Best Crypto Exchange in Canada
What You Should Know
- Cryptocurrency exchanges provide a simple and secure way to buy and sell cryptocurrency at market prices.
- Canadian Securities Administrators have a list of authorized and banned crypto trading platforms to do business in Canada.
- Crypto exchanges usually take a commission on deposits and withdrawals, trading, and staking.
- Even though crypto exchanges are regulated, unlike bank accounts, they are not insured.
About Crypto Exchanges in Canada
Crypto exchanges enable Canadians to trade cryptocurrency, regular currency for cryptocurrency, and other cryptocurrency-related products. There are hundreds of crypto exchanges worldwide, but only a handful are registered with the Canadian Securities Administrators (CSA). You can use any crypto exchange, but the CSA suggests Canadians use platforms registered with securities regulators and avoid using exchanges banned by the regulator.
List of Best Crypto Exchanges
| Platform Name | Fee Range | Products |
|---|---|---|
| Bitbuy |
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| Wealthsimple | Core Members:
Premium Members:
Generation Members:
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| Coinbase |
Non-Members:
Members:
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| Coinsquare |
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| VirgoCX |
|
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| Netcoins |
|
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| Newton |
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| CoinSmart |
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| Shakepay | Not Available |
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What Is a Crypto Exchange and How Does It Work?
A crypto exchange is a marketplace that allows you to trade cryptocurrency for another cryptocurrency. Crypto exchanges are similar to trading platforms in the way they work. It also lets you deposit and withdraw funds: cryptocurrency via virtual wallets and currency via e-transfers and direct bank deposits. Canadian crypto exchanges often offer other financial products and services, with some of the most popular being staking and OTC trades.
Products Offered by Crypto Exchanges
- Basic Trade - market trades that execute momentarily. Most exchanges have this feature as the basic way to trade cryptocurrency.
- Pro Trade - limit trades with real market quotes from other people. Many exchanges offer pro trades with various analytical tools.
- Staking - allows earning rewards (cryptocurrency) for holding certain types of cryptocurrency on the platform.
- Private Wealth (OTC) - Investment advisory with a dedicated account manager. This is available only for large net-worth individuals.
- Corporate Solutions - Various services provided for businesses.
- API - The existence and availability of API enables the owner to control their account via external apps.
- Wallet - A dedicated virtual wallet for holding cryptocurrency.
- Physical Card - A physical card that allows the owner to shop outside of the platform.
- Crypto ATMs - Physical ATMs that allow deposit and withdrawal of cash for crypto.
How to Choose a Crypto Exchange
There are several factors to consider when choosing a crypto exchange. These factors may help you find the cheapest crypto exchange that offers the services you need.
- Available Assets: Some cryptocurrencies are listed only on select exchanges. If you need to trade a niche cryptocurrency, you must ensure the crypto exchange supports it. Most platforms likely have support for common crypto assets such as Bitcoin and Ethereum.
- Applicable Fees: Most Canadian crypto platforms may charge commission on deposits, withdrawals, trades, or staking. The most common type of fee is on trades, while many crypto exchanges in Canada offer a 0% commission on deposits and withdrawals. These fees can add up quickly, so it is important to account for them.
- Deposit/Withdrawal Methods: You must ensure that you can easily deposit and withdraw money from the platform. Canadian crypto exchanges usually offer the option to deposit and withdraw money via e-transfer, direct bank deposit, or credit card. A credit card is a less common option and usually has a fee.
- Platform Security: Hackers can target crypto exchanges and the funds they hold. Crypto exchanges with a lack of security protocols may expose sensitive information or even lose the funds deposited on the platform. It is important to consider a platform that takes security seriously.
- Reputation: A stable and successful platform will have a good reputation. Reputation should not be the only consideration, but it can be a defining factor in choosing the winner between a few good candidates. Customer reviews on trustworthy websites can help you decide what platform you are comfortable using.
