- Newton is a unique Canada-based crypto exchange.
- Its name is actually inspired by Isaac Newton.
- The main appeal of the exchange is its fee structure.
Newton, named after Isaac Newton, is a cryptocurrency exchange based in Canada. This exchange’s main goal is to target the Canadian market, and as of February 2021, the platform had over 100,000 users.
For any cryptocurrency exchange, the two most important factors are the coins on offer and the fee structure. Large fees reduce potential investment gains so understanding the fee structure is critical.
Newton claims that it has no fees at all, so we dug deeper to see what all of the hype was about. We review what Newton has on offer, highlight some of its most interesting features, and see how it stacks up against its competition.
Inside this review
What is Newton?
Newton is a cryptocurrency exchange focused on the Canadian markets. The company highlights some features that make them stand out, including no trading fees, third-party custody, instant verification, high liquidity, and competitive spreads. They conduct daily off-site backups, offer institutional-grade storage software for digital assets, and have direct bank integration.
Is Newton safe?
The customer data at Newton is stored in Canada, they are fully PIPEDA-compliant and have an exportable T5 statement of investment income. Aside from that, they also use cold storage devices to keep their cryptocurrency holdings as secure as possible.
When it comes to KYC (Know Your Customer) verification, they are partners with PLAID, a Canadian security management company intended to protect information. They also offer direct bank integration, which keeps the data as secure as possible.
Another interesting aspect about it is that it is fully FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) regulated. Aside from this, they also make daily off-site backups of the site while implementing institutional-grade storage for the cryptocurrencies.
Who is Newton aimed at?
Given the fact that this exchange has Canada written all over it, it is safe to say that it is aimed at a Canadian user base. When you browse throughout the entirety of the app or webpage, you can see the words “Proudly Canadian” almost everywhere.
Anyone who lives in Canada and is interested in cryptocurrency trading is welcome here, and this is an exchange specifically tailored to that market. They also take one step beyond compliance with current as well as anticipated Canadian regulations.
If you are indeed interested in setting up an account here, Newton offers trading in 19 different currencies such as Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Stellar Lumens, Monero, USD Coin, DogeCoin, and QCAD. Of note, all their cryptocurrencies are quoted in CAD.
To combat the huge increase in network fees, Newton released an update to their web and mobile apps that includes Surge Pricing. They cover up to the first $5 CAD of network fees on crypto withdrawals, taking the balance out of the withdrawal amount if fees are higher than that.
They do not mark up the network fee at all, just pass it through minus the $5 they cover. Going forward, they also plan on implementing batch transactions, sending from SegWit and layer 2 solutions such as Lightning.
Newton Pro, targeted for professional traders and requiring approval from Newton, offers low maker and taker fees during beta, which is at 0.1%. The company states Newton Pro offers big liquidity and small spreads, or in other words, it has up to 4 times tighter spreads than the Newton retail platform. In addition, you get free third-party custody with Balance.
Keep in mind that in order to request access to this API, you need to visit your settings drawer in the Newton web app. The API approvals are granted on a rolling basis.
Newton does not charge any money to deposit funds, and they do not have a flat fee attached to every trade. However, Newton is still a business. Any time one currency is exchanged for another currency, it makes money. These prices may vary; however, the spreads are typically within the range of 0.5% or 1% of the total price.
Since Newton implemented Surge Pricing, there are no markup fees, and they cover up to the first $5 CAD in-network fees. This means that you'll only pay the actual network fee cost (minus the $5) with no markup and the remainder will come out of the withdrawal amount. You will be able to see the cost breakdown before you confirm the order.
Pros & cons
- Get access to cryptocurrencies that might not be available elsewhere.
- Low fee structure, with Newton covering $5 CAD of network fees.
- Offers low spreads and high liquidity in regular and Pro versions.
- Strong security features including partnership with PLAID.
- Clean user interface makes it very beginner-friendly.
- Limited number of currencies available for trade.
- Verification times can be slow.
- Only Canadian citizens and permanent residents can set up an account with Newton.
Just as with any industry, the cryptocurrency exchange industry has to have some competition in order for it to innovate and improve to gain a percentage of the user base. That being the case, when it comes to other cryptocurrency exchanges available in Canada, you have Bitbuy, Coinberry, NDAX, and Binance.
Is there a demo account for paper trading?
There is no demo account for paper trading so beginners will need to do their research before commencing trading.
Is Newton insured?
Your assets on Newton are covered by Balance’s crypto crime insurance policy and you are able to independently audit your wallet balances on the blockchain whenever you wish to do so. Newton will cover the costs every quarter for customers to create an audit snapshot.
Do I need a crypto wallet with Newton?
You are able to transfer your cryptocurrency into your Newton wallet and trade it as normal. You do get a crypto wallet with Newton, however, if you have one already you can easily transfer your crypto onto it.
How do I fund a Newton account?
Newton accepts three methods of funding, including Interac E-transfers, wire transfers from an accredited Canadian bank, and crypto from an external wallet. Detailed instructions for each method can be found on their website FAQ.
How do I withdraw crypto from Newton?
Withdrawals from Newton can be made in fiat money (CAD) or cryptocurrency. If you want to withdraw crypto, you’ll need to go to the trading view and select your cryptocurrency and amount. Then enter your deposit address and review and finalize the withdrawal. For fiat money, the withdrawal process is similar.
Newton maintains withdrawal limits of 5 cryptocurrency transfers per day, $10,000 Interac e-transfers or $50,000 of EFT withdrawals daily.
Newton has by far one of the best websites and apps. It is intended for Canadian investors and tailored to this specific region, although that may limit the liquidity and volume of trades as that leaves out a large number of non-Canadian traders. However, their extremely low fees and strong security measures via PLAID make Newton an appealing option, especially if you want to maximize crypto profits. It’s a solid exchange any Canadian trader should check out.