Shakepay Review (May 2022): Why It’s Not Our Favourite Crypto Exchange

March 15, 2022
Reviews
shakepay review

Shakepay is a no-frills crypto trading platform that offers recurring purchases (for dollar cost averaging) and their unique “ShakingSats” program for earning small amounts of free Bitcoin. However, it only supports Bitcoin and Ethereum, and has extremely high bid-ask spreads (generally around 2.5% – 3%), making it one of the most expensive crypto platforms in Canada.

Instead, I recommend Bitbuy, a Toronto-based exchange trusted by 400,000+ Canadians. With bank-level security, extremely low trading fees and a $50 signup bonus, I can’t recommend Bitbuy enough.

CLAIM MY $50 BONUS
Free account, instant verification

What Is Shakepay?

Based in Montreal, Shakepay has facilitated trading of more than $5 billion worth of digital assets since launching in 2015.

Shakepay is designed for crypto beginners, and while it has a few eye-catching features, I’ll explain in this post why it’s not a great fit for Canadian investors.

Shakepay Features

1. Recurring Purchases

One of Shakepay’s core features is the Recurring Buy, in which Shakepay automatically purchases cryptocurrency under certain conditions. To use this feature, you’ll need to ensure that you have enough money in your account before enabling it.

Recurring Buy works the same way that dollar cost averaging does, smoothing out the purchase price for your crypto holdings and saving you time.

2. ShakingSats

Shakepay’s most unique feature is ShakingSats, and you can access it through the Shakepay mobile app. It allows you to receive a very small amount of free Bitcoin every day that you use the app.

shakepay review

To do this, you have to open the app every 24 hours and give your phone a physical shake. Your free Bitcoin will be credited to your account right away, and you’ll receive slightly more for every consecutive day that you add to your streak.

3. High Security

All things considered, Shakepay is a secure platform. The majority of their users’ coins are held in cold storage and protected by a comprehensive insurance policy. One unique security feature I appreciate is that users can turn on email confirmations for withdrawals, which is essentially two-factor authentication to ensure that even if a hacker had access to your account, he wouldn’t be able to steal your funds.

In 2020, Shakepay voluntarily underwent a third-party security audit performed by CipherBlade, the respected blockchain security firm. CipherBlade dug deep into Shakepay’s financials and operations and performed criminal background checks on all of its employees and they didn’t find anything suspicious. Essentially, CipherBlade is confident that Shakepay is doing everything by the books and that there’s no cause for concern.

Cryptocurrencies On Shakepay

Shakepay only allows you to buy, sell, and trade in Bitcoin (BTC) and Ethereum (ETH). If you want to exchange other coins, such as Dogecoin (DOGE), Polkadot (DOT), Solana (SOL), and Cardano (ADA), you’ll have to search for other crypto exchanges and crypto brokers.

Shakepay Fees

Shakepay really drops the ball when it comes to fees. The good news is that you can deposit money into your Shakepay account with no fees using INTERAC e-transfer, wire transfer or cryptocurrency transfer from an external wallet. You can also withdraw cash or crypto for free, and Shakepay actually goes the extra mile by covering the mining fees associated with crypto transfers.

When it comes to trading fees, though, Shakepay is very expensive. Shakepay advertises itself as a commission-free platform because they don’t charge any “trading fees,” but their spreads are extremely high (generally around 2.5% – 3%), so I can’t recommend Shakepay in good faith.  

Our Recommendation: Bitbuy

Due to Shakepay’s limited offering of cryptocurrencies (just Bitcoin and Ethereum) and excessively high spreads, I suggest using Bitbuy instead. Here are a few of the reasons why:

#1 Lowest Fees In The Industry

Bitbuy’s trading fees are just 0.2%, and even drop down to 0.1% on certain transactions made using their advanced trading platform. Those savings add up quickly: if you trade $100,000 worth of Bitcoin in a given year (buying and selling $25,000 worth twice), you’ll save $800 in trading fees compared to an exchange charging 1% ($200 vs. $1,000).

Perhaps more important than trading fees, though, are spreads: the difference between the Buy price and the Sell price. Bitbuy has razor-thin spreads, which makes day trading possible and keeps more money in your pocket.

#2 Bank-Level Security

Bitbuy maintains a 99% cold storage policy, which means at least 99% of its users’ crypto is always held offline, keeping it safe from any potential hackers. Bitbuy is also regulated by FINTRAC (the Financial Transactions and Report Analysis Centre of Canada) and the OSC (Ontario Securities Commission), which means it follows all Canadian regulations, too.

#3 Excellent Customer Support

Bitbuy offers excellent customer support, and their customer service reps are actually helpful rather than just following a script. The only time I ran into an issue with Bitbuy, they had it sorted out within a matter of minutes. Keep in mind that some support options are only available for registered users, so if you have a question for Bitbuy, the best way to get it answered is to open an account.

To get your $50 signup bonus with Bitbuy, sign up using this link today.

Lowest Fees

Trading fees: 0.1% – 0.2%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.8/5

In Summary

Shakepay is a no-frills crypto trading platform that offers recurring purchases (for dollar cost averaging) and their unique “ShakingSats” program for earning small amounts of free Bitcoin. However, it only supports Bitcoin and Ethereum, and has extremely high bid-ask spreads (generally around 2.5% – 3%), making it one of the most expensive crypto platforms in Canada.

Instead, I recommend Bitbuy, a Toronto-based exchange trusted by 400,000+ Canadians. With bank-level security, extremely low trading fees and a $50 signup bonus, I can’t recommend Bitbuy enough.

CLAIM MY $50 BONUS
Free account, instant verification

Shakepay FAQs

How To Withdraw From Shakepay

To withdraw funds from your Shakepay account, you only have to follow three steps:

  1. Click on the “Send” tab
  2. Select the “Interac e-Transfer” option.
  3. Input the dollar amount you’d like to withdraw.

To withdraw cryptocurrencies into your bank account, you’ll first have to sell them. Once you have converted crypto into CAD, you’ll be able to follow the three steps above to withdraw your funds.

Is Shakepay Safe?

Yes, Shakepay is a secure cryptocurrency broker. To safeguard the money, accounts, and personal data of its users, it uses industry-standard security protocols like 2-factor authentication and cold storage.

Is Shakepay Legal In Canada?

Yes. Shakepay has been licensed as a Money Service Business (MSB M17065696) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Shakepay Referral Code

Unfortunately, we do not have a Shakepay referral code to share right now. If you sign up with Bitbuy, though, you can get a $50 signup bonus by signing up with our referral link.

Does Shakepay Report To The CRA?

Yes. Considering Shakepay has been licensed as a Money Service Business (MSB) by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), it needs to report transactions over $10,000 to the CRA at the end of each fiscal year.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5