Luis Clark
Luis Clark
Luis is a personal finance expert who has been passionate and writing about crypto for more than five years.
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    Coinsquare Review 2022: Fees, Security and more

    Coinsquare Review

    Coinsquare Review: Our Opinion

    Much more than a place to buy and sell Bitcoin, this crypto exchange also allows you to trade and invest in several crypto coins. However, if you’re looking to trade a lesser-known, up and coming digital currency like LuckyBlock, Coinsquare may not work. Rather than having hundreds of cryptos to trade, Coinsquare Canada only focuses on the most popular crypto coins like Bitcoin, Ethereum, LiteCoin, XRP, Bitcoin Cash, and the like.

    As you’ll see in this Coinsquare review, where Coinsquare really shines is with its user-friendly platform and trading features. It also offers low trading fees, cold storage, an intuitive mobile app, and a helpful customer support team ready to help with any questions or issues you may experience.

    Coinsquare is a Canadian cryptocurrency platform. Founded in 2014, the popular Toronto-based cryptocurrency exchange offers trading opportunities for everyday retail traders and institutional investors alike. 

    In fact, unlike some other exchanges, it offers an over-the-counter (OTC) trading desk for large volume cryptocurrency trades of $25,000 or more and dedicated account management with Coinsquare Wealth.

    In this Coinsquare review, you’ll learn the ins and outs, good and the bad, of this Canadian crypto exchange. By the end, you’ll be able to decide better whether or not it’s suitable for your personal finance and digital currency investing needs. 

    An Overview of Coinsquare

    Coinsquare Home Page

    Based in Toronto, Coinsquare is a Canadian cryptocurrency exchange platform launched in 2014 with a mission to provide people in Canada and across the globe with a safe and simple way to access the cryptocurrency markets. 

    Unlike other cryptocurrency exchanges, Coinsquare caters to the Canadian market and accepts deposits in both U.S. and Canadian dollars. As one of the largest crypto exchanges in Canada, Coinsquare has over 90 employees and 100,000 users. If you’re a Canadian looking to invest in crypto, Coinsquare may be a good option.

    This is especially true if you want to fund your account exclusively with Canadian dollars, an Interac e transfer, or other Canadian financial instruments.

    While it was originally founded as a Bitcoin exchange, Coinsquare now offers a wide variety of cryptocurrencies available to trade, including Ethereum, XRP (Ripple), Litecoin, Dogecoin, Bitcoin Cash, Bitcoin SV, Stellar Lumens, DASH, and more.

    In addition to serving the needs of novice cryptocurrency traders and investors, advanced traders looking to deposit and trade $25,000 or more can utilize Coinsquare Wealth and its advanced trading platform and tools.

    Pros

    Cons

    Key Features of Coinsquare

    Coinsquare has plenty of features, but when you compare Coinsquare to other exchanges, it’s clear there are a few features that make it stand out from the pack. 

    OTC Trading Desk

    Coinsquare provides users with access to an over-the-counter (OTC) trading desk, allowing you to conduct crypto financial transactions at a lower rate than the current rate listed on the order books. Access to the OTC trading desk and lower trading fees is one of the benefits of belonging to Coinsquare Wealth.

    Coinsquare Wealth

    Coinsquare Wealth

    Coinsquare Wealth is a premium service available to clients of the cryptocurrency exchange with $25,000 or more in digital currencies on the books. Ideal for those looking to up their personal finance game, the exclusive service provides lower trading fees, next-level security, and priority account support.

    Coinsquare Mobile App

    Okay, so this feature isn’t exactly exclusive to Coinsquare as other cryptocurrency exchanges also offer mobile trading apps. However, the Coinsquare app is laid out nicely and easy to use for order execution. 

    The app is available for both Android and iOS devices, and it offers the same functionality as Coinsquare’s online trading platform. In our testing for this Coinsquare review, we could easily toggle between each function to place trades, deposit funds, perform withdrawals, and more.

    On the downside, the Advanced Trading tab is not available on the app, so it can’t be used to perform limit orders and other more advanced order types.

