The Best Crypto Futures Exchanges And How They Compare: EMX vs. BitMEX, OKEx, Deribit

Posted by EMX Team on Dec 4, 2018 12:03:00 PM

Blog_Best_Exchanges_Comparison_EN

From the very start, our goal at EMX has been to deliver the best all-in-one exchange that allows you to trade commodity, equity, and crypto futures safely and reliably.

Given the rapid innovation of the competitive trading and crypto markets, we know the stakes are high when it comes to earning the trust of millions of traders and investors all around the world. Despite the current ‘bear’ market in crypto, derivatives trading continues to grow in popularity, and there is a huge opportunity to serve the market.

We wanted to share why we believe we are setting the standard in crypto futures trading platforms and highlight some of the critical differences between EMX and other popular services such as Bitmex, Okex, and Deribit.

Let’s take a look at how EMX stacks up to other competitors in the space.

EMX vs BitMEX

EMX vs. BitMEX

For those involved in the trading and crypto space for any considerable amount of time, you’ve no doubt heard about or used the popular BitMEX platform, which has been open to traders and investors since 2014.

One key way EMX differs from BitMEX is that we will offer traditional equity, fx and commodity futures (Equity Indices, Euro, Crude Oil etc) in addition to accepting multiple forms of collateral (BTC, ETH, and our token EMX). Our goal is continue to offer additional forms of collateral, giving our users the most options of any trading platform.

EMX is also working towards having its own clearing solution with the goal of having OTC clearing within the next 2 years. Additionally, we believe our thorough KYC/AML process allows us to ensure the integrity of our platform.

One final difference between BitMEX and EMX is our decision not to offer auto-deleveraging. We believe it’s important to know with reasonable certainty that any potential winning positions won’t be canceled, which can often lead to unexpected loss of profits.

BitMEX certainly deserves credit for its contributions to the crypto and trading space, and it continues to be used by many traders and investors worldwide. However, we know there is still room for improvement when it comes to building an exchange that does what you need it to do reliably.

EMX vs Deribit

EMX vs. Deribit

As the crypto and derivatives market continues to mature, we believe it is important that all major trading platforms take Anti-Money Laundering and Know Your Customer regulations seriously. While these rapidly changing and often ambiguous rules can be a challenge to keep up with, it’s essential for both EMX and our competitors to lead by example so that financial institutions can safely use our products and services.

While exchanges such as Deribit are beginning to grow in popularity among traders and investors, to the best of our knowledge, they have yet to fully implement today’s best practices for KYC and AML which puts a limit on their growth as a platform and potentially introduces regulatory risk that could negatively affect the company and traders on the exchange. With a heavy focus on option based functionality, Deribit continues to establish itself as a key player in the trading space.

Though we expect Deribit and others to continue to work towards compliance, EMX has placed a priority on being fully compliant with all rules and regulations for when we launch to the public and other financial institutions.

We are building EMX with the expectation we will be around decades, not just years. Every decision we make as a company is made with a long term strategy in mind. As such, we don’t view trust and reputation as marketing buzzwords, but rather work around the clock to ensure our actions are congruent with our words. With so many exchanges looking just to make a quick dollar at their users expense, there is plenty of opportunity to earn trust from our users on a daily basis.

Our commitment to AML & KYC aside, compared to Deribit, EMX offers a larger range of products and services other than standard Bitcoin futures, options and swaps. EMX is built to allow for crude oil futures, gold futures, equity index futures and more. We are also working to establish an EMX Large Cap Crypto index to help our traders trade and hedge the general crypto markets.

Lastly unlike at Deribit, EMX relies on both internal and external market makers to ensure we provide consistent liquidity for our users of all trading and investment styles. Deribit no longer employs an internal market making function, which may result in liquidity suffering in some of its emerging products.

EMX vs OKEX

EMX vs. OKEx

Another popular platform among cryptocurrency and futures traders, OKEx has also been a popular trading platform since 2014. Though they do offer futures on Bitcoin and a handful of altcoins, at the time of writing, they do not offer equity, commodity, and currency futures as we do at EMX. However, OKEx does offer its users spot trading which can be incredibly useful for a specific type of trading and investing strategy.

A key difference between OKEx and EMX is that EMX places a strong emphasis on creating a transparent, fair and compliant trading environment. We will have risk implementations in place to protect participants from market manipulation. No single trader or group of traders will have positions large enough to jeopardize the integrity of EMX.

We also plan on having open channels of communication with our traders to leave no questions unanswered. We will publish an Exchange Rulebook to be clear and transparent about the rules we adhere to in our daily business. Recently, we hired a Chief Regulatory Officer to lead our compliance, market oversight and enforcement functions.

Another key difference is that EMX uses an auction-based matching engine. By utilizing frequent batch call auctions in lieu of a central limit order book, we de-emphasize the importance of speed and reassert competition based on price. OKEx uses a speed-based matching engine that processes orders in time-priority. This type of matching engine is very common, but it tends to favor traders who are as physically proximate as possible and have access to the best tools and infrastructure.

At EMX, we want to create a fair and balanced marketplace for all types of traders, both institutional and retail. We think our innovative matching engine sets us apart from many exchanges, including OKEx, and it will ultimately help create a more liquid marketplace as it facilitates efficient price discovery.
That said, OKEx as a platform continues to push to improve it services across the board and has developed a loyal and committed following since its founding.

Conclusion

Though we are still in the early stages of reaching our ultimate vision at EMX, we couldn’t be more excited about what’s in store for our exchange and the crypto trading community as a whole. While competing platforms in the space certainly have their strengths, we believe we are creating the absolute best all-in-one exchange by building a product we want to use ourselves. At EMX, we aim to offer the ability to trade the most diverse assets on the market today.

If you would like to request early access to our platform be sure to sign up on EMX.com today.

Below you’ll find an easy to reference chart on how we differ from other options out there today:

Topics: EMX Advantages