BitBuy vs. Newton: What Works Better For Canadians?

Oleg Galeev

1 year ago

Bitbuy vs. Newton featured image

BitBuy and Newton are two Canadian cryptocurrency exchanges that allow you to purchase Bitcoin, Ethereum, and more in just a few clicks. Both exchanges are suitable for both beginners and advanced users, so here at OCryptoCanada, we decided to compare them. Check our BitBuy vs. Newton comparison below.

Description

Bitbuy was founded in 2016 and it offers the most popular cryptocurrencies. It has an Express platform for beginners and a Pro platform for more experienced traders.

Newton prides itself on being Canada’s first “no-fee” cryptocurrency exchange. They claim their exchange is 2-3x lower than most other exchanges.

Coins

Bitcoin, Bitcoin Cash, Ethereum, Litecoin, EOS, Stellar, LINK, AAVE, Solana (SOL)Cardano (ADA)Polkadot (DOT), Dogecoin (DOGE), Uniswap (UNI), Sushiswap (SUSHI), Polygon (MATIC), MANA and USDC

Bitcoin, Ethereum, Litecoin, Stellar, Bitcoin Cash, Dogecoin, USDC, USDT, Chainlink, Aave, Uniswap, Polygon, Compound, SushiSwap, Curve, Synthetix, Dai, Polkadot

Fees

  • 1.5% CAD deposit and withdrawal fees for e-Transfer
  • 0.5% fee for wire transfer
  • 0.79% spread
  • 0.1% Maker 0.2% Taker fees
  • Wire transfer 0.50% ($20k min)
  • 0.00025 BTC crypto withdrawal fee
  • 0% CAD funding
  • 0% CAD withdrawal
  • 0% crypto deposit/withdrawals (up to $5 network fee waived)
  • No commissions or trading fees
  • 0.40% to 0.72% spread

Pros

  • Offers seven of the world’s most popular cryptocurrencies
  • Express Trade and Pro Trade makes it suitable for beginners and advanced traders
  • OTC Desk available
  • Digital assets held in cold storage
  • $20 referral bonus
  • Interac e-Transfer available
  • No deposit or withdrawal fees 
  • Wide selection of coins available
  • You can export a T5 statement
  • Sleek interface
  • Newton Pro for advanced traders in Beta stage

Cons

  • Deposits can take a few hours
  • 1.5% Interac e-Transfer fee (both in and out)
  • Low Android app rating
  • No live chat support
  • No credit card deposits. Debit must be pre-approved.

Account Limits

  • Deposit $100 - $10,000 via Interac daily
  • $50 minimum e-Transfer withdrawal
  • $20,000 minimum for wire transfers
  • $10,000 max daily Interac e-Transfer deposit/withdrawal
  • $70,000 max weekly Interac e-Transfer deposit/withdrawal
  • $5,000 electronic funds transfer deposit
  • $50,000 electronic funds transfer withdrawal
  • $1M wire transfer deposit/withdrawal
  • $5M daily trading limit

Methods to buy

  • Debit card
  • Interac e-Transfer
  • Wire transfer
  • Interac e-Transfer
  • Wire transfer
  • Connect bank account

Security

  • Up to 98% of digital assets are held in cold storage
  • Users can withdraw crypto to private wallets
  • Bitcoin backed 1:1 with Knox insurance policy
  • Daily exchange backups
  • Third-party custody of assets, mostly offline
  • Direct bank integration to reduce fraud

BitBuy vs Newton: Mobile and Desktop Trading

Newton has a user-friendly interface and a modern, clean look with bold colours. Its iOS app has a rating of 4.4 stars with 5.6k reviews, and its Android app has a rating of 2.9 stars with 900 reviews. Some users of the Android app have complained of deposits taking too long to show up, slow customer service, a “laggy” interface, and a tedious verification process. 

