MEXC, insanely low trading fees. How are these guys making money?

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Quote from: Mauni98 on March 07, 2024, 11:38:11 PM

Was gonna use them but then i found out they freeze accountedge for no reason

https://www.reddit.com/r/MEXC_official/comments/18mzn2a/mexc_is_freezing_my_funds_again_after_10_days_of/?rdt=43475

Yeah, issues come up once in a while. One has to be careful with these centralized exchanges when depositing money to them.

Quote from: Darker45 on August 09, 2023, 10:14:12 PM

There's nothing fishy about a temporary zero-trading fee promotion in line with the platform's 5^th anniversary. Here's the official announcement. This is the fourth month of this anniversary promo. Although there is no specific end time of this zero-trading fee offer, I don't think this will be permanent. This is simply some kind of gift or a show of gratitude to their users.

Now that someone bumped this thread. The " temporary zero-trading fee promotion in line with the platform's 5^th anniversary" is now almost a year since it was announced on April 1^st 2023 Grin

Shall we have another 1 year long promo for the 6^th Anniversary?

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Was gonna use them but then i found out they freeze accountedge for no reason

https://www.reddit.com/r/MEXC_official/comments/18mzn2a/mexc_is_freezing_my_funds_again_after_10_days_of/?rdt=43475

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For the fees I think it's mostly some kind of promotional offer to attract more users as the big exchanges do on some occasions, I think it's a good opportunity to get rid of some annoying fees.

In general I don't think there is anything suspicious with MEXC I've been working there for a long time and it's been ok, MEXC has a pretty good reputation but centralized exchanges in general are not safe because everything can change in an instant.

The idea that they are doing some suspicious things in secret cannot be ruled out and we have the example of FTX still fresh in front of us, so DEXs should be treated with caution.

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Quote from: logfiles on August 09, 2023, 04:24:17 PM

I have used MEXC sometimes because they seem to be so quick on listing derivatives of shitcoins which are so sweet to short at times after the pump, but to be honest I even fear depositing money on that exchange. I just deposit what I can afford to lose.

Now, the exchange has insanely low trading fees compared to other players on the market, which makes me wonder how they manage to stay afloat

Spot
Maker: 0.000% Taker: 0.000%

Futures
Maker: 0.000% Taker: 0.010%

This is way below even what the likes of bitmex and Bybit used to offer back in the day before they also changed their fee structures, probably due to little profits

For example, Bitmex used to offer in futures trading; Maker: -0.025% (they would actually pay you -0.025%) and Taker 0.075%. Despite the maker rebate, the taker fee was so high, so it would cover for the maker rebates. Same with bybit, but they ended up scrapping off the rebates.

I don't know why, but I smell something fishy. Could the exchange also be chipping in to trade against their traders in order to make money? After all, they have all the data of the long and short positions especially with the shitcoin futures that are not listed anywhere else... right?

I don't think they would keep these trading fees for so long. they are probably doing that to attract more uses and growing their traders base. they'll eventually apply proper trading fee just like other friends mentioned above. also these exchanges charge good amount of money from projects for listing their token/coins in their platform. and they make some money for doing IDOs and Airdrops (commission wise) so they have many options if you ask.

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I go to mexc to sell airdropped shitcoins. Experience has been good so far, they don't require kyc either (actually they do but it has 20 BTC daily limit without kyc, so for me it's like they don't lol), hoping it will continue.

Quote from: logfiles on August 09, 2023, 04:24:17 PM

I don't know why, but I smell something fishy. Could the exchange also be chipping in to trade against their traders in order to make money? After all, they have all the data of the long and short positions especially with the shitcoin futures that are not listed anywhere else... right?

I wouldn't be surprised if that's true. Even bigger and reputed exchanges manipulate, what's there to wonder in these little ones?

Quote from: logfiles on August 11, 2023, 03:31:31 PM

Spot still beats this kind of trading in away that the only risk is if a rug pull was performed and the coin dumped by so many zeros, like what happened to Luna. Apart from that, one could wait until the price rises back up without feeling that pressure of getting liquidated at one point. Patience is needed at times

Leverage is good when you are short on funds and want to make profit in uprising market. Otherwise spot is much better and less stressful. As long as you are with right coins with right entry, you make money. Buy, send 'em to HW and sell couple years later.

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Quote from: Darker45 on August 09, 2023, 10:14:12 PM

There's nothing fishy about a temporary zero-trading fee promotion in line with the platform's 5^th anniversary. Here's the official announcement. This is the fourth month of this anniversary promo. Although there is no specific end time of this zero-trading fee offer, I don't think this will be permanent. This is simply some kind of gift or a show of gratitude to their users.

