Since Bitmex and Binance are two well-known exchanges that serve distinct markets and have different goals, almost no one was interested in comparing them before. BitMex dominated over margin trading exchanges whilst Binance primarily concentrated on spot trading.
When Binance entered the margin trading, leveraging, and lending industries in 2019, this all changed. Suddenly, it became important to determine which platform to use: Binance or BitMex, so we decided to examine both under a magnifying glass to find out which was better. It becomes a fierce competition immediately, with difficulty in determining a winner.
Now, let’s find out the details with Betomon.
BitMex vs Binance: General Info
Bitcoin Mercantile Exchange, or BitMEX, owned by HDR Global Trading Limited, was founded in 2014 by three experts in the market: Arthur Hayes, Samuel Reed, and Ben Delo. Based in the Republic of Seychelles, the company provides professional, seasoned Bitcoin traders with a margin-trading service. A total of $26.5 billion, more than a fourth of the whole bitcoin market capitalization, has been transacted by investors after that.
Users can leverage up to 100x for Bitcoin, 50x for Ethereum, and 33.3x for Litecoin. Besides, a variety of altcoins are available for both spot and futures markets.
Binance, one of the biggest and most well-known cryptocurrency exchanges, was founded in China before moving its main office to Malta island in the EU, which is regarded as a crypto-friendly Island. Binance is well-known for providing cryptocurrency trading services. In July 2017, the firm held an initial coin offering (ICO) and raised around $15 million. As part of the raise, it promptly attracted 20,000 registered users.
BitMex vs Binance: Fees
BitMex offers extremely competitive fees, which most customers will find small in comparison to the substantial profits that may be earned if you are an experienced trader. The costs for Perpetual Swaps (and other futures) currently are 0.025% for market makers and 0.075% for market takers, thus the marker receives a little rebate on trades. For more information about BitMex trading costs, follow this page.
Trading fees on Binance are normally 0.1%, but if you use the native Binance token, BNB, you can reduce those fees significantly, they are currently 25% lower if you choose to pay fees in BNB rather than the coin you are purchasing.
| Type | Fee |
| Standard trading fee | 0.1% |
| Credit card purchase | The higher of either 3.5% or US$10 |
Trading fee discounts
| Type of discounts | Meaning | Amount of discount |
| BNB discounts | A discount when paying trading fees via BNB coin. | 25% |
| Tiered trading fee discounts | A reduction for holding different amounts of BNB in your account while meeting trade volume requirements. | Reduces base trading fees to as low as a 0.02% maker fee and a 0.04% taker fee. |
The detailed tabular summary of Binance’s fee structure is provided below:
| Level | 30d Trade Volume (BTC) | & | BNB Balance | Maker / Taker | Maker/TakerBNB 25% off |
Maker/TakerBNB x Referral 25% off x Kickback 20% |
| VIP 0 | < 50 BTC | or | ≥ 0 BNB | 0.1000% / 0.1000% | 0.0750% / 0.0750% | 0.0600% / 0.0600% |
| VIP 1 | ≥ 50 BTC | & | ≥ 50 BNB | 0.0900% / 0.1000% | 0.0675% / 0.0750% | 0.0540% / 0.0600% |
| VIP 2 | ≥ 500 BTC | & | ≥ 200 BNB | 0.0800% / 0.1000% | 0.0600% / 0.0750% | 0.0480% / 0.0600% |
| VIP 3 | ≥ 1500 BTC | & | ≥ 500 BNB | 0.0700% / 0.1000% | 0.0525% / 0.0750% | 0.0420% / 0.0600% |
| VIP 4 | ≥ 4500 BTC | & | ≥ 1000 BNB | 0.0700% / 0.0900% | 0.0525% / 0.0675% | 0.0420% / 0.0540% |
| VIP 5 | ≥ 10000 BTC | & | ≥ 2000 BNB | 0.0600% / 0.0800% | 0.0450% / 0.0600% | 0.0360% / 0.0480% |
| VIP 6 | ≥ 20000 BTC | & | ≥ 3500 BNB | 0.0500% / 0.0700% | 0.0375% / 0.0525% | 0.0300% / 0.0420% |
| VIP 7 | ≥ 40000 BTC | & | ≥ 6000 BNB | 0.0400% / 0.0600% | 0.0300% / 0.0450% | 0.0240% / 0.0360% |
| VIP 8 | ≥ 80000 BTC | & | ≥ 9000 BNB | 0.0300% / 0.0500% | 0.0225% / 0.0375% | 0.0180% / 0.0300% |
| VIP 9 | ≥ 150000 BTC | & | ≥ 11000 BNB | 0.0200% / 0.0400% | 0.0150% / 0.0300% | 0.0120% / 0.0240% |
Binance vs BitMex: Purchasing limits
On Bitmex, there are no restrictions on deposits or withdrawals. It has no limitations.
