Bitbuy Vs. Binance: Find Out Which Is Better For Canadians

October 5, 2022
Reviews

Bitbuy, founded in 2016, is an industry leader in the Canadian crypto exchange scene, created in compliance with the Canadian financial markets. Unlike Binance, Bitbuy supports the Canadian dollar and allows users to make free deposits using all the popular international payment methods, including Interac e-transfer and wire transfer. Binance only supports credit/debit cards (and third-party bank transfers) and charges a 3.5% fee on purchases, which is exceptionally high in the crypto exchange sector. Although Binance supports more than 350 cryptocurrencies, it has been hacked several times over the past years due to poor security.

I recommend Bitbuy to all Canadian crypto investors due to its low trading fees, high security, free deposits, and CAD support.

There's no doubt that Binance is a great crypto exchange. Unlike Bitbuy, Binance is available in most countries worldwide and offers more than 350 cryptocurrencies plus several staking features. But, regarding security, Binance falls short in front of other options like Bitbuy. It has been hacked several times, and its Shanghai office was closed in a police raid, which is a bit of a red flag. These are the main reasons why I recommend Bitbuy to Canadian crypto investors.

Since it was founded, Bitbuy has never been hacked and takes regular security and financial audits to ensure no fraudulent activity is occurring on the platform. You can deposit Canadian dollars directly into your Bitbuy account for zero fees, wheras Binance only allows users to make deposits with credit/debit cards and third-party bank transfers with a 3.5% fee.

Bitbuy offers far fewer digital currencies than Binance, but they have all the popular ones, so users don't usually miss out on anything. Additionally, it's registered under FINTRAC as a Money Service Business, so it's safe to say they know the rules of the Canadian financial system and follow them accordingly. They are also approved by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA). Binance is also regulated in Canada but it's not approved by the OSC, so Bitbuy's adherence to the country's regulatory standards is far supperior.

Binance Vs. Bitbuy: Pros And Cons

Pros Of Bitbuy

  • Allowed to operate in Canada
  • Supports CAD
  • Free deposits
  • Regulated under FINTRAC and approved by OSC and CSA
  • All international payment methods available, including wire transfer
  • Covered with Knox insurance policy
  • High security, it has never been hacked

Pros Of Binance

  • Supports 350+ cryptocurrencies
  • P2P trading available
  • Crypto loans available
  • Wide range of staking options
  • Reduced trading commission for BNB (Binance native cryptocurrency) holders
  • Low trading fees

Cons Of Bitbuy

  • Deposits can take some time
  • 0%-1.50% trading commission
  • 1.5% withdrawal fees
  • Fewer cryptocurrencies available
  • $50 minimum deposit
  • Advanced trading tools can confuse new traders

Cons Of Binance

  • 3.5% credit/debit card fee
  • It doesn't support Canadian dollars
  • $15 per transaction for wire transfer
  • Not available in Ontario
  • Complicated for both beginners and experienced traders
  • Has been hacked several times
  • Poor customer support

Bitbuy Vs. Binance: Pricing

Bitbuy's and Binance's fee structures are very different. Bitbuy is completely transparent about its pricing, while Binance charges different fees, which can be confusing for users.

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Bitbuy's trading commission ranges from 0%-1.50%, depending on your tier; it offers free deposits and takes a 1.5% withdrawal fee. They also have a 0.46% spread, which is low compared to other Canadian crypto exchanges. Binance charges a standard fee of 0.1% on each trade and has a dynamic withdrawal fee. The biggest drawback for Canadians is that, as it doesn't support CAD, users have to pay a 3.5% credit/debit card fee for purchases (including the conversion fee). This high fee structure of Binance can hurt users' profits, which is why I recommend Bitbuy over Binance for Canadians.

PricingBitbuyBinance
Trading Fees0%-1.50% depending on the tier levelStandard 0.1%
Deposit FeeFree3.5% on credit/debit card
Withdrawal Fee1.5%Dynamic
Spread0.46%Not stated
Interac e-TransferYesNo
Wire TransferYesNo
Credit/Debit CardYesYes
Supports CADYesNo

Bitbuy Vs. Binance: Detailed Breakdown

Security

Although Binance is a crypto giant and offers services in many countries, they were hacked in 2019, and the hacker stole 7,000 Bitcoin. At that time, it was around 2% of their holdings. Whereas, Bitbuy has never been hacked and is one of the most secure exchanges in Canada.