Zero-trading fees is nothing new really, but always temporary just like Binance's which ended last March. KuCoin also provided zero trading fees to certain pairs when it also celebrated its 5^th anniversary last year.

How long does this last because I would be very skeptical about zero fee trading. This anniversary promo might also be used to hide the reality that they are wash trading. Before Chinese exchanges were banned, when there was zero fees during bear markets, they will always implement wash trading to make it appear that there was increased volume.

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Quote from: Synchronice on August 11, 2023, 01:46:00 AM

Sure, I'll answer with a recent example. I use Hedge Mode when I trade Futures.
2023-05-05 - I opened long position on matic, price - 0.7353. The matic was falling for days, I thought it wouldn't fall below 0.6800 but it didn't stop there and the dump was quick, I wasn't seeing any positive signs of pump, so, I opened short position to save myself from losing much and then continued to watch charts in live, I didn't sleep that night. Price kept dumping, it went below 0.6000 USD and quickly went down to 0.5089 but I risked to close my short position at 0.5218. Then price quickly went from 0.5089 to 0.5973 and from my experience, such a pump from such a big loss is usually a positive sign and I was right, price kept growth since 0.5089. I left my long position opened on futures because Matic's price was regularly increasing and then one month later there was a Ripple news that immediately pushed Matic's price up to 0.8916, I just closed my position at 0.8518 and calmed down. Mentally, it's a huge stress for me, I really felt relief.

Hedge Mode can sometimes really help you to profit more.

That was some good decision-making for you, but anything could have gone either way, as well, such as;

1. As soon as you open your short position, price starts moving in the opposite direction, gets your position liquidated and then shortly starts dumping once more. This time you have no cover. I have seen this happen quite often when I trade.

2. You close your short position thinking the price will pump upwards, and it just continues to plummet.

Spot still beats this kind of trading in away that the only risk is if a rug pull was performed and the coin dumped by so many zeros, like what happened to Luna. Apart from that, one could wait until the price rises back up without feeling that pressure of getting liquidated at one point. Patience is needed at times

As for me If I want to risk, then it better be worth it, I prefer a much more meaningful risk to reward ratio

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Quote from: joniboini on August 11, 2023, 07:01:01 AM

Quote from: Synchronice on August 11, 2023, 01:46:00 AM

Hedge Mode can sometimes really help you to profit more.

Maybe I misunderstand what you said here, but wouldn't you achieve the same thing if you just buy on the spot market (buy Matic at 0.7, price moves to 0.5, then pump to 0.85, and so on)? I don't think you need to do it on MEXC either.

When I think that coin is going to fall, I quickly increase leverage and open a short position with exactly the same number of coins. If price falls further, all I'm doing via this is that I'm freezing my loss, I don't lose money anymore even if it continues to go zero because I profit zero if it rises and I profit zero if it falls.

I'll try to explain again:
- I have $1200 on balance but I open a long position with $1000 , the price of the coin is $1.
- Price dumps down to $0.8, now I have $800 ($200 loss) but I have another untouched $200, i.e. $1000 overall, only $200 loss.
- Now I think that price isn't going to rise anytime soon and it will continue to fall, so I increase leverage and open short position with 1000 coins (now they worth $800 because the price of each one is $0. Cool

.
- Price falls down to $0.5. Now, I would be in a huge loss if I wasn't using hedge mode but thanks to hedge mode, I still have only lost $200. Now, let's imagine that price is going to rise and I'm going to close my short position at $0.5. When the price of coin reaches $1, I'll have $1300 instead of $1000. Sometimes, charts repeat pump and dump in certain range, you can make money in this moment by playing with long/short positions.

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Quote from: Synchronice on August 11, 2023, 01:46:00 AM

Hedge Mode can sometimes really help you to profit more.

Maybe I misunderstand what you said here, but wouldn't you achieve the same thing if you just buy on the spot market (buy Matic at 0.7, price moves to 0.5, then pump to 0.85, and so on)? I don't think you need to do it on MEXC either.

I realize this exchange started to become popular last year. Some shitcoins that I have got listed easily there. Maybe this is one of their revenue other than aggressive marketing like cheap trading fees for a short-medium period. If I need to use them, I'd assume they'll go bankrupt tomorrow just like any other low-tier exchange. Better to be safe than sorry.

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Quote from: logfiles on August 10, 2023, 01:45:55 PM

Quote from: Synchronice on August 10, 2023, 01:32:27 PM

I automatically meant 1x leverage, sorry. I'm so used to low leverage, I totally forgot it. Definitely, if you increase leverage, you'll increase your chance of losing money when the price goes into opposite direction. I'll edit my post.

I understand.

May I ask?
What is the point of a long position at 1x leverage? What advantage does it have over a spot buy trade?

