Bitbuy vs. Wealthsimple: Which Crypto Exchange Is Best For Canadians?

October 6, 2022
Reviews

Bitbuy has been one of the leading crypto exchanges in Canada, offering digital currencies since 2016. In comparison, Wealthsimple has recently started offering cryptocurrencies and is more famous for trading stocks. As we're talking about cryptocurrencies, I recommend Bitbuy over Wealthsimple due to its low trading fees, advanced trading tools, and high security. Bitbuy is not only covered by Knox insurance policy but also holds more than 95% of its digital assets in cold storage. Unlike Wealthsimple, Bitbuy allows you to move all cryptos to a private wallet 

Bitbuy and Wealthsimple are two Canadian-based companies created with the Canadian financial market in mind. Wealthsimple was launched in 2014 as a stock trading platform, but in 2020 it began opperating as a cryptocurrency exchange as well, coming in direct competition with Bitbuy. The latter is a dedicated crypto exchange that has been in operation since 2016

Bitbuy has several advantages over Wealthsimple since it has been offering digital currencies for much longer.

Wealthsimple is the most well-known Canadian platform for trading stocks and has only recently stepped into the crypto market. They offer 30+ cryptocurrencies but charge a 1.5%-2% fee per transaction, which is high compared to other Canadian crypto exchanges. As Wealthsimple crypto doesn't allow you to trade one crypto for another, you have to pay this fee on every buy/sell order. On the other hand, Bitbuy offers free deposits, allows you to trade crypto with other cryptos with low trading fees, and provides advanced tools like live charting so that experienced traders can successfully plan out and execute their strategies. Bitbuy's customer support is impressive; you can contact live chat support instantly and get your issue resolved within 24 hours.

I recommend Bitbuy over Wealthsimple as a crypto exchange; it's excellent for both beginners and skilled traders alike, as they separate modes for both types of investors: Express Trade and Pro Trade. Wealthsimple Crypto is only recommended for newbies who want to dip their toes into the crypto market with a small investment.

Wealthsimple Vs. Bitbuy: Pros And Cons

Pros Of Bitbuy

  • Regulated by FINTRAC and approved by the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA)
  • Low trading fees
  • Free deposits
  • High account limit
  • Express Trade for simplicity and Pro Trade mode for experienced traders
  • High security and secure servers
  • Availability of various international payment methods, such as Interac e-Transfer

Pros Of Wealthsimple

  • Supports 56 cryptocurrencies
  • Low minimum deposit
  • Fully regulated in Canada
  • Free withdrawals
  • Digital assets are insured by Gemini Trust Company for $200 million
  • The mobile app has touch and face ID
  • Regulated and approved by Canadian authorities

Cons Of Bitbuy

  • Deposits can take a few minutes
  • Limited cryptocurrencies
  • $50 minimum deposit
  • 1.5% withdrawal fees
  • Pro Trade can confuse new traders
  • Low android app rating

Cons Of Wealthsimple

  • 1.5%-2% fee per transaction
  • You can't transfer all cryptocurrencies to a private wallet
  • Unavailability of advanced trading tools
  • Only supports CAD bank transfer
  • Poor customer support
  • Can't trade crypto with other cryptos
  • Doesn't allow you to deposit directly into a crypto account

Bitbuy Vs. Wealthsimple: Pricing

These two crypto exchanges have different fee structures. Bitbuy is transparent about its pricing (listed on its website), while Wealthsimple is a bit more complicated.

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You have to pay a trading fee ranging from 0%-1.50% depending on your tier level (the higher your tier level, the lower the fee) on Bitbuy. Wealthsimple's trading fee is between 1.5%-2%, no matter how big your investment is. They also only support CAD bank transfers, so you might have to wait for a few days for your deposit to reach the Wealthsimple account.

On Wealthsimple, you won't be able to make purchases using Interac e-Transfer or credit/debit card.

PricingBitbuyWealthsimple
Trading Fees0%-1.50% (depending on your tier level)1.5%-2% per transaction
Deposit FeeFreeFree
Withdrawal Fee1.5%Free
Interac e-TransferYesNo
Wire TransferYesYes
Credit/Debit CardYesNo
Supports CADYesYes

Bitbuy Vs. Wealthsimple: Detailed Breakdown

Security

Bitbuy and Wealthsimple are well-known for their security and are considered reliable exchanges. They both require new users to complete the Know Your CUstomer (KYC) process and have two-factor authentication (2FA) to protect customers' accounts.

