Mercatox specialises in the exchange of cryptocurrencies – something which is rapidly growing in popularity. Launched in 2016, the platform has built a reputation for low fees and an impressive list of tokens, including numerous lesser-known altcoins. But is the platform any good? It’s worth pointing out, before we get into the details, Mercatox is not available in the UK. We recommend heading over to our review of eToro if you’re residing in the UK and looking for a trusted broker.
In the following review of Mercatox, we’ll check out exactly what you can expect from this operator. We’ll review everything from its regulatory credentials to the quality of its customer service and let you know how it measures up against the competition. So is Mercatox a good fit for you? Read on to find out.
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If you’re wondering: is Mercatox safe? Or whether the platform has all the necessary credentials, then we will do our best to answer your queries, but let’s start at the beginning.
Our review of Mercatox, found the sign-up process to be simple and fairly standard. You’ll be asked to provide your full name, address, email and telephone number as well as either your passport or national ID card number. You will also be asked to provide a photo of said ID. These details then allow the platform to complete crucial KYC checks.
The Mercatox trading platform is fairly streamlined – some might even call it basic – and there are no frills or special offers. Once you have signed up to the account then there is little left to do but start making trades.
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When you land on the Mercatox website, you might be struck by just how stripped back it is.
Our Mercatox review UK found that it lacks the finesse of some of the bigger platforms on the market – it’s what you might call a ‘no-nonsense’ layout. You sign up and you trade.
All the navigation options related to trading can be found at the top of the page under the tabs Trade, Lending and E-Wallet. This is all fairly self-explanatory and there are no drop-down menus or additional choices to make.
If you need additional information, then you’ll find it in the footer of the main page. Here you can access information about the company, the terms and conditions, the platform news fee and, more importantly, the customer service options.
As we’ve noted, Mercatox offers a fairly basic trading service. You won’t find multiple accounts and trading platforms here, there is simply the Mercatox account that offers access to the cryptocurrency markets.
Whilst this does greatly simplify the sign-up process, our Mecatox review UK feels it does not cater to different levels of trader – after all, an experienced pro may wish to make use of complex tools and metrics that may be far too confusing to the novice investor.
The reason for the simplicity is really down to the fact that you can only trade one asset with Mercatox: cryptocurrencies. As such, there is little need for alternative accounts as there are really no other services to take advantage of.
Fees are always a major consideration when choosing a new platform. Afterall, trading is about making profit and no one wants to see it eaten away with unnecessary charges. Whenever you trade, you will always pay a fee of some type – even if the platform advertises as commission free, this will be compensated for with a wider spread.
Mercatox does not charge different rates for buying and selling and it only offers access to one market, so there are no different costs to factor in. The exchange therefore has a fee model based around a flat trading fee.
This is set at 0.25% and is the same for any position you open via the platform. We found this to be fairly standard and in line with industry averages, but if you’d like to compare prices then feel free to check out our Plus500 review to get a feel for what other platforms charge.
We’ve established that Mercatox has a pretty streamlined service, offering nothing but cryptocurrencies, but now we need to ask is Mercatox good enough at what it does to warrant being used as a single-asset broker?
Of course, the answer to this question is found in the Mercatox trading platform. Mercatox doesn’t offer any fancy software or a choice between industry-standard trading windows. Instead, what users get is a simple web-based interface that offers access to numerous cryptocurrency pairs.
The charting information is provided by TradingView and is adequate for most traders, but our review of Mercatox can’t fail to note that the customisation options and general functionality of the trading platform are somewhat limited when compared to competitors. For example, if you take a look at our review of Vantage FX, as well as finding out the answer to questions such as “is Vantage FX safe to use?”, you’ll also see details on how some brokers provide numerous trading platforms, including bespoke apps. Mercatox disappoint in this regard, and we also noted that there is currently no mobile app. However, the website does work well on mobile, so this concern is more of a minor blip than a serious problem.
Payments is one area in which Mercatox is a little different. Users can actually only fund their accounts with cryptocurrency. Mercatox offers no exchange services, so you cannot convert any fiat currency to crypto via the website.
This means that, in order to use Mercatox, you’ll need a cryptocurrency wallet and be familiar with how to send and receive the token with which you wish to make trades. At the time of writing, Mercatox supports the numerous tokens, including the major currencies:
The fees you pay for moving funds around will depend on the cryptocurrency you choose. Whilst the platform itself does not detail any charges, each currency will have a small fee for any transactions.
The lack of support for fiat currency is the reason behind Mercatox’s minimal setup. As the platform does not involve sending or receiving cash, it is not subject to the same regulatory requirements and can offer a comparatively basic trading platform.
Trading any kind of asset is often quite a complicated affair – especially to the uninitiated. Whilst the act of opening and closing a system is pretty straightforward on most platforms, it can take a while to get to grips with the various charts, as well as the trading terminology.
