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Newton Review: Canada’s Best Up and Coming Crypto Exchange?

Newton Review: Canada’s Best Up and Coming Crypto Exchange?

As crypto becomes mainstream, new cryptocurrency exchanges continue to emerge. One of the newest players is Newton, a Toronto-based, Canadian-only cryptocurrency exchange that’s been around since 2018, and already boasts more than 200,000 users. But how does the relative newcomer stack up to Canada’s most popular crypto exchanges? Let’s find out!

What Is Newton?

Newton is a crypto trading platform for Canadians that is available in both desktop and mobile app versions. Their competitive advantage lies in their low fees, which I’ll lay out in detail later, and their large variety of cryptocurrencies (they have over 25 coins available).

How to Get Started

Newton makes opening an account relatively painless. As with most crypto accounts, the first step is to sign up by providing your email address and a password. Once your email has been verified, you will be asked to provide your ID. If Newton cannot verify your IDd instantly, you may have to wait a couple of days. You will need the following information for this step, so be prepared in advance:

  • Phone number
  • Address and contact details
  • Government ID (Driver’s license, passport)
  • ID verification via selfie

Once your account is activated, it’s time to fund your account by making a deposit. The good news is that Newton doesn’t charge fees for transfers into or out of the account. Here are the various account funding methods along with minimums and estimated timeframes.

Transferring Funds with Newton

Most crypto exchanges charge fees for deposits and withdrawals. These fees often range between .50% and 1.50% depending on the exchange. With Newton, moving money in and out of your account is free. There are 3 ways you can deposit funds, and 4 ways to withdraw.

Deposits

TypeFeeTimeframeMinimum
Interac
e-Transfer
No chargeup to 30 min$10
Wire TransferNo charge3-5 days$10,000
CryptoFreeInstant$0

Withdrawals

TypeFeeTimeframeMinimum
e-TransferNo Chargeup to 30 min$10
Wire Transfer No Charge3-5 days$10,000
Direct DepositNo Charge2-4 daysN/A
CryptoFree up to $5
(network fee)
Instant$0

When you transfer out crypto, Newton waives the small network fees up to $5, a nice feature.

How Do Newton Trading Fees Work?

As you can see, there are no fees when you fund your Newton account. This is a big plus for Newton as many other popular exchanges, like Bitbuy, charge for deposits and withdrawals. But Newton’s commitment to low fees doesn’t stop there.

Newton does not charge a trading fee when you buy and sell crypto. Instead, they build their fee into the spread (the difference between the market price and the price charged by Newton). They are a business, after all, and they need to make a profit.

The spread can and will change, so it’s difficult to say how much it will cost to trade. On average, you’re probably looking at between .50% and .75%, which is more than you would pay in trading fees with several competitors.

Still, the absence of deposit and withdrawal fees means that Newton offers a compelling overall value proposition.

What Crypto Can I Buy on Newton Exchange?

You can trade over 25 cryptocurrencies with Newton, far more than other exchanges, and the list keeps growing. Included are major coins, like Bitcoin (BTC) and Ethereum (ETH), and some lesser-known names, such as Polkadot (DOT) and SushiSwap (SUSHI). Here’s a complete list:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (LTC)
  • Dogecoin (DOGE)
  • USD Coin (USDC)
  • Tether (USDT)
  • Stellar (XLM)
  • Bitcoin Cash (BCH)
  • Chainlink (LINK)
  • Aave (AAVE)
  • Uniswap (UNI)
  • Polygon (MATIC)
  • Compound (COMP)
  • SushiSwap (SUSHI)
  • Curve DAO (CRV)
  • Synthetic (SNX)
  • Dai (DAI)
  • Cardano (ADA)
  • Yearn Finance (YFI)
  • Polkadot (DOT)
  • Maker DAO (MKR)
  • PAX Gold (PAXG)
  • Axie Infinity (AXS)
  • Basic Attention (BAT)

Newton Exchange Trading Platform

Newton’s trading platform is sleek and easy to use. You can place trades via desktop or mobile app, which is available for download on iOS and Android devices. The downside to the platform is that it can only accept basic trades. It lacks advanced functions, like limit orders. This makes it ideal for beginners, though advanced traders may find it lacking.

Is Newton Exchange Safe?

Like most crypto exchanges, Newton takes steps to maintain the privacy and security of its members. One of the ways they do this is through two-factor authentication (2FA) at the time of account opening. They also offer daily off-site backups and secure storage of digital assets. According to Newton, most of their cryptocurrency is stored offline in a safe location. Unfortunately, the word “most” is somewhat vague, but it’s good to know that they’re taking these precautions.

How Transparent Is Newton?

Crypto trading remains a high-risk, speculative venture, so the more trust that can be earned by a cryptocurrency brokerage like Newton, the better. Determining if a crypto exchange is being fully transparent is highly subjective. So, how transparent is Newton?

I think they have some room for improvement here. I realize that Newton’s claim to be Canada’s first no-fee crypto exchange is mostly a marketing ploy, but the truth is, the fees are there; you just don’t see them.

And when it comes to security, Newton has an opportunity to be more transparent with its users. Claiming that most crypto is held in cold storage doesn’t reassure me all that much. What exactly does “most” mean? Is it 75%? 85%? 95%?

I noticed a FINTRAC registration number at the bottom of their website. Still, I couldn’t see any mention that they are registered with Canada’s money laundering and terrorist financing watchdog.

I may be splitting hairs, but in contrast, Bitbuy is highly transparent and includes a detailed list of security measures on its homepage. They also have a page detailing all of their fees that’s accessible from the main menu.

Final Thoughts on Newton

With the combination of low overall fees and class-leading access to crypto coins, Newton puts forth a unique value proposition that’s sure to give their competitors a run for their money. It’s likely why they’re gaining new members so quickly. But the question is, how do they compare to the top cryptocurrency platforms in Canada.

Newton isn’t in the same league as Bitbuy and Coinsmart, but they’re knocking at the door. For my own money, I’d like to see increased transparency around fees and better functionality on their trading platform to make it appealing to advanced traders.

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