Bitbuy is regulated under FINTRAC as a Money Service Business and is approved by the OSC and the CSA. A report issued by the Blockchain Intelligence Group confirmed that Bitbuy keeps 98% of its digital assets in cold storage, exceeding the required 95% limit. Wealthsimple claims to store most of its digital assets in offline wallets, but the percentage is unknown. However, they are backed by Gemini Trust Company LLC for $200 million in theft and hacks.

Bitbuy allows users to move their digital currencies to an offline wallet, but Wealthsimple only allows that for a few cryptos.

Bitbuy vs. Wealthsimple
Wealthsimple Security

The Bitbuy platform is a codebase platform and has secure servers making it much more secure than any other crypto exchange in Canada. This is why I recommend crypto investors use Bitbuy, as it's a safer exchange all around. They are also backed 1:1 with Knox insurance policy to prevent cybercrimes.

Bitbuy vs. Wealthsimple
Bitbuy Security

Regulatory Compliance

Wealthsimple and Bitbuy are compliant crypto exchanges and are allowed to operate in every province of Canada.

Bitbuy is approved by the OSC and the CSA. In fact, Bitbuy was the first Registered Marketplace and Investment Dealer on which Canadians could rely and invest in digital assets. They are regulated under FINTRAC as a Money Service Business and undergo regular financial and security audits to maintain their regulatory status and to keep the platform safe. All of Bitbuy's digital assets are covered by a Knox 1:1 insurance policy in case of thefts or hacks.

In the case of Wealthsimple, the platform is also fully regulated by Canadian authorities and is insured by the Gemini Trust Company LLC for $200 million.

Customer Support

You'll find helpful educational resources and FAQs on Bitbuy and Wealthsimple to help you learn the ropes if you're a beginner. Regarding customer support, they both have online ticketing services, live chat, and email support and are available 24/7. But, the Bitbuy customer support team is quicker than Wealthsimple's. Furthermore, a few reports from Wealthsimple users said that their customer support is poor, and that it takes many days to get a reply. You also can't connect directly with the Wealthsimple support team; you must read several articles and wait a while to get in touch with a representative.

Web And Mobile Interface

Both these crypto exchanges are famous for their sleek and easy-to-use interface. However, Wealthsimple's multiple accounts can confuse beginners a lot.

On Bitbuy, the best part is that you'll get separate Pro Trade and Express Trade modes for simplicity, and the whole platform is easy to navigate. You might find the looks of the Bitbuy platform a bit outdated, but it's highly user-friendly. On Express Trade, you can buy/sell cryptocurrencies directly with your payment method of choice, and on Pro Trade, you get advanced trading tools like live charting to build trading strategies before placing the order. You'll get a tutorial before making your first trade, which makes it easier for traders to understand the whole process.

Bitbuy vs. Wealthsimple
Express Trade
Bitbuy vs. Wealthsimple
Pro Trade

Unlike Wealthsimple, Bitbuy's mobile app has all the advanced trading tools and allows you to trade crypto with other cryptos. You don't have to get confused by multiple accounts and can buy crypto directly with your credit/debit card. On Bitbuy's mobile app, you'll get nearly everything you see on its desktop platform with an even easier-to-use interface. You can do everything from deposits to making trades on the Bitbuy mobile app.

Bitbuy vs. Wealthsimple
Bitbuy Mobile App

Wealthsimple Crypto is mainly for beginners as it has no special features. You can buy/sell digital currencies; that's it. Both desktop and mobile platforms are beginner-friendly, but the confusing part is that you can't deposit funds directly into your crypto account; you have to deposit funds into Wealthsimple Trade and then transfer them to your crypto account.

Bitbuy vs. Wealthsimple
Wealthsimple Desktop

Unlike Bitbuy, Wealthsimple's mobile app has no advanced trading tools and only allows you to buy/sell cryptocurrencies directly with your payment method. It's pretty easy to use but has limited features.