Binance Security

Bitbuy is not only regulated under FINTRAC but also undergoes regular security audits to protect its users from cybercriminals. It keeps around 95% of its digital assets in offline wallets and has taken top-quality security measures to avoid hacks.

Bitbuy Security

However, both crypto exchanges have two-factor authentication (2FA) and Know Your Customer (KYC) security protocols. You'll get a security notification every time someone tries to login into your account or make withdrawals.

Mobile And Web Interface

These two crypto exchanges have well-designed desktop platforms and mobile apps, but Binance can be a bit confusing for new traders.

The Binance desktop platform can be pretty overwhelming, even for experienced traders. This crypto exchange offers so many advanced features like future trading and margin trading that navigating through the dashboard can be confusing.

At first glance, it doesn't look as user-friendly as Bitbuy. However, if you spend some time learning the features, you'll be able to know where to go.

Binance Classic

Binance Classic allows you to place buy/sell orders with only a few easy clicks. For new traders, the dashboard can be pretty complicated. Compared to Bitbuy; it's not very user-friendly.

Binance Advanced

For experienced traders, the Binance Advanced tool offers many trading tools, including live charting. However, like other trading modes, this one is also very complicated.

Binance also has a mobile app that makes trading on the go easier. Like Bitbuy, the Binance mobile app offers all the trading tools of the desktop application and allows you to trade with leverage, which isn't available in many crypto exchanges.

Binance Mobile App

It has a Lite version for newbies, which enables you to buy/sell digital currencies directly with your credit/debit card.

Binance Mobile App

Bitbuy is explicitly made with new traders in mind and has made two trading modes, so both newbies and serious traders can work on the platform as they see fit. According to several reviewers, both the Bitbuy desktop platform and mobile app are easy to use and only have a few minor bugs.

Bitbuy Express Trade

Bitbuy Express Trade mode is excellent for beginners who want to quickly buy and sell cryptocurrencies without getting confused with modern trading tools. It might look a bit old, but it is straightforward and free from all complications.

Bitbuy Pro Trade

Bitbuy Pro Trade is geared towards more experienced traders who wish to use advanced trading tools and place advanced order types. A separate Pro Trade mode makes it convenient for experts as they don't have to navigate through the platform.

Bitbuy Mobile App

Like Binance, Bitbuy's mobile app has all the advanced trading tools but is very easy to use. You can also directly buy/sell cryptocurrencies with ease.

Customer Support

Both these crypto exchanges have helpful educational resources and FAQs for users to resolve minor issues. On Binance, getting live chat support is challenging as they make you read their supported articles. Unlike Bitbuy, there's no option to submit a support ticket directly and communicate with the customer support team, which can be annoying. Email support is available on both Bitbuy and Binance, but Bitbuy replies within 24 hours, while Binance sometimes takes many days.

Regulatory Compliance

As you've probably noticed, Bitbuy is well-known for its regulatory compliance and security. Unlike Binance, Bitbuy is regulated under FINTRAC as a Money Service Business and approved by the OSC and the CSA. Their leadership team helps to set top-notch regulatory standards as they are a member of the IIROC Crypto-Asset Working Group. Bitbuy must do regular financial and security audits to maintain its regulatory status, which gives its users peace of mind.

On the other hand, Binance had been banned from Ontario as they allow future trading on their platform (something not permitted by the OCS). On December 2021, they got approved by OSC and were allowed to operate legally in all Canadian provinces. But the fear is still there, and they might be banned again in the future. A few months back, they also got banned from Hong Kong and Singapore due to certain legal issues. Not a great sign in terms of regulatory compliance.

Similarities Between Binance And Bitbuy

Bitbuy and Binance are famous for their excellent features and advanced trading tools. Apart from this, they're also similar in other ways:

  • Advanced Trading Tools: You'll find advanced trading tools on both these exchanges, but Bitbuy has done an excellent job of keeping it separate so beginners don't get confused.
  • Cold Storage: These two crypto exchanges keep most of their digital assets in cold storage.
  • Security: You'll find 2FA and KYC process on both Bitbuy and Binance.
  • Crypto Wallet: You'll find a crypto wallet on both exchanges for storing your digital currencies.
  • Customer Support: You will get live chat and email support on these exchanges.

