Newton Review

James HeadshotAuthor: James Page
Last Updated: October 2020

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It seems as if nothing can bring crypto trading to a halt these days. The crypto market is one of the busiest ones with daily trading volumes of above $136 billion!

In order to satisfy the investment needs of the growing number of traders worldwide, there has been an increase in the number of crypto exchanges offering their services. However, different platforms serve different purposes, which is why traders have a hard time finding the one that works for them.

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Today, our focus is on Newton, a new Canadian crypto exchange that has been quick to steal the spotlight and win a sufficient number of clients across the nation. In our guide, we’ll talk about the history behind Newton, the supported currencies, fees, and limits, together with the security methods and customer support it provides.

About the Crypto Exchange

Newton was co-founded by Dustin Walper, the current CEO, and Erynn Saunders, the Head of Design, in April 2018, in Toronto. Their main incentive for launching a crypto exchange that was going to focus on the Canadian market was the fact that Canadian traders still have a hard time getting their hands on cryptocurrencies. Newton intends to change that.

In an interview for Start Up Here Toronto, Walper said the following:

In my mind, there’s a lot that crypto has to offer, and in my mind, the technology behind it can change the way our financial system works. But in order for it to get there, it needs to stop being seen as this weird niche thing… it’s gotta be something more mainstream. That means there needs to be proper oversight, companies that are complying with requirements for anti-money laundering, [and] they’re helping their customers pay their taxes.

The decision to comply with AML and KYC policies and register with FINTRAC from the start is a step in the right direction and will inevitably help Newton to earn the trust of thousands of users in Canada, the only country where the platform is currently available.

The company has also partnered with one of the largest proprietary trading firms in America, DV Trading, making it possible for the exchange to list rare and attractive buy/sell prices. Newton promises high liquidity, third-party custody, and competitive spreads.

From Newton to Blockchain

The name of the platform pays homage to the renowned seventeenth-century mathematician and physician Isaac Newton. Although primarily famous for the three laws of motion and the invention of calculus, Newton contributed to a number of other fields and sciences. His lesser-known techniques for stamping out counterfeit money tie him to the financial industry. The exchange bears Newton’s name in honor of his fairness, which is also one of the basic principles behind blockchain technology.

Bitcoin and Other Supported Cryptocurrencies

At the time of its launch, Newton used to support only Bitcoin, Ethereum, and Litecoin as the three most popular coins among crypto enthusiasts. After a while, the exchange decided to add Ripple (XRP), Monero (XMR), Tether (USDT), Bitcoin Cash (BCH), Stellar Lumens (XLM), USD Coin, and QCAD to its list of supported cryptocurrencies.

The team has decided to offer support only for those digital coins that have an already established community of crypto traders around them. They focus on projects that seem promising and have strong short-term and long-term goals.

If you already own cryptocurrencies bought from other exchanges and stored in a digital wallet, Newton allows you to transfer them to the platform’s wallet. Since Newton only supports the country’s native Canadian Dollar, if you want to use these cryptocurrencies you would have to convert them into CAD by verifying your identity and linking your trading account with a suitable bank account.

Fees and Limits

Good news everyone, the Newton crypto exchange is commission free! The exchange makes a small profit from the “bid-ask spread”, i.e. the small difference between the buying and the selling price. Newton buys and sells coins to its users which enables the company to retain the small price differences for personal gains.

The platform uses the maker and taker model where makers place their orders, i.e. they “make” order before the trade has been carried out and wait for a taker who will accept or “take” their order. Makers are rewarded with discounts based on the number of completed trades because such a model ensures there’s a high level of liquidity on the exchange, resulting in more traders joining the platform. The best part? Neither makers nor takers pay any trading fees!

When choosing a crypto exchange you should also check the added withdrawal fees. These are typically fixed across the industry depending on the cryptocurrency in question. For example, the Bitcoin average withdrawal fee is around 0.000812 BTC. The advantage of Newton is they don’t charge withdrawal fees but there’s still a network fee if you want to send coins somewhere else. This fee is adjusted daily based on market movements. Anyway, Newton incurs significantly lower fees than the industry average.

As far as trading limits go, you’re allowed to trade up to $10,000 CAD the moment you activate your account. Afterward, you can transfer no more than $50,000 CAD per day. The tiers lift up as you continue using Newton and your trading volume increases.

Customer Support

For now, all your queries and questions can be emailed directly to Newton at support@newton.co. Although there’s no phone line or live chat where you can contact them, online reviews praise the platform and its team for their prompt and helpful email replies. The exchange is seen as transparent in their intentions and one that takes great effort to improve the availability and popularity of crypto trading in Canada.

Is Newton Safe to Use?

Newton acknowledges the need for strong security protocols if you want your crypto exchange to be able to win the fight over frequent hacker attacks, scams, and malware. The team behind Newton has strategically registered the company with the Financial Transactions and Reports Analysis Centre of Canada and complies with their AML regulations.

The platform verifies the identity of each new member and employs the well-known two-factor authentication method. This means that for a requested account action, Newton will ask you to verify your request via two different devices such as email and mobile phone.

Moreover, the platform stores customers’ funds offline in cold storage, “air-gapped” wallets that are disconnected from the Internet and distributed across multiple locations. Newton doesn’t want to take any chances at accidentally losing the wallet keys so they keep multiple key redundancies in various places. Even if a hacker somehow gains access to their online servers, they’ll be surprised to find only a small amount of money lying there that has been set aside for withdrawal purposes.

