Questrade Crypto (Sep 2022): Why We Don’t Like It

September 7, 2022
Reviews

Questrade is a Canadian online brokerage and wealth management firm based in Toronto that specializes in the trading of stocks, ETFs, and mutual funds. Investing in cryptocurrencies through the platform is feasible if you invest in crypto ETFs, but you will not have access to your own private keys and will therefore not be able to utilize the cryptocurrency you invested in for anything whatsoever.

If you want to use cryptocurrencies as a payment option or if you want to send Bitcoin (BTC) to other people around the world, Questrade will not be of great use to you. As an alternative, you can consider using a cryptocurrency exchange like CoinSmart, our top pick for the best crypto exchange in Canada today.

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What Is Questrade?

Questrade is a Toronto-based online brokerage and wealth management business that's also Canada's largest discount broker. To create a Questrade account, you need to have a Canadian address, as Questrade will not accept regular trading accounts (non-registered accounts) from non-Canadian users even if they are indeed Canadian citizens.

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 in order to trade those.

Can You Use Questrade To Invest In Cryptocurrencies?

Technically, you can invest in cryptocurrencies using Questrade. To do this, all you have to do is invest in any of the crypto ETFs that Questrade supports.

However, you aren't actually buying the digital asset when you invest in crypto exchange-traded funds (ETFs). 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.

To put it another way, if you purchase a commodity such as BTCC on Questrade, you are not really acquiring Bitcoin. Despite this, your account balance would show any gains or losses incurred by the token because you invested in an ETF that tracks Bitcoin's performance.

What's The Difference Between Crypto ETFs and Owning Crypto Assets?

There are plenty of differences between investing in crypto ETFs and purchasing crypto coins yourself.

For instance, 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, as we previously said, 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 Bitcoin funds we mentioned previously.

Also, you should be aware that crypto ETFs have greater fees compared to investing in crypto through cryptocurrency exchanges (which will eat at your investment returns over time), and because crypto ETFs are so new, their long-term viability is uncertain.

Top 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 Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

$50 bonus ends September 31, 2022.

★★★★★

Rated 4.9/5

CoinSmart is, without a doubt, the best crypto platform in Canada in 2022.

For starters, CoinSmart has the lowest trading fees in Canada at just 0.2%. It 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. They maintain a 95% cold storage policy, and as a publicly-traded company, their financials are audited by a third-party firm at least once per year.

As a new CoinSmart user, you'll receive a $50 bonus upon funding your account, which you can use to buy Bitcoin, Ethereum, or any of the 16 assets CoinSmart supports. If you're looking for a highly secure, reputable crypto platform, CoinSmart is an excellent choice.

Features

  • Extremely low trading fees (0.2%)
  • 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: 0%
  • 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.

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Offer ends September 31, 2022.

2. Bitbuy — $50 Signup Bonus

$50 Signup Bonus

Trading fees: 0% – 1.5%
Security: 99% cold storage
Signup bonus: $50

$50 bonus ends soon.

★★★★★

Rated 4.8/5

Bitbuy is a great second option for Canadians seeking a reliable, trustworthy crypto exchange.

Like CoinSmart, Bitbuy's trading fees are also low, ranging from 0% – 1.5% depending on how much you trade. They offer excellent customer support available 24/7, and user accounts are verified instantly.

To date, Bitbuy has processed more than $4 billion in trades across its 400,000+ Canadian users. It's a Registered Marketplace and Investment Dealer as recognized by the Ontario Securities Commission (OSC), which means it's a highly safe and secure exchange that offers deep liquidity on all order sizes.

I've personally used Bitbuy for over a year, so I've seen them consistently improve their platform over time. For example, Bitbuy recently removed its fees on deposits and withdrawals, making the overall trading experience significantly cheaper for users. Those fees were Bitbuy's main drawback before, but now I'm very confident calling it the best crypto exchange in Canada.

For a limited time, Bitbuy is offering a $50 bonus to Yore Oyster readers who fund their account with $250 or more. If you’re looking for a highly-respected exchange that offers the lowest fees in Canada, excellent customer service, and a slick mobile app, open a Bitbuy account today.

Features

  • Low trading fees (0% – 1.5%)
  • Easy to use for both beginners and more advanced traders
  • Supports 25+ cryptocurrencies
  • Excellent customer support via live chat and email
  • Powerful mobile app (rated 4.6/5 on the App Store)
  • 99% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Trading Fees: 0.1%
  • INTERAC Deposits/Withdrawals: Free
  • Bank Wire Deposit: Free
  • Bank Wire Withdrawal: 1%

Signup Bonus

$50 bonus when you deposit $250 using this link.

Best For

Investors looking for extremely low fees and the best overall trading experience.

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3. VirgoCX – $30 Signup Bonus

Best For Fringe Coins

Spreads: ~0.5%
Security: 95% cold storage
Signup bonus: $30

Low spreads, great platform.

★★★★

Rated 4.5/5

Based in Toronto, VirgoCX is another one of the best Canadian crypto exchanges. Its users appreciate that it offers 50+ cryptocurrencies, one of the widest selections of any exchange on this list. 

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.

Features

  • 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: Around 1%

Signup Bonus

$30 when you fund your account with $100 or more using this link.

Best For

Investors looking to buy altcoins before everyone else.

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Free account, instant verification

In Summary

Questrade is Canada's largest discount broker, and it's a fantastic place to start if you're interested in investing in stocks, ETFs, and mutual funds. However, although you can invest in cryptocurrencies on Questrade by investing in crypto ETFs, you will not have access to your own private keys and will therefore not be able to use crypto coins as a payment method.

Taking this into consideration, you'll need to consider using another platform if you want to use cryptocurrencies as a payment option or if you want to send Bitcoin to other people around the world. For this purpose, there is no better alternative than cryptocurrency exchanges, and CoinSmart is the top option available to Canadians. With its security, ease of use, and extremely low fees, I can't recommend it enough.

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Offer ends September 31, 2022.
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CLAIM MY $50 BONUS
Offer ends October 1, 2022.