Best Crypto Exchange Canada 2022: Find the Best Exchange for You

You can’t simply buy crypto from your high street bank. So, if you want to buy a cryptocurrency, Canadians need to create an account with a crypto trading platform to exchange your dollars for digital assets. This is where crypto exchanges come into play.

A crypto exchange is simply a platform where you can buy and sell cryptocurrencies. You can use an exchange to trade one coin for another or purchase crypto using regular currencies such as the dollar. You can also use an exchange to convert your cryptocurrency holdings back to cash, leaving the funds in your account for later trades or withdrawing to your bank account.

As a crypto exchange is like a marketplace, it needs to operate using a live order book. This order book shows live buy and sell orders, which directly impact the exchange rates of cryptocurrencies. For example, if there are high buy orders for Etherum, the exchange rate will adjust so it costs more to buy a coin. However, if there are fewer orders to buy, but more orders to sell Etherum, the reverse will occur, so the price drops.

Crypto exchanges calculate their prices according to their own trading volumes, so exchanges with more users are more likely to have market relevant prices. This also explains why there can be slight price discrepancies for crypto with different exchanges.

If you’re familiar with stock and bond trading, you’ll notice that crypto exchanges work in a very similar way. You can place different orders such as “Market Orders” or Limit Orders” to buy a specific cryptocurrency.

For example, If you want to buy 1 ETH, you may place a limit order at CA$1700. This instructs your Canadian crypto exchange to make a trade at this price or better. However, there are no guarantees that the purchase will be executed, as you need a seller willing to trade at this price. If you want to be certain your purchase goes through, you would need to place a market order. This will aggregate the best available prices to obtain the desired quantity of coins.

This may seem a little confusing for those who are new to trading, but the best crypto trading platforms tend to have resources to help guide newbies to make their first buy and sell orders.

Just bear in mind that you don’t simply need to consider the crypto exchanges; you also need to factor in the trading fee. Crypto exchange platforms charge a commission or fee for each trade. So, if you are new to crypto trading, you may want to consider platforms with low trading fees.

Now you have an understanding of how crypto exchanges work, we’ll delve into the best crypto exchanges Canadian traders can access.

Binance is a top pick for the best crypto exchange. Canada based traders can join traders in 180 other countries, participating in 1.4 million transactions per second. Canadians can deposit dollars via third party services which facilitate e-transfers and other forms of bank transfers. Providing your bank allows it, you can also purchase crypto via credit or debit card.

Binance has a massive choice of cryptocurrencies with Ethereum, Bitcoin and over 350 altcoins. There are three platform trading options; “Convert” is for fast crypto to crypto trades, “Classic” which has more advanced features and charting and “Advanced” which has all the tools experienced traders may need.

Another advantage of Binanace is its low trading fees at 0.1% to 3.5%, with trading discounts if you hold Binance coins.

It is easy to register with the platform, with your basic personal details, a copy of a government issued ID and a selfie. If you intend to trade over the $200k limit per day, you will need to also upload proof of your address. However, if you do run into any issues, Binance has 24/7 online customer support. There are a variety of support articles on the website, but if you don’t get an answer to your query, you can submit a ticket.

Kraken is one of the best low fee Canadian crypto exchange platforms. It is a U.S based platform that has been operating since 2011 and is available globally. Kraken is a feature rich exchange that was the best crypto exchange for professional investors in the early crypto trading market. It has continued to maintain a reputation as a reliable and professional exchange venue. Kraken is also one of the best crypto exchanges in India.

There are two levels of Kraken platform; the main trading platform and Kraken Pro. The pro dashboard is more customizable with chart analysis, insights, high speed execution and 13 order types. However, the main difference is the fee structure.

With the main platform, the instant buy fees are up to 1.5%, while Kraken Pro has a tiered fee structure. This allows higher volume traders to save money on their trading fees. The maker fees and taker fees on Kraken Pro start at 0.16% and 0.26% respectively. However, they can drop as low as 0% and 0.10%, but you’ll need a 30 day rolling volume of $10 million plus to qualify for the lowest fees!

The downside with Kraken is there are limited funding options. The primary payment method for users is wire transfers as ACH transfers are not supported.

Nexo began as a crypto lending platform in 2018 but has expanded its services in the intervening years. Nexo aimed to replace traditional banking services using crypto as the asset, but it has now developed into a crypto exchange.

Currently, Nexo supports over 35 cryptocurrencies and the Nexo exchange is equipped with the features and benefits you could expect from the best crypto exchange. Canada based traders can not only enjoy fast transactions, but there is a potential to earn interest on swaps. All of your newly acquired assets will be deposited into your Nexo Savings Wallet as a default action. So, there is the potential to earn up to 20% interest.

