In this review of PrimeXBT we will assess the platform based on 4 key criteria which are essential to any trading platform. Safety, Security, and Regulation, Trading Fees, Markets, and Standout Features. Following these we will have a guide on using the platform followed by our conclusion and score rating.
- Safety, Security and Regulation
- Fee Schedule and Margin Requirements.
- The Standout Features
- Conclusion and Rating
PrimeXBT was first founded in 2018 and launched in 2019. The platform operates under 2 separate companies from 2 distinct countries. ‘PrimeXBT Trading Services’ based out of Seychelles, and ‘Prime Technologies’ based out of St. Vincent and Grenadines. Currently PrimeXBT has over 40 employees.
PrimeXBT is not your typical cryptocurrency exchange so to speak. Its platform is based around contracts for difference. Typically shortened to CFD’s. A CFD based market is fundamentally different to the markets you might see elsewhere in the cryptocurrency space. When you trade a CFD you are not directly buying or selling an asset you are just betting on the price to go up or down. Earning or losing money based on changes in price.
Differing from other platforms on PrimeXBT your orders are not being filled by other users on the other side of your trade but rather liquidity providers on the backend. PrimeXBT does this through STP Brokers.
Safety, Security, and Regulation of PrimeXBT
PrimeXBT has industry standard support for Google 2 factor authentication (2FA). 2FA enables users to have their account protected should their password and email be compromised.
Additionally users can use Bitcoin address whitelisting. This means that withdrawals made can only be to pre-approved addresses. This ensures that should someones account be compromised the Bitcoin deposited can not be stolen.
Unfortunately the platform does not have support for I.P whitelisting at the time of writing. However the use of Bitcoin whitelisting makes up for this short coming.
PrimeXBT also keeps I.P logs from logins as well as email notifications when a login is detected. If you notice suspicious activity on your account you can email support to have them lock your account.
Like many other platforms PrimeXBT reports to use Multisignature cold wallet storage on the server-side. If implemented correctly it means that should their infrastructure be compromised hackers will still not have access to customer funds.
PrimeXBT has a secure SSL (https) certificate which is verified by Cloudflare. SSL encrypts website traffic preventing MITM attacks and secures customer information.
Passwords and all other data is securely stored and encrypted using bcrypt.
They also use Cloudflare DDoS protection which mitigates the risk of potential downtime.
KYC and AML
Something universal that seemingly everyone in the cryptocurrency space hates is KYC and AML regulation. Nobody wants to send pictures of their passport off to be reviewed so they can either withdraw their Bitcoin or simply begin trading.
Thankfully PrimeXBT is one of those platforms that enables users to freely deposit and withdraw Bitcoin without the need for background checks.
Certain governments have been introducing more strict regulation in regards to KYC and AML laws creating a lot of uncertainty in the space. We will address regulation in more detail in the next section. But for now PrimeXBT is KYC free. However, citizens of the US and other countries are currently prohibited from using the platform.
As previously mentioned PrimeXBT is regulated in Seychelles and St. Vincent and Grenadines. Someone new to crypto might be anxious about this but in Crypto this is rather common. The largest derivatives exchange in crypto BitMEX is also regulated out of Seychelles.
Unfortunately due to the strict regulations in western countries exchanges have been forced to these countries in order to remain competitive. There is still a large amount of uncertainty when it comes to the majority of these cryptocurrency exchanges. PrimeXBT included.
What however is especially concerning is the unique nature of PrimeXBT. PrimeXBT is a CFD based platoform and so allows the trading of non-crypto based assets with Bitcoin. This can be incredibly problematic.
Back in 2018 a similar type of Bitcoin based CFD platform named 1Broker was sued by two American governmental bodies. The Securities and Exchange Commission (SEC), and the Commodity and Futures Trade Commission (CFTC). The 1Broker domain name was also seized by the FBI and replaced with the below splash page.
Despite 1Broker not being regulated in the US the platform was still seized by US authorities and the CEO sued. 1Broker was different in a sense because they had markets for individual US equity’s. Such as Apple, Microsoft and Boeing. While PrimeXBT does not currently have markets for individual US equities it does have markets for the 2 main US stock indices. the S&P500, the DJIA and the NASDAQ.
All of the customers of 1Broker did their money back fairly quickly. Many on the same day of the domain being seized. The court case was settled but 1Broker as a platform no longer exists.
These regulatory uncertainties are just something everyone signing up to the exchange should be wary of.
PrimeXBT Fee Schedule and Margin Requirements.
The trading fee schedule for PrimeXBT is divided into three asset categories Cryptocurrencies, Indices and Commodities, and FOREX. All assets have both a flat trading fee as well as an overnight financing fee. The trading fee is charged as the name implies when you open or close a trade. While the overnight financing fee is the cost of borrowing a contract overnight due to margin.
