Key Takeaways:
- Cross margin complexity varies – Some exchanges require multiple settings and high capital minimums to enable Cross Margin, while others make it more accessible by default.
- Wallet & subaccount management impacts UX – Platforms differ in how they structure asset management, with some requiring multiple transfers between wallets and others offering a more streamlined experience.
- Transparency in lending & fees matters – Some exchanges provide clear interest rate models and peer-to-peer lending, while others use opaque centralized liquidity pools and less transparent fee structures.
In today’s fast-moving crypto market, traders seek platforms that are efficient, transparent, and easy to use. When you take a closer look at how different exchanges operate—especially in areas like margin trading, collateral management, and earning opportunities—it’s clear that not all platforms are created equal. Some prioritize accessibility and flexibility, while others cater more to institutional traders with higher capital requirements.
Let’s explore key industry practices and see how each exchange fits into this evolving landscape.
Cross Margin
Cross Margin is a risk-efficient margin mode that allows you to use your entire account balance as collateral across multiple positions. Instead of isolating margin for each trade, Cross Margin automatically redistributes available funds to prevent liquidation and maximize capital efficiency.
All major exchanges offer Cross Margin, but enabling it ranges from very difficult (Binance), to automatic (Backpack), and everything in between.
Here’s a quick rundown:
Binance
For Spot trading, Binance segregates cross and isolated margin balances in two different wallets, which you manually have to fund. For Futures, by default you’re on “Single Asset mode” (only USDT collateral accepted) and “Isolated Margin”. To access Cross Margin and to use multiple assets as collateral, you have to change to “Cross Margin mode” and “Multi Asset Mode”. You cannot use “Isolated Margin” under “Multi Asset mode” - which makes running isolated basis trades quite complicated.
However, simply changing between accounts is still not true Cross Margin. Binance has 11 wallets, which are all segregated. To get the unified wallet experience, you’ll need to enable portfolio margin, which requires users to have at least $100,000. If it seems complicated, it’s because it is.
Bybit
Bybit offers a unified trading account which can be used to trade spot and futures. They also have a segregated funding account. You deposit directly to your trading account and then transfer over, which is straightforward but adds friction.
Bybit also allows users to choose which assets they use as collateral. By default, only stablecoins are used but you can select all assets (over 140).
OKX
OKX makes it challenging to use Cross Margin. The Cross Margin setting is deeply buried within the trade UI, hidden behind a small settings button alongside numerous other options.
When accessed, traders are presented with four account modes: Spot Mode, Spot and Futures Mode, Multi-Currency Margin Mode, and Portfolio Margin Mode. However, the platform’s explanations of these modes are unclear, making it difficult to understand the differences and benefits of each. This lack of clarity can lead to confusion, especially when you are looking to optimize your capital efficiency and risk management strategies.
Additionally, if you want to use “Multi-Currency Margin Mode” (i.e. use multiple assets as collateral Cross Margin) you need to have at least $10,000 in your account.
To make matters more complicated, if you want to use “Isolated Margin”, you need to have the base asset you’re buying as collateral when using spot margin.
For example, to buy BTC with leverage on spot, you need BTC as collateral. This makes spot margin with isolated margin a bit unusable. To get around this, you’ll need to activate “Cross Margin”, which allows you margin in USDT or USDC only.
Bitget
Bitget mirrors Binance’s complexity, with manual configuration for Cross Margin across wallets—similar but with a considerably more user-friendly UI.
Backpack
On Backpack, everything is Cross Margined, cross-collateral, and available in a single account. If you want to isolate multiple trading strategies you can easily create (and switch between) subaccounts with a single click.
Backpack Exchange uniquely supports robust basis trades by allowing spot assets, lent assets, and unrealized profits as collateral simultaneously, democratizing advanced trading techniques.
Wallet and subaccount management
While we talked through overall Cross Margin capabilities above, there is a more granular structure that underpins its functionality: wallet and subaccount management. Both are essential components of every exchange, providing you with structured control over your funds, security, and risk management.
Most exchanges approach wallet management from a similar (and complex!) perspective, operating distinct wallets for each product.
Here’s a quick breakdown of how each exchange approaches subaccounts:
Binance
As mentioned earlier, subaccounts on Binance have up to 11 distinct wallets for different products such as spot trading, futures, and margin lending - targeting institutional traders with complex setups.
Bybit
Creating and using subaccounts on Bybit is easy compared with the aforementioned exchanges, however it’s not part of the core experience and is difficult to find as a feature. By default, Bybit doesn’t allow you to deposit directly into subaccounts - you have to enable that setting. Similar to FTX’s Custom Logins, each subaccount gets a login id (username) and you can add a password.
OKX
Like Bybit, OKX also allows you to create subaccounts, including a separate username and password for subaccounts. However, the feature is buried and the process to create one is long, arduous, and comes with many restrictions. Additionally, when you switch to another subaccount, you’re redirected to the OKX landing page - which is not the greatest user experience.
Bitget
On Bitget you can only create and switch to a subaccount from the Dashboard page (i.e. it is not possible in the trade page or anywhere else).