Last year, Binance Jersey, the subsidiary firm of Binance, provided a method to buy cryptocurrency using fiat. To carry out these orders, they employ a service known as Simplex. Simplex charges a fixed cost of 3.5 percent of transactions with a minimum of $10. Each user has a daily maximum of $20,000 and a monthly maximum of $50,000.
Nonetheless, there are no purchase limits for crypto-to-crypto transactions. There is a withdrawal restriction of 2 BTC for unconfirmed accounts, it will be canceled once you complete the KYC procedure.
Deposit and withdrawal methods
Since BitMex is a cryptocurrency-only exchange, bitcoin is the currency accepted for both deposits and withdrawals. In addition, it’s really nice as deposits and withdrawals are always free. Apart from the Bitcoin network fees, there shouldn’t be any further expenses once you finish trading.
On Binance, you may make deposits using any of the more than 150 supported coins since its main platform is crypto. The same applies to withdrawals; you just need the address on the blockchain of the coin you want to withdraw.
Supported countries
BitMex is a registered corporation in the Republic of Seychelles, yet its services are available globally. The exchange does not place access restrictions on any places because the website is cryptocurrency-based. However, the use of the service may be impacted by local regulations, and the company has no control over this.
Although Binance does not list which nations are supported and which are not, there have been a few instances of surprise bans for traders from different countries worldwide. Regarding US traders, Binance created a distinctive platform called Binance US for them and restricted them from using the company’s main platform.
Supported coins
BitMEX supports some cryptocurrencies as follows:
- Bitcoin (XBT)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Ripple Token (XRP)
- Monero (XMR)
- Dash (DASH)
- Zcash (ZEC)
- Cardano (ADA)
- Tron (TRX)
- EOS Token (EOS)
Note: The symbol for Bitcoin on the BitMEX market is XBT. (The widely used ticker name “BTC” violates ISO 4217, which means it is not aligned with Bhutan’s currency. Bitmex chose to use the XBT ticker instead.
In terms of supported cryptocurrency, Binance offers one of the widest selections. At this time, there are more than 150 coins, and the number is still increasing every week.
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Customer Service
Overall, BitMex’s customer service seems to be the most qualified in the industry. Their staffs are polite, courteous, and have good English communication skills, they try to take care of the growing market and relieve their customer service staff.
Support can be requested by email ticket, they also respond to the post on social media. Additionally, the exchange boasts an excellent website with plenty of helpful tools and information. They provide a source of information that provides a concise overview of the exchange and aids in educating consumers on complicated transactions.
When compared to other exchanges, Binance’s customer service is also excellent. Particularly, Binance offers customer service in 7 different languages!
Although Binance does not currently offer a phone number for help, you may still submit requests through their customer service area. The typical turnaround time is roughly 24 hours. You can also use their live chat support option during the restricted operating hours. In addition, their FAQ section is extremely detailed, if you read it carefully, you might not even need to get in touch with Binance support.
Trust and reputation
BitMEX is currently unregulated in any country, and the only security method users have is their reputation within the community. Because their team is well-known and active on social media, people are aware of who has to be inspected in case of a scam. However, the lack of government regulation brings a significant risk, particularly for anyone planning to margin trade large quantities of cryptocurrency.