Crypto Exchange Fees
Fees are the main way crypto exchanges earn their money. Fees can come in the form of a monthly subscription and deposit/withdrawal, trade or staking commissions. Different crypto exchanges have different fee structures that may favor different types of users. The list below shows the fees Canadian-registered crypto platforms charge their users.
| Platform Name | Membership Requirement | Trading Fee | Staking Fee | Deposit Fee | Withdrawal Fee |
|---|---|---|---|---|---|
| Bitbuy | - | 0.5% - 3.85% | Up to 30% | 0% | 0% - 1.5% |
| Coinbase | $29.99/month | Non-Members: 0.5% - 0.7% Members: 0% | Non-Members: Up to 35% Members: Up to 26.3% | 0% - 2% | 0% - 2% |
| Coinsquare | - | 0.50% | 25% - 30% | 0% | 0% - 1.5% |
| Netcoins | - | 0.50% | Up to 30% | 0% | $50 if under $25,000 Free Otherwise |
| Newton | - | 0.70% | - | 0% | 0% |
| Shakepay | - | - | - | 0% | 0% |
| CoinSmart | - | 0.2% - 0.3% | Up to 30% | 0% - 6.75% | 1% (Fee for Crypto) |
| VirgoCX | - | 0.95% - 1.6% | - | Up to 3.99% | 0% (Fee for Crypto) |
| Wealthsimple | Core: Min. $1 in Assets Premium: Min. $100,000 in Assets Generation: Min. $500,000 in Assets | Core: 2% Premium: 1% Generation: 0.5% | Core: 30% Premium: 30% Generation: 15% | 0% | 0% |
Crypto Exchange Regulations in Canada
Crypto exchanges are overseen by the Canadian Securities Administrators (CSA). Every crypto exchange has to get authorization from CSA to operate in Canada legally. A crypto exchange can be banned from operating in Canada if they do not comply with the regulations.
Regardless of their legal status, Canadians can access most platforms without any additional tools. Banned exchanges may require a VPN to access. It is advised to only use authorized crypto exchanges.
Authorized Crypto Exchanges in Canada
- Withdrawal: Up to 1.5%
- Trading: 0.5% - 3.85%
- OTC Trading: 0.5% - 3.85%
- Staking: Up to 30%
Crypto Exchange FAQs
What crypto exchanges are allowed in Canada?
The list of crypto exchanges allowed in Canada:
- Bitbuy
- Wealthsimple
- Coinbase
- Coinsquare
- VirgoCX
- Netcoins
- Newton
- CoinSmart
- Shakepay
You can use other crypto exchanges in Canada, but they have not been registered with the Canadian Securities Administrators (CSA). Legal crypto exchanges in Canada must be registered with the CSA.
What is the most reputable crypto exchange?
Authorized in Canada: Coinbase; Pre-Registered: Kraken
Coinbase is the largest cryptocurrency exchange in the United States. It has an established market share with extensive security measures. It is also registered with Canadian Securities Administrators (CSA) making it legal to operate in Canada.
Kraken is one of the oldest and most trusted crypto exchanges in the world. It is currently pre-registered, so technically, it is not legal to operate in Canada yet.
Which crypto exchange has the lowest fees?
Coinsmart has the lowest fees for trading, while Wealthsimple has the lowest fees for staking. Both of these crypto exchanges have higher fees in other transactions, but they can be avoided to gain an advantage. Coinsmart has deposit and withdrawal fees for some methods. Wealthsimple charges a monthly subscription fee for access to low commission fees.
Are crypto exchanges insured?
Crypto exchanges are not insured the same way bank accounts are. CDIC insurance does not apply to crypto accounts. Crypto exchanges may hold private insurance that covers a portion of funds in case of a cyber attack.
Are crypto exchanges regulated?
Cryptocurrencies are considered securities by Canadian regulators. Securities are regulated at a provincial level in Canada. Canadian Securities Administrators (CSA) is an umbrella organization that includes all provincial securities regulators as its member organizations. Crypto exchanges are regulated in Canada because they need to be authorized to operate by the Canadian Securities Administrators (CSA). Crypto exchanges may also be banned from operating in Canada for violating regulations.
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