Coinsquare Review: A Top Choice for Alternative Coins
When 2021 is in the history books, there’s a good chance cryptocurrency will end up being the story of the year in the investment industry. The rise (and fall) of digital currencies like Bitcoin, Ethereum, and Dogecoin have captured the imagination of millions of investors, not to mention a share of their investment dollars.
For Canadians, cryptocurrency exchanges have become the hottest place to buy and sell crypto, and for a good reason. They’re more secure than ever, offer quick processing of trades and a bevy of tools for advanced traders. With over 100,000 users, Coinsquare has become one of Canada’s most popular exchanges. In this review, I’ll cover the basics and let you know why you might want to consider Coinsquare if you’re looking for a place to trade crypto.
Getting Started with Coinsquare
It’s easy to get started with Coinsquare. The first step is to provide your name and email address. From there, you’ll need to provide a government-issued ID and secondary ID (bank account statement, utility bill) for your account to be activated. As soon as your ID is verified, you can transfer funds and begin trading.
Funding Your Account
Coinsquare allows users to make deposits using Canadian dollars, Bitcoin, or Ethereum. You can transfer CAD into your account via Interac e-Transfer ($20 min. to $10,000 max.) or a bank wire ($10,000 min. to $100,000 max.) Deposits are often processed on the same day.
When withdrawing funds, you can transfer via a wire ($10,000-$100,000) or direct bank deposit ($20-$10,000). The processing time for this is 1-3 business days.
- Coins offered: BTC, BAB, BSV, ETH, ETC, LTC, DOGE, DASH, XRP, XLM
- Fund account with Interac e-Transfer ($20 min) or wire transfer ($10,000 min)
- CAD and USD currency
- Registered with FINTRAC
- Fees (Bit Markets) 1% to 2%
- Fees (QuickTrade) 2% to 4%
- Trade on the mobile app (iOS or Android)
Coinsquare Referral Code
One advantage to joining Coinsquare is its referral program. When you refer a friend, not only will they receive $10 in Bitcoin as soon as they deposit $100, but you can earn up to 45% commission on their fees. That’s a pretty sweet deal.
What Crypto Coins Are Supported
Coinsquare supports 10 digital currencies. Account-holders can trade prominent coins such as Bitcoin and Ethereum to alternatives like Dash and Stellar.
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin Cash SV (
- Ethereum (ETH)
- Ethereum Classic
- Litecoin (LTC)
- Ripple (XRP)
Coinsquare Trading Platform
There are two options for trading cryptocurrency: Quick Trade or Bit Markets. Quick Trade is used for simple orders placed via a desktop or mobile app. Bit Markets is an advanced trading platform. Not surprisingly, it adds a lot of functionality, including the ability to place limit orders, and it comes with a suite of cryptocurrency research tools for experienced traders.
Coinsquare trading fees are straightforward. The price varies depending upon the platform you’re using. Here’s how it breaks down:
Quick Trade Pricing
- Single Trade .20% / Double Trade .40%
A single trade denotes a transaction that involves Bitcoin (BTC). A double trade is any trade that doesn’t include BTC.
Bit Markets Pricing:
- .10% maker / .20% taker
A “maker” trade adds liquidity, and a taker trade removes liquidity. A limit order is an example of a “maker” trade, whereas a market order is a “taker” trade because it’s filled instantly, “taking” liquidity from the market. “Maker” pricing is set lower than “taker” as an incentive for investors to add liquidity to the markets through limit orders.
Deposit & Withdrawal Fees
Coinsquare does not charge for deposits into your account via Interac e-Transfer or wire transfer; however, there is a 2% withdrawal fee (1% for Wealth wires).
Is Coinsquare Safe?
Coinsquare has made several improvements over the past few years to make its network safe for users like most other cryptocurrency exchanges. Assets are protected with 95% offline cold storage, 2-step verification (2FA) is required for all accounts, and the company is registered with The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FINTRAC’s mission is to detect, prevent and deter money laundering and the financing of terrorist activities.
Is Coinsquare Trustworthy?
While Coinsquare employs many of the same security procedures as other exchanges, questions linger about how trustworthy the company is. This seems to be due to some previous breaches that resulted in a loss of confidence amongst members. As recently as June of 2020, the company suffered a data breach after an ex-employee published clients’ personal data on the internet. Hackers gained access to this data, impacting several customers.
Also in 2020, the Ontario Securities Commission found that the company engaged in market manipulation by reporting inflated trading volumes. Coinsquare and its management team received heavy fines, and the CEO and President were forced to resign.
Coinsquare Review: Final Thoughts
Coinsquare has a lot to offer Canadian cryptocurrency traders, but it’s not without some serious flaws. First, the positives. You can trade 10 different currencies on the platform, including a few alternative coins not readily available elsewhere. Few crypto exchanges offer such a wide selection. The account opening process is quick, and they have trading options that will appeal to beginners and advanced traders.
On the downside, their commissions are a bit on the high side, customer support is far from class-leading, and their mobile app functionality is limited. And as I referenced earlier, they’re still fighting negative publicity from a severe data breach and securities misconduct. The reputational issues alone place Coinsquare below Bitbuy, which is our top-rated crypto exchange,
The bottom line? Coinsquare is a solid cryptocurrency exchange and a great place to trade alternative coins if you can look beyond its checkered past.