Frequently Asked Questions

Does Newton Have a Mobile App?

Yes! Newton can be accessed online as a web-platform or as an app by downloading it to your mobile devices. It used to be available for iOS users only, but the company recently launched the Android app as well. The iOS app offers an iPhone and Apple Watch app and syncs perfectly with Siri. Both apps offer instant verification, provide helpful instructions, and technical charts.

What Countries Are Supported by Netwon?

For now, to use Newton you have to be a resident of Canada.

Does Newton Provide a Cryptocurrency Trading Wallet?

Yes, the exchange has a native digital wallet. Users can choose whether they want to store their cryptocurrencies in the Newton Wallet or in another third-party digital wallet. They also have the option to store them in a hardware wallet for maximum protection.

How Do You Register for an Account?

To start using Newton you should visit their official website and click on the top right “Log In” button. The link takes you to another page where you can either log into your existing account or click on “Create an Account”. You’ll be asked to provide an email address and create a password. Always use strong passwords that include both lower and uppercase letters, numbers, and symbols. Before you click on the “Get Started” button, you should read and click that you agree with the platform’s Terms and Conditions and Privacy Policy.

How Do You Verify Your Identity?

Crypto exchanges need to verify your identity before they accept your application and activate your account. You’ll be asked to provide a copy of a government-issued ID and a mobile phone number that will be linked to your account for the two-factor authentication. The phone number has to be registered in Canada under the same name that you used to register on Newton.

How Can I Update My Account?

Once you create your account, you’re the only person who is authorized to access it and make any changes to it. However, you’re responsible to protect your password by keeping it someplace safe and not sharing it with others. Newton also offers two 2FA options, SMS and Authy, both of which are widely used.

If for some reason you want to make some changes to your account, such as update your email address, you would have to file a request or email the platform. They will send you further instructions about the documents they need to verify such a request. It might seem like a tedious process, but it’s for your own safety.

Which Payment Methods Are Available?

Newton allows you to fund your Newton account using two methods, funding with pre-authorized debit cards or making a wire transfer. For pre-authorized debit cards you just need to link your bank account and let the platform use your client number and password to be able to transfer the funds. Credit cards aren’t supported as of yet.

Newton has partnered with two financial providers, Flinks Technology Inc., or Flinks for short, and Plaid Inc. to let you deposit and withdraw money at a greater speed and efficiency. They act as intermediaries between Newton and your bank or any kind of financial institution. The connection is established using an application programming interface (API). Both Flinks and Plaid access your bank account details including the name of the account holder, the institution, the account number and balance, and share it with Newton.

Can You Buy USDC on Newton?

Yes. Traders can purchase two stablecoins on Newton: USDC and USDT.

Do They Offer Transaction Exports for Tax?

Newton allows you to export a complete CSV file of your transaction history. It has the option to export specifically for CoinTracker or a standard file that you can give to your accountant. This makes things a lot easier!

Which Banks Are Supported by Newton?

Newton supports all major banks across the country, as well as credit unions via Plaid.

Can I Join Newton’s Team?

Newton isn’t hiring at the moment, but they invite anyone interested to send them an email at careers@newton.co. On their website, they claim that candidates with “ASCII self-portraits generated programmatically in C and people named Vitalik” will be prioritized.

Is Newton the Best Crypto Exchange in Canada?

We’ll be honest with you – we really root for this crypto exchange! Newton has managed to win us over with their impeccable work ethics and an unquenchable zest for innovation.

The company is run by a stellar team of crypto entrepreneurs with years of experience behind them. That’s why even though Newton has been in the industry for barely two years, it has successfully dealt with the challenges posed by the regulatory environment in Canada.

Newton supports a good variety of digital assets that can be bought by linking the platform directly to your bank account. We like that you can store the purchased coins in their native Newton wallet, even transfer the ones you’ve bought on other platforms. The slight drawback is that the exchange only accepts CAD, so any other fiat currency will automatically be converted.

But the best thing about Newton is that they don’t charge an extra fee for their services! The only way they make a profit is by capitalizing on the small price differences, i.e. the spread between the bid and the ask. The exchange values security above all which is why your funds are stored in offline wallets far from greedy hands.

We believe that Newton is a great choice for both beginners and experienced traders alike or anyone who believes that crypto trading is the way to democratize finance not only in Canada but worldwide as well.

Newton vs Bitbuy vs NDAX vs Shakepay

We hope our guide gave you all the information you need about Newton but we also invite you to take a look at some other reliable crypto exchanges in Canada.

What sets Newton apart from popular Canadian exchanges like Bitbuy, NDAX, or Shakepay is not the number of supported cryptocurrencies or payment methods. It’s the team’s innovative approach and their openness to new technologies and trading features that don’t allow Newton to fall into the category of just-another-crypto-exchange. By focusing only on the Canadian market, Newton is gradually helping cryptocurrencies enter into mainstream usage.

Coinbase, Binance, and Other Trading Platforms

If you want to check the features and performance of some non-Canadian exchanges, we suggest you visit our thorough exchange reviews. There, you can find guides on popular trading platforms such as the American brokerage Coinbase, or the Chinese-native (but Malta-based) exchange Binance.

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About The Author

James Page

James Headshot

James is the main editor. With a passion for finance and anything blockchain, cryptocurrency is right up his alley. He's responsible for most of the content on the site, trying his best to keep everything up to date and as informative as possible.

Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.