Newton desktop interface

Newton desktop interface

 

Newton mobile app #1 (welcome screenshot)

Newton app interface

Newton mobile app #2 (cryptocurrencies available)

Newton app interface while trading

The Bitbuy app has a 4.6-star rating and 6,000 ratings on the Apple App Store. It has a 2-star rating with 1,000 ratings on Google Play. According to reviewers, the Android app has bugs that prevent them from logging in and verifying their accounts. 

Bitbuy’s iOS app, however, is highly rated. It is easy to use and offers a modern interface similar to the desktop platform. It has live charting and funds can easily be deposited.

Bitbuy has two great platforms for Canadians wanting to buy crypto. Express Trade is suitable for beginners or anyone seeking a quick market trade. The Pro Trade platform is geared toward more experienced traders who wish to place advanced order types. 

Express Trade

Express trade view for Bitbuy

Pro Trade

Express trade on Bitbuy app

 

Bitbuy app interface

Bitbuy app interface

Bitbuy app interface while trading

Bitbuy app interface while trading

BitBuy vs Newton: Security

Newton says it keeps “most” of its assets offline, held by a third-party custodian called Balance. We think the security of customer assets should be more transparent than this. Newton says it does daily backups to minimize risk and keeps customer data stored in Canada. 

As for Bitbuy, it is fully transparent about its security. The Blockchain Intelligence Group has completed its third annual proof of reserves and due diligence report confirming that Bitbuy exceeds its mandate requiring 95% of customer funds to be held in cold storage. Bitbuy keeps 98% of Bitcoin, Litecoin, and Ethereum funds in cold storage, which is the highest percentage we’ve seen. If Newton could boast 98% of funds in cold storage, we think they would mention that. Bitbuy is a clear winner here.

BitBuy vs Newton: Regulatory compliance

Newton and Bitbuy are both fully regulated in Canada. The exchanges are registered with FINTRAC and can operate in all provinces. 

Bitbuy is an industry leader in Canadian regulatory adherence and compliance. In addition to being a Virtual Asset Service Provider and registered Money Service Business with FINTRAC, Bitbuy’s leadership team is a member of the IIROC Crypto-Asset Working Group, which helps to set high-quality regulatory standards and strengthen Canadian markets. 

BitBuy vs Newton: Customer support

Newton and Bitbuy have FAQs and knowledge centres on their websites. Customers can message the support teams either online via their support pages or through email on weekdays and weekends. 

Conclusion

Both Newton and Bitbuy offer Canadians a simple way to buy cryptocurrency in Canada

However, we think Bitbuy is the clear winner for several reasons. 

Newton states it is a “no-fee” exchange, but it makes money on the spread. With a crypto exchange, users buy and sell from each other, but with a broker such as Newton, it buys from its users and sells to them itself with a difference between the buy and sell price. This difference (the spread) is what makes Newton money. However, there is little transparency on Newton’s fee structure. While Newton appears to be the cheapest no-fee crypto exchange, it is not necessarily the cheapest of all exchanges. 

Bitbuy is clear about what it charges its customers. Though it has deposit and withdrawal fees, Bitbuy has a much lower spread than Newton. A no-fee crypto exchange is not always the cheapest option as you can see in this table:

Actual fees vs. spread fees

 

While Newton has more cryptocurrencies available, its advanced platform is not fully available yet. It is also a red flag that Newton is not fully transparent on what percentage of customer funds are held in cold storage. 

Due to its highly regarded reputation, its transparency on security, its commitment to regulatory compliance, and its overall lower fees, we think Bitbuy is the clear winner when it comes to choosing a Canadian crypto exchange. 

On top of these two, we would recommend Coinsmart for a number of reasons. Why? Check on our Coinsmart review.

Author

Oleg is a Canadian citizen & crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.

He decided to review different crypto exchanges that operate in Canada and start a Youtube channel in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.

His writing has been featured in popular Canadian media sources such as Toronto Sun and Ottawa Citizen.