Newton vs Coinbase 2022: Compare Crypto Exchanges in Canada

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by Enoch Omololu, MSc (Econ)

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Newton and Coinbase are some of the best crypto exchanges in Canada. Newton is only available in Canada and offers a standard retail platform where users can buy crypto easily with CAD.

Coinbase is available worldwide and offers both basic and advanced trading platforms to allow users in Canada and beyond to invest in crypto, NFTs, and access other crypto services

Here, we compare their top features so that you can make an informed decision between the two.

What is Newton?

Launched in 2018, Newton is a Toronto-based crypto exchange that allows Canadians to buy and sell a wide selection of 70+ cryptocurrencies at no extra trading fees.

It’s a FINTRAC-registered MSB that’s PIPEDA compliant, making it one of the most trusted, low-cost crypto trading platforms in Canada.

Its top features include instant & automatic account verification, competitive spreads, free deposits/withdrawals, and up to $5 network fee coverage for crypto transfers.

Read the full Newton review or sign up via our referral link and trade $100+ worth of crypto to get a $25 cash bonus.

What is Coinbase?

Coinbase is the second-largest crypto exchange in the world.

The San Francisco-based crypto platform was founded in 2012 and is a fully regulated and licensed exchange that is available in 100+ countries, including Canada.

Currently, Coinbase has about 90M users worldwide, allowing them to access and trade 100+ crypto tokens, DeFi services, and NFTs.

Coinbase is also a public company that trades on the Nasdaq exchanges under the ticker Coin. Read the full Coinbase review.

Newton vs Coinbase: Top Features Compared

KYC and account verification process

Both Coinbase and Newton impose mandatory KYC, and users must disclose their identities to use these platforms.

Newton offers instant account verification by running an automatic identity check, and it only takes a few minutes to get your account.

Coinbase offers Express ID verification, and you’ll be required to take and upload photos of your ID and a selfie photo with your phone via the Coinbase mobile app or the web platform via a webcam to get verified.

Account funding options

Canadians can fund their Newton wallet with CAD via Interac e-Transfers, wire transfers, pre-authorized debit, or crypto deposits from external wallets.

Coinbase allows users to link several payment methods to their wallet, including bank wire transfers, bank account (ACH), debit cards, Apple Pay, Google Pay, PayPal, crypto deposits, and Instant Cashouts to bank accounts.

Crypto services offered

Newton is a crypto brokerage platform that allows users to buy and sell cryptocurrencies. It doesn’t offer other crypto services

Coinbase, on the other hand, offers many crypto services, including:

  • Spot trading
  • Coinbase crypto Visa card
  • Self-hosted crypto wallet
  • NFT marketplace
  • Coinbase Borrow where users can borrow cash using Bitcoin as collateral
  • Institutional crypto services
  • Crypto payroll services
Newton vs Coinbase

Coins supported

Coinbase offers a wider selection of cryptocurrencies than Newton.

While Newton offers 70+ crypto coins, Coinbase allows users to buy, sell, and invest in 170+ crypto coins and tokens.

That said, Newton has the largest selection of any Canada-based crypto trading platform.

Trading fees

Coinbase features an expensive and convoluted fee structure, especially for low volume traders, while Newton allows users to trade with in-build competitive spreads.

Newton fees

Newton doesn’t charge any extra trading or deposit/withdrawal fees. Instead, users incur in-built Newton spreads of 0.5%-0.7% applied on the bid-ask price when they buy/sell crypto on the platform.

Fees on Newton Pro (currently in Beta), stand at 0.1%.

Coinbase fees

Fees on the standard Coinbase platform vary depending on the purchase method used and the purchase amount. Fees stand at $0.99-$2.99 for crypto purchases of $10-$200, and 1.49%-3.99% for purchases above $200, plus a 0.5% spread fee.

Fees are lower on the Coinbase Pro platform. Maker fees start at 0.5% and decrease to 0.02%, while taker fees start at 0.5% and decrease to 0.04% based on your 30-day trading volume.

ACH transfers are free, but you’ll incur Coinbase withdrawal fees of $10 for incoming bank wires, and $25 for outgoing wires.

Bank account transfers have a flat fee of 1.49%, while debit/debit card crypto purchases have a fee of 3.99%.

Crypto trading apps

Both Newton and Coinbase offer iOS and Android crypto trading apps to allow users to trade and manage their wallets on the go. They can also be accessed via their web-based platforms.

That said, Coinbase offers more advanced trading features and charting tools than Newton, hence great for seasoned traders.

Supported countries

Newton is only available in Canada, while Coinbase is available in 100+ countries, including Canada.

Is Newton Safe?

Yes, Newton is a safe, secure, and legit crypto exchange that’s fully registered and licensed to offer crypto services in Canada. Its top security features include:

  • Offline cold storage of assets with a third-party custodian, Balance
  • 2FA to ensure secure login
  • Institutional-grade storage and daily off-site backups
  • Direct to bank wallet integration to reduce fraud

Is Coinbase Safe?

Yes, Coinbase is a safe and secure crypto platform licensed to operate in various jurisdictions around the world. Top Coinbase security features include:

  • 98% cold storage of digital assets
  • Insurance against security breaches for the 2% of crypto assets held online
  • FDIC insurance up to $250,000 for cash balance held in U.S custodial accounts
  • 2FA and private key encryption

Newton vs Coinbase: Best for

Newton is great for crypto beginners in Canada looking for a simple retail interface to buy and sell crypto with ease.

Coinbase is great for both beginners and advanced crypto investors in Canada and beyond looking to access a wide selection of crypto assets, NFTs, advanced trading features/tools, and other crypto services.

Newton

newtonlogo

Trade several popular coins

Excellent crypto broker for newbies

Up to 2.00% trading fee

Get a $25 bonus when you trade $100

Newton vs Coinbase: Summary

FeatureNewtonCoinbase
Supported coins70+170+
Verification processInstant and automaticExpress ID verification
Transfer/funding optionsInterac e-Transfers, wire transfers, pre-authorized debit, crypto depositsBank wire, ACH, debit card, Apple Pay, Google Pay, PayPal, crypto deposits, Instant Cashouts to bank accounts.
Trading fees0.5%-0.7% in-built spreads; 0.1% on Newton ProVarying fees on the standard Coinbase platform, Maker/taker fees of 0.5% and below on Coinbase Pro
Withdrawal feesFree deposits/withdrawals0%-2%
Trading platformsWeb and iOS/Android crypto trading appsWeb and iOS/Android crypto trading apps
Sign up bonus$25 cash bonus if you trade $100+

Related: Netcoins vs Shakepay

Disclaimer: Cryptocurrency is a volatile and speculative investment. If you decide to invest, we recommend you do your own research and only commit funds you can afford to lose. The author may own one or more of the crypto assets mentioned in this article.

Best Crypto Offer This Month

Overall best crypto exchange in Canada + $50 bonus

Crypto trading platform for beginners and advanced traders.

Access to several popular coins.

Low trading fees at 0.20% and multiple fiat currencies supported.

$50 instant bonus when you deposit $200.

Easily deposit and withdraw both fiat and crypto.

A publicly traded company on the Canadian NEO exchange.

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Author

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Enoch Omololu

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch has a passion for helping others win with their personal finances and has been writing about money matters for over a decade. He has been featured or quoted in The Globe and Mail, Winnipeg Free Press, Wealthsimple, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, CIBC, and many other personal finance publications.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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