NDAX vs Newton: Fees, Pros & Cons
Newton is popular because of its commission-free and extensive lineup of assets. NDAX, on the other hand, is renowned for its staking features and strong security measures.
This NDAX vs Newton review will explore the features of both platforms, consider their usability, fees, security, and select the best exchange between the two.
NDAX vs. Newton: Verdict
Our pick in this comparison is Newton for lower fees and friendly interface.
NDAX vs Newton: Unique features
Unique Features of NDAX
NDAX users can stake their digital assets to generate passive income through the Staking service. The crypto exchange currently supports up to 5 proof-of-stake (PoS) crypto assets, including Polkadot, Ethereum, The Graph, Polygon’s MATIC, and Cardano.
Customers earn between 4.3% and 12% in annual percentage yield (APY). However, NDAX charges a 20% administration fee which largely cuts into the potential profits of its users.
The NDAX Wealth, a digital asset Over-The-Counter (OTC) trading desk, is a suitable option for high-volume investors. This service comes with a minimum investment threshold of CAD 200,000 and provides users access to a deep liquidity pool and more cryptocurrencies. This is largely a personalized service and is more suited for large trades.
The NDAX OTC service also comes with no deposit and withdrawal fees – however, crypto withdrawal fees have to be considered. It offers segregated bank accounts that separate the exchange’s funds from the customers. There are same-day transaction settlement and competitive execution fees. Users also have access to a tax advisor and account executive whose role is to guide the investor on their trading journey.
NDAX offers an educational resource page called Learn. Investors can access content on all the crypto assets supported on the exchange. Also, there is a how-to-buy guide, helping crypto novices place their first trade on the NDAX exchange.
Advanced Trading Tools
NDAX provides advanced trading tools for experienced investors.
The platform directly integrates with the TradingView platform and includes market depth charts, order books, and different timeframes up to a 24-hour window.
Insurance for Hot and Cold Storage
NDAX has several security measures to protect users’ assets. There is a comprehensive insurance policy that covers both hot and cold storage wallets. There is a $5 million insurance cover on NDAX cold wallets to cover internal theft and Hardware Security Module (HSM) malfunction. A further $3 million is insured for hot wallet thefts, with 5 million CAD retained for possible business liability.
High Affiliate Program
NDAX features a high-yield referral program that pays up to 10% commission per referred user.
The exchange says users can earn as much as 1,000 CAD per referral yearly whenever the referrals trade.
Unique Features of Newton
Rich Crypto Library
Newton offers an extensive lineup of cryptocurrencies.
The platform allows users to buy, sell, and trade over 70 digital currencies, including Bitcoin, Ethereum, and Aave.
Newton claims to offer the lowest fee in the Canadian crypto trading scene. Aside from zero deposit fees, the platform offers users up to 5.00 CAD rebates for withdrawal fees. It charges only 0.75% to 2.10% for all applicable coins.
Newton offers a beginner-friendly interface that allows investors to buy and sell digital assets in minutes.
The platform icons are properly placed, making it easy for users with basic computer skills to place trades. The platform only features limit and market orders and fewer technical charts for more rapid trade execution.
Newton offers a crypto tax service in partnership with popular crypto tax provider Koinly. The service allows users to track their crypto trades easily and calculate their profits and losses accordingly. This way, they can easily fulfil their tax obligations without breaking any laws. The tax report can be downloaded and sent to the Canada Revenue Agency (CRA).
Finally, Newton offers users an affiliate and referral programme. The platform rewards users for referring family and colleagues to the exchange. However, the reward is only paid when the referred user verifies their account and trades a minimum of 100 CAD or more. Users are paid monthly, and there is no cap on how much they can earn.
NDAX vs Newton: Cryptocurrencies Available
NDAX and Newton provide a variety of cryptocurrencies for Canadian investors to tap into. While NDAX only supports 30+ top-ranking digital assets, its OTC service offers a more extensive lineup to compensate for this lapse. However, no actual number is stated.
For Newton, the cryptocurrency exchange supports more than 70 coins. There is no OTC desk service for high-volume investors, but the exchange’s crypto library would largely satisfy the need of crypto novices.
NDAX vs Newton: Can you Buy and Sell NFTs?
Non-fungible tokens (NFTs) represent digital ownership on the blockchain. These indivisible pieces of code can come in the form of digital art, video, or music. In our NDAX vs Newton review, both platforms only support projects that cater to the digital collectible ecosystem. There is no stated NFT collection or marketplace Canadian investors can turn to in purchasing or selling these crypto utilities on both platforms.
NDAX vs Newton: Fees
A platform’s fees often serves as a tool for attracting potential customers. High-paying crypto exchanges largely have less customer base as the charges could eventually eat into the profit of their investors.
In the areas of fees, NDAX has an extensive itinerary. For its trading fees, the crypto exchange charges 0.2% for both buying and selling – which are low fees. There is also a 20% administrator fee for its staking services and a 4.99 CAD withdrawal charge. Meanwhile, there is no fee for deposits.
Newton claims to be the first no-fee crypto exchange in Canada, and the figures seem to agree. The platform has zero deposit fees and no trading fees. Instead, it relies on a bid-ask spread pegged between 0.75% to 2.10% based on the underlying cryptocurrency. For its withdrawal fee, Newton compensates users for up to 5 CAD in minting costs, with the balance covered by the user.
NDAX vs Newton: Payment Methods
NDAX supports multiple deposit methods for users to fund their accounts. These include Interac e-transfer, wire transfer, bank draft, and crypto deposit.
For Newton, users also get access to fund their accounts through Interac e-transfer, wire transfers, pre-authorized debit through Plaid, and crypto deposits.
NDAX vs Newton: Security
Another crucial talking point in the NDAX v Newton review is the issue of security. Both platforms use advanced technology to secure their customers’ data and funds.
NDAX uses institutional-grade storage security to safeguard users’ deposits and is the first Canadian exchange to receive the SOC2 Type II certification. It uses segregated accounts for fiat balances. The funds are kept in a Canadian Crown-owned bank with a multi-signature wallet system. The exchange also partners with Ledger Vault for cold storage and utilizes two-factor authentication (2FA). There is also insurance for its hot and cold storage and business liability in the event of fraud.
Newton secures investors’ accounts with 80% cold storage, penetration testing, and offsite data backups. It also uses institutional-grade storage security to bolster its safekeeping measures. Both NDAX and Newton are regulated by the Financial Transaction Reports and Analysis Centre (FINTRAC). However, Newton complies with the Ontario Securities Commission (OSC) and the Canada Securities Administrators (CSA).
NDAX, on its part, is further regulated by Revenue Quebec as a money service business (MSB).
NDAX vs Newton: Earn/Staking Rewards
Staking allows users to lock up their coins to earn rewards in return. This way, investors can put their idle crypto to use by securing the network and generating passive income in the process.
Staking is supported on the NDAX, and users can earn a substantial amount for engaging in this practice. The platform currently supports five top Proof-of-Stake coins, including Ethereum, The Graph, Polkadot, Cardano, and MATIC. Users can earn between 4.3% to 12% in APY.
In contrast, Newton does not offer any staking services for users. Investors can only generate income from trading the lineup of cryptocurrencies
NDAX vs Newton: Usability
Although NDAX claims to be beginner-friendly, we found it difficult to place a trade when researching this NDAX vs Newton review. The trading interface also looked different, with the trading chart at the bottom instead of at the top. Moreover, the ‘Buy’ and ‘Sell’ icons seemed decorative at best. Overall, the usability of the NDAX may be a tad difficult for those just starting.
On the other hand, Newton is easy to use and features an intuitive trading layout. Users can easily invest in their favourite cryptocurrency without being bothered by technical details. All in all, Newton exchange can be used by anyone with basic computer skills to interface with the emerging crypto market.
NDAX vs Newton: Customer Service
NDAX offers a live chatbot, but we discovered it was not operational when we tried it out. There is also a Support Centre, which claims to offer a 24/7 customer support service.
On Newton, users can search the Support Centre and the Knowledge Base for detailed answers to any queries. There is also a FAQ page. Users can reach the support team by opening an enquiry ticket.
Conclusion: Final Verdict
NDAX and Newton are making crypto trading easy for all Canadians. However, they vastly differ in the amount of supported crypto, fees, platform features, and usability.
Newton wins in general. The platform’s more extensive lineup means users would not be left out of the burgeoning industry. Also, it charges fewer fees and makes trading quite easy for everyone.
Most frequent questions and answers
Yes, National Digital Asset Exchange (NDAX) is one of the top Canadian cryptocurrency exchanges. The platform offers a decent lineup of digital assets, top-notch security and insurance, and even staking services.
NDAX does not offer a standalone wallet storage service. However, its platform is quite safe. The exchange is duly regulated by FINTRAC and Revenue Quebec and offers 2FA, multi-wallet storage security, insurance for both hot and cold wallets, and several others.
Yes, the Newton exchange supports the popular Dogecoin killer Shiba Inu. Besides this, investors can also trade 70+ digital currencies.
Both exchanges are great choices for Canadian investors. However, Newton is better due to its 70+ crypto support in contrast to only 2 assets supported by Shakepay.
NDAX is not ideal for crypto novices as it needs a bit of a learning curve. The platform’s trading interface is difficult to navigate around.
Interac e transfer on NDAX takes between 0 to 30 minutes for confirmation.