Questrade is a Toronto-based online brokerage and wealth management firm that specializes in the trading of stocks, ETFs, and mutual funds. Investing in cryptocurrencies through Questrade Crypto is feasible if you invest in crypto ETFs, though you won't be able to buy and sell Bitcoin directly, nor will you be able to move crypto on and off the platform.
For a better overall trading experience with significantly lower fees, I recommend opening an account with CoinSmart, my #1-ranked Canadian crypto exchange. CoinSmart has 250,000+ satisfied users, charges very low trading fees, and is offering a $50 signup bonus from now until June 7, 2023.
What Is Questrade?
Questrade is a Toronto-based online brokerage and wealth management business that's also Canada's largest discount broker. Stocks, options, bonds, exchange-traded funds (ETFs), and mutual funds are all available to trade on Questrade.
Contracts for differences (CFDs) and forex trading are also offered, but you'll need to use a separate platform to trade those.
If you plan to open an account with Questrade, use our Questrade offer code for a $50 signup bonus.
Can You Use Questrade To Invest In Cryptocurrencies?
Technically, you can't invest in cryptocurrencies directly using Questrade. You can only do so indirectly by investing in one of the crypto ETFs Questrade supports.
When you invest in crypto exchange-traded funds (ETFs), you aren't actually buying the digital asset. Instead, you're investing in a stake from a conglomerate that owns underlying positions in the asset.
This is not the same as holding a cryptocurrency yourself, as you're essentially buying shares in a company that mirrors the performance of the crypto that you're investing in.
Put another way, if you purchase a commodity such as BTCC on Questrade, you're not really acquiring Bitcoin. This should be obvious since you're not transferring Bitcoin to a digital wallet or using a crypto exchange or OTC exchange to buy and sell crypto; you're just buying and selling shares to a fund in fiat currency instead.
Despite the above, your account balance will show any gains or losses Bitcoin incurred because you invested in an ETF that tracks Bitcoin's performance.
What's The Difference Between Crypto ETFs and Owning Crypto Assets Directly?
There are several key differences between investing in crypto ETFs and purchasing cryptocurrencies yourself directly.
For starters, you don't have to get a personal crypto wallet or worry about losing your private keys, and ETFs are also an excellent way to increase cryptocurrency exposure and diversification in your portfolio. They also legitimize the most popular digital assets around today by allowing them to be bought via regulated channels.
However, you don't actually receive the private keys to the cryptocurrencies you're investing in since they are kept by the fund in which you're investing. Because of this, you can't use crypto purchased through an ETF to make purchases with cryptocurrencies.
This is the case even if you have $1 million worth of Bitcoin in an ETF on Questrade. If anyone else around the globe needed payment from you to be made in Bitcoin, you wouldn't be able to use any of those funds.
Also, crypto ETFs have greater fees compared to investing in crypto through cryptocurrency exchanges, which eat away at your investment returns over time. Also, because crypto ETFs are so new, their long-term viability is uncertain.
The Top 3 Crypto Exchanges In Canada
Trading crypto via ETFs or index funds is not an issue if you view crypto as a means of gaining wealth. However, if you are a forward-thinking person who wants to use digital assets as a means of payment, then you'll need to look for another platform in order to invest in digital assets.
For this purpose, there simply isn't a better option than using a cryptocurrency exchange. Crypto exchanges allow you to buy, sell, and trade different types of cryptocurrency coins directly using fiat currencies (like CAD or US dollars). They also let you use your own crypto wallet for keeping the cryptocurrencies that you acquire.
Here are some of the top crypto exchanges to use in Canada:
1. CoinSmart – $50 Signup Bonus
Best In Canada
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Trading fees: 0.2% (Medium) |
★★★★★ Rated 4.9/5 |
CoinSmart supports 16 cryptocurrencies, verifies accounts instantly, prides itself on its helpful customer service reps, and has a beautiful, well-rated app.
CoinSmart has been designated a Registered Marketplace by the Ontario Securities Commission (OSC), is registered as a Money Services Business with FINTRAC, and is a member of the anti-money laundering group TRUST, all of which means they're a highly secure exchange.
CoinSmart maintains a 95% cold storage policy, and as a publicly-traded company, its financials are audited by a third-party firm at least once per year.
If you're looking for a great all-around crypto trading platform, CoinSmart is an excellent choice.
