Binance Review for Canadians

Updated: Aug 28, 2021 | Published: March 1, 2021   

By: Alex Dabek

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4.2

NowFuture Rating:

The Bottom Line: Binance is the world's largest crypto exchange with 350+ altcoins. It has low 0.1% trading fees, huge volumes, tight spreads, and many advanced features like staking, loans, futures, margin, and more. The downsides are you can't connect a Canadian bank account and it won't be available in Ontario starting 2022.

The best way to fund your account cheaply is to buy crypto on Newton (or any Canadian-based crypto exchange) and then send it to your Binance account. Also, starting Dec 31, 2021, Binance announced it won't be available for Ontario residents.

Binance Exchange

Binance Overview

Overall:

4.2

Coins Available:

350+

Fees:

Spread: 0.03% (Mar 01, 2021)

Trading Fees:  0.05% - 0.10%

BTC Withdrawal Fee: 0.0005 BTC

Funding Methods:

Credit Card: 2.00% - Instant

P2P Exchange: Free

Deposit Crypto: Free (recommended)

Pros & Cons

  • Trade 350+ altcoins
  • High volume and low trading fees
  • One of the largest and most trusted exchanges in the world
  • Many advanced features
  • Only requires an email address to open an account
  • Great iOS, Android, and web experience
  • Not available for Ontario residents starting in 2022
  • Overwhelming for beginners
  • Can't connect a $CAD bank account (must deposit crypto or use P2P exchange)
  • Slow support according to online reviews

This is the Binance app:

Binance Exchange Mobile App

About Binance

Binance was founded in 2017 and is one of the largest crypto exchanges in the world by trading volume and users. They have over 350 cryptocurrencies and according to Google, they are headquartered in the Cayman Islands.

According to LinkedIn, Binance has over 3,000 employees worldwide. They have dozens of features, crypto products and even their own cryptocurrency called Binance Coin (BNB) which can be used to get a discount on their exchange.


Opening An Account

Registering