CEX.IO explained by professional Forex trading experts the “ForexSQ” FX trading team.
CEX.IO
CEX.IO is a cryptocurrency exchange which also accepts real (fiat) money transfers. This makes them a direct contender to companies like Bitstamp and Coinbase.
CEX.IO was founded in 2013, as a mining pool. The London-based company later transformed into a full-fledged crypto-curremcy exchange. They are regulated as a payment provider, in order to accept client funds, but they are not overseen by the Financial Conduct Authority (FCA). While this may come as a negative, from the standpoint of an experienced forex trader, we must note the agency dos not oversee any company operation in the crypto space.
CEX.IO has not been the target of a major hack yet. That being the case, there are numerous user reports of receiving misleading e-mails, attempting to gather thir personal details, after registering on the website. This comes with a relatively small number of traders, who were caught by the scheme.
This is one of the few crypto-exchanges which offers negative balance protection, for margin positions. The feature will come in handy to the aggressive traders, although we do not recommend adopting such a style.
There a relatively high number of negative user reviews about CEX.IO. The complaints are mostly linked to the slow KYC procedures. Furthermore there are some harsher claims, but they are rather few.
Trading conditions
Trading instruments (cryptocurrencies)
Several coins are available for trading at CEX.IO and the website hosts community votes for adding new assets to the platform. More importantly there are a lot of fiat currencies against which the digital assets are being traded. One can buy or sell BTC, ETH, DASH and ZEC for EUR, USD and GBP. On top of that a BTC/RUB market is added. All of this comes before we even mention the Bitcoin to altcoin markets, which include all of the aforementioned major assets.
Minimum initial deposit
A minimum deposit level is not clearly specified by CEX.IO. This is the norm in the crypto space, but as we mostly cover forex brokers, we are used to seeing companies mentioning this term of their service. Just to give an example, easyMarkets accepts clients after they deposit $100 (though they give much better trading conditions to the ones who deposit over $250).
Leverage
CEX.IO offers 1:3 in leverage. While this may sound like nothing to experienced forex traders, as brokers for the traditional currency markets offer ratios exceeding 1:500, we must note cryptocurrencies tend to be a lot more volatile. If, EUR/USD rarely experiences a daily move more substantial than 1.5-2%, digital assets can lose or gain 5-20% in value, without any major news events occurring. That being said, trading bitcoin on margin can be very risky.
Fees
The fee structure at CEX.IO is very competitive. Market “makers” i.e. traders who place pending orders and provide liquidity to the exchange do not pay any fees. On the other hands the fees for “aggressively” buying or selling at the best possible price (the taker fee) start from 0.20% and go down with higher monthly volumes volume.
As a comparison the forex brokers who offer bitcoin trading usually include all of the trading costs in the spread. While the services are generally very different, we have put them side by side in this post,
Trading platform
Trading at CEX.IO comes via a web-based platform. While this is common occurrence with cryptocurrency exchanges, it comes with its own pros and cons. On one hand it can be accessed from any device, without the need to install any additional software. However the trading activity is limited to a single screen. That being the case, here is a preview of the very basic charting package provided by CEX.IO:
While this isn’t sufficient for any serious technical analysis, the button in the top right corner allows access to the charts provided by TradingView.
On the other hand, the order book looks a lot more functional with a very larger font set up by default. Surprisingly the bids and asks are placed opposite to the traditional way. Here is a screenshot:
Methods of payment
One of CEX.IO’s main advantages is the methods of payments the company provides. The exchange allows clients to transfer funds with Credit/Debit Card, Bank Transfers and all of the cryptocurrencies it supports. While e-wallets, such as Neteller are not supported these options still cover a lot of ground.
CEX.IO Conclusion
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