on the crypto
The exchange of crypto derivatives Phemex is replacing the existing trading fee structure with a new subscription model that will make high frequency trading more sustainable, even for small traders.
Subscription only for traders who do not use algorithms ...
The Singapore-based exchange, launched only in November 2019, said that its new Premium subscription model is designed to encourage customers to negotiate as much as they want on the platform without incurring high commissions.
Open only to traders who place orders manually, subscriptions start at around $ 10 a month - paid in the stablecoin tether (USDT) - and can be subscribed as early as Friday May 15th. Clients using trading algorithms will need to continue paying commissions as they have done so far.
... even for those who negotiate small volumes.
By itself, the subscription-based model is not revolutionary: many large exchanges already offer a flat rate to larger customers. But Phemex also offers subscriptions to traders who may not meet the minimum deposit limits and the volume threshold required on other platforms.
Customers who deposit more than 0,02 bitcoins (around $ 180 at press time) or trade more than $ 1,000 per month will be eligible for a 30-day subscription. Phemex announced a $ 3,5 million Series A funding round, led by NGV Ventures, earlier this year. It already offers perpetual contracts - futures without expiry - on currencies including bitcoin and ether, with a leverage of 100 times.
Phemex aims to license from the Singapore authority and to open up to traditional financial products
Currently unregulated, the exchange has applied for a license from the Monetary Authority of Singapore. With eight team members coming directly from Morgan Stanley, the exchange said that one of its goals is to add traditional products such as stock indices, commodities and interest rate-based products to the platform.
In a statement, Phemex CEO Jack Tao, former senior leader of Morgan Stanley's electronic trading desk, said the new subscription model is "in line with the blockchain's mission to facilitate financial transactions."
Putting customer needs first, Tao said that the Phemex exchange "grants an authorization to customers with all the benefits of our service in a cost-effective way."
Asked if there was a possibility that the new subscription model could potentially devalue the company, a spokesman replied: "Our derivatives market will continue to function according to industry standards, so we do not expect to lose revenue."
And which exchange do you use? Or do you prefer to trade cryptocurrencies using automatic software like Bitcoin system? Let us know your comments below.