Tux Exchange Review by professional Forex trading experts the “ForexSQ” FX trading team, Finding out everything you need to know about the broker in this Tux Exchange Review.
Tux Exchange Review
Tux Exchange is a Canadian cryptocurrency exchange that launched in August 2016. It offers trading only in cryptocurrencies: Ethereum, Litecoin, Dogecoin, Peercoin, Dash, Namecoin, Zcash, Emercoin, Potcoin, Blackcoin, Emercoin, Syscoin, Counterparty, Golem, Iconomi and PEPECASH. They can be traded against Bitcoin.
Tux Exchange Advantages
– Location. Tux Exchange is a Canadian cryptocurrency exchange. This does not necessarily mean it is no scam, but, after all, Canada has the reputation of a country with tight regulation and legislative requirements for the financial services providers.
– Trading fees. Tux Exchange charges 0.3% taker fee and 0% maker fee. Those are relatively favorable trading conditions, even though there certainly are exchanges with lower fees. Additionally, the exchange offers free trading for clients providing liquidity.
– Client reviews. It appears that Tux Exchange’s clients are very satisfied with the service. Among the main advantages mentioned are the 24/7 support, speed and ease of use. It appears that there is also a nice community around the exchange.
– Transfer fees. Tux Exchange charges a withdrawal fee of BTC 0.0007. Deposit is free. We’d say the fee is quite minimal, considering that there are network fees that have to be covered.
– Security. Tux Exchange provides online and offline (hot and cold) storage for client funds, plus the standard two-factor authentication. Additionally, it is hosted on Amazon’s AWS cloud platform. Also, Tux Exchange says it plans to build a cold reserve with earned trade fees in order to completely insure client funds, both hot and cold.
– US clients. Tux Exchange says it accepts US clients. It is fairly common among cryptocurrency exchanges, even though some states, like New York, require bitcoin license for the cryptocurrency exchanges operating on its territory.
– Trading platform. Tux Exchange offers its own trading web interface, similarly to most other exchanges. It has some price charts, market depth chart, order book and a chat window for connecting with the customer support.
Tux Exchange Disadvantages
– Leveraged trading. Tux Exchange does not offer leveraged trading, similarly to the majority of cryptocurrency exchanges. There are a few, though, who offer this option, like Kraken, CexIo and Quoinex. Among the crypto exchanges that offer leveraged trading, are both ones that offer coins only (OKEx, Bitmex) and ones that offer both cryptocurrencies and fiat currencies trading.
There are also forex brokers who have included CFDs on cryptocurrencies for speculative trading on margin.
– Fiat currencies. Tux Exchange does not work with fiat currencies and does not offer trading with them.
– Pairs. Tux Exchange only offers trading in pairs with Bitcoin, i.e. the other alt-coins cannot be traded against each other.
– Credit cards. Because it does not work with fiat currencies, quite logically, Tux Exchange does not accept payments with credit cards.
– Regulation. Tux Exchange is not regulated. There are no specific regulation requirements for cryptocurrency exchanges on a national level in Canada, but, nevertheless some, like Morrex and All Coin are registered with FINTRAC as a money services business. On the other hand, Tux Exchange does not operated with fiat currencies, so perhaps such registration is not required.
– Volume. Despite its good customer reviews, it seems that Tux Exchange does not have enough liquidity.
– Coin requests. Tux Exchange does not accept coin requests. The addition of new cryptocurrencies is solely to the discretion of the staff and only includes coins with market cap in the top 30. It may be disliked by some clients, but on the other hand, the exchange does not get clogged with hundreds of obscure cryptocurrencies that no one is interested in..
Tux Exchange is apparently targeting the more nerdy traders who are interested in alt-coins only and offers only cryptocurrency trading. It has a fairly good selection of coins, but they can only be traded against the Bitcoin and not against each other of for fiat currencies. This, in our opinion, could be quite limiting in many respects.
Another thing we dislike is the lack of clear information about the level of anonymity and whether clients need to verify themselves. There is no clear information on whether the exchange offers own wallet or not.
What we like the most are the low trading fees (for taker only) and the positive customer reviews of clients happy with the speed and customer support of Tux Exchange.
All in all, Tux Exchange seems to offer a niche trading service for cryptocurrency enthusiasts and does not target the widest audience.
Tux Exchange Review Conclusion
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