Phemex belongs to the category of financial services companies and describes itself on the company website as a trading and management platform for cryptocurrencies. According to this, one can trade crypto futures with a leverage of 1:100 at Phemex, for example. However, the British financial regulator has issued a warning about Phemex.
Table of contents
- Phemex experiences
- Phemex on the web
- Contact Phemex
- Phemex Approval
- Regulatory warnings from financial regulators about Phemex
- Online Trading Guide
- Lawyers support in case of difficulties
In addition to whether Phemex offers a suitable proposition, it is important to look at the basics for beneficial online trading. Our legal advisors will also explain how the Phemex platform compares to other investment opportunities. Furthermore, we will assist and support you in case of questions and difficulties in connection with Phemex.
According to the company website, the name “Phemex” is derived from the combination of Pheme and MEX. Pheme is the Greek god of glory, representing the voice of the public, while MEX stands for Mercantile Exchange.
Moreover, Phemex sees it as its mission to give everyone the opportunity to trade easily and manage risks efficiently. Accordingly, from day one, Phemex’s mission has been to empower individuals. Moreover, Phemex wants everyone in the world to have access to the right tools that enable them to manage risk efficiently and trade easily.
Because at Phemex, they sincerely believe that this is a fundamental right that all traders should enjoy. Moreover, Phemex aims to become the most trusted trading platform for cryptocurrencies and derivatives and strives to become a leading financial services provider in this industry, unmatched in terms of trustworthiness, honesty and integrity.
Accordingly, Phemex wants to distinguish itself first and foremost in how it treats its clients. However, Phemex will never compromise or abandon its firm commitment to deliver products and services of the highest quality as it continues to grow with its community.
Furthermore, Phemex describes itself on its homepage as the most efficient platform for crypto trading and cryptocurrency management. In addition, Phemex offers both futures trading and spot trading. In addition, Phemex is the first in the industry to offer a low-cost membership model that makes it possible to trade Bitcoin without fees.
Phemex’s open-ended contracts can be traded with up to 100 times leverage. In addition, Phemex offers a GOLD/USD contract that is not based on cryptocurrencies, and will follow up with other traditional assets and commodities in the future.
Phemex’s web presence
Phemex’s platform can be accessed via its German-language website https://phemex.com/de.
Operating company and trademark
The name of the online presence or the platform or the offer is not necessarily congruent with the operating company. In the past, it was not uncommon for providers to be present on the market with different trademarks.
Furthermore, it is a widespread practice of certain providers to remove the internet presences of incriminated trademarks and to return to the market promptly using a different trademark. Therefore, it is advisable to always include the operating company when searching for news and information about a service provider beyond the trademark.
The relevant data can be found either in the imprint or often also in the footer of an online presence. On the Phemex website, no difference between a trademark and an operating company could be determined at the time of observation.
In Germany, according to §5 of the German Telemedia Act (TMG), there are basic duties to provide information and mandatory details for the imprint. Accordingly, this obligation to “identify the provider” applies to all commercially operated websites.
This is because this information is intended to inform visitors to a website who they are dealing with. Finally, the addressable postal address of the website owner plays a role in the event that legal claims are to be enforced against him.
In this context, it is also important to note that the obligation to maintain an imprint also applies to foreign service providers who conduct their business activities in this country. At the time of October 2021, no legally binding imprint could be found on the Phemex website.
Query domain information
Many financial providers use their many years of practical experience to pretend to be reputable. However, such statements are often contradicted by the registration date of the domain. Therefore, it is necessary to check who owns the domain and in which year the domain was registered.
Our lawyers determined the facts about the provider Phemex on 8 October 2021 with this result: Domain Name: phemex.com Registry Domain ID: 2005980563_DOMAIN_COM-VRSN Registrar WHOIS Server: whois.godaddy.com
Registrar URL: http://www.godaddy.com Updated Date: 2019-08-15T01:41:51Z Creation Date: 2016-02-24T10:49:15Z Registrar Registration Expiration Date: 2022-02-24T10:49:15Z Registrar: GoDaddy.com, LLC
According to §6 of the German Media State Treaty (MDStV), the name of the person responsible for the content of the website must be stated in the imprint. In most cases, this is a member of the company’s management board. Naming the responsible persons is not only an obligation, but also a characteristic of transparency.
