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QUOINEX

QUOINEX Review
Trader's rating 1
Editor's rating 3.8

Trading accounts

 

Account type Minimum deposit Leverage Fees
Standard Undisclosed 1: 25 0.25%*

*While the company claims to offer 0% fees for Japanese clients, the situation is not that clear for the rest. Go to the fees section of the review for more details.

QUOINEX (which stands for QUOINE Exchange) is a relatively new competitor in the cryptocurrency space. The company behind this project operates two brands – one focused on accepting fiat currency deposits (this one) and another one for digital asset trading (QRYPTOS). This is similar to the business model used by Coinbase/GDAX and OKCoin/OKEX.



The company, security of funds

Company Country Regulation
QUOINE Pte. Ltd Japan/Singapore/Vietnam JFSA

 

QUOINE Pte. Ltd is the company behind QUOINEX. They operate from offices in Japan, Singapore and Vietnam, but more importantly they recently got the regulatory approval of the JFSA. This brings a lot of credibility to the exchange, as regulated entities are few in the crypto-space.



QUOINE was founded in 2014 and later received substantial funding. The company’s founders Mike Kayamori and Mario Gomez-Lozada have substantial experience in the “traditional” business world, which also makes the project sound better.



While there weren’t any major hacks at QUOINEX, we must mention the most famous case of a conflict with a client. The cryptocurrency market-maker B2C2 is currently suing the company after a canceled a major transaction. Reports state, B2C2 made around $3.7 million on a trade/s, which was/were allegedly executed at a price which was very distant from the current market price. QUOINEX claimed this was an abuse of a technical issue, and reverted the deals. We can’t clearly state which side of the argument is right, but we must mention this incident occurred before the company was regulated by the Japanese financial watchdog.



There aren’t many English reviews on QUOINEX, but a lot of them are fairly negative. The complaints are mostly on slow withdrawal process and high fees on deposits (which are not charged by the company, but by the partnering banks). 



Trading conditions


 
Trading instruments (cryptocurrencies)
The cryptocurrencies available at QUOINEX are only Bitcoin and Ethereum, while more altcoins are available at QRYPTOS. More importantly, trading can be done against a lot of fiat currencies: USD, JPY, EUR, AUD, SGD, HKD, IDR and PHP. On top of that there are three types of trading: spot (without leverage), margin and futures. The latter can be quite tricky, so we don’t recommend it to beginners.


 
Minimum initial deposit
There is no information on the minimum deposit requirement at QUOINEX. This is not usually the case with the forex brokers, which we mostly cover. As an example FXCM requires $50 for the creation of a new account.


 
Leverage
QUOINEX offers leverage up to 1:25. This is one of the highest levels available for cryptocurrency trading, which should be used wisely. As you may know forex brokers usually offer even higher ratios, like 1:500. This is due to the fact traditional currencies are much less volatile than Bitcoin.

 

Be sure to fully understand the ways margin trading operates before participating in it. One must also be aware of the differences between trading Bitcoin with a forex broker and an exchange, one of which is the margin fee, applied by some exchanges. In the case of QUOINEX, the fee is set at 5%.


 
Fees
There are no fees on trading with your “base currency pair” at QUOINEX. When trading with against other currencies the fees go as high as 0.25% which is in line with the industry standards.



Your account’s “base currency pair” will be determined on your country of residence. All of the examples given at the website, state you will trade with zero fees, if you are based in Japan. That being the case, there isn’t total clarity on the fees, if you are not a Japanese client. Here is a screenshot of their fee structure (zoom-in to see the explanation in the bottom):




 
 

Trading platform


 
QUOINEX provides a web-based trading solution. They are one of the few companies, which offers a demo account. Here is what you get, after registering one:





The charting seems very solid and reminiscent of the package provided by bitFlyer. On the left side of the chart, we can see a nice order entry panel followed by the order book and tape. The latter two are surprisingly placed above one another. This is very counter-intuitive to seasoned traders.


 
Methods of payment


 
QUOINEX accepts bank transfers in multiple currencies. We must note, the processing times for the more exotic ones are fairly longer. Additionally, transfers in Bitcoin or Ethereum are also accepted. The lack of credit card or e-wallet (servies like PayPal or Netteler) support will tun away some potential new clients.


 
Conclusion


 
QUOINEX is a cryptocurreny exchange, which is regulated by the JFSA. The company accepts Bank Transfers, which makes it a competitor in the “entry service provider” category. Commissions are competitive, despite a lack of clarity on the “0% fees” for non-Japanese clients. The trading platform feels solid, although the positioning of the order books and tape is a bit odd. Here are the pros and cons of QUOINEX:

 

Pros Cons
JFSA Regulation No altcoins available (ex. ETH)
No major hacks yet Some negative user reviews
Accepts Bank Transfers Odd positioning of some elements of the trading platform
Competitive commissions  
Relatively nice trading platform   
Allows margin trading and futures     


 

Kraken

Kraken Review
Trader's rating 1.4
Editor's rating 4

Account type

 

Account type Minimum deposit Leverage Maker fee Taker fee
Standard Undisclosed 1:5 Max of 0.16% Max of 0.26%

 

Kraken is one of the most popular crypto currency exchanges. It is currently the world’s leader, in terms of Bitcoin to EUR trading volumes. 

