypted domain, except for the desired outcome. BitMEX claims that the MPC prevents an attacker from stealing funds even if all of BitMEX’s systems are compromised.
Opening a BitMEX Account
Opening a BitMEX account is fairly straightforward. First, you’ll need to provide your email address and a password.
BitMEX
Next, you’ll complete the identity verification process. To get verified, you need to provide a photo of your ID, a presence capture video or selfie, your location, a declaration of your citizenship, and how you will fund your account. After submitting all necessary documentation, it can take up to 24 hours to become verified.
There is also an option for businesses to set up corporate accounts on BitMEX.
It’s important to note that BitMEX isn’t available to U.S. users. The exchange also does not provide services to customers in Cuba, Crimea and Sevastopol, Iran, Syria, North Korea, and Sudan.
Additionally, persons located in Seychelles, Bermuda, Hong Kong Special Administrative Region of the People’s Republic of China, Japan, Ontario Canada, Quebec Canada, Burundi, Central African Republic, Democratic Republic of Congo, Eritrea, Guinea-Bissau, Libya, Mali, Palestine, Somalia, South Sudan, Western Sahara, and Yemen are also prohibited from using BitMEX.
Customer Service
BitMEX provides customer service via support tickets and email. Like many other crypto exchanges, it does not offer phone support.
Customer Satisfaction
While experienced traders praised BitMEX’s professional trading experience in the early days of crypto when high-quality trading platforms were few and far between, the list of BitMEX user complaints has grown longer and longer as the years passed.
BitMEX receives just two out of five stars on Trustpilot across nearly 60 reviews. While some reviews seem fake, several users complain of market manipulation, problems withdrawing assets, and a complicated user experience. Some former users have even filed lawsuits against the exchange, alleging that BitMEX engages in market manipulation and trades against its clients.
Moreover, due to the exchange’s incorporation in Seychelles, BitMEX was able to operate without having to verify the identity of its users or requiring licenses in the jurisdictions where many of its customers were based.
As a result, the Seychelles-based exchange was hit with a $100 million fine from the CFTC and U.S. Financial Crimes Enforcement Network (FinCEN) in 2021 for willfully violating the Bank Secrecy Act (BSA) and FinCEN regulations.
Additionally, the exchange’s founders and a fourth individual involved with the company were indicted by U.S. Attorney for the District of New York on charges of violating the Bank Secrecy Act and conspiracy to violate the Bank Secrecy Act. Shortly after, all four BitMEX executives ceased to work for the exchange.
Account Management
BitMEX provides a web-based trading platform and a mobile app for Android and iOS.
While the BitMEX mobile app doesn’t have all of the exchange’s products and features, it allows users to seamlessly manage their trading positions on the go.
In addition to individual customer accounts, BitMEX also supports corporate accounts. Corporate clients can benefit from individualized solutions, such as 24/7 customer support, consulting, or institutional crypto strategies.
How BitMEX Compares to Other Cryptocurrency Companies
BitMEX pioneered Bitcoin’s perpetual futures contracts, establishing itself early as one of the leading Bitcoin derivatives trading platforms in the crypto market. However, the exchange’s initial lack of KYC procedures and the ability to take highly leveraged positions gave BitMEX a reputation as more of a casino than an exchange.
While the Seychelles-based company has been trying to clean up its image in recent years, introducing an identity verification process in 2020 and parting ways with its founders who are facing criminal charges, other crypto exchanges have been able to grab a large share of the crypto derivatives pie.
BitMEX’s main competitors include Binance, ByBit, FTX, and Huobi Global. Each of these platforms offers similar tools and features to BitMEX, and it may be worth considering if you’re interested in trading crypto.
Derivatives are risky investment vehicles that can amply trading profits as well as losses.
Final Verdict
In the early days of crypto, BitMEX established itself as the go-to Bitcoin derivatives trading platform for professional investors. This exchange made a name for itself by allowing traders to take 100x leveraged positions on bitcoin and providing a highly professional crypto-to-crypto trading experience.
However, it has made more headlines in recent years due to a lack of regulatory compliance and its founders facing criminal charges in the U.S. for violating the Bank Secrecy Act. Regardless, BitMEX has managed to retain a leading position as a crypto derivatives exchange and an institutional-grade trading dashboard.
Inexperienced investors should probably steer clear of BitMEX as its sophisticated trading dashboard and advanced financial products are likely to overwhelm new crypto buyers.
Methodology
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges are only considered for review if they are safe, secure, liquid, and either regulated by a proper agency or entirely decentralized.
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