The full list of fees, trading limits, and margin requirements can be found here. Below is a table of the fee charged per asset class.
|Asset||Flat Trading Fee||Overnight Financing|
These fees exclude any volume incentives for trading. If you trade less than 300BTC in volume a month you will pay the fees listed above. Trade between 300BTC and 600BTC a month and you will receive a 25% fee discount. And trading over 600BTC a month will gain you a 50% discount.
Maximum and Minimum Trading Limits
Trading limits are restrictions on either the minimum or maximum size of a position you can take. They differ depending on the The restrictions are made by PrimeXBT’s risk management department.
Commodities and Indices
The minimum deposit accepted on PrimeXBT is 0.0001BTC, with the withdrawal fee being 0.0005BTC on top of network fees.
PrimeXBT in Comparison to the Competition
The flat fees for trading cryptocurrency on PrimeXBT are the same on average as the industry leaders BitMEX. But are slightly higher than another top exchange FTX.
The Fees for FOREX and commodity trading are largely in line with industry averages.
However it is important to note that PrimeXBT and its liquidity providers are making money on the spread (difference between the ask and buy side) of your trades on top of trade fees. This is not something which has a fixed fee and is typically pretty small. But again keep it in mind that the buy and sell price you are quoted on the platform may be higher/lower than the actual market price.
Markets Available on PrimeXBT
We have already discussed markets somewhat but in this section we will go into slightly more depth on the current and potential future trading pairs PrimeXBT may offer.
PrimeXBT being a Bitcoin based exchange it makes sense that they would offer a decent variety of cryptocurrency markets.
Currently there are 5 cryptocurrencies available to trade on the platform. Bitcoin, Ethereum, XRP, Litecoin, and EOS. Essentially your top 5 major coins. For each altcoin there is both a Bitcoin pairing (ALT/BTC) and a USD pairing (ALT/USD). Bringing the total number of cryptocurrency markets to 9.
Commodities and Indices
Using the indices you can get exposure to the majority of global equity markets. The most popular ones being the American DOW, S&P500, and the NASDAQ. Indexes from further afield can also be found. The UK100 for the United Kingdom, French, Spanish, and German indices as well as the EUR50 which takes an index for the entirety of the EU. There is also indexes for both Australian and a variety of Asian markets.
Commodities markets include have your standard Brent and Crude oil markets and natural gas. Gold and Silver markets are also available however they are subject to fees associated with FOREX trading rather than commodities.
FOREX markets are by far the most abundant. Traders can choose from a variety of crosses. AUD, CAD, CHF, EUR, GBP, NZD, and USD can all be traded against each other as well as other minor currencies.
The Standout Features of PrimeXBT
What perhaps separates PrimeXBT most from the competition is the vast array of innovative features available on the platform.
Trading Traditional Markets with Bitcoin
We have already implicitly discussed this in the article but it is worth mentioning. I can count on one hand the amount of platforms in the cryptocurrency space that allow you to trade traditional financial markets with Bitcoin. It can be quite a headache for certain traders to try and manage risk and exposure for both crypto and traditional financial market portfolios. PrimeXBT makes this vastly easier.
PrimeXBT allows up to 100x leverage on cryptocurrency trading and up to 1000x leverage on FOREX markets. Although we strongly advise against using these insane amounts of leverage some traders find a lot of utility in it. Using margin can reduce counter party risk. One example of this being that if you think Bitcoin is going to go down and want to hedge half of your Bitcoin position against the drop in price you don’t need to deposit all of your Bitcoin to do this. Simply deposit a smaller amount and use leverage to increase it to the total amount you want to hedge.
PrimeXBT has mobile apps for both Android and Apple devices which can be a nice compliment to the web client for monitoring or making trades on the go.
Turbo is PrimeXBT’s take on binary options. Binary options are financial asset in which the payoff is either some fixed monetary amount or nothing at all.
The way it works on PrimeXBT is that traders can trade on either a 30 second, 1, or 5 minute time period. Betting that the price of the asset will either be higher or lower on their chosen asset at the end of the allotted time.
The potential profit is predetermined and highlighted in the sidebar. If I bet 0.01BTC that price will be higher in 30 seconds than it is now I will gain 73%. (this is highlighted in the image above) But if price is lower I will lose all of my 0.01BTC. The nature of these products makes them incredibly risky and you can burn through a lot of capital incredibly quickly.
The European Securities and Markets Authority went as far as banning the marketing and advertising of these type of financial instruments. This again raises the question of regulatory uncertainty.
Credit Card Deposits
PrimeXBT also has support for credit card deposits so you can buy Bitcoin directly through the platform through Changelly.
Some credit card companies especially in the US have blocked cryptocurrency purchases through credit card and it may effect your credit rating so keep that in mind.
