9 Best Crypto Derivatives Exchanges in 2021

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The best crypto derivatives exchanges:

ExchangeNo. of Perpetual ContractsNo. of Futures Contracts
1. Binance13743
2. Bybit184
3. FTX145535
4. Deribit259
5. Bitmex1784
6. Gate.io149Not Identifiable
7. Huobi Global16856
8. OKEx1391336
9. MEXC Global1190

Derivatives are an essential part of any market, be it a stock market, forex market, or cryptocurrency market. Traders can use various strategies either to speculate or to mitigate their losses through hedging.

In case you want to explore the derivatives market in crypto. You would need an exchange that provides such services. Some of the best cryptocurrency exchanges you already use support derivatives trading. 

Derivates trading is pretty new to the crypto market, and many exchanges are still taking baby steps towards it. So, we searched for the most widely used and trusted ones and presented you with our Best Crypto Derivatives Exchanges list.

Let us understand the derivatives products of these exchanges.

9 Best Derivatives exchanges for Crypto:

1. Binance

Binance Crypto exchange

Binance is the #1 exchange for spot trading, rolled out margin, and derivatives trading in the past few quarters. It has the most extensive customer base and trading volume in the global crypto markets.

Derivatives products on Binance are categorized as follows:

  • USD-Margined Futures Contracts 

These are perpetual as well as delivery contracts which are settled in USDT and BUSD.

  • Coin-Margined Futures Contracts

These are perpetual and delivery contracts that are settled in cryptocurrency such as BTC, ETH, etc.

  • Binance Leveraged Tokens

Leveraged tokens allow a user to have increased exposure to a particular crypto asset.

  • Binance Options

These are European-style vanilla options that can be used either to maximize profits or to limit losses.

Binance has a very reasonable fee for derivatives trading. There is no fee for the deposit of funds on Binance. The trading fee is variable and varies from 0.01% to 0.05% of the transaction value. Further, a user can reduce this fee by holding the in-house token of Binance, i.e., BNB. 

The exchange is pretty secure and also has an option of two-factor authentication for users. And customer support is also excellent. 

The only downside is that the platform isn’t available for US traders. But you can still trade if you use a VPN.

2. Bybit

Bybit Crypto Exchange

Bybit is a specialized platform that is dedicated to derivatives markets only. It has been in the market since 2018. 

Derivatives products on Bybit are categorized as follows:

  • USD Margined Perpetual

These are perpetual contracts that are settled in USDT

  • Coin Margined Inverse Perpetual 

These are perpetual contracts that are settled in cryptocurrency such as BTC, ETH, etc.

  • Coin Margined Inverse Futures

These are delivery contracts that are settled in cryptocurrency, such as BTC, ETH, etc.

Bybit hasn’t been in the crypto market for long. What makes it a good platform is that its primary purpose is to cater for crypto derivatives trading.

The trading fee structure of Bybit is pocket-friendly. It charges 0.075% of the transaction from the market taker but rewards 0.025% of the trade to the market maker.

Bybit’s team claims the platform can process up to 100,000 transactions per second. This makes it powerful for both individual and institutional traders.

For user experience, Bybit is clean. It’s built to appeal to newcomers and veteran traders alike. There are a lot of essential educational resources for newbies to learn trading on the platform. 

Traders can easily access Bybit on any browser or download its mobile app.

Read: Bybit review

Newcomers on Bybit get a bonus of $90.

3. FTX

FTX Crypto Exchange

FTX is a robust addition to the crypto markets and was established in May 2019. Please read our full review on FTX Exchange here.

The exchange has a wide variety of products in the derivatives market, and almost 90% of the exchange’s volume is generated through derivatives products only.

Following are the derivative products offered by FTX Exchange:

  • Non-inverted Futures Contracts

FTX has non-inverted Futures Contracts, which are denominated in stablecoins. For Example a BTC futures contract is BTC/USD and not USD/BTC

There are two types of contracts:

  1. Quarterly – these futures expire at the end of the quarter in which they are issued
  1. Perpetual – these futures don’t expire. Instead, every hour, each perpetual contract has a funding payment where longs pay shorts or vice versa. This helps keep the price of the perpetual futures in line with the price of the underlying index without ever closing down positions for expiration.
  • Prediction Markets

These are the futures contract through which you can bet on a real-world event. This is a digital form of traditional betting.