    Cryptocurrencies Available on Coinsquare

    Coinsquare Cryptocurrencies Available

    At the moment, there are over 17,000 different cryptocurrencies available to buy. Some cryptocurrency exchanges provide access to hundreds of Bitcoin and many altcoins, but the Coinsquare crypto exchange takes a different approach. Coinsquare only provides access to the most popular and well-known cryptocurrencies, limiting what its users can buy or sell. 

    Here are some of the cryptos the platform currently supports:

    • Bitcoin (BTC)
    • Bitcoin S.V. (BSV)
    • Ethereum (ETH)
    • Ethereum Classic (ETC)
    • Dogecoin (DOGE)
    • Ripple (XRP)
    • LiteCoin (LTC)
    • Stellar Lumens (XLM)
    • DASH

    Coinsquare Fees

    Coinsquare Trading Fees

    When it comes to trading fees, Coinsquare charges a 0.2 percent taker fee and a 0.1 percent maker fee. For QuickTrade transactions, a 0.2 percent fee is charged for a single conversion and 0.4 percent for a double conversion. Unlike some other crypto exchanges like Coinbase, this fee structure is clear and concise.

    For Advanced or Bit Markets trades, you can expect to pay Bit Markets fees of 0.10 percent on maker orders and 0.20 percent on taker orders. 

    Coinsquare fees are accessed after a trade is settled. Like many crypto exchanges, Coinsquare doesn’t charge deposit fees for transferring money from your bank account to your exchange account. If performing a wire transfer, your bank may a charge a fee, but Coinsquare will not.

    Coinsquare Deposit and Withdrawal Fees

    Withdrawals, on the other hand, are a different story. When withdrawing funds, you will pay a two percent withdraw fee in addition to the withdrawal fees or costs to withdraw certain currencies.

    In addition to trading fees, when withdrawing crypto, the following withdrawal fees apply:

    • Bitcoin – Up to 0.0005 BTC
    • Bitcoin Cash – Up to 0.001 BCH
    • Bitcoin S.V. – Up to 0.001 BSV
    • Ethereum – Up to 0.005 ETH
    • Ethereum Classic – Up to 0.005 ETC
    • Ripple – Up to 0.5 XRP
    • LiteCoin – Up to 0.02 LTC
    • Dogecoin – Up to 2.0 DOGE
    • Stellar – Up to 0.5 XLM
    • DASH – Up to 0.002 DASH

    Coinsquare's Referral Program

    Coinsquare’s referral program pays its users a commission of up to 45 percent of their trading fees for referring new users. To take them up on this offer, you simply access your referral code on your dashboard and send it to family, friends, and anyone else you know who may also be interested in trading crypto.

    When someone enters your referral code when creating their Coinsquare account, they will receive $10 BTC whenever they deposit at least $100 in their trading account.

    Coinsquare Security

    Coinsquare Security Features

    Security is extremely important when choosing a cryptocurrency exchange. The best crypto exchange should implement cold storage and strict security protocols to avoid being hacked and ensure both client data and money is safe and secure.

    Coinsquare uses strict protocols for coin management. In fact, 95 percent of its coins are kept in cold storage. The exchange is also SSL and 2FA-enabled, and it runs several encrypted backups daily. When you compare Coinsquare to other exchanges, this level of cold storage and security is pretty impressive.

    Is Coinsquare Regulated?

    Like other Canadian crypto exchanges, Coinsquare lacks the same level of regulation as Canadian banks and isn’t covered by the Canadian Investor Protection Fund, or CIPF. That said, it is registered in Canada as a Money Service Business, which means it must comply with specific regulatory framework established by the Financial Transactions and Reports and Analysis Centre of Canada.

    While Coinsquare has a history of providing effective security, there have been some past issues with the exchange. In 2020, the Ontario Securities Commission found Coinsquare guilty of wash trading 590,000 Bitcoin. As a result, Coinsquare paid $1.6 million in fines to the Ontario Securities Commission and the exchange’s CEO, COO, and President resigned.

