Newton review - Is this the best crypto exchange in Canada?

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 competing crypto exchanges.

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?

Customer data at Newton is stored in Canada, they are fully PIPEDA-compliant and have an exportable T5 statement of investment income. They use cold storage devices to keep cryptocurrency holdings as secure as possible and make daily off-site backups.

When it comes to KYC (Know Your Customer) verification, Newton are partnered with PLAID, a Canadian security management company, using their direct bank integration.

Newton Crypto Ltd. (MSB M19607029) is fully FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) regulated and must comply with their set of operating rules.

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.

Tradable assets

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.

Surge pricing

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

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.

Fees

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 and cons

Pros

Get access to cryptocurrencies that might not be available elsewhere.
Low fee structure, with Newton covering $5 CAD of network fees.
Limit orders automatically execute when your specified asset hits a target price.
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.

Cons

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.

Alternatives

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 alternatives to Newton, there are many to choose from. These exchanges are some of the closest to Newton in terms of their offering.

Bitbuy. Assets stored in an offline wallet and insured. Get lower fees with Bitbuy Pro.
Coinberry. Easy verification and insured assets stored in a cold wallet.
NDAX. Extremely fast verification to get you trading quickly. Competitive fees on buy / sell trades.

Comparisons

See how Newton compares to other exchanges available in Canada.

FAQs

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.

Verdict

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.