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Newton Exchange Review: Fees, Pros & Cons
Newton is a relatively new cryptocurrency exchange based out of Canada.
The exchange is growing in popularity as it adds new coins and features on a regular basis. The user interface of Newton is crisp, and professional, leaving the user with an inherent feeling of trust and appreciation for Newton’s attention to detail. Creating a well refined user experience in the cryptocurrency domain is a very difficult thing to do.
Making sure that money enters and exits the exchange smoothly is a difficult thing to do well and Newton has exceeded particularly well in that department. Keep reading for our complete Newton exchange review.
Newton Overview
Get $25 free when you make your first trade over $100
- Bills itself as the “No-Fee Cryptocurrency Exchange”
- Partnership with Plaid gives high-level of security
- Excellent on-ramp for Canadian cryptocurrency users
- Offers cryptocurrencies that are sometimes hard to find in Canada
General Overview
Pros
Offers coins that other Canadian exchanges do not
Clean and Smooth User Interface and Experience
Continuous improvements on their features and value offerings
Cons
Cannot withdrawal funds from exchange until FIAT payment has cleared (2-4 days)
Pervasive Access to Bank Account required for funding, aside from wire transfers
Newton Sign-Up Process
The sign up process for Newton is fairly typical. It involves KYC, and hooking up your bank account using plaid. Newton encourages you to set up 2FA in order to secure your account. We highly recommend you do this, as if you’ve connected your bank account through plaid, an attacker may move funds out of your bank account into Newton on your behalf. The user flow of the sign up process is well established and simple, making it an enjoyable user experience.
Newton Fees
Newton boasts as being a “No-Fee Cryptocurrency Exchange”, but this is only half true. The fees that Newton charges are within the spread that it offers on the trading interface.
Newton is a business that needs to make money, just like every other cryptocurrency exchange, and therefore makes money any time one currency is exchanged for another. The No-Fees label comes from the fact that they don’t charge money to deposit funds, as well as the lack of flat fee attached to every trade. So how much does Newton charge on the spreads? Sources may vary, but exchanges that include fees within the spreads typically charge between .5% and 1% of the price.
Is Newton Exchange Safe?
Yes. Newton is considered very safe by crypto exchange standards and has never been hacked.
Some of major security selling points of Newton are that it uses daily off-site backups with institutional-grade storage. Newton also utilizes direct bank integration to minimize fraud.
The company is also proudly Canadian and is an official FINTRAC-registered MSB (money services business) that is PIPEDA-compliant. All customer data is stored in Canada.
Advantages of Newton
Newton exchange is an extremely beginner-friendly cryptocurrency exchange.
It provides one of the easiest on-ramps in the world to new users looking to gain a little bit of cryptocurrency exposure for the first time. The software is easy to use and visually appealing. The company also offers Interac e-Transfer, which is a great option for Canadians looking to fund their account.
Furthermore Newton offers a wide selection of cryptocurrencies including Bitcoin, Ethereum, Polkadot, Cardano, Tether, Dogecoin, Ripple and many others.
Newton is a great choice for any Canadian just getting started with crypto.
Disadvantages of Newton
Although Newton bills itself as the “no-fee exchange” you end up essentially paying fees in the form of spread.
The spread isn’t necessarily that high — in our experience — but it’s nice when crypto exchanges are a little more transparent in showing you what you’re actually paying.
You may want to compare the prices of various cryptocurrencies on different exchanges before smashing the buy button on Newton.
Finally the site is missing some of the advanced features you might find on international crypto exchanges like Binance.
Newton Frequently Asked Questions
Newton does not charge users a flat fee on their trades like many other exchanges do. Newton bakes in their fee to the asking price of cryptocurrencies on the exchange.
Plaid is backed by some of the largest industry giants in terms of funding and security. Plaid stores your password as well as security questions for your bank account. Ideally this login information is not stored in plain text. Many large companies such as Stripe and Venmo use Plaid to integrate bank accounts. The reputability of the partners seems to suggest that Plaid is relatively safe for depositing funds into Newton.
Newton allows you to trade some of the most popular cryptocurrencies in the world including Bitcoin, Litecoin, and Ethereum. Newton has also opted to include 3 stablecoins and Monero, a privacy coin.
Newton maintains an internet interface, and a mobile android application. Either of these applications can be used to access all of Newton’s basic functionality.
Each cryptocurrency exchange handles security differently. Newton is outspoken on the QuadrigaCX scandal that affected many Canadian investors. Newton CEO Dustin Walper has made several statements about Newton’s dedication to cryptocurrency exchange security.
By signing up on Newton, and referring friends, you and your friend will earn $25 worth of cryptocurrency when your friend buys or sells $100 worth of cryptocurrency.