Differences Between Bitbuy and Binance

Now that we have discussed the similarities, let's see the differences between Binance and Bitbuy:

  • Fee Structure: Bitbuy's trading commission ranges from 0%-1.50%, while Binance charges a standard 0.1% fee on all trades.
  • Regulations: Bitbuy is not only approved by the OSC and the CSA, but it's also regulated under FINTRAC as a Money Service Business. On the other hand, Binance was banned from Ontario a few months ago. They were recently approved by OSC again and are now allowed to operate in Canada.
  • Insurance: Bitbuy is covered with a 1:1 Knox insurance policy, while Binance has a secure asset fund known as SAFU, which can be used to refund users in case of any theft or hack.
  • Transparency: Bitbuy is highly transparent about its pricing, while Binance is highly complicated.
  • Payment Methods: On Bitbuy, you'll get access to all international payment methods, including wire transfers and Interac e-transfers, but Binance only supports credit/debit cards.
  • CAD Support: Bitbuy supports CAD and allows Canadian users to deposit their currency directly into their accounts, while Binance doesn't.
  • Deposit Fee: Bitbuy offers free deposits, and Binance charges a 3.5% deposit fee, which is exceptionally high.
  • Number of Supported Cryptocurrencies: Binance offers 350+ digital currencies, while Bitbuy only supports 25, albeit the most popular.

Who Wins: Binance Or Bitbuy?

FeaturesBitbuyBinance
Top FeatureQuick customer support and Bitbuy APIFuture trading
ProSupports CAD and various international payment methods like wire transfer350+ cryptocurrencies
Con0%-1.50% trading fees (depending on the tier level)3.50% deposit fees
SecurityHighMedium
Signup Bonus$20$30
Regulatory ComplianceRegulated with FINTRAC and approved by OSC and CSAApproved by OSC
Mobile AppYesYes
HackedNoYes
UsabilityEasy to useComplicated
Best ForAll CategoriesExperienced traders
Interac e-TransferYesNo
Wire TransferYesNo

Why Bitbuy Is Better Than Binance

After testing both crypto exchanges for weeks, I recommend Bitbuy to all Canadian users (both beginners and experienced traders) because it supports CAD, has a low trading fee, and provides excellent customer support.

Binance's trading platform is also very confusing, even for experienced traders. Bitbuy has Express Trade and Pro Mode, separate interfaces for newbies and skilled traders. You can also quickly contact live chat support on Bitbuy. On Binance, you have to read several articles before accessing customer support, and it can take several days to connect with the team.

Why You May Still Want To Choose Binance Over Bitbuy

Binance offers 350+ cryptocurrencies and P2P trading. These many cryptos and this particular way to trade them aren't available in almost any crypto exchange, including Bitbuy.

Apart from that, they also offer future trading, so for experienced traders, Binance can be a good option if you don't worry about high fees and the complicated interface. If this is what you're looking for, or if the crypto you want to trade isn't available on Bitbuy, then you're better off choosing Binance.

In Summary

As Bitbuy is a Canadian crypto exchange, it perfectly serves the needs of Canadian investors. Unlike Binance, which only supports credit/debit cards and charges you a 3.5% deposit fee, Bitbuy allows you to deposit CAD using multiple international payment methods for free.

FAQs

Is there anything better than Binance?

The best alternative to Binance for Canadian crypto investors is Bitbuy due to its low trading fees, CAD support, and high security.

Is Binance legal in Canada?

Yes, at the moment, Binance is legal in most of Canada. However, a few months ago, Binance got banned by the Ontario Securities Commission (OSC) after a regulatory crackdown and was forced to shut down its operations in Ontario.

Is Bitbuy any good?

Yes, Bitbuy is one of Canada's most well-known and highly regulated crypto exchanges. It's one of the best crypto exchanges for Canadians and is regulated under FINTRAC and approved by the OSC and the CSA.

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