MEXC Review 2024: Features, Regulation & Risks

What is MEXC?

‍Founded in 2018, MEXC is a high-performance cryptocurrency exchange, attracting over 10 million users across more than 170 countries. With one of the industry’s most extensive crypto selections, it offers access to over 2,900 cryptocurrencies for trading alongside an impressive liquidity profile that ensures competitive spreads and stable trade executions.

MEXC users benefit from maker fees as low as 0% and taker fees between 0.01% and 0.02%, making it one of the most affordable exchanges in the world. In addition to trading, customers can engage in staking, lending and borrowing services. There is also a Launchpad and Airdrop feature, which gives early access to new tokens before they are listed on the platform.

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MEXC Features

MEXC brings an extensive suite of tools and services crafted for crypto traders, providing flexibility with multiple trading options and earning avenues to suit both novice and experienced investors.

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Trading Types

• Spot Trading: Users can buy and sell over 2,900 digital assets with high liquidity, giving traders competitive pricing and fast trade execution.
• Futures Trading: MEXC’s futures platform offers leverage up to 200x, supporting over 500 crypto pairs across USDT-margined and Coin-margined contracts. 
• Futures M-Day: Through M-Day, users can participate in special token listing events, often gaining access to exclusive or limited-time token sales and airdrops, rewarding participants with early entry benefits.
• Copy Trading: With over 10,000 active users and a total trading volume exceeding 2 billion USDT, this feature allows users to automatically replicate the trades of top traders.
• Demo Account: For those new to trading or looking to test strategies, the MEXC demo account provides a risk-free environment. Users can explore different approaches without financial risk, refining techniques before entering live markets.

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Earning Options

• Savings: Users can stake their assets through Savings, Simple Earn and New Token Mining with fixed and flexible terms. This benefits users looking to grow assets with minimal involvement, with daily interest payouts available between 0.08% - 20% APY.
• MEXC Loans: MEXC Loans enable users to borrow crypto by collateralizing another asset. Borrowers secure their loan with a crypto asset in their MEXC spot account, selecting a loan term of 30, 60, or 90 days at competitive daily interest rates. 
• Kickstarter: This program allows MX token holders to support potential new token listings by committing their MX during special events. Eligible users with at least 1,000 MX for 24 hours can participate in pre-hype events and earn a share of free token airdrops.
• MX Zone: The MX Zone offers a range of benefits for users holding the MX token, including high annual percentage yields (APY) and substantial fee discounts. By holding at least 1,000 MX, users can access up to 120 monthly token airdrops and reduced trading fees. 

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Additional Services

• Launchpool: This enables MX token holders to stake their tokens to earn new project tokens through airdrops, creating a simple way to diversify holdings. Eligible users with at least 1,000 MX can commit their tokens during specific events, with rewards calculated based on the amount committed. 
• Token Airdrop: The Token Airdrop events allow users to earn rewards by completing simple tasks like deposits and trades for selected tokens. Each event typically features a substantial prize pool, often including popular tokens and stablecoins. 
• MEXC Mastercard: The MEXC card allows users to convert and spend their crypto for global online purchases through the MasterCard network. This allows users to spend crypto seamlessly in their daily lives by supporting purchases, ATM withdrawals, and mobile payments.
• Events & Competitions: MEXC frequently hosts trading competitions and special events where users can earn rewards and bonuses. These competitions encourage active trading and engagement with the platform.
• MX Token: MX Token is MEXC’s native utility token, offering holders benefits like discounted trading fees, exclusive access to token airdrops, participation in the platform’s Kickstarter events, and the potential to earn rewards through staking.

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Is MEXC Safe?

‍MEXC is a trusted platform with strong security measures and transparent asset management practices. The exchange secures user funds with cold wallet storage, multi-sig authorizations, and advanced encryption. Based in Seychelles, it holds an Estonian MTR and US MSB license.

However, Seychelles' lenient financial oversight introduces certain complexities, raising questions about the depth of regulatory scrutiny and consumer protection. Although it is only regulated in two regions, it adheres to strict regulatory standards globally and applies Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. 

Users should be aware of these regulatory nuances and understand the implications for risk and protection when using MEXC's services.

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MEXC Fee Schedule

MEXC’s fee structure offers highly competitive rates, especially for MX token holders, with both spot and futures trading fees beginning at 0% for makers and 0.02% for takers. By advancing through VIP levels, determined by MX token holdings, users can unlock additional fee reductions, with top VIPs enjoying even further discounted rates.

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Spot Trading

• Standard Fees: For most users, the base rate is 0% for makers and 0.02% for takers.
• VIP Discounts: MX holders who achieve higher VIP levels access progressively lower fees on trades, with discounts ranging between 10% - 50%.

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Futures Trading

• Standard Fees: Futures trading fees start at 0% for makers and 0.02% for takers.
• VIP Benefits: MX Token holders earn fee discounts ranging between 10% - 40%.

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Deposit & Withdrawals

MEXC supports multiple networks with flexible deposit options, and minimal withdrawal fees vary based on the asset and network. There are zero fees for deposits but withdrawing assets from your wallet will incur gas fees. 

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‍What is MEXC MasterCard?

The MEXC Card enables users to spend crypto for online purchases across the MasterCard network. Eligible users complete a simple online application by providing Advanced KYC details, including passport and ID verification.

Approved applicants receive a card ready for immediate online use, with 3D Secure protection, real-time transaction alerts, and a simple 1% top-up fee. Transaction fees are 0% within the EEA and 2% outside of Europe.

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MEXC Account Freezing

MEXC Global has faced criticism for freezing trader accounts and seizing funds, citing "abnormal trading activities." This practice has led to numerous user complaints. One trader lost $92,000 in Tether after successful futures trades, raising concerns about MEXC's risk control measures.

MEXC asserts these actions are part of its risk management policy, aligned with user agreements, and insists that normal trading activities are not affected. However, the growing number of complaints suggests potential flaws in MEXC's operational and risk management strategies.

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Bottom Line

MEXC is a global crypto exchange offering various trading options, including spot, futures, and copy trading. With over 10 million users in 170+ countries, MEXC supports multiple currencies for deposits, and the platform can be used in several languages, providing accessibility to its global customer base.