- Country: Hong Kong
- Regulation: no
- Markets: cryptocurrencies and their futures
- Commissions: 0.20%
- Leverage: up to 20: 1 in futures
What is Okex?
Okex is a cryptocurrency exchange house that has risen like foam in recent years, until reaching 2018 as the second-largest volume exchange house in the world in that market, making Okex one of the main players in the cyclo cryptocurrency.
This Hong Kong-based exchange house was created in 2014 and today it has clients in more than 100 countries with more than a billion dollars a day traded in Bitcoin.
Like the other exchange houses in the sector, it is not yet a company regulated by the main financial organizations such as the NFA, the FCA or the like, which may change in the coming years with the future new regulations that by sure are to come.
Okex would become the international subsidiary for cryptocurrency trading of OKCoin, a house more focused on the regular sale and purchase of them and more focused on the Asian market.
Another important difference between the two is that in OKex we cannot deposit with fiat currencies and in Okcoin yes.
Okex offers trading both between fiat currencies and tokens as well as between them, in a modality, the latter which is gaining more and more popularity in the markets.
Invest in the world’s leading social trading platform
Another way to trade that Okex offers is through Bitcoin futures, so we can even have different operations and subaccounts in this exchange house.
Regarding customer service, we see that you can contact in several ways: email (email@example.com), Telegram or even chat on their website.
Okex OKB Token
Okex has also launched its own token called OKB, with which a large number of advantages can be obtained by using the services of this exchanging house.
One billion of these tokens are available on the market, with a destination of 60% for Okex users.
Among the applications of this token we have:
- Happy Friday – OKBOSS: this is a kind of rebate service with which OKB holders will be rewarded with distributions of up to 50% of the service commissions that have been made during the week
- OKB trading: apparently these investors can enjoy transactions without commissions.
- Benefits for organizations using OKB
- Voting system: investors in OKB can vote projects based on the OKEx platform
- Global Asset System: OKB will act as a base token to allow the world’s blockchain teams to participate in building the global exchange
- And even more.
Open account with Okex
In order to make deposits and withdrawals with Okex we will have to first open an account, for which we will have to register and after receiving the security code in our email, proceed with the activation, for which we will have 30 seconds of time that they give us for the code.
As with the other exchange houses we will have several levels of verification.
In this case we will have only 3 with which we can upload security and functionalities.
Level 1 will allow us to access the majority of functionalities that we will need in this exchange house. In other words, we will be able to trade tokens, fiat, futures, and only with 2,000 Chinese Yuan of limit per order.
At level 2 we will be able to use more options to negotiate, and the transaction limit of 200,000 yuan.
Level three gives us full access to all the functionalities of the system and will allow us to trade up to 500,000 yuan per transaction.
Obviously, raising levels implies greater requirements and security contribution by both parties.
Once we have registered in it we will have to deposit money that in this case can only be done in the form of cryptocurrencies.
Leverage with Okex
In its futures section it allows us to leverage up to 10 or 20 times with Bitcoin or Litecoin, which in this sense gives it leadership as the broker that allows the most leverage in it.
This is something that supposedly shouldn’t affect ESMA regulation in Europe that should only touch CFDs trading.
Is Okex a scam?
To this day it seems one of the safest exchange houses on the market.
This is one of the issues on which Okex has placed special emphasis.
Among other things:
- It only allows a limited amount of Bitcoins to be stored in the cold wallet, more vulnerable than the others.
- There is extreme vigilance of the external backup.
- According to your system, your private keys have not had contact with USBs or the internet
- Double value security data is held by different people.
This does not mean that this house is infallible since no cryptocurrency house is, and less in today’s world, so heavily pirated on the network.
However, we are facing a house of exchange that puts all the effort into making transactions with digital currencies as safe as possible.
As for the fact of regulation, it is not something that should worry us excessively, and we should think more about the reputation of the broker or house in question.
Surely in the coming years we will see an increase in the regularization of this sector.
Trading and buying cryptocurrencies with Okex
Perhaps, the best feature of this exchange house is that it allows the operation between different cryptocurrencies without charging commissions, as if you have to pay in the typical BTCUSD pairs for example.
However, here you have to be aware of whether we are actually trading against market dealers, just as we do in typical Forex market makers who say that they do not charge commissions but actually charge us the spread .