A few of the prediction contracts available are as follows:

  1. Trump 2024 – TRUMP-2024 is a futures contract on FTX. It expires at $1 if Donald Trump wins the 2024 US presidential general election and $0 otherwise.
  1. Superbowl Futures – Bolsonaro2022  is a futures contract that expires at $1 if Jair Bolsonaro wins the 2022 Brazilian presidential election and $0 otherwise.
  • Options

All the options are priced on Black-Scholes Model. A user can buy a call or put open to hedge their market portfolio to substantial market deviations

Why are futures contracts listed on FTX different?

FTX futures are stablecoin settled: you deposit stablecoins as collateral for all of the futures, and your profit or loss is settled in stablecoins.  This means that you get legitimate USD-based price exposure and settlement without needing a bank account; you can also use the same base currency as collateral for all of the contracts, making it easy to shift your positions around.

FTX futures have a unique backstop liquidity provider program that jumps in to provide to accounts in danger of bankruptcy, helping avoid clawbacks.

FTX futures have careful and measured margin calls to avoid significant price dislocations.

FTX has futures for many tokens such as BTC, ETH, EOS, XRP, USDT, LTC, ADA, and many more. The collateral for the futures contracts is in stablecoins.

The USP of the exchange is its team with relevant and dynamic experience in the crypto and traditional trading sector. FTX team comes from some leading Wall Street quant funds and tech companies: Jane Street, Optiver, Susquehanna, Facebook, and Google. 

The team has ample exposure to the traditional secondary market. Members have backgrounds in equity derivatives trading and seem to understand how derivatives are traditionally designed and what kind of derivatives are in demand.

4. Deribit

Deribit Crypto Exchange

Deribit is another specialized exchange built only for trading crypto futures and options. It started in 2016 and has built a user-friendly platform for derivative traders. 

Deribit is open to traders in over 100 countries. There is no fee for a deposit, and withdrawal is also free up to a certain limit. 

Derivatives products on Deribit are categorized as follows:

  • Deribit Perpetual

These are a perpetual contract which is settled in cryptocurrency.

  • Deribit Futures

These are delivery contracts that are settled in cryptocurrency.

  • Deribit Options

These are European style vanilla options that can be used either to maximize profits or limit the losses.

The platform only supports Bitcoin and Ethereum derivatives. Deribit’s interface appeals to a newcomer and serves as a powerful tool for veterans. You can trade via its web portal or download its mobile application in Android and iOS versions. 

Some additional features of Deribit are as follows:

  • Deribit supports many trading bots and uses cold storage to keep your assets safe.
  • The trading fee charged by Deribit is variable and can be referred to here. The customer support is available 24/7. 
  • Deribit supports English, Korean, Spanish, Russian, Japanese, Chinese, and Turkish.
  • It offers dashboards for trading history, recent trades, and order books. 
  • It also has statistics for futures, indexes, volatility, and technical indicators.

To trade, you need to create an account, make a deposit, and choose either futures or options trading. Their blog has helpful content if you get stuck.

5. Bitmex

BitMEX Crypto Exchange

Bitmex is a popular crypto exchange where you can trade derivatives. It’s been in the game since 2014 and has grown as a good platform for many traders. It is another specialized derivatives exchange.

Derivatives products on Bitmex are categorized as follows:

  • Perpetual Contracts

These are perpetual contracts that are settled in Bitcoin.

  • Futures Contracts

These are futures contracts that are settled in Bitcoin.

Further, Bitmex also offers a margin of upto 100x on these contracts. Bitmex offers derivatives products on various tokens such as BTC, ADA, BNB, DOT, DOGE, EOS, ETH, etc. 

The point worth noting is that all these contracts are settled in BTC. Thus, withdrawals, deposits, and transaction fees are all done in BTC.

In total, the platform offers 17 perpetual and 84 futures contracts.

Market takers pay 0.075% per trade, and makers get a 0.025% rebate. This is a refund given to makers for providing liquidity for the platform.

Read: Bitmex review

Some additional features of Bitmex are as follows:

  • There is a 24/7 customer support
  • For safekeeping, Bitmex stores some of your crypto on a cold storage 
  • The platform has a feature of two-factor authentication to prevent malicious parties from accessing your account
  • Bitmex supported languages are English, Japanese, Chinese, Korean, and Russian.

6. Gate.io

Gate.io Crypto Exchange

Gate.io is an excellent crypto exchange that has gained popularity because of its unique product offerings. It stands tall in the list of best crypto exchanges, and its derivative products are also not short of anything.

The various derivatives products offered by Gate.io are categorized as follows:

  • Perpetual Contracts

These are perpetual derivative contracts that are settled either in USDT or in BTC.

  • Futures Contracts

These are delivery contracts that have a fixed expiry date.

