IDEX is a “decentralized exchange”. It is the first Ethereum based decentralized smart contract exchange to support real-time trading. IDEX claims to be the most advanced Ethereum DEX. It supports limit and market orders, gas-free cancels, and the ability to fill many trades at once.
The exchange consists of a smart contract, a trading engine, and a “transaction processing arbiter”. The smart contract is responsible for storing all assets and executing trade settlement, and the user needs to verify all trades by the user’s private keys.
Unlike most other decentralized exchanges, IDEX has built a smart contract that only allows the exchange to submit signed trades to Ethereum. This enables the exchange to control the order in which transactions are processed, separating the act of trading from final settlement. As users trade, their exchange balances updates in real-time, while simultaneously they use their private keys used to authorize the trade in the contract. This authorization prevents users from rescinding any completed trades, and prevents the exchange from initiating any unauthorized trades.
The exchange does not list US-investors as prohibited from trading, but US-investors should do their own independent assessment of any problems arising from their residency or citizenship.
Every trade occurs between two parties: the maker, whose order exists on the order book prior to the trade, and the taker, who places the order that matches (or “takes”) the maker’s order. IDEX’s trading fees for takers are 0.20%. This fee is slightly below the global industry average. The global industry average is arguably around 0.25%. IDEX also offers a discount for makers who trade at 0.10%. This is beneficial for the investors who are not interested in picking up existing orders from the order book but rather prefers to “go fishing” with maker-orders.
IDEX does not accept any other deposit method than cryptocurrencies, so new crypto investors can’t actually trade at this exchange. If you don’t have any crypto but want to start trading here, you will first have to purchase cryptocurrencies from another exchange and then, as a second step, deposit them here.
IDEX’s security score is F, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/).
Source: IDEX Review by Cryptowisser