In this PrimeXBT review, we will give you everything you need to know about PrimeXBT. We will dig into their security, fees, customer support, and trading platform.
PrimeXBT Review: Background
PrimeXBT was founded in 2018, and from the very first day, it has grown exponentially and currently serves clients in more than 150 countries. PrimeXBT provides its clients with access to top-tier liquidity and a wide range of trading tools, while maintaining security, liquidity, enabling a safe and efficient trading environment for everyone.
Everything PrimeXBT does, from its continuous investment in R&D to the ongoing expansion of the product offering to clients, is a demonstration of how dynamic PrimeXBT really is. It is always PrimeXBT's aim to serve the best interests of its clients and continue providing the best in class digital asset trading experience in the industry.
PrimeXBT Review: Safety
PrimeXBT offers many user-facing protections, such as compulsory address whitelisting, two-factor authentication, and more. Cryptographic hashing protects account passwords, and the website uses SSL encryption and Cloudflare DDoS protection to prevent any unwanted downtime. The result is a safe, reliable, advanced trading platform that has never experienced a hack and offers 99.9% uptime.
Here’s a look at how PrimeXBT gets the job done consistently, and keeps users’ funds safe and secure from any intrusion attempts, hacks, or worse, and ensures full AML compliance at the same time.
Since PrimeXBT’s inception, services have been restricted to residents of a number of countries globally. PrimeXBT agrees to provide services subject to the client not being a resident of a restricted country, which includes:
- United States of America
- North Korea
- United States Minor Outlying Islands
- American Samoa
- Russian Federation
- Saint Vincent and The Grenadines
Access to PrimeXBT services does not necessarily mean that client activities through the service are legal under local laws, regulations, or directives associated with a client’s country of residence; therefore, it is crucial for every client to consult with legal and tax advisors in his region regarding eligibility to utilize such services.
Research has concluded that strict IP-blocking country-by-country is not an efficient way to prevent unauthorized access by users from restricted jurisdictions. For instance, VPN software can be used to hide an IP address, and by blocking IPs to some countries, unrestricted users may end up unfairly blocked while traveling, potentially leading to losses due to an inability to trade.
To alleviate these challenges and ensure compliance, PrimeXBT has implemented a procedure where every customer must confirm their country of residence at the time of user registration and before further use of PrimeXBT services.
IP checking was also implemented, so anytime an IP address doesn’t match the country originally selected, the user will receive an additional warning requesting confirmation of residency. Once the user confirms, an email confirmation with a timestamp of the user’s selection will be sent to the user’s supplied email address.
Additionally, the PrimeXBT compliance department reserves the right to ask for additional documentation at any time while using PrimeXBT services, such as proof of address, ID forms, and more, depending on a variety of factors such as client activity or the total amount transacted.
As a result of the compliance team or any PrimeXBT team member discovering a user has provided misleading information about his or her residency, the user will immediately have his trading account restricted.
AML Compliance Through Crystal Clear Real-Time Data Analysis
The rapid proliferation of new technologies, products, and related services has spurred incredible innovation and inclusion in the world of finance, but it has also created new avenues for criminals and terrorists to launder their proceeds or fund illicit financial activities.
PrimeXBT has developed an internal risk-based system for AML compliance, as per the guidelines and recommendations set forth by FATF to all Virtual Asset Service Providers. PrimeXBT has established and strictly maintains appropriate and risk-sensitive policies, internal controls, and procedures proportionate to its nature and size, related to record-keeping, risk assessment of each customer, reporting incidents to appropriate authorities, ongoing monitoring, and AML/TF measures.
The compliance team regularly conducts in-depth AML/TF compliance training so that all PrimeXBT personnel is well-versed in all aspects of compliance, including how the internal system works, what risk assessment information is provided, what does or doesn’t need to be reported to the proper authorities, and what other actions may need to be taken depending on the situation.
To ensure the exclusion of bad actors who have obtained cryptocurrency through illegal or illicit means, or originates from a known wallet associated with an exchange hack, the dark web, etc., PrimeXBT utilizes Bitfury’s Crystal AML compliance software and blockchain monitoring toolset on all incoming transactions.
Crystal analytics tools ensure PrimeXBT’s AML procedures comply with global regulations and improve safety and security for PrimeXBT clients. Any assets deposited to PrimeXBT are assigned a risk score based on Crystal’s proprietary algorithm, providing detailed insight about the history of that asset and the wallets it originated from. This strengthens PrimeXBT’s overall security and helps to promote a safer global financial community.
By utilizing Bitfury’s Crystal, PrimeXBT can effectively spot and quarantine any cryptocurrencies tied to bad actors such as hackers or terrorists, or that were involved in a crime such as money laundering. Furthermore, PrimeXBT doesn’t allow transactions in anonymous cryptocurrencies that obfuscate blockchain data.
PrimeXBT implements industry-standard financial monitoring procedures as a part of their AML to call attention to any assets or activities that may require additional CDD (Customer Due-Diligence) review. PrimeXBT again reserves the right to request additional documentation to ensure PrimeXBT services are not abused, and the user does not violate AML requirements.
As a reputable business, PrimeXBT takes its role as a member of the global financial market seriously and cooperates with all respective authorities in order to prevent ML/TF (Money Laundering and Terrorist Financing). In case of a request from authorities involving transactions suspected of illicit activities, PrimeXBT must work closely with law enforcement representatives to supply the necessary documentation and information in line with data protection laws. Only proper legal or regulatory authorities will receive customer transaction data. Otherwise, all details are kept private at all times.
How PrimeXBT Keeps User Funds Safe
Compared to previous years, the cryptocurrency market has seen a considerable reduction in exchange intrusions and hacks thanks to companies adopting similar practices to what PrimeXBT utilizes. However, recently, a prominent hack of a competitor cryptocurrency platform resulted in a large sum of user funds stolen.