    Getting Started with Coinsquare – How It Works

    Getting started on the Coinsquare cryptocurrency exchange is relatively straightforward. In fact, you can begin trading in your Canadian dollars for Tether, Stellar, Bitcoin S.V., and other digital currencies in just a few simple steps.

    Step One – Download the Coinsquare Mobile App

    For most people, the first step in digital currency trading with Coinsquare is downloading the exchange’s Quick Trade app. The mobile app is available for Android or iOS devices from the Apple or Google Play Store.

    While limited in its capabilities, it’s easy to use and an ideal launching point for crypto traders. The Advanced Trade app, on the other hand, is better suited for experienced investors with more capital and charting needs.

    Step Two – Create a Coinsquare Account

    Coinsquare Sign Up

    Setting up your Coinsquare trading account is easy as well. With the app downloaded, you just create your username and password. For added security, two-factor authentication is also available. 

    Next, you will need to provide Coinsquare with a government I.D. and bank statement or utility bill to verify your identity. Your email address, residential address, and mobile number will also need to be verified. Fortunately, verification typically takes less than a day, which is the best you could hope for with any crypto exchange.

    Step Three – Fund the Account

    Once verified, it’s time to fund your account. There are no card funding options with Coinsquare. To fund your account with Canadian money, you will need to perform an Interac e transfer or wire transfer from your bank account. 

    Wire transfers are typically processed and available to exchange for cryptocurrency on the same day, while Interac financial transactions can take two or more days to go through. Once funded, you can explore Coinsquare’s Quick Trade or Advanced platform to begin your cryptocurrency trading adventures.

    Trading Experience on Coinsquare

    Depending on the type of crypto buyer you happen to be, the trading platform can play a crucial role in your overall experience and success. 

    If you’re not interested in day trading cryptocurrencies and simply want to buy and hold for the long-term, then the trading platform used likely won’t make or break your view of a cryptocurrency exchange. 

    However, if you’re looking to buy and sell crypto regularly, then pay attention. This section of our Coinsquare review will play an important part in determining whether it is or isn’t Canada’s best crypto exchange. Regardless of which type of trader you are, Coinsquare has you covered.

    While many cryptocurrency exchanges only offer a single trading solution, Coinsquare offers two: Quick Trade and Advanced Trade. The same platform offers you access to each.

    Coinsquare Quick Trade

    As mentioned earlier in this Coinsquare review, Quick Trade is ideal for those interested in quickly executing a simple buy order. It provides a simple quote for the digital asset you want to buy and allows you to immediately execute the transaction and add the crypto asset to your wallet.

    Below, you’ll see a summary of the markets and the updated buy and sell price of each coin available to purchase on Coinsquare’s online trading platform or the Coinsquare app. You’ll also see the basic price movements of the fastest moving coins over the previous 24 hours.

    Unfortunately, due to its fast and simple nature, there is limited data and charting functions necessary for short-term traders and advanced trading techniques. This makes Quick Trade only suitable for long-term buy and hold traders and those seeking streamlined order execution.

    Coinsquare Advanced Trade

    If you want to exercise your day trader dreams and profit from the intraday price movements the cryptocurrency industry has become synonymous with, the Advanced Trade option may be right for you. You can access it by selecting the platform’s Advanced Trade tab and benefit from greater functionality and lower fees.

    With Advanced Trade (Bit Markets), you get access to TradingView charts and the ability to perform advanced technical analysis right from your Coinsquare account. TradingView is a premier trading/charting software used by many crypto exchanges. 

    Unfortunately, despite these added functions, you’re still limited in the types of trades you’re able to perform. If trading versatility is something you’re after, you may be better off considering another exchange in Canada or elsewhere.

    Coinsquare Customer Support

    Coinsquare Customer Support

    As a crypto trader, customer support is an important consideration. Since cryptocurrency transactions take place without any third-party association, strong customer support is a must should things go wrong. Coinsquare appears to be quite helpful and efficient in this regard.

    For starters, there is a comprehensive online FAQ section for users to check out first. 90 percent of the time, a question you may have can likely be found in the FAQ.

    For more specific questions, you can also use live chat. While we’re not the biggest fans of live chat, Coinsquare’s chat system is refreshingly responsive and helpful.