Futures trading with Okex
Futures trading is the option that makes this broker a particularly interesting choice because in this case it is the pioneer.
Furthermore, futures trading with Okex allows the use of algorithmic possibilities in the form of advanced trading orders.
It also stands out for allowing hedging with the positions we have in the portfolio in the different cryptocurrencies, due to the fact of belonging to a different subaccount that does not place limitations on our current currency portfolio.
Index trading with Okex
This is another new concept in the crypto world, with the inclusion of cryptocurrency indices from different exchange houses such as Bitfinex , Kraken or Coinbase.
Under this system, experienced traders can perform arbitrage strategies to take advantage of market inefficiencies.
For example, the number of digital assets you transfer to Index Trading should be the same as the ones you post to your account later.
With this Index trading we are not going to have the tokens we buy but only trade them.
Commissions with Okex
This exchange house has slightly cheaper commissions than the competition, with 0.2% for sale or purchase.
In the case of withdrawals, they will charge us 0.1% with a minimum of 15 USD.
Okex review and summary
About Okex we can find quite a few opinions in the market despite being a fairly recent company, which is normal in the case of one of the great players in the cryptocurrency world today.
Some of the views had to do with having issues with cryptocurrency deposits and withdrawals, but seriously, this is something that seems to be common in this wild west of digital assets, a world at high risk no doubt.
For example, a few months ago it was reported that $ 3 million in Okex wallets were hacked. Another new story of the thousand that is in this wild market of cryptocurrencies, which does not escape any of the exchange houses that we have known so far.
In this case Okex has not disappointed and continues on the line.
Of course I have to admit that independent of the eternal complaints of the clients with the typical matters of withdrawals and others, this exchange house has some quite interesting features.
To begin with, the futures trading it offers, with a leverage of 10 to 20: 1, something that is unheard of in this world of cryptocurrencies and that to my liking seems excessive, given the spreads we find and the general conditions of trading.
Interestingly, ESMA can prevent its European citizens from trading with leverages above 2: 1 on their CFD brokers but it cannot prevent a German citizen from opening an account at Okex, and trading crypto futures with 20: 1. As you can see, the regulations become useless with this.
Returning to the topic of futures, I think that despite the novelty and the potential, it would be necessary to wait a little to see how they evolve because we also have no guarantees that we are trading in a non-OTC market, such as the New CME York, for example.
That is, if we are trading futures, we should have an official exchange, because if not, we do not know well where we are trading and futures are characterized by being a centralized market, unlike cryptocurrencies that are decentralized.
However, despite this incision, it seems that so far, the futures trading of Bitcoins in Okes is being very successful, to the point that its price is a reference in the spot markets. It will be necessary to be attentive to this market indeed.
Another interesting topic of this exchange house is the fact of offering another novel product such as Index Trading that allows a kind of arbitrage market between dealers and other traders, but that was not very clear to me. In this case I say the same as in the previous one, that we should wait a bit to see how the service evolves, or study it well to see if it offers any advantage when it comes to operating.
As for the trading itself, the platform is not the best on the market but being PC-type it offers more robustness than typical web browsers.
On the other hand, trading fees are fine, at 0.20%, below 0.25% from other houses.
Another point of interest is the fact of offering free commissions to those who trade digital currencies among themselves such as LTCBTC, which will surely encourage a large number of participants to trade in this format.
But as in the previous cases of futures and Index Trading, I recommend caution because the fact of not paying commissions does not guarantee that the trading conditions that we are going to have are going to be better than those that we can have in the typical BTCUSD, since the Differences in the spread can be so great that all the supposed advantages of “free” or “no commissions” are ahead of us.
As always, before trading, take a good look at how the spread behaves and see if it is really worth trading in that way.
As for the issues of the account itself, it should be noted that registration is quite fast, improving on other competitors.
On that side comes a rather strong weak point, which is the fact of only accepting digital currencies as valid means of income, which is an obstacle for many traders and investors who currently only have fiat currencies.
In short, it seems that Okex has a lot of potential, and its second place in the world’s exchange houses seems to show that it is already underway.
However, its newer services such as Index Trading or futures trading should be carefully studied before using them.
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