The hack raises questions about what went wrong and how the cybercriminals could bypass security and access what should have been safeguarded funds. PrimeXBT relies on different security solutions to keep users’ funds safe and secure.
There are two main types of cryptocurrency wallets that exchanges and trading platforms rely on: cold and hot wallets. A cold storage wallet is a solution for storing crypto assets that isn't connected to the internet. Therefore there is no way to access the funds held there. Hot wallets, however, have a direct connection to the internet and the exchange’s server. If a client makes a request to withdraw funds from a hot wallet, it means that a request is made to an automated system that signs the transaction and gets processed in a queue. Any such system, however, is susceptible to an attack from a determined or skilled enough hacker. Because so many exchanges keep private keys connected to a server in this way, hacks have long been prominent in the cryptocurrency industry, and this is why platforms that utilize such methods are especially vulnerable.
At PrimeXBT, all customer assets are stored in a cold storage wallet. PrimeXBT processes all pending withdrawals once a day, between 12:00 and 14:00 UTC. A withdrawal requested before 12:00 UTC will be processed on the same day. Any withdrawal requested after 12:00 UTC will be processed on the next day. All transfers are executed manually, once the team checks all transactions for risk scoring, money laundering, suspicious trading activity, and other patterns.
By involving experts in financial security and strict manual procedures versus autonomous queues and systems with loopholes to be exposed, PrimeXBT offers the highest level of asset security. The only drawback to this security solution is the fact that withdrawals can only take place once per day. But speed or simplicity is never worth sacrificing security or safety – especially not when it comes to users’ funds.
PrimeXBT Review: Leverage
Leverage is a key feature of a PrimeXBT trading platform and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio for greater position size, and to make your capital grow faster.
Leverage works by using a deposit, known as margin, to provide you with increased exposure. Essentially, you’re putting down a fraction of the full value of your trade – and PrimeXBT is providing you the rest. PrimeXBT products allow traders to gain exposure to major cryptocurrencies, such as Bitcoin and Ethereum, and others, without tying up lots of capital.
PrimeXBT offers over 50+ assets each with varying levels of leverage of up to 1000x and a leverage ratio of up to 1:1000.
Cryptocurrencies Bitcoin, Ethereum, EOS, Ripple, and Litecoin are available as trading pairs against USD and BTC. Each of these trading instruments is available at up to 1:100 leverage.
More than 25 major forex currency trading pairs are included. This includes FX pairs for AUD, CAD, CHF, JPY, NZD, USD, EUR, SGD, RUB, and TRY. Each of these trading instruments is available at 1:1000 leverage.
CFDs for stock indices include DOWJ, EUR50, FRANCE, GER30, SP500, SPAIN, NASDAQ, HK-HSI, AUS200, JAPAN, and UK100. Each of these trading instruments is available at up to 1:100 leverage.
Commodities offered include BRENT, CRUDE, and NAT.GAS. Each of these trading instruments is available at up to 1:100 leverage.
Precious metals XAG/USD and XAU/USD are available at up to 1:1000 leverage.
Long and short portions with leverage mean that traders can profit whichever the way the market turns, leaving no opportunities behind. Stop loss and take profit orders can help to reduce risk and bolster ROI. Built-in charting tools provide incredible accuracy and speed when taking positions according to a strict trading plan.
The easy-to-use platform is great for traders new to leverage or those who have been using leverage to fuel their capital growth for decades. Experienced traders will appreciate the access to a diverse portfolio and powerful tools all under the same roof.
PrimeXBT Review: Fees
Trading fees vary by market conditions, so be sure to check the latest fee schedule and trading conditions to be certain.
On PrimeXBT and other margin trading platforms offering leverage, two fees are charged. One is a commission per trade made at the time a position is opened, the other is an overnight financing fee for the collateral being applied to the leveraged trading position.
Cryptocurrency trading fees are just 0.05%, while overnight financing fees range from 0.04166% Daily Funding Rate for longs and 0.0555% Daily Funding Rate on shorts.
CFDs for stock indices and commodities trade with just a small 0.01% trading commission fee and a 0.02778% Daily Funding Rate regardless of whether a long or short position is taken.
Most forex currencies and gold and silver on PrimeXBT trade with just a 0.001% trading fee and a 0.00411% Daily Funding Rate. However, there are a few fluctuations in some pairs.
Trading fees can be further reduced on PrimeXBT through the platform’s progressive fee discount system, offering up to 50% off all trading fees across all trading instruments.
This system rewards the most active traders with the highest level of trading turnover. Traders are able to track their progress towards each level of the discount within their PrimeXBT accounts.
PrimeXBT Review: Customer Support
PrimeXBT's customer desk operates on a 24/7 basis. The support team is knowledgeable, polite, and very helpful.
Instant Web Chat is also available on the website and on the trading platform. The chat assistants are swift to respond.
You can also contact support via Twitter, Reddit, and Telegram.
PrimeXBT Review: Pros & Cons
- Regulated brokerage firm
- Low trading fees
- Very safe
- 24/7 support
- High leverage
- Intuitive platform
- Does not work in the USA, Canada, and other countries
PrimeXBT Review: Verdict
PrimeXBT is a very attractive option if you're looking to leverage trade.
PrimeXBT has put in place a very strong set of security measures, the fees are very competitive, and the platform looks great.
Taking into consideration PrimeXBT's evolution since its launch, it's expectable that they'll keep improving and get increasingly better over time.
The registration process takes less than a minute and no personal details or KYC is required.
Hopefully, PrimeXBT also manages to offer in other countries such as the United States, and Canada.
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