So we reached out to WhaleClub to learn more, after we traded some Demo on their platform as we showed in the walkthrough earlier. They responded immediately at their main e-mail account "email@example.com", which was really pleasant. Then Petar followed up the next day and responded to a series of questions we provided to learn more about what they are about. Read below to learn more about this new exchange, how it works, and what you can expect in your experience there:
Petar: Before we begin, I'd like to say I have been following bitcoinfuturesguide.com since it first started posting links to articles on reddit. I am impressed with the growth and readership you've attracted. I am pleasantly surprised with the quality of content that you publish and take great pleasure in reading it.
BitcoinFuturesGuide: Thank you for the kind words. Let's begin:
Is there an independent price feed that is used for the site? You use Cryptowat.ch for charting, but is there any other way to see this price changes so traders know what it reflects?
Petar: We pull low-latency, real-time price data from multiple liquidity providers and provide our own price feed. It is based directly on the bitcoin markets. All bitcoin price moves are replicated in full on Whaleclub.
BitcoinFuturesGuide: Are there any fees for leverage? Any interest paid on the margin at all?
Petar: As traders, we understand how fees can quickly cut into profits - so we eliminated them entirely.
There are zero fees on all order placements, order executions, deposits, balances, account creation, inactivity, and real-time data. If you use leverage, we charge a small 0.2% interest daily.
In a study simulation we conducted over thousands of trades placed on traditional exchanges and on Whaleclub, we found that Whaleclub traders saved an effective average of 35% on fees. This is thanks to our internal matching and zero execution fees, but also thanks to the full and instant execution of orders (there is no partial execution) and no slippage (slippage is when you enter at market at a worse price due to low liquidity).
As we scale, we will keep pushing our spreads and leverage interest lower. Our business model is to make money through scale, not by charging individual traders high fees.
You can learn everything about our trading conditions here: https://www.whaleclub.co/why
BitcoinFuturesGuide: Are there any fees outside of the spread/margin that are paid?
Petar: None whatsoever.
The spreads are determined algorithmically depending on our own internal metrics. Spreads are almost never above 0.3%, and the spreads will continue going down as we scale to more users.
BitcoinFuturesGuide: Any form of insurance against hacking or theft of funds?
Petar: We maintain a small wallet that is used to cover withdrawals quickly - it represents less than 1% of customer funds at any time and is fully covered by us. All customer funds are otherwise stored in cold.
None of our wallets are connected to software or automation, so they are out of reach from hackers. All withdrawals are processed manually through a standardized, checklist-based procedure.
More generally, I think we’ve built an impeccable security infrastructure for customer funds and data at Whaleclub. Customer funds are directed to cold storage. Cold wallet private keys are encrypted and distributed geographically in vaults around the world. We have great server security, ddos mitigation, full encryption in communications. For the client, full account 2-factor authentication, brute-force mitigation, rate-limiting, and secure login. And all our employees are vetted according to the highest security standards. Security is our top priority at Whaleclub. You can learn more at https://www.whaleclub.co/security
BitcoinFuturesGuide: Can you give our readers any sense of how well funded you are? Venture Capital, Private Funding?
Petar: We are very well-funded, mostly through private money. Venture capital has contacted us to invest, but in our and our customers’ interest, we prefer to remain fully independent at this time.
BitcoinFuturesGuide: Are the data on "active positions" and "closed positions" for LIVE accounts or only for Demo? This transparency is very favorable to traders
Petar: https://www.whaleclub.co/stats is based on a statistically significant sample of customer trades from both the demo and live accounts. It gives a real-time bird’s eye view of the present and past sentiment on the platform. We think this is a good step toward transparency and have appreciated the great feedback we've received on this page.
BitcoinFuturesGuide: Are there any plans for a fully functional API for traders to use?
Petar: Our team is working on a full API that we think will be magnificent, allowing anybody in the world to start trading bitcoin programmatically in seconds.
BitcoinFuturesGuide: Are there any plans to expand outside of trading BTC/USD with bitcoin?
Petar: Yes. Our mission and vision is to provide access to investing and trading all kinds of financial instruments to everyone in the world through bitcoin, because we believe 1) that’s a very powerful idea and 2) a trading platform powered by bitcoin can operate at significantly less overhead. This is not something you can achieve with traditional currencies.
Our priority along with great security is customer satisfaction, so we are always focused on that. That is our north star. Everything we do, we want to improve customer satisfaction: better trading conditions, better user experience, more trading options, lower spreads. We work extremely hard on this every day. We are in permanent contact with the community and our customers through Twitter, email, and other channels and we actually act on the feedback (many companies do not) - we act on every piece of feedback from our customers and we listen very closely to what they have to say and we reach out to them too.
I think we have the right combination of exceptional talent and leadership and also the right timing to make this happen. We have a team that can deliver excellence and is really proven, and we're extremely happy with the great positive customer feedback that’s been coming in.
BitcoinFuturesGuide: Thank you so much for the answers.