For this reason, any reputable platform will offer support for its customers – and Mercatox is no exception. However, as with everything Mercatox does, the customer service offering is fairly basic.
Many queries can be solved through the help centre, which contains a ‘knowledge base’ containing numerous articles relating to the platform and trading in general. You can also submit your own tickets, which, when answered, will be displayed for other users to reference.
There is also a FAQ page, but this only deals with the most basic questions relating to account funding options, a handful of trading tools and details regarding account security.
If you actually want to get in touch with Mercatox, then the only option available is via email. Response times will vary depending on how busy the team is, but typically emails are responded to within 48 hours.
Safety and security are extremely important when trading online and most users will want to know that any platform they are using is completely above board. So is Mercatox safe?
Ordinarily, the easiest way to check out whether a platform is trustworthy or not is by checking its regulatory credentials. However, as you can only trade cryptocurrency with Mercatox and the platform handles no fiat currency whatsoever, it is not subject to any regulatory requirements.
This means that, despite operating in the UK, it is not regulated by the Financial Conduct Authority, as most retail brokers are. Naturally, this can be a concern for those new to the markets as essentially it means that Merotox is not held to account in the same way as the more well-known brokers are. For an alternative broker, you can check out our answer to the question “is Degiro legit?”.
However, the platform currently has in excess of 10,000 active users and it has operated successfully for 5 years, which lends it a certain degree of legitimacy. With regards to client funds, users are offered a certain degree of protection by the nature of blockchain technology itself.
You are also not obligated to store your cryptocurrency in the Mercatox e-wallet, which means your funds can be kept as secure as they ever were before.
When it comes to actually using the site, Mercatox employs a robust KYC protocol to prevent illicit activity and all accounts can be protected by two-factor authentication, which should give users peace of mind that the broker takes their security seriously.
It should be fairly clear from our review of Mercatox that the platform differs from the usual offering.
But its simplicity is arguably Mercatox’s strongest asset. The cryptocurrency world is different to that of traditional finance and many traders in the industry prefer to stick with digital currency for all their operations. Mercatox allows such traders to buy and sell crypto pairs without needing to convert their profits back to fiat currency.
Another advantage of Mercatox is there is no need to download any additional software – the trading platform is simple enough that it’s never likely to overload any device or internet connection.
Mercatox’s single market approach also means it offers traders the chance to gain exposure to a much wider selection of cryptocurrencies than many multi-asset brokers. In addition, users can even vote on new tokens to be added to listings – meaning Mercatox will likely be one of the first places to list newly developed cryptocurrencies.
Finally, Mercatox also offers an interesting loyalty programme, which rewards users for promoting the brand. By engaging on social media and posting on popular forums, users can get preferential rates and increased voting rights on the platform’s development.
Mercatox is a lesser-known brokerage, probably because it offers trading exclusively in cryptocurrency. If you’re interested in digital currency as an investment opportunity, then it might be worth having a read through of our Mercatox review, to decide whether the platform is right for you. If you want to see how other platforms operate, check out our review of Degiro or our eToro review to see how the two compare.
Most brokers are subject to different regulatory requirements depending on where they trade and to gain approval, they must demonstrate that they are operating completely on the level. Mercatox, however, only trades in cryptocurrency, so is not subject to as many rules as a traditional broker.
A demo account can be a great way to get acquainted with a new trading platform, however, brokers like Mercatox often have such a simplistic trading window that there really isn’t a great deal to learn. To find out more about the broker, check out our review of Mercatox. To find out more about other trusted brokers, take a look at our review of Robinhood.
So, should you open an account with Mercatox? The reality is that you probably know by this point whether or not the platform is for you. If you have an interest in trading anything other than cryptocurrency, then Mercatox is not going to deliver what you need.
If, however, you are more interested in trading digital currency than anything else and prefer it as a means of payment, then Mercatox could be worth a look. In addition, if you already have a broker for forex, indices and suchlike but are unhappy with their crypto provision, then Mercatox could be a great solution.
One thing that will definitely put many users off is the lack of any kind of regulation. Whilst this is not required for cryptocurrency, it is nonetheless an effective seal of approval that a platform is completely legit. That isn’t to say that Mercatox isn’t, but users need to go on faith more than they would with the likes of Plus500 or eToro.
If you’re a crypto trader looking for a super streamlined platform, then check out Mercatox, otherwise, you might want to look at other platforms that offer that little bit more; our review of HYCM, for example, is a good place to start, as we seek to answer the question “is HYCM good?”, look at their service in depth, and much more besides. However, that’s not to say Mercatox doesn’t have its benefits, and could perform well for users seeking the particular advantages the service is able to offer.
Trading financial products carries a high risk to your capital, especially trading leverage products such as CFDs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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