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Shakepay vs Newton
When it comes to crypto trading, simplicity is a top requirement especially with the droves of retail investors rushing to grab a piece of the crypto pie. Without a doubt, Shakepay and Newton are some of Canada’s easiest avenues for getting into the crypto market.
Both platforms offer crisp and professional-looking interfaces that make it easy even for beginners to navigate and find their way around. On one hand, you have Shakepay which is licensed as an official Money Service Business in Canada, and on the other, you have Newton, which is a relatively new exchange that offers zero fees on crypto trades.
In essence, both have a set of advantages and disadvantages that will sway Canadian traders’ appetite for each one way or the other. In this article, we’ll compare and contrast the two crypto exchanges with a view of helping you make an informed decision.
Shakepay Quick Overview
To begin with, Shakepay was founded in 2015 and boasts of staggering levels of success with over 800,000 Canadians signed up to date. This crypto exchange is one of Canada’s most popular destinations thanks to its offer of an extremely low BTC purchase fee, not to mention zero trading fees on multiple types of orders. For instance, there is no fee charged for depositing Canadian dollars on the platform, you are also not charged for BTC and ETH withdrawals and there is no trading fee apart from a BTC purchase fee of 1.43%.
Instead of charging exorbitant fees, Shakepay makes money on the spread of every asset’s buying and selling price. For instance, on March 1st, 2021, the spread for BTC purchases on Shakepay was set at about 2.5%. The spread is the difference between the buying and selling price which Shakepay capitalizes on as the platform’s market maker.
As with any centralized crypto exchange platform, opening an account is easy. Just go through the normal KYC (Know Your Customer) process and you’re good to go. Shakepay also gives users several security features including offline storage of their crypto holdings that are backed by an insurance policy. What’s more, Shakepay is licensed by FINTRAC and the AMF to operate in all Canadian provinces.
- One of the most user-friendly exchanges
- Licensed as an official Money Service Business in Canada
- Incredibly fast with purchases taking minutes rather than hours
- All assets on Shakepay are stored offline
Shakepay Pros and Cons
Pros
Easy and fast account setup
Regulated as a Money Service Business in Canada
Very secure crypto storage
Allows multiple account funding methods
Cons
It is a custodial platform and users don’t have access to their private keys
Higher charges on crypto spreads
Currently only available to Canadian citizens
Newton Quick Overview
Founded in 2018, Newton is a relative newcomer on the scene but is making serious waves with its zero-fee policy on all crypto trades not to mention one of the widest selections of supported digital currency assets on a Canadian crypto exchange.
For users looking to buy Bitcoin with Canadian dollars, Newton offers a reliable alternative as its platform is available on both iOS and Android devices as well as a desktop web version.
Similar to Shakepay, Newton is a registered entity with a FINTRAC license to operate as a Money Service Business. The platform also comes with a user-friendly interface that is easy for beginners to use and also offers its customers cold crypto storage for added security.
- 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
Newton Pros and Cons
Pros
Offers a wide variety of tradeable crypto assets
Available on multiple devices
Easy to use with instant account verification
Secure offline storage
Cons
Only available in Canada
Users don’t have control over their private keys
Shakepay vs Newton at a Glance
Beginner Friendliness
When comparing both Shakepay and Newton, there isn’t much difference in terms of beginner friendliness. Both platforms are designed with ease of use in mind and come with user-friendly interfaces. Shakepay is available on Android and iOS devices as well as a desktop web version, while Newton is available on Android and iOS devices as well as a desktop web version.
On both platforms, you get commission-free trades which is a plus for most traders looking to get started with crypto trading. The two platforms also come with easy account setup and verification processes and Canadians get to use their Canadian dollar to purchase crypto.
Fee Structure
Shakepay and Newton both ride on their claim of a zero-fee trading model which is quite attractive to most traders. On Shakepay, you can purchase BTC by depositing Canadian dollars on the platform. The price of each BTC purchase varies depending on the amount you deposit and also your preferred payment option. You can either use Interac Online or wire transfers to fund your Shakepay account.