Back in 2019 PrimeXBT partnered with Covesting. Covesting is a platform which enables people to invest in funds created by other traders. The funds deposited can then be traded by the fund manager in the hopes of making a return which will then in turn net a return for depositors as well.
Obviously the fund can make a loss as well losing money for the fund manager and depositors. Depositors are thus encouraged to do some research on fund managers before investing their Bitcoin. What helps with this is the data provided within the platform on the funds previous performance, total capital invested, total amount of investors among other information.
It is important to state that depositors can withdraw their money at any time. The fund manager can also not just run off with your funds as they are held in escrow seperate from the fund manager.
If you think you are capable trader than you can set up your own fund and manage other users fund. Earning from your own funds but also from commission of your depositors.
Covesting is not yet active on PrimeXBT however it is expected to be launched very shortly.
A Guide to Using PrimeXBT
Trading on PrimeXBT is very similar to trading on other platforms. We will run through the process here.
1) Depositing Bitcoin
To trade you obviously need some money to trade with. You can do this simply by heading to your Account tab on PrimeXBT and then clicking the Deposit tab. You will then be presented with a QR code as well as a Bitcoin wallet address. Simply send Bitcoin to that address,
As we have already mentioned you can buy Bitcoin through Changelly and it will automatically be deposited in your account.
Once the funds have arrived in your wallet you will want to navigate to your Account Summary tab and click Fund trading account. This will enable the Bitcoin you have just deposited to be tradeable on the various markets PrimeXBT offers.
Once your Bitcoin deposited has sucessfully gone through you’re good to go to start trading.
To get started you will want to navigate to the Trade tab. Once you have done so you will be presented with the following page. On the left of the page the is entire selection of tradeable markets. On the right you have a price chart, and on the bottom we have widgets for open orders and positions.
Scroll through the markets on the left and once have decided on one click on it. This will bring up the price chart for the asset you have chosen. You can then conduct any analysis you want using the tools provided within the chart. In the below example we took the Crude oil market, added some horizontal supports and a Bollinger Band.
3) Opening and Closing Orders
Now that you selected your chosen market and maybe have conducted some basic analysis its time to open a trade.
To open an order you will want to navigate back to your list of tradeable markets and click the Trade button for your chosen market, as shown below.
Once you do that you will be presented with the following order tab. From this tab you can place any type of order you want. A market order is the default order type. This type of order immediately buys or sells at the current market price. If you click the order type dropdown you will be presented with limit orders, stop orders, and OCO orders.
Limit orders will execute at a specified price and only at that price. they do not gurantee your orders will be filled however they do gurantee what price they will be filled at.
Stop orders will execute a market order immediately once price reaches a specified price. These have the benefit of guranteeing your order will be filled but not the price.
Finally there is OCO (One cancels the other) orders. These allow you to place 2 orders at the exact same time but once one of the orders is filled the other will be cancelled. These can be useful for range trading.
The margin impact represents the amount of margin required to open the position. If the margin impact is higher than the total available margin in your account your order will be refused.
Once your order sucessfully gone through you will be able to view it in the Orders menu. From here you can cancel your order or modify. If your position is filled you will be able to view it in the Positions menu. From here you will be able to view your fill price, order size, and profit/loss. You can also close your position from here. You can alternatively close your positon using the same menu we just used.
4) Withdrawing Funds
If you wish to withdraw funds you can navigate back to your account tab and click withdraw. You can then select the amount you wish to withdraw as well as the wallet address you are sending the Bitcoin to. You will then recieve an email to confirm your withdrawal.
Withdrawals are only processed once a day for security reasons at between 12:00UTC and 14:00UTC.
PrimeXBT in Conclusion
PrimeXBT definitely shows signs of promise. They stand out by the sheer amount of interesting trinkets and features they have. From the soon to be released Covesting tab to the mobile apps.
The ability to dip into traditional financial markets with Bitcoin would make an incredible exchange in itself.
However, no exchange is without its faults and PrimeXBT is in the unfortunate situation where its not even in their own power to fix them. The fault I am talking about is the regulatory uncertainty.
One might make the arguement that all cryptocurrency exchanges have and still are shrouded in regulatory uncertainty and that PrimeXBT is just like the rest of these top exchanges. That is a fair point but the nature of PrimeXBT’s platform makes it especially exposed to these risks.
The mixing of cryptocurrency and traditional finance is something that we have demonstrated in this article regulators hate. Our example being 1Broker. the SEC and CFTC let 1Broker reach a certain level of popularity before they acted swiftly and aggressively to make sure the platform never operated again.
As I have mentioned already in the review everyone from 1Broker got their Bitcoin back quickly. But the regulatory uncertainty is just something I would keep in mind before depositing vast sums of money.