 

The company, security of funds

 

Company Country Regulation
Payward, Inc, USA N/A

 

The Kraken exchange is operated by the San Francisco-based Payward Inc. The company is not under direct regulation by any agency, but this is not unusual in the crypto currency space (at least for now). 

 

The company’s overall reputation is pretty solid. It hasn’t experienced any major hacks yet. Furthermore, it was chosen as the platform, through which payments to creditors of ill-fated Mt.Gox received their claims. If you are not familiar with the case,  Mt.Gox was a huge Bitcoin exchange in Japan, which filed for bankruptcy protection in 2014, following a shady turn of events, which are another topic altogether. The company was then under special administration, which chose Kraken as a reliable partner, in order to facilitate payments to creditors.

 

Most of the coins on Kraken are kept in cold storage, with the exception of the ones currently used for trading, of course.

 

User reviews on Kraken are fairly mixed. Complaints vary from slow processing of deposits, lack of response by the customer support to stop-loss orders not triggering. While the latter is concerning the former two may be related to lack of staff, similarly to the issues which Poloniex currently has.

 

Trading conditions

 

Trading instruments (cryptocurrencies)

 

Kraken offers quite a few trading instruments. Although the exchange is most famous for its Bitcoin and Ethereum to cash (EUR and USD) markets, altcoins are also available. Here is a list of all the coins you can trade one way or another: Bitcoin, Ethereum, Litecoin, EOS, Dash, Ripple, Monero, Iconomi, Zcash, Augur, Gnosis, Stellar Limens, Dogecoin, Melon. Kraken plans to add new coins in the future.

 

It is worth mentioning this is one of the rather few exchanges which provides trading Bitcoin against currencies like the CAD and GBP. Although majors in the forex market, these are not often provided at crypto-exchanges. That being said liquidity may be an issue.

 

Minimum initial deposit

 

No minimum deposit level is specified by Kraken. Although this is not unusual in the cryptoverese, forex brokers (some of which allow Bitcoin trading) specify this on their websites. As an example, the industry leaders at IG proudly claim they do not have a minimum deposit requirement.

 

Leverage

 

Leverage is only offered for some of the instruments at the Kraken Exchange. It varies from 1:2 to 1:5. These levels may seem low, if you are used to forex trading, where a lot of brokers offer 1:500 in leverage. That being said, even they provide lower levels for crypto currency trading. For instance, the FCA-regulated industry veterans at HYCM currently offer 1:10 for Bitcoin trading.

 

Kraken charges a fee for leveraged trading. It varies from 0.01% to 0.02%, based on the instrument and is applied every four hours. This is a hassle you will not have if you chose to trade Bitcoin with a forex broker. Do keep in mind there is a huge difference between the services provided by forex brokers and crypto-exchanges. For a full breakdown, read this article

 

Fees

 

Kraken charges different fees for market “makers” and “takers”. At the time of writing of this review, they are 0.16% for the makers and 0.26% for the takers (for the lowest volumes). 

 

For those of you who are unaware of what these terms mean, trading on an exchange is slightly different than, forex trading. If you want to buy a particular instrument, you can do this directly, by getting it from the lowest available ask price (offer). This is an “aggressive” entry, which takes away market liquidity and is connected to a bigger fee (the taker fee). On the other hand, you can place your own bid in the order book, which then has to be triggered by another trader, who would sell his asset to you. In this case, you are providing liquidity to the market and pay a lower fee (the maker fee).

 

Overall, the fees provided by Kraken are in line with offerings by other exchanges.

 

Trading platform

 

When it comes to the trading platform, Kraken provides their own solution for some of the functionality, while relying on TradingView for the charting, similarly to Bitfinex.

 

There is pretty detailed access to the short term market dynamics. The tape, includes a historical bid/ask chart, which can be useful. Here is a preview:

 

 

The depth of the market is also presented in an easy to understand manner. Here is a preview:

 

You can see the book on the right side, with a graphical depiction on the left. 

 

The charts, provided by TradigView are a good tool for technical analysts. They are available via a click of a button next to the instrument list. The chart pops-up as a small external window, which you can later move, resize and so on. You can create an entire layout (even on a separate monitor) of your PC can handle the hardware requirements of modern browsers. Here is a preview:

 

 

Kraken also offers a mobile app, which is currently only available on iOS. Hopefully an Android implementation will come soon.

 

 

Methods of payment

 

Fiat currency payments at Kraken are only done via Bank Transfer. There is a slight advantage, if you have a bank account within the European Economic Area, since the SEPA payment system is supported. Crypto currency deposits are also available, but instant real money options such as Credit Card, PayPal or Neteller are not.

 

Conclusion

 

Kraken is a US-based crypto currency exchange. That being the case, the company operates a lot with Europan customers, as it is the world’s leader in terms of Bitcoin to EUR trading volumes. Kraken is as reputable, as one can get in the cryptoverse, with no major hacks or scandals so far. The trading environment feels good, providing detailed tape-reading potential. Commissions are in-line with the current industry averages. Here are Kraken’s strong and weak sides:

 

Pros Cons
Reputable company, no hacks yet  Credit cards and Paypal not accepted
High Bitcoin to EUR liquidity  Mobile app available only for iOS
Solid charting, by TradingView  Recent negative user reviews
Commissions in line with the industry  
Bank Transfers available  

 

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