  • Warrants

These are options that can be used either to maximize profits or to limit losses.

The trading fee on Gate.io is as follows:

Type of ContractsMaker feeTaker fee
Perpetual Contracts-0.025% (Rebate)0.075%
Futures ContractsNIL0.04%
Options0.02%0.05%

In addition to the above, Gate.io charges a settlement commission of 0.015% on Futures contracts. The platform offers 149 perpetual contracts and various futures contracts.

7. Huobi Global

Huoibi Crypto Exchange

Huobi Global is one of the leading crypto exchanges that have huge liquidity. In addition to this, the exchange is good on all security parameters. In addition to essential services such as spot and margin trading, Huobi has a substantial trading volume in the derivatives market.

Huobi offers 168 perpetual contracts and 56 futures contracts.

The derivatives products offered by Huobi can be categorized as follows:

  • Futures

These are delivery contracts that are settled on a specific date.

  • Coin Margined Swaps

These are perpetual contracts that are settled in cryptocurrency, such as ETH, BTC, etc.

  • USDT Margined Swaps

These are perpetual contracts that are settled in USDT.

  • Options

These are options that can be used either to maximize profits or to limit losses.

The trading fee charged by Huobi for derivatives trading is as follows:

Type of ContractsMaker feeTaker fee
USDT Margined Swaps0.02%0.04%
Coin Margined Swaps0.02%0.05%
Futures Contracts0.02%0.04%
OptionsVariableVariable

8. OKEx

OKEx Crypto Exchange

You’ve either used it, heard of it, or seen a different trader use it. OKEx is a big name in crypto with support for many assets. It is one of the top exchanges for derivatives trading, according to CoinGecko.

Derivatives products on OKEx are categorized as follows:

  • Perpetual Contracts

These are perpetual contracts that can either be USD margined or Coin Margined. This means that they can either be settled in USD or cryptocurrency.

  • Futures Contracts

These are futures contracts that can either be USD margined or Coin Margined. This means that they can either be settled in USD or cryptocurrency.

  • Options

These are European-style vanilla options that can be used either to maximize profits or to limit losses.

OKEx exchange offers 139 perpetual and 1336 futures contracts. This huge variety of derivative products makes OKEx viable for traders who want to trade in Altcoin derivative products. Further, OKEx is one of the most liquid exchanges for derivatives trading.

There is also a beginner knowledge quiz for newcomers going into futures and perpetual swaps. The test is simple, so don’t skip it. OKEx wants traders to come into their derivatives market with a little knowledge of how things work. The quiz lets you learn margin calls, swaps, futures, funding, and withdrawal schedules on OKEx.

The base trading fee on OKEx is as follows:

Type of ContractsMaker feeTaker fee
Perpetual Contracts0.02%0.05%
Futures Contracts0.02%0.05%
Options0.02%0.05%

This fee can be reduced once a user attains VIP status.

Another cool part about OKEx is that it allows its Customer to pair derivatives trade with fiat currencies. This allows you to make a trade in a currency of your choice. And you won’t have to suffer exchanging from one currency to the other when withdrawing your funds.

In general, OKEx is a great place to trade crypto assets.

9. MEXC Global

MEXC Global Exchange

MEXC Global is an exchange that brings a number of low cap gems at their incubation stage. The exchange was established in 2018 in Seychelles, East Africa. The exchange has its presence in more than 200 countries and has served more than 6 million users.

The exchange supports 11 different languages. In derivatives markets, MEXC Global only deals with perpetual contracts. Users are also provided margin on these contracts up to 125x.

The exchange offers both USDT margined as well as Coin margined contracts. The trading fee for perpetual contracts on MEXC Global is 0.02% for makers and 0.06% for takers.

The exchange has a pretty decent user interface, and it also has a mobile application for iOS and Android versions. Please read our full review on MEXC Global.

Which crypto derivative exchange should you be using?

There are a number of factors that should be considered while deciding the best derivative exchange for you. If you are looking for something simple, and powerful pick: Bybit.

The platform is friendly for beginners and also offers paper trading for you to practice derivative trading.

For high liquidity, Bybit is a great choice. Although its derivative trading fees are on the higher side, it is one of the oldest in the market and offers high liquidity.

For those looking to trade in more coins, Binance Futures, FTX, and OKEx are some of the ideal choices. Unfortunately, all these exchanges are not available for users from the USA, and you could use them only by using a VPN.

Over to you:

Let me know which crypto derivative exchange are you using and why? If we like your recommendation, we will include this in our list of top exchanges for crypto derivatives trading.

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