Phemex’s website does not contain any data on persons responsible for content as of October 2021.
Phemex contact details
The following data could be found on the Phemex website at the time of writing:
- Phemex telephone number: n/a A.
- Phemex email contact: support[a]phemex.zendesk.com
- Address of Phemex: n/a A.
The existence of a valid licence from an official European financial supervisory authority can be an important criterion for determining whether a service provider is reputable. This is because the granting of a licence requires a high financial outlay on the part of the service provider.
However, it does not necessarily have to be a case of fraud if a broker does not provide data on its licence or its regulatory status. The following financial supervisory authorities, among others, are responsible for issuing licences and supervising financial service providers such as Phemex:
- Commissione Nazionale per le Società e la Borsa (CONSOB, Italy)
- Autorité des marchés financiers (AMF, France)
- Federal Financial Supervisory Authority (BaFin, Germany)
No information about regulatory licensing could be found on Phemex’s online presence as of October 2021. Interested investors can discuss what this means with a lawyer at our law firm.
Warning notice from the UK regulator on Phemex
As early as February 2021, the UK Financial Services Authority issued an official warning on the subject of Phemex. The authority could not rule out the possibility that the company had offered financial products or services. However, Phemex is not authorised by the FCA.
Before you start trading with Phemex and others – online trading tips
Online trading, as with Phemex, is the extension of traditional trading in financial instruments to the internet. Here, as there, investors act with the intention of making a profit by buying and selling assets. Trading is no longer limited to shares. Rather, customers can also choose from the following alternatives, for example:
- Forex Trading
- Real Estate
- Corporate Bonds
- Trading with contracts for difference
Online trading is done via interfaces such as online brokers (like Phemex) or banking houses that provide their clients with professional trading software. Especially the far-reaching technological developments have led to the fact that online trading is now fast and uncomplicated and therefore as recognised as it is popular.
The advantages of online trading
Digitalisation is also shaping the financial world considerably, especially with regard to trading such as at Phemex. Because of the technological possibilities, trading has become particularly fast.
Whereas investors and traders used to have to place their orders by telephone, fax or post, this can now be done with a click of the mouse and with considerably less effort.
Aspects such as the duration and type of trade, prices and quantities or account details no longer have to be discussed between the broker Phemex and its customers in a personal meeting. Ultimately, the opportunity to trade online has created numerous conveniences:
- The costs of the transaction have gone down significantly, as individual support on the phone is no longer required.
- Learning materials for online trading, knowledge pools, analyses or trading courses are often offered as standard.
- The pool of tradable assets is broader and deeper.
- The speed of transaction processing has increased significantly.
- Numerous tools can be applied automatically and instantly.
- The trading platform executes the booked orders, all you need is an internet connection.
- The unpredictability of losses due to gaps decreases.
- Returns are achievable even with a low stake.
After all, there are not only plus points in online trading with regard to the simple use of the trading platform. Above all, due to the analysis options, indicators and the numerous tools, the investor enjoys noticeably more comfort. The times when you had to draw your own chart diagrams or make your own calculations are over.
Today, online traders can find a wide range of order types in their system, which they can execute themselves when day trading with the preferred broker of their choice.