Features
- Very low spreads on trades
- 24/7 customer support available via live chat and email
- Instant account verification
- Supports 16 cryptocurrencies
- Registered Marketplace by the OSC
- Immediate deposits and withdrawals
- User-friendly for both beginners and advanced traders
- 95% cold storage policy keeps your crypto extra secure
Cost
- Account Opening: Free
- Trading Fees: 0.2%
- INTERAC Deposit: 1.5%
- Bank Wire Deposit: 0%
- Bank Wire Withdrawal: 1%
- EFT Withdrawal: 1%
Signup Bonus
$50 bonus when you sign up using this link and our promo code YOREOYSTER.
Best For
Investors looking to trade with low trading fees.
2. VirgoCX – $20 Signup Bonus
#2 In Canada
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Trading Fees: 0% |
★★★★★ Rated 4.7/5 |
VirgoCX offers 50+ cryptocurrencies, charges zero trading fees, and only charges spread between 0.5% – 0.95%, making it a cost-effective exchange.
VirgoCX’s trading platform and mobile app are intuitive and easy to use, even for beginners. It offers 24/7 customer support via live chat and email, plus an extensive FAQ section on its site.
VirgoCX charges no deposit or withdrawal fees on fiat and covers the first $6 in mining fees on ERC20 withdrawals. It requires 2-factor authentication on all accounts and maintains a 95% cold storage policy to keep your assets safe at all times.
As a new VirgoCX user, you'll receive a $20 bonus upon funding your account, which you can use to buy Bitcoin, Ethereum, or any of the dozens of assets VirgoCX supports.
If maximizing your investment potential is important to you, VirgoCX is a great choice.
Features
- Lowest fees in all of Canada
- Supports 50+ cryptocurrencies
- Free fiat deposits and withdrawals
- Free deposits and withdrawals on most cryptocurrencies
- 24/7 support available via live chat and email
- User-friendly for both beginners and more advanced traders
- 95% cold storage policy keeps your crypto extra secure
Cost
- Account Opening: Free
- Cash Deposits: Free
- Cash Withdrawals: Free
- Crypto Deposits: Free
- Crypto Withdrawals: Free for all major coins
- Spreads on trades: 0.5% – 0.95%
Signup Bonus
$20 when you fund your account with $100 or more using this link.
Best For
Investors looking for the lowest fees in Canada.
3. ZenGo – Most Secure
Good All-Around
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Account Opening: Free |
★★★★ Rated 4.4/5 |
ZenGo is free to use, which means you get the industry's best security for no cost. Sending and receiving crypto to and from ZenGo is also free, and their 24/7 support team answers most queries in 5 minutes or less.
ZenGo’s proprietary keyless technology means that your crypto is protected by two independently created mathematical secret shares: one that lives on your phone, and another that lives in the cloud. This unique setup means that your coins are always 100% secure, and that you’ll never have any trouble accessing them, even if your phone is lost, stolen, or broken, or if ZenGo (the company) were to go bankrupt, commit fraud, or cease operations for any other reason.
ZenGo supports more than 75 crypto assets, and it takes less than 30 seconds to open your free account.
Overall, ZenGo represents the next generation of crypto: with top-level security inside an easy to use app, ZenGo offers the best of both worlds.
Features
- Supports 75+ crypto assets
- 24/7 customer support
- Extremely well-rated mobile app (4.7/5 on the App Store)
- Face scanning technology for even greater security
- Up to 8% APY in crypto savings
- Cancel or speed up your sent transactions with one tap
- Choose from the 3 network fees modes: economy, regular, and fast (applicable for BTC, ETH, and ERC20)
Cost
- Account Opening: Free
Best For
Crypto investors looking for the most secure trading experience + low fees.
SECURE MY CRYPTO FOR FREE
Sign up by June 7, 2023.Although these are some of the most popular exchanges in Canada, there are also other options like Bitbuy, Newton and Shakepay, with the latter two being some of the most expensive exchanges on the list (albeit not as expensive as the fees you'll pay for investing in an ETF through Questrade).
In Summary
Questrade is a Toronto-based online brokerage and wealth management firm that specializes in the trading of stocks, ETFs, and mutual funds. Investing in cryptocurrencies through Questrade Crypto is feasible if you invest in crypto ETFs, though you won't be able to buy and sell Bitcoin directly, nor will you be able to move crypto on and off the platform.
For a better overall trading experience with significantly lower fees, I recommend opening an account with CoinSmart, my #1-ranked Canadian crypto exchange. CoinSmart has 250,000+ satisfied users, charges very low trading fees, and is offering a $50 signup bonus from now until June 7, 2023.
