We Searched for Canada’s Cheapest Crypto Exchange

Key Takeaways

NDAX emerged as the cheapest option to buy Bitcoin in 2024 with a 0.41% fee, 4.6x cheaper than the industry average.
Kraken Pro was a close runner-up with a 0.69% all-in fee. Coinbase was the most expensive at 4.79% - 11x higher than NDAX.
Out of 18 services in Canada, the average all-in fee to buy Bitcoin was 1.90%. The average selling fee was 2.13%.

Crypto investors face two main problems when choosing a cryptocurrency exchange: 1) High fees that can significantly erode returns and 2) The overwhelming task of comparing dozens of platforms.

To tackle this issue, RankFi conducted an in-depth study on the costs of Canadian cryptocurrency exchanges. Our report highlights surprising fee discrepancies, with some platforms charging up to ten times more than others.

Methodology

Every year, we do a comprehensive review of the Canadian crypto exchanges and brokers, offering the most extensive dataset in the industry. This year's study involved 14 crypto exchanges and 18 services, taking into account advanced trading platforms like those offered on Coinbase and Kraken, that have different fee structures. All platforms reviewed were required to support Canadian Dollar deposits and withdrawals.

Fee Insights

Canadian CEX Data 2024 - Trading Fees WM

Trading fees are a crucial component to consider when choosing a crypto exchange. They can significantly impact your overall cost, especially for frequent traders.

Findings

The average trading fee across 18 services was 0.72%.
For Coinbase, Kraken, Bitbuy, and Coinsquare, fees vary between their Pro Trading and Express Trading services.
Eight platforms had 0% trading fees and generate revenue through spread fees and other methods. These platforms operate as brokers rather than exchanges, since they lack order books.
Coinbase charged the highest trading fee at 3.84% on their quick buy service, which is 5.3 times higher than the industry average.

All-In Fee to Buy Bitcoin

Canadian CEX Data 2024 - All-In Fee Buying Bitcoin

On May 16, 2024, we bought and sold Bitcoin on every Canadian platform between 11:15am and 11:20am. We logged into 18 platforms simultaneously to capture real-time buy and sell prices for CAD/BTC trading pairs. Although our manual data collection method isn't perfect due to fluctuating prices, it still provides a solid comparison of each platform.

Our "All-In Fee" combines the CAD deposit fee, trading fee, and the Bitcoin index price difference to reflect the true cost of buying Bitcoin. We used a Bitcoin index to compare each platform's price to the average market price of Bitcoin. For example, if Platform A's price was 0.05% higher than the Bitcoin index, we included this in our all-in fee calculation. The full dataset can be seen at https://rankfi.com/ca/crypto-exchanges/.

Findings

For buying Bitcoin in Canada, NDAX emerged as the most cost-effective choice, boasting an all-in fee of 0.41%.
Kraken Pro was a close runner-up at 0.69%. However, Kraken's Quick Swap lagged behind, ranking second last with a 2.88% fee, so it's best to stick with Kraken Pro.
Trading fees don't reveal the true cost of using a crypto platform. Among the seven exchanges with 0% trading fees, none emerged as the cheapest option for buying Bitcoin.
Coinbase was the most expensive platform for buying Bitcoin, charging a 4.79% all-in fee—11 times higher than NDAX.
The average all-in fee across all tested services was 1.90%.
While we didn't test altcoin prices, they are expected to be higher due to generally low trading volumes on Canadian platforms. For altcoin purchases, exchanges with global liquidity like Kraken Pro and Bitget are recommended.

All-In Fee to Sell Bitcoin

Canadian CEX Data 2024 - All-In Fee Selling Bitcoin

Our "All-In Fee" for selling Bitcoin combines the trading fee, Bitcoin index price difference, and CAD withdrawal fee to reflect the true cost of selling Bitcoin and cashing out to your bank account. Fixed withdrawal fees are not shown in the chart but the full dataset can be seen at https://rankfi.com/ca/crypto-exchanges/. For example, Kraken also charges a fixed $10 fee for e-transfer withdrawals.

Findings

For selling Bitcoin in Canada, Kraken Pro emerged as the most cost-effective choice, with an all-in fee of 0.32%. However, there is also a fixed withdrawal fee of $10 to send funds to your bank which was not included.
NDAX was the runner-up at a 0.51% all-in-fee plus a fixed $1.99 fee to withdraw to your bank (not included). Overall, our results saw that NDAX and Kraken Pro are cheapest places for buying and selling Bitcoin in Canada.
Coinbase was the most expensive platform for selling Bitcoin, charging a 6.24% all-in fee—19.5 times higher than Kraken Pro.

CAD/BTC Spreads

Spread fees, which represent the difference between the buy and sell prices, significantly impact transaction costs. While our analysis focused on BTC/CAD trading pairs, it's important to note that altcoin spreads are typically higher on Canadian exchanges. Therefore, Bitcoin spreads are likely the lowest you'll encounter.

In future tests, we plan to track altcoin spreads, having already observed some smaller altcoins with spreads as high as 6%.

Findings

The average spread on BTC/CAD across all Canadian exchanges was 1.90%.
Coinbase Advanced offered the tightest spreads thanks to its high liquidity, but only for BTC/USD, since BTC/CAD is not supported. However, its all-in fees were high due to trading fees and the need to convert CAD to USD first.
Although platforms like Coinbase Advanced, Bitbuy, and Wealthsimple Trade had tight spreads, they were still costly overall due to trading fees or additional fees.

Canadian Dollar Deposits

We gathered deposit fees specific to Canadian dollars, which are charges for transferring funds from your bank account to your crypto exchange account.

*While Coinbase provides free deposits, Coinbase Advanced requires trading CAD for USD due to its USD-only trading pairs, leading to a 2.44% fee.

Findings

Out of fourteen crypto platforms, twelve offered free deposits for Canadian dollars.
With a 0.50% fixed deposit fee, Kraken stood out as the only platform with such a charge. If this fee were removed, Kraken would have been the cheapest platform to buy Bitcoin, beating NDAX.
100% of platforms offer Interac e-Transfers, with the majority also supporting alternative payment methods like credit cards and wire transfers.

What About Non-Canadian Exchanges?

We also tested global crypto exchanges like Bitget and BYDFi that lack Canadian Dollar support. These platforms generally offer lower fees, tighter spreads, and a wider selection of cryptocurrencies. Canadians can join these platforms by depositing crypto. For those seeking low-fees on altcoins and access to more trading features should explore these platforms.

Summary of Findings

Trading fees alone do not provide a complete view of a crypto platform's costs. Despite seven exchanges offering 0% trading fees, none ranked as the cheapest for buying Bitcoin.

Our study of Canadian crypto exchanges revealed significant fee variations. Fees vary widely between platforms, with the cheapest option costing 11 times less than the most expensive. This highlights the crucial role fees play in choosing a crypto exchange.

Recommended Platforms for Canadians

NDAX and Kraken Pro is recommended for the most cost-effective Bitcoin purchases.

Kraken Pro should be explored for altcoin trading or setting up a dedicated platform on a global exchange like Bitget and BYDFi, even though they lack support for Canadian Dollars.

Traders should also consider their specific trading goals and preferences when selecting an exchange. For a detailed comparison and access to our full dataset, visit our comparison tool.

Author

RankFi Team

At RankFi.com, our goal is to be your trusted source for crypto reviews, guides and research. We seek out researchers with extensive crypto knowledge and firsthand experience using dozens of CeFi and DeFi platforms.

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