The main advantage of the Nexo Crypto Exchange is that the platform has made a commitment to facilitate minimal slippage. Slippage refers to the difference between the price you see and the price at the time the transaction is actioned. Nexo fixes the rates at the moment you place an order, so there are no surprises and you can enjoy a predictable execution. Nexo appreciates that the crypto market moves quickly, so exchanges need to be prompt and swift.

Gemini has been operating since 2014 and it places great emphasis on compliance and security. This exchange is not based in Canada, it operates from New York, so it complies with the comprehensive US security measures. Gemini is also one of the best crypto exchanges in Australia.

To open an account, you need to complete an identity verification process and there is two factor authentication to secure your account. The platform also has hot wallet insurance to protect your funds in the event of a security breach. Gemini has SOC-2 certification, which means third party auditors are used to verify the platform’s compliance and security frameworks.

Gemini is designed for the more advanced trader, as it has a pro grade dashboard. However, it does support more than 75 cryptocurrencies with a reward card that allows users to pay for services and goods with your crypto.

There are different fee structures depending on whether you use the main platform or active trader platform. The primary platform is best for smaller traders, as there are fixed fee amounts. However, if you go above $200, the fee is a steep 1.49%. So, if you are planning on dealing with larger dollar amounts, you may be better suited with the active trader platform, which has a fee reduction structure as you grow your volume.

While the Gemini fee structure may be a little on the high side, if you’re looking for the best crypto exchange, Canada based traders should appreciate paying more for the robust security features.

CEX.io is a global crypto exchange that is available in Canada and 99% of other countries. It has been operating since 2013 and enables traders to buy, sell, earn and borrow crypto. The platform supports more than 100 digital currencies, but it is regularly adding new cryptocurrencies to its list.

CEX.io targets three types of platform users. “Everyone” can use the Instant Buy feature to buy cryptocurrencies using a variety of platform methods. This level also facilitates earning crypto or using their crypto as collateral for loans.

“Traders” can use the margin trading and spot platforms for more in depth crypto trading, while “Businesses” can sign up for Prime, which allows institution sized buyers access to liquidity. Companies can also integrate crypto payments via the CEX Direct payment gateway.

Like many of the best crypto exchange platforms, CEX has a tiered fee structure based on your 30 day trading volume. Low volume and new users can expect a 0.25% taker fee with a 0.15% maker fee. However, as your volume increases, your fees will drop.

Now we’ve explored some of the best crypto exchanges Canada based traders can access, we should cover how to narrow down which one is the best for you. There are a number of factors that you should consider when looking at how to find the best cryptocurrency exchange.

Supported Assets

While Bitcoin is the go to crypto, if you want to buy or trade in other cryptocurrencies, you’ll need to assess the list of supported assets before you decide which is the best exchange for you. Some exchanges only support a few currencies, while there are others that facilitate trades in hundreds of crypto coins.

Fees

Fees will eat into the returns from your investments, so platforms that have high fees should be avoided. Fortunately, there are plenty of exchanges with low trading fees. Most platforms charge a trading and withdrawal fee, but there can be other incidental charges that you should look out for.

Security

Crypto exchanges make a prime target for cyber criminals who want to steal your assets. Hacking and theft are quite common in this financial niche, so it is vital that you find an exchange that has strong security. In some cases, such as with Gemini, you may be prepared to pay slightly higher fees if the platform has superb security.

Payment Methods

When looking for an exchange your focus is on crypto, but you also need to consider how you will fund your purchases. Exchanges typically have a variety of ways to fund your account or make cryptocurrency purchases. Most cryptocurrency exchanges support wire transfers, but if you prefer to use debit cards, credit cards, ACH transfers or other payment methods, you’ll need to check the exchange terms before opening an account.

Customer Support

Whether you’re new to crypto trading and need help to get started or are a more experienced investor that may have some complicated queries, you need to know you can rely on the customer support offered by the platform. So, it is well worth investing some time into assessing the customer support of each exchange. Some have 24/7 online support, while others have helplines and email support.

Platform Reputation

Finally, before you sign up for an account, it is a good idea to look at the platform’s reputation. In our list of the best Canadian crypto exchanges, all the platforms have a solid reputation, but it is still worth looking at the latest customer reviews. If you’re investigating another platform, be sure to check the history of the exchange and any news stories that relate to the platform. Bear in mind that there will always be some reviewers that leave low reviews for petty issues, but if certain issues seem to be repeated across multiple reviews, it could be a red flag.

Crypto trading can be a great way to diversify your investment portfolio or experiment with buying and selling different coins. However, you need to make sure that you choose an exchange that fits your preferences, requirements and financial restrictions.

Although it may be tempting to simply click the first entry on a “best crypto exchange Canada” search, it is well worth researching your options. While this may seem a little time consuming when you are keen to get started with trading, it is well worth it. Proper research will ensure that the platform meets your needs, has solid security and has reasonable fees, so you can remain secure and maximize your crypto trading returns.

If you want to see which platforms to use outside Canada, go now to our crypto exchange comparison page.