Within a short period of operation, Binance has established a reputation very quickly, surpassing competitors to become one of the largest cryptocurrency exchanges globally in terms of trading volume. Even though it is currently unregulated by any major finance authority (apart from alleged control by Malta finance authorities), Binance has a strong reputation in the field of crypto due to its charismatic CEO CZ and his excellent communication and community management abilities.
Security
BitMEX is well-known for its high security standards. The exchange features multi-signature deposit and withdrawal systems that are exclusively available to BitMEX partners. In addition to hardware tokens and two-factor authentication, BitMEX uses Amazon Web Services to secure the servers via SMS messaging.
They provide notifications via email, and all communication is encrypted with PGP. To reduce the potential risk of hacking, all withdrawals are carefully reviewed by staff members and are only processed once a day (funds are stored in cold storage).
Binance announces that it has met ISO (International Organization for Standardization) information security requirements and received an accreditation. Throughout the examinations, Binance was assessed on 114 criteria across 14 categories, such as information systems, asset management, operational security, and security policy.
Up to 60,000 customers’ KYC verification data appeared to have been leaked by Binance, though at the time it was pointed to a third-party service provider. They also lost $40 million in money because of a hack in May 2019. Nevertheless, they created a different fund only for those kinds of situations, and they used this fund to reimburse every user quickly.
BitMex vs Binance: Margin trading
Margin trading is available for any cryptocurrency listed on Bitmex’s website. Additionally, it allows trading in futures and derivatives, swaps. Users on BitMEX can leverage up to 100x for certain contracts. Additionally, BitMEX provides Binary series contracts, which are prediction-based agreements with a settlement value of 0 or 100. Bitmex Margin Trading comes in two different forms: Isolated and Cross-Margin. With the former, the user may decide how much money from their wallet will be utilized to hold their position once an order has been placed. The latter, however, should be handled extremely cautiously as it implies that users can utilize all of the money in their wallet to maintain their position.
One of the most recent additions to Binance’s platform is margin trading. You will be able to utilize BNB coins as collateral for loans after you transfer them from your regular exchange wallet to your Margin Wallet. The amount of money you may borrow is determined by your Margin Wallet balance at an established rate of 5:1 (5x). 1 Bitcoin may therefore be used to borrow 4 more.
Depending on your account level and the type of currency you borrowed, there are different interest fees associated with it. At 0.0075%, Bitcoin has the lowest daily interest rate, followed by 0.01% for ETH and 0.02% for XRP.
Benefits and Drawbacks
-BitMex Pros:
- Low fees
- Futures and derivates trading
- Many advanced features available
- Excellent trading platform
- Maximum leverage of 1:100
BitMex Cons
- Difficult for beginner traders
- No fiat deposits / withdrawals available
Binance Pros
- Easy to Use
- Low Fees
- Excellent Customer Support
- Lots of Listings
- Good Trading Interface
Binance Cons
- Doesn’t offer phone Support
BitMex vs Binance: Conclusion
BitMex and Binance: Who will win this battle?
- In terms of fees: Since BitMex does not allow spot trading, we are only able to compare fees in the margin trading section. BitMex wins the first race in this category as it is less expensive.
- Supported currencies: Binance, obviously.
- Regulatory compliance and licensing: Since neither is transparent and regulated, this is a drawback for both.
- Customer service: It’s a tie since all are about the same quality and efficiency.
- Security: Another close call, but Binance still has a little win in this area since they handled their hack attack so user-friendly, they reimbursed the lost money out of their pocket.
- Trading features: In this case, Binance benefits since its platform offers a wider range of services, whereas BitMex is exclusively focused on one service: leveraged trading.
- Overall reputation: Another tie since both have a respectable reputation in the cryptocurrency industry despite sporadic complaints from users. Nonetheless, the founders of the two exchanges are controversial in the larger cryptocurrency community since they are both brass and charismatic, which irritates some people.
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