IMO, I would do a spot buy trade any time, any day.

Sure, I'll answer with a recent example. I use Hedge Mode when I trade Futures.
2023-05-05 - I opened long position on matic, price - 0.7353. The matic was falling for days, I thought it wouldn't fall below 0.6800 but it didn't stop there and the dump was quick, I wasn't seeing any positive signs of pump, so, I opened short position to save myself from losing much and then continued to watch charts in live, I didn't sleep that night. Price kept dumping, it went below 0.6000 USD and quickly went down to 0.5089 but I risked to close my short position at 0.5218. Then price quickly went from 0.5089 to 0.5973 and from my experience, such a pump from such a big loss is usually a positive sign and I was right, price kept growth since 0.5089. I left my long position opened on futures because Matic's price was regularly increasing and then one month later there was a Ripple news that immediately pushed Matic's price up to 0.8916, I just closed my position at 0.8518 and calmed down. Mentally, it's a huge stress for me, I really felt relief.

Hedge Mode can sometimes really help you to profit more.

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Quote from: Synchronice on August 10, 2023, 01:32:27 PM

I automatically meant 1x leverage, sorry. I'm so used to low leverage, I totally forgot it. Definitely, if you increase leverage, you'll increase your chance of losing money when the price goes into opposite direction. I'll edit my post.

I understand.

May I ask?
What is the point of a long position at 1x leverage? What advantage does it have over a spot buy trade?

IMO, I would do a spot buy trade any time, any day.

Synchronice

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Quote from: logfiles on August 10, 2023, 12:05:29 PM

Quote from: Synchronice on August 10, 2023, 10:32:26 AM

I really think that absolutely every exchange does that. I'm afraid to short sell on futures because I have seen how price of coin spikes and drops in minutes which is enough to liquidate your assets. I have experienced that on Binance with the amount that I could afford to lose but I'm not going to experience the same ever again. If you only open long positions, none crypto exchange will be able to totally liquidate your assets but it's different if you open long position on shit coin that's going to fall. Just never play with shorts.

I always see scam wicks, they are very common on MEXC especially on weekends. About not being liquidated because you have opened a long position, you are wrong... Liquidations happen for the longs too. Maybe you haven't traded that much.

I automatically meant 1x leverage, sorry. I'm so used to low leverage, I totally forgot it. Definitely, if you increase leverage, you'll increase your chance of losing money when the price goes into opposite direction. I'll edit my post.

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Quote from: Darker45 on August 09, 2023, 10:14:12 PM

Zero-trading fees is nothing new really, but always temporary just like Binance's which ended last March. KuCoin also provided zero trading fees to certain pairs when it also celebrated its 5^th anniversary last year.

You do realize Binance and Bybit offered zero trading fees on specific spot trading pairs and not derivatives, right? Cheesy

Quote from: noorman0 on August 10, 2023, 01:24:14 AM

It's better decision, the promotion can be revoked or terminated at any time. Reasonably speaking, an exchange that is on its way to becoming a top service would not survive this kind of generosity.

Exactly, even Binance, the Biggest crypto exchange at the moment, couldn't afford to make such generous offers.

Quote from: Yamane_Keto on August 10, 2023, 06:09:51 AM

I cant remember the exchange name but there was that offer zero withdrawal fees, this was the reason why some people used them, so he thought of it as a marketing trick.

You mean FTX, right? Grin

Sorry, I had to laugh.

Quote from: dimonstration on August 10, 2023, 06:32:14 AM

This statement of yours answer already your question in the title. They are making profit on the listing fee from shitcoins since they are the favorite destination of newly launch project as centralized exchange lisiting.

Still not sustainable, my brother, since it's just a one time fee.

Quote from: Synchronice on August 10, 2023, 10:32:26 AM

I really think that absolutely every exchange does that. I'm afraid to short sell on futures because I have seen how price of coin spikes and drops in minutes which is enough to liquidate your assets. I have experienced that on Binance with the amount that I could afford to lose but I'm not going to experience the same ever again. If you only open long positions, none crypto exchange will be able to totally liquidate your assets but it's different if you open long position on shit coin that's going to fall. Just never play with shorts.

I always see scam wicks, they are very common on MEXC especially on weekends. About not being liquidated because you have opened a long position, you are wrong... Liquidations happen for the longs too. Maybe you haven't traded that much.

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Quote from: logfiles on August 09, 2023, 04:24:17 PM

I don't know why, but I smell something fishy. Could the exchange also be chipping in to trade against their traders in order to make money? After all, they have all the data of the long and short positions especially with the shitcoin futures that are not listed anywhere else... right?