The personal trading plan
In view of the fact that there are several order types, online traders can tailor their trading plan to their individual requirements and make various configurations in this context: Buy entries:
- Buy Limit Orders: Buy below the current market price
- Buy Market Orders: Buy at current market price
- Buy Stop Orders: Buy above current market price
- Sell Stop Orders: selling above the current market price
- Sell Market Orders: Sell at current market price
- Sell Limit Orders: Sell below current market price
- One exits at a loss at the moment the previously set price is reached (stop loss)
- You move the stop loss depending on the development of the price (trailing stop orders)
- Exit with a profit as soon as the previously set price is reached (take profit)
Another convenience of online trading from the investor’s perspective is the absence of any restrictions. This means that you are free to choose a suitable trading strategy and to adopt your own trading style. There are many different approaches:
- Scalping: aggressive, short-term trading in rapid time intervals
- Automatic trading with robots (“Expert Advisors”)
- Long-term trading
- Swing trading – risk-taking advantage of price fluctuations
- Intraday trading – opening and closing positions within a single trading day
A large number of those trading styles made online trading possible in the first place by eliminating the previously necessary telephone exchange with the provider. In this respect, one can speak of a trading revolution that builds a bridge between many investors around the world and the global financial markets.
Investors should examine very closely to what extent the service provider Phemex offers these advantages.
Disadvantages of online trading
Where there is light, there is also shadow, and this also applies to online trading. Accordingly, apart from the advantages, there are also a number of disadvantages that interested investors should include in their considerations:
- The emergence of fraudulent trading providers has led to enormous risks of loss.
- If wrong decisions are made, enormous losses can be expected.
- Investors should be well versed in trading and rely on reliable strategies.
- Investors should keep a constant eye on price trends.
- Compared to classical trading, it is rather hasty.
Risky day trading in particular is not suitable for investors who are new to the subject of trading. This is because the risk of not correctly predicting the development of prices is considerable, and because of the time pressure it is difficult to make corrections.
Consequently, this form of trading is recommended for particularly knowledgeable investors or those with a pronounced affinity for risk. If you belong to this group, day trading is an opportunity to generate results in a timely manner. In addition, one benefits, for example, from the elimination of fees for holding positions overnight.
Because these financing costs should also be included in an overall consideration of an investment. Furthermore, one literally saves oneself the rude awakening in the morning, should there be rapid and drastic price changes. Such “gaps” develop quickly due to unfavourable reports about a company.
On the other hand, one quickly sees success when one can report a surplus at the end of a trading day. Furthermore, it is relevant for day traders to compare the trading fees of the individual online brokers. At this point it can pay off to opt for a lump sum in the form of a fixed rate.
This pays off especially if you trade at a high frequency and separate order fees would significantly reduce your profit.
Understanding risks and dangers
In order not to unnecessarily increase the dangers of online trading, it is recommended to question which financial provider you want to use to trade on the markets. From our firm’s practical experience, some questions have emerged that can be used to identify potential risks. Referring to the example of Phemex, these would be as follows:
- Is there an imprint on the Phemex website and can credible statements about the provider’s place of business be found?
- Are there any official warnings about Phemex?
- Does Phemex promise extraordinarily high profits or safe returns and conceal or downplay the risks?
- Are there any warnings from lawyers or law firms serving clients who have suffered losses in connection with Phemex?
- Is Phemex controlled by a European financial supervisory authority and is the provider subject to official supervision?
- What experiences have other investors previously had with Phemex, what is the prevailing opinion in forums?
- Did the contact with Phemex result from an unsolicited phone call?
Behaviour in the event of losses
If you suspect that you have been defrauded in online trading, it is advisable to stop further payments immediately. This is especially true if the provider recommends additional payments to compensate for losses. Moreover, one should try to recover the lost capital.
In doing so, aggrieved investors can seek investor protection and turn to the lawyers of our law firm. We examine both civil and criminal law options as well as possible claims for damages against the provider and against involved payment service providers such as financial institutions.
“A private investor who loses his capital in online trading is by no means an isolated case. Many investors are misled by the professional behaviour of financial providers and do not realise early enough that they are not responsible for their loss.”
Our recommendation is therefore not to despair, but to react quickly and actively. Because the prospect of recovering the lost money is often greater than the aggrieved capital investors think. Would you like to talk to one of our lawyers about Phemex? Then click here to go directly to our contact area.