Backpack
If you’re looking to isolate multiple trading strategies, on Backpack Exchange you can easily create and manage subaccounts, allowing for clear separation between different approaches such as scalping, swing trading, algorithmic strategies, or long-term holdings. With a single click, traders can switch between subaccounts, ensuring that each strategy has its own margin allocation, risk exposure, and performance tracking.
This level of segmentation not only enhances risk management and portfolio organization but also allows for greater flexibility in testing new trading methods without impacting core holdings.
Capital efficiency
In the world of trading, capital efficiency is a critical metric that directly influences traders' choice of platform. Capital efficiency in crypto trading refers to the optimal utilization of capital to maximize returns while minimizing the amount of funds locked up in positions, borrows, or lends. It essentially measures how effectively you deploy your capital to generate profits.
Efficient capital use is crucial for:
- Maximizing liquidity – Keeping funds available for new opportunities.
- Reducing risk – Avoiding excessive exposure to any single asset or strategy.
- Enhancing returns – Using leverage and efficient strategies to amplify profits.
Margin Preferences
Margin preferences refer to the settings that allow you to choose how your funds are allocated when trading on margin. These preferences directly impact risk management, capital efficiency, and liquidation protection. Each of the top crypto exchanges offer different margin modes and settings to cater to various trading strategies and risk appetites.
You can usually adjust margin settings in the trade settings menu, but on some platforms, these options are buried deep within the UI. This lack of accessibility makes it difficult to optimize risk exposure and margin efficiency. Additionally, margin preference explanations are often unclear, making it challenging to understand the trade-offs between different modes.
Margin preferences directly impact trading performance, but most platforms make them difficult to find and confusing to use. Backpack Exchange simplifies this process by offering Cross Margin by default, removing high capital barriers, and ensuring a user-friendly experience—giving traders more control over their risk and capital.
User Interface and Trade Execution Speed
User interface (UI) and trade execution speed are critical factors that influence trader success: exchanges have historically struggled to streamline this aspect. The right combination of intuitive UI design and ultra-fast execution enables you to react swiftly to market changes, minimize slippage, and capitalize on trading opportunities in real-time.
For most exchanges including Binance, OKX, Bybit, and Bitget it typically requires numerous clicks (5 to 13) to complete essential actions such as deposits and placing trades.
Here’s a chart that shows how many clicks it takes to complete each of the following actions assuming that you start from the main landing page logged in (i.e. exchange.com) and that you have assets in the funding wallet (where you deposit).
*Note the chart above does not take into consideration the cognitive load of navigating options and deciding where to click, nor does it include load time.
Borrow Lend
Borrowing and lending are fundamental components of the crypto trading ecosystem, enabling traders and investors to maximize capital efficiency, generate passive income, and leverage assets for strategic positions. These features power both decentralized finance (DeFi) and centralized exchange (CEX) markets, offering flexible ways to earn interest or access liquidity without selling assets.
For lending, most exchanges offer an isolated earn product, which has a separate wallet. They offer borrowing through spot margin and through a separate loans product, which also has a separate wallet. Both of these markets have both opaque interest rate calculations and counterparty trading (rather than offering clear p2p lending pools).
Binance
Binance offers borrow and lend products through its Margin Trading, Binance Loans, and Binance Earn products, but capital barriers limit access to premium tools like Portfolio Margin.
OKX
OKX’s Earn product is unique compared to others. They follow the same FTX model, in which you have to state your minimal lending APR. If it’s lower than the current market APR, then your funds get loaned out.
Backpack
Backpack is the only major derivatives exchange that seamlessly integrates a transparent, peer-to-peer (P2P) borrow-lending market directly into its trading ecosystem. Unlike traditional platforms that rely on centralized liquidity pools or opaque lending mechanisms, Backpack enables users to borrow and lend assets in a fully decentralized, market-driven manner—without hidden intermediaries or restrictive capital requirements.
This embedded system allows traders to access liquidity instantly, earn competitive yields on idle assets, and optimize capital efficiency in real-time, all while maintaining full visibility into lending rates, borrowing costs, and available liquidity.
Transparency
Transparency remains a critical factor influencing trader trust, yet practices vary widely across the industry. Most exchanges, including Binance and OKX, operate opaque systems where yield origins and financial flows remain largely internalized, limiting user visibility. Backpack Exchange differentiates itself by openly sharing its yield generation models, mirroring the transparency typically associated with decentralized finance (DeFi) platforms.
Fees
Fee structures vary significantly among exchanges, with platforms like Coinbase and Kraken typically positioned at higher pricing points, while Binance and Asian exchanges maintain competitive rates. Backpack Exchange aligns closely with competitive Asian market pricing, while maintaining transparency and simplicity in its fee structures.
Entry Fees
Spot Margin
The evolving exchange landscape
While industry giants like Binance, OKX, and Bybit continue to dominate with their deep liquidity and established market presence, a new wave of exchanges is emerging to challenge traditional models. By prioritizing transparency, capital efficiency, user experience, and compliance, these platforms are setting new industry standards.
Innovations such as integrated peer-to-peer lending, seamless margin management, and more accessible trading tools are redefining how traders interact with exchanges. As competition in the crypto trading ecosystem intensifies, the exchanges that focus on efficiency, accessibility, and user-centric solutions will be best positioned to meet the evolving demands of both retail and institutional traders.
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