I really think that absolutely every exchange does that. I'm afraid to short sell on futures because I have seen how price of coin spikes and drops in minutes which is enough to liquidate your assets. I have experienced that on Binance with the amount that I could afford to lose but I'm not going to experience the same ever again. It's better to open long position with low leverage in order to protect yourself from sharp dumps. But we all should keep in mind the current price of coin because if price is too high, it may fall below 50% of its current price.

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Quote from: dimonstration on August 10, 2023, 06:32:14 AM

This statement of yours answer already your question in the title. They are making profit on the listing fee from shitcoins since they are the favorite destination of newly launch project as centralized exchange lisiting. Listing sometimes cost a significant amount of money while they can promise a good volume to the project since MEXC user doesn’t have fees for them to use exchange frequently.

Removing trading fee and relying on the listing fee is a very nice move since they can’t compete to huge CEX if they will rely on maker and taker fee. Big exchange like Binance is very strict on listing and I think they use this as advantage to benefit on the increasing number of shitcoin being launch daily.

But the listing fee is one-time, isn't it? Or do they charge a monthly fee? I don't see how they would survive on on-time listing fees.

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Quote from: logfiles on August 09, 2023, 04:24:17 PM

I have used MEXC sometimes because they seem to be so quick on listing derivatives of shitcoins which are so sweet to short at times after the pump, but to be honest I even fear depositing money on that exchange. I just deposit what I can afford to lose.

Now, the exchange has insanely low trading fees compared to other players on the market, which makes me wonder how they manage to stay afloat

This statement of yours answer already your question in the title. They are making profit on the listing fee from shitcoins since they are the favorite destination of newly launch project as centralized exchange lisiting. Listing sometimes cost a significant amount of money while they can promise a good volume to the project since MEXC user doesn’t have fees for them to use exchange frequently.

Removing trading fee and relying on the listing fee is a very nice move since they can’t compete to huge CEX if they will rely on maker and taker fee. Big exchange like Binance is very strict on listing and I think they use this as advantage to benefit on the increasing number of shitcoin being launch daily.

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I cant remember the exchange name but there was that offer zero withdrawal fees, this was the reason why some people used them, so he thought of it as a marketing trick.

Some other reasons could be

There may be some hidden fees here.
A high withdrawal fees
A temporary offer, and sometimes may give up part of their profits to ensure that more users make purchases and deposits.

bad reasons can be

misuses customers' money: instead of charging fees, it takes advantage of customers' money and invests it in high-risk investments, from which it obtains financing.
Low exchange rates: The exchange rates are much lower than the prices in other platforms and they make profits from this difference.
They want to steal customers' money after gaining their trust.

I think the reason for MEXC is a temporary promotion.

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Quote from: logfiles on August 09, 2023, 04:24:17 PM

-snip-
I just deposit what I can afford to lose.

It's better decision, the promotion can be revoked or terminated at any time. Reasonably speaking, an exchange that is on its way to becoming a top service would not survive this kind of generosity.

I came across an old review that shared a breakdown of their regular (without events) trading fees. The 0.2% spot trading fee for M/T and futures trading has more categories based on the user's futures balance level.

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There's nothing fishy about a temporary zero-trading fee promotion in line with the platform's 5^th anniversary. Here's the official announcement. This is the fourth month of this anniversary promo. Although there is no specific end time of this zero-trading fee offer, I don't think this will be permanent. This is simply some kind of gift or a show of gratitude to their users.

Zero-trading fees is nothing new really, but always temporary just like Binance's which ended last March. KuCoin also provided zero trading fees to certain pairs when it also celebrated its 5^th anniversary last year.

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I have used MEXC sometimes because they seem to be so quick on listing derivatives of shitcoins which are so sweet to short at times after the pump, but to be honest I even fear depositing money on that exchange. I just deposit what I can afford to lose.

Now, the exchange has insanely low trading fees compared to other players on the market, which makes me wonder how they manage to stay afloat

Spot
Maker: 0.000% Taker: 0.000%

Futures
Maker: 0.000% Taker: 0.010%

This is way below even what the likes of bitmex and Bybit used to offer back in the day before they also changed their fee structures, probably due to little profits

For example, Bitmex used to offer in futures trading; Maker: -0.025% (they would actually pay you -0.025%) and Taker 0.075%. Despite the maker rebate, the taker fee was so high, so it would cover for the maker rebates. Same with bybit, but they ended up scrapping off the rebates.

I don't know why, but I smell something fishy. Could the exchange also be chipping in to trade against their traders in order to make money? After all, they have all the data of the long and short positions especially with the shitcoin futures that are not listed anywhere else... right?

Topic: MEXC, insanely low trading fees. How are these guys making money? (Read 299 times)