    You can also reach out to the Coinsquare team via email. Support hours are currently 9:00am-5:00pm EST Monday-Friday. While they say users can expect a response time of 1-3 days, we received a response the same day in our tests.

    Unfortunately, Coinsquare currently does not provide telephone support. Perhaps, his will change as the exchange continues to grow.

    Final Thoughts

    Coinsquare is a leading cryptocurrency exchange in Canada that functions well. It has a simple and clean user interface that fulfils the needs of most investors, particularly those who are new to trading crypto. However, the limited choice of cryptocurrencies is something to consider before opening an account with the exchange. If you are looking for altcoin access, you are probably better off with an alternative exchange. However, if you just want a safe, easy and fast way to invest in top tier cryptocurrencies , such as Bitcoin, Ethereum, etc., for example, then it might be worth taking a closer look.

    In short, Coinsquare is a safe and beginner-friendly Canadian cryptocurrency exchange that offers trading in several crypto coins. It’s a great option if you’re just starting out with crypto exchanges, but it’s not the best option out there considering its 2% withdrawal fees.

    Our extensive analysis of the Canadian Crypto Exchanges doesn’t stop here. You can also read about our best crypto exchanges for Canadians Guide to find an alternative to Coinsquare.

    FAQ

    Most frequent questions and answers

    Coinsquare is currently not a member of the Canadian Investor Protection Fund (CIPF), which means that your crypto investments are not insured. However, 95% of all crypto funds are kept in cold storage.

    Crypto holders are using Coinsquare and trading without a safety net. If you choose to trade on Coinsquare, do so at your own risk, with your eyes wide open.

    There is no need to use your own cryptocurrency wallet to use Coinsquare. Their integrated wallets are secure and 95% of all funds are kept in cold storage.

    Coinsquare’s sign-up process is similar to most other cryptocurrency platforms we have reviewed.

    To get started, visit the Coinsquare website. After verifying basic user information such as email address and phone number, you are required to provide further information including a:

    • Government-issued ID, and
    • Utility bill or bank statement

    This general KYC verification is a legal requirement for centralized exchanges. Once your account has been fully verified, you can fund it using Interac e-Transfer, wire transfer, and digital currency deposits.

    To do fiat withdrawals within Coinsquare, you only need to follow these steps:

    1. Sign in to your Coinsquare account.
    2. Select ‘Withdraw’ in the top menu bar.
    3. Ensure ‘CAD ‘is your selected currency in the left side menu.
    4. Enter the amount you want to withdraw. (The minimum amount for CAD withdrawals is $20).
    5. Select your withdrawal method. (For amounts between $20 to $10,000, select ‘Direct Bank Deposit’. For amounts between $10,000 to $100,000, select ‘Wire Transfer’.)
    6. Select your bank account, or click ‘Add Bank Account’ and enter your bank account details. Fill in all information and attach a void cheque (or direct deposit/pre-authorized debit form).
    7. Enter the amount you wish to withdraw and click ‘Request Withdrawal’.

    Yes. Coinsquare is fully regulated by both the Ontario Securities Commission and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

    This means that Coinsquare has met all Canadian regulatory requirements for cryptocurrency trading platforms, so you can be sure it’s a legitimate platform to use when trading cryptocurrencies.

    That being said, Coinsquare is not a member of the Canadian Investor Protection Fund (CIPF), which means that you should be prepared to lose all your investments if the company becomes insolvent.

    Coinsquare is a member of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and has also submitted an application to the Ontario Securities Commission (OSC) as well as the Investment Industry Regulatory Organization of Canada (IIROC). Therefore, Coinsquare is currently one of Canada’s first regulated marketplaces for digital assets and cryptocurrencies.

    The exchange has further the backing of an unnamed member of Canada’s “Big 5 Banks”. It also appointed one former president of the Toronto Stock Exchange (TSX), plus a senior vice-president of IIROC, and a new CEO, to its board of directors.

    Yes. Coinsquare is compelled to disclose tax information to the CRA related to its customers.

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