Does Questrade Have Crypto? A Clear Answer for Canadian Investors

So, Does Questrade Allow You to Buy Cryptocurrency?

While you cannot buy or hold tokens like Bitcoin, Ethereum, or altcoins on Questrade, there are still ways to gain exposure to the blockchain sector.

Questrade is a Canadian online brokerage and wealth management platform, managing billions worth of assets through the desktop platform and QuestMobile app. Unlike traditional crypto exchanges, the site does not allow you to make direct token purchases. However, it does allow you to invest in things like stocks, ETFs, mutual funds, and bonds, or even join a managed investment portfolio (if a hands-off approach is more your style).

There are several ways to build up your investment portfolio on Questrade, including buying shares in publicly traded companies, pooling your money in managed investment funds, relying on Questrade’s robo-advisor to generate an automated portfolio, investing in bonds, or even joining the international markets. But, the most popular way in which users grow their portfolios is with ETFs.

What is an ETF?

An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset. It can be purchased or sold on a stock exchange the same way a regular stock is. ETFs are available for all types of assets and are tools used to make it easier for average people to invest in complex positions. Crypto ETFs were launched in late 2021 and allow investors to gain exposure to the blockchain sector without having to buy the assets directly.

When investing in ETFs you are not actually buying the asset itself, but rather buying a stake in a conglomerate that holds underlying positions in the asset or group of assets. If you were to buy an asset such as BTCC or BTCX on Questrade, you would not actually be buying Bitcoin. However, your account balance would reflect any gains or losses experienced by the token, as with BTCC and BTCX that directly track Bitcoin’s performance.

Is Questrade Crypto Right for You? Here’s Who It’s Best For

In short, this platform is perfect for Canadians who are looking to dip their toes into virtual asset investing without embracing the full scope of Web3 finance. It offers commission-free ETF purchases (and low stock fees, in general), making it a worthy option for long-term investors interested in the ETF market.

However, if you’re not in Canada or your trading activities are more focused on high-volume daytrading, take note of some of the drawbacks for this platform.

Perks and positives

There are a couple of benefits to investing in an ETF or stocks, rather than directly investing in a digital asset.

• The main benefit is that it is easy to exit a position for cash, as the ETF or stock is solely bought and sold for fiat.
• This means that when the profit is appealing you can easily cash out and you can easily use a Tax-Free Savings Account (TFSA) to do so without having to pay tax.
• You also do not need any knowledge on how to send cryptocurrency or use a dedicated wallet, making it a low technological barrier to entry for new investors.

The tradeoffs

However, there are also some disadvantages you should consider, before you make an investment.

• One major downside is that you are not actually directly buying the underlying asset, but rather a stake in the company that owns it.
• If Bitcoin or Ethereum explode in value, your ETF or stock share is likely to go up, but the profit margin is likely lower than if you bought the asset directly.
• You also do not get the utility of the asset, meaning you cannot use it to pay for anything. If you have $10,000 in a Bitcoin ETF, you cannot buy something that costs $10k in BTC without first selling your ETF position and then buying Bitcoin, both of which will incur fees and reduce overall profits.

Will This Brokerage Platform Ever Offer Crypto?

Questrade has not officially announced any plans to make direct coin purchasing available to its users (for now). It is operating strictly as a regulated financial brokerage, and making this move would involve drastic changes in infrastructure and credentials.

However, that does not mean that it will never happen. The digital asset sector is always changing, and several industry insiders have speculated that the platform could evolve at some point, to cater to this growing demand.

Other Investment Platforms to Check Out

Fortunately, there are a number of Questrade alternatives that do offer crypto exposure in addition to traditional stocks and bonds. Here’s a look at some of the most popular platforms:

The Final Verdict on Questrade and Crypto

The world of digital assets is evolving and growing. While the answer to the question: does Questrade have crypto? Remains “no,”  but the platform does offer a unique chance for cost-conscious, low-effort individuals to dip their toes into blockchain-based investing.

If you’re looking for more direct avenues to start buying coins or trading  pairs, we highly recommend sticking to the popular exchanges. This will give you more control over your assets and how they are stored. Either way, the best way to build up a great portfolio is to test different approaches to find the one that is best for you.