Bitbuy vs. Wealthsimple
Wealthsimple Mobile Interface

Similarities Between Wealthsimple And Bitbuy

  • Offer Cryptocurrencies: These two crypto exchanges offer their users a wide range of digital currencies including Bitcoin, Ether and the rest of the popular coins.
  • Crypto Wallet: You'll get your private crypto wallet when you sign up to these exchanges.
  • Customer Support: Bitbuy and Wealthsimple offer online ticketing support, live chat, and email support.
  • Regulatory Compliance: Both these crypto exchanges are regulated and allowed to operate in every Canadian province.
  • Insurance: Bitbuy is backed 1:1 with a Knox insurance policy, while Gemini Trust Company insured Wealthsimple for $200 million.
  • Easy-To-Use Interface: These crypto exchanges are well-known for their beginner-friendly and easy-to-navigate interface.
  • Free Deposits: You don't have to pay any charges on deposits.
  • Well-Reputed: Bitbuy and Wealthsimple are popular in Canada and have hundreds of great user reviews.

Differences Between Bitbuy And Wealthsimple

  • Trading Fees: Bitbuy charges around 0%-1.5%, while Wealthsimple takes 1.5%-2% trading commission.
  • Withdrawal to Private Wallet: On Bitbuy, you can transfer your digital assets to a private wallet, but Wealthsimple doesn't allow you to withdraw crypto.
  • Payment Methods: Bitbuy supports all international payment methods like Interac e-Transfer and wire transfer. Wealthsimple only supports CAD bank transfers.
  • Advanced Trading Tools: Wealthsimple doesn't have any advanced trading tools, while Bitbuy has tools like live charting.
  • Account Limit: Bitbuy has a very high account limit (withdraw up to $10,000 per day, even in one go), while Wealthsimple's account limit is half of that.
  • Number of Supported Cryptocurrencies: Bitbuy offers 25 cryptocurrencies, and Wealthsimple offers 56.
  • Security: Bitbuy is a codebase platform and performs regular security and financial audits to prevent fraudulent activities. As Wealthsimple Crypto is new, you won't find such security measures on their platform.
  • Withdrawal Fees: Wealthsimple offers free CAD withdrawals. Bitbuy charges a 1.5% withdrawal fee.

Who Wins: Wealthsimple Or Bitbuy?

F eaturesBitbuyWealthsimple
Top FeatureBitbuy API and low trading feeSleek Feature
ProHigh security and excellent customer support56 cryptocurrencies
Con0%-1.50 fee1.5%-2% fee per transaction
SecurityHighMedium
Signup Bonus$20$10
Regulatory ComplianceRegulated under FINTRAC and approved by OSC and CSARegulated by IIROC and CIPF
Mobile AppYesYes
UsabilityHighMedium
Best ForAll CategoriesBeginners
Interac e-TransferYesNo
Wire TransferYesYes
Credit/Debit CardYesNo

Why Bitbuy Is Better Than Wealthsimple

I recommend Bitbuy over Wealthsimple as they have been offering crypto buying/selling services for a long time and perform regular financial and security audits to keep their regulatory status.

Due to Bitbuy's Express Trade and Pro Trade, beginners and experienced traders can easily navigate the platform and choose their desired option. They have low trading fees and allow you to deposit your investment through various payment methods, including Interac e- Transfer, wire transfer, and credit/debit cards. Their customer service is fantastic and you can connect with a team member within a few minutes. Bitbuy is perfect for beginners and experienced investors as they have options for all kinds of traders.

Why You May Still Want To Choose Wealthsimple Over Bitbuy

If you simply want to buy/sell cryptocurrencies and don't worry about the high fees, then you can consider Wealthsimple. Wealthsimple also offers 56 cryptocurrencies and free withdrawals. As it has no advanced trading tools and an easy-to-use interface, new traders can choose Wealthsimple over Bitbuy. Additionally, as Wealthsimple also offers stocks and ETFs, if you don't want to be limited to trading crypto but want more flexibility in one place, then Wealthsimple may be a better choice.

In Summary

Due to low trading fees, availability of several payment methods, and excellent customer service, I recommend Bitbuy over Wealthsimple to all Canadian users (both beginners and experienced traders).

FAQs

Is Wealthsimple good for crypto?

Wealthsimple is good for crypto as it has a user-friendly interface, which is excellent for traders looking to dive into cryptocurrency investment for the first time.

Is Bitbuy any good?

Yes, Bitbuy is good because of its low trading fees, high security, quick customer support, and slick mobile app, which has all the advanced trading tools you'll ever need.

Which crypto platform is best in Canada?

Bitbuy is the best cryptocurrency exchange in Canada as it has been regulated under FINTRAC and approved by the OSC and the CSA. It also has the lowest trading fees and offers free deposits.

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