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BaseFEX is a relatively new exchange in the crpytosphere, but is an up and coming alternative to the top exchanges.

BaseFEX offers up to 100x leverage on BTC contracts, low fees, no KYC, and solid security. Moreover, you can trade contracts on the top ALT coins: ETH, LTC, BCH, BNB, XRP, DASH, ETC, ZEC, and EOS.

UPDATE NOV 2020: As of this time BaseFEX is no longer offering trading on any ALT coins. There are only two pairs: BTC/USD and BTC/USDT.

Overview

Just like Bitmex, BaseFEX is registered in the Seychelles, but the company has their team office in Hong Kong. Started in 2018, BaseFEX is a relative new comer, but don’t let that deter you from trying it out. As an alternative to Bitmex it’s definitely worth a try. The exchange has the goal to become the number one leveraged BTC trading platform in the world. Let’s have a look at how they might do this. Overall, the exchange layout and interface is easy to use and intuitive. Furthermore, it runs very smoothly and isn’t bloated. At the moment they only offer perpetual contracts, but this might change in the future.

Pros:

1. Low Trading Fees:

Of course everyone is a big fan of low fees, you can trade more and pay less. How do their fees stack up?

These fees are actually pretty similar to exchanges like Bitmex, but one thing they do offer is; if you trade more, you pay less. The funding fees sometimes work in your favor, and you can gain “funding” from holding a perpetual contract open.
PRO TIP: You can pay lower fees buy using “limit” orders and also using “post only” which will give you a marker rebate.

2. Live Support 24/7:

When you have an issue or a question you’ll be able to quickly and easily get in touch with their customer service team. They are professional, knowledgable and respond quickly. Approved.

3. Security:

According to their site they are “Rated A+ in Mozillas Observatory test only 4 out of 400 exchanges achieved this rating”. They also store all of their coins in cold storage for added security.

4. Stablecoin Settlement:

This is a pretty awesome feature, that you wont find elsewhere. “If you choose you can settle your funds in USDT, so once your trade is complete you don’t need to worry about market volatility”. This is a welcomed addition, although you can accomplish the same thing by “hedging” your account balance in a 1x short.

5. Fast and Simple Interface

Using BaseFEX is fairly straightforward, easy to understand, and not resource intensive. The layout is very logical, works well, and operates smoothly without causing your computer to use up all it’s CPU resources.

6. No Hassle Sign up

Literally all you need to sign up is an e-mail. After you’ve picked a nickname, deposit some BTC, or USDT and you’re ready to go.

Cons:

1. Liquidity:

The liquidity is adequate for most traders, and you won’t have an issue buying and selling your contracts. Although if you’re considering trading large amounts of contracts (over 250,000 USD) then you’ll likely start “walking” the order book on BaseFEX, and it would be advised to trade on Bitmex with such large amounts.

Update as of November 2020

The order book has improved a lot since the last time we had a look at it. Furthermore, the platform runs very smoothly, without putting excessive strain on your computer and causing the fan to start to whizz like crazy.

2. Insurance Funds and Auto Divergence Liquidations

We’ve come back this November(2020), to test the platform again. One thing we noticed is that the insurance fund, a fund used to cover liquidations in case of the market moving very quickly, may be a bit undersized. We had an open position and it was automatically sold in order to cover a liquidation(s) which was too large for the insurance fund to cover.

3. Only Perpetual Contracts are Offered

Many other platforms will offer 1 month, 3 month, 6 month “futures” contracts. The benefit of trading with them is don’t have a funding fee, offering the possibility to open a long term hold without having to worry about getting drained by funding fees.

Conclusion

Overalls, BaseFEX is a great exchange. Offering a premium leveraged trading platform for both newcomers and professionals. The exchange is fast, and easy to use with good security, quick sign up and fast trading platform. You’ll be happy with the low fees and relative straightforwardness of the platform. Nevertheless, the exchange is relatively new and not yet proven itself; moreover if you’re trading big amounts, you’ll likely be put off by the liquidity on BaseFEX vs. other exchanges.