NERAEX is an entry-level cryptocurrency exchange, which is quickly gaining popularity in the Land of the Rising Sun. While Japan is one of the few countries to regulate the sector, this company is not overseen by the FSA, at least at the time of writing. They still have an interesting offer, which we will explore in this review.
Solid security measures – NERAEX stores its clients’ coins in cold wallets. Two-factor authentication (2FA) is also available. These measures are also implied by some of the most trusted exchanges, so one can be relatively satisfied with security.
Low costs of trading – all Bitcoin transactions on this exchange are charged with a 0.05% fee. Altcoin trading is twice as expensive, at 0.10%. That being said, both of these levels are much lower than the industry average of around 0.20-0.25%. Here is the full list of fees:
No deposit fees – as you can see from the table above, NERAEX does not charge a deposit fee. This is pretty much the norm, when it comes to cryptocurrencies, but keep in mind there will most likely be blockchain costs involved with you making a transfer. The same basically goes for the banking sytem – fees will be in place, but not collected by the exchange.
12 trading pairs – for an entry-level exchange, this is quite a substantial offer. Even more popular companies, like Coinbase, offer fewer coins (although this example is not that accurate as Coinbase and GDAX are owned by the same entity). The full list available at NERAEX includes: BTC/JPY, ETH/JPY, HSR/JPY, SKB/JPY, RSS/JPY, EOS/BTC, SNT/BTC, OMG/BTC, PAY/BTC, KNC/BTC and SKB/BTC.
JPY banking – NERAEX accepts bank transfers in Yen. This makes them yet another convenient option for Japanese potential traders. That being said, they not be that attractive for foreigners.
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Nice platform – trading at NERAEX is done through a web-based platform, which we find rather enjoyable. Unlike many others the layout appears to be designed by somebody who has actual trading experience. Focus is placed on the charts and order book, while the active positions are placed in the bottom. Here is how it looks (click to zoom):
Based in Japan, but not regulated – the most obvious downside to this exchange, is that despite being based in one of the few countries to regulate Bitcoin, they are not registered with the local authorities. That being the case, they may be in the application process at the time of writing.
No leveraged trading – margin is not provided at NERAEX. While some other Japanese exchanges do offer it, the ratios are rather low for aggressive traders. Those looking for higher “gearing” are welcome at some forex brokers.
These companies provide the so called Contacts for Difference (CFDs). Trading with such instruments doesn’t grant you ownership of any coins, but of an asset which only follows the respective price movements. This means you will not be able to send anything for a payment, but only speculate with the price. For the full story, check this article.
Withdrawal rules – on top of the fees for transferring coins out of the exchange, there are several additional rules. There are daily limits, and while they are rather high, some big traders will not enjoy them. More importantly, one could basically not withdraw more than he has deposited to the exchange, limiting the opportunity for arbitrage traders. Here are all the details as mentioned on the website (we apologize for the poor translation):
No user feedback in English – this exchange is yet to gain much popularity out of Japan, so finding user reviews is hard. We like to take a peek at them and while basically all companies are criticized in one way or another, some are much worse than the rest.
NERAEX is a Japanese cryptocurrency exchange, which accepts local bank transfers. At this point in time they are not regulated by the Financial Services Agency (FSA), which makes them less credible than some of the local counterparts. On the other hand the trading conditions and platform are fine.
Keep in mind, the reason why Japan started regulating exchanges is to prevent scammers from taking their client’s funds. As the popularity of Bitcoin grows, so does the number of online charlatans looking to take advantage of the naïve. We are by no means blaming NERAEX, but if you are looking to trade crypto in a secure environment, be sure to look at the highly regulated forex brokers, which offer this asset class.