CEX.IO Review 2019 – Scam or not?
CEX.IO was one of the first Bitcoin trading platforms to appear. It was founded in London in 2013 as a BTC exchange and cloud mining provider. Its mining pool known as Ghash.io was so big it held 42 percent of the total network mining power at some point.
Ghash.io has closed its operations in 2015 and CEX.IO continues to operate solely as a Bitcoin exchange. Users from all around the world can trade on the platform, as the company provides services in 99 percent of the countries and 25 states in the USA.
Verification process on CEX.IO is very simple, and the exchange offers a detailed Verification guide to get the users familiar with the process.
There’s always someone from the support to answer the questions posted below the guide, which is a great alternative to opening tickets.
Requirements for Identity verification are following the industry standards:
- Personal information (name, gender, date of birth, place of birth, address and a phone number)
- Government-issued document (ID card, passport, driver’s license)
- Proof of residency (utility bill with the user’s name and address or a bank statement)
- Selfie with an ID document
The verification process doesn’t take long, and it can take up to 24 hours.
When it comes to trading, there are four different account types on CEX.IO with the following limits:
- Basic – $500 per day and $2000 per month
- Verified – $10,000 per day and $100,000 per month
- Verified Plus – no limits
- Corporate – no limits
What makes the CEX.IO different from the competition is the ability to deposit funds with the payment cards.
Similar to the identity verification, the exchange has a Payment card verification guide with detailed instructions and a how-to video.
When the card is verified, users can deposit or withdraw the money in all supported currencies.
You can see the limitations for deposits and withdrawals here.
The exchange has payment restriction policies for the following countries:
Afghanistan, Democratic Republic of the Congo, Côte d’Ivoire, Eritrea, Ethiopia, Guinea-Bissau, Haiti, Iran, Iraq, Kenya, Liberia, Libya, Guinea, São Tomé and Príncipe, Somalia, Sudan, Syria, Tanzania, Tunisia, Turkey, Vietnam, Yemen, Zimbabwe, Nigeria.
Users from all other countries can use the exchange without any limitations.
The exchange supports the following fiat currencies:
- United States Dollar (USD)
- Euro (EUR)
- Russian Ruble (RUB)
- Great Britain Pound (GBP)
Supported digital currencies include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- *Cloud-based hashing power (GHS)
*CEX.IO offers hashing power for BTC, which is probably related to the former Ghash.io mining.
Fees on CEX.IO
The fee model on CEX.IO is one of the priciest in the market with a 7 percent fee for the direct trading with the exchange.
Their fee schedule for the peer-to-peer trading is based on the maker-taker model following the monthly trading volume in BTC. The maker fee is always 0 percent, while the taker fee is lowered as the monthly volume grows:
- For the volume below 5BTC, 0.20 percent
- For the volume below 30BTC, 0.19 percent
- For the volume below 50BTC, 0.18 percent
- For the volume below 100BTC, 0.17 percent
- For the volume below 200BTC, 0.16 percent
- For the volume below 1000BTC, 0.15 percent
- For the volume below 3000BTC, 0.13 percent
- For the volume below 6000BTC, 0.11 percent
- For the volume above 6000BTC, 0.10 percent
Deposit and withdrawal fees vary between 1.2 and 5 percent of the amount transferred. You can see the complete fee schedule here.
When it comes to margin trading fees, they are fixed at 0.2 percent open fee, 0.01 percent rollover fee and 0 percent close fee for all currencies.
Trading on CEX.IO
CEX.IO has a nice trading interface and offers the following orders:
- Market order
- Limit order
- Stop order
The trading on the exchange involves around 400,000 traders per month. Large trading volume gives users plenty of opportunity to buy, sell and trade, compared to the exchanges with smaller volume. The CEX.IO API is great, and it gives users control over their accounts by using custom software geared to meet their needs. The exchange doesn’t support trading with derivates and futures, but it does offer margin trading in a number of trading pairs.
Currently offered pairs are:
The margin trading is possible with 1:2 and 1:3 leverage.
Ease of Use
The website looks good, and all relevant info is always just one click away. Trading interface is easy to use, and generally the entire platform is very user-friendly. The page load speed is excellent as well.
The exchange also has mobile apps for both Android and iOS, which are available for download here.
Customer Support on CEX.IO
This company can be proud of their support team. They answer quickly, with detailed information and you can find them everywhere – on the platform and outside it.
The support team even addressed the complaints on the review websites such as TrustPilot, showing that the company cares about the clients and, of course, its reputation.
A small downside comes in a form of the canned responses, but even when this is the case, the response is detailed and provides all the information required by the user.
The majority of complaints online is related to the hidden fees and high exchange rates. CEX.IO really struggles with the online reviews and has somewhat bad reputation only due to the problem with the fees. Everything else works like a charm, but users are quick to judge, which could cost the company in the long run.
The security seems good on the exchange. Two-factor authentication and a security question are used for account protection.
The majority of coins is stored in the cold wallet. The exchange also offers SMS and email alerts. PGP encryption isn’t used in emails.
The latest hacking incident happened in 2013 when the exchange was young, and it ended with a loss of $7,000 for one of the users. The vulnerability was immediately patched, and since then there were no problems.
CEX Review Conclusion
CEX.IO is on the market since quite a while and has a pretty high trading volume. Many bad reviews about the company and our own bad experiences are a warning signal for all users though.
- High trading volume
- Offers margin trading
- Supports Wire Transfer and Credit Cards
- Premium on prices
- Verification process is a bit demanding
The exchange definitely could do better, their prices are about 10% above many other exchanges and the number of complaints from users is growing daily.