There are no fees charged for deposits and the spread charged for buying BTC on Shakepay varies from 2.5 – 5%. The selling fee for BTC is only 0.75% but a spread of ~2.5% is levied when trading BTC on the platform, which isn’t a positive considering you end up paying more in spreads despite the zero-free model.
Newton on the other hand charges much less on its spreads with a percentage ranging between 0.5% to 0.7% on each trade. There are no charges for depositing funds to your account.
Trust and Security
Shakepay comes with several features that give traders peace of mind when trading on the platform. The company is licensed by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) and the AMF to operate in all Canadian provinces, which gives users a sense of assurance that their funds are safe with Shakepay.
In addition, Shakepay also offers its users secure offline storage for their crypto holdings that come with multiple security features to keep their crypto assets safe.
Newton offers a similar level of trust and security for its users with the platform being backed by top-notch infrastructure that ensures optimal uptime, secure data protection, SSL encryption among other crucial security measures to ensure user funds are safe on the platform. Similar to Shakepay, Newton is licensed by FINTRAC and AMF.
For additional security, both platforms offer two-factor authentication for account logins as well as for withdrawing or depositing funds.
Supported Countries
Newton and Shakepay are only available to Canadians with prices and quotes that are indicated in Canadian dollars. This could be a positive or a negative depending on where you are from.
For most Canadians, the fact that both platforms are designed specifically for the Canadian crypto trader is a plus.
Available Cryptocurrencies
When it comes to the variety of assets offered, Shakepay falls short when compared to Newton. With Shakepay, you can only trade BTC, ETH, and a limited number of ERC-20 tokens.
Newton, on the other hand, offers traders a vast range of assets to choose from with over 40 coins and tokens to select from. This is a clear advantage for Newton when compared to Shake
Here are some of the tokens and cryptocurrencies supported on Newton:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
- Chainlink (LINK)
- Aave (AAVE)
- Dogecoin (DOGE)
- Uniswap (UNI)
- USD Coin (USDC)
- Tether (USDT)
- Stellar (XLM)
- Bitcoin Cash (BCH)
Sign-up Process
Shakepay’s sign-up process is quite straightforward. You just need to provide your name, email address, and phone number to get started.
Newton’s sign-up process is also easy with the only additional requirement being that you provide a selfie with your ID.
Shakepay in particular boasts of a speedy account verification process and most users can start trading in a matter of minutes upon signing up.
Standout Features
Shakepay offers several standout features that make it one of the best options for Canadian traders. These features include:
- Secure Offline Storage: Shakepay allows users to securely store their cryptocurrencies offline in cold storage. This feature is especially important for traders who want to keep their assets safe from hackers.
- Licensed Company With Insurance: Shakepay is licensed by FINTRAC and the AMF to operate in Canada, which provides users with a sense of security that their funds are safe on the platform. The insurance cover offered on Shakepay is also ideal for its users
For Newton, one of its most distinguishing features is its support for over 40 cryptocurrencies on its change. Newton also charges much lower spreads when compared to Shakepay despite both platforms offering zero-fee trading models.
Conclusion: Shakepay is Tried and True, Newton Offers Multiple Cryptos
When it comes to the number of cryptocurrencies and the variety of trading pairs offered, Newton offers a wide array of options that makes it an ideal platform for cryptocurrency traders.
Shakepay, on the other hand, enjoys a higher level of trust and security from its users due to its licenses not to mention its insurance cover on its cold storage vaults.
Both platforms offer reliable levels of security and ease of use is guaranteed on all of them. However, when it comes to cost, both platforms offer zero-fee trading making it a draw between the two but Newton charges much less on its spreads.
All in all, it is up to the individual trader to choose the platform that best suits his or her needs. But, for those who are looking for a more diverse range of assets as well as lower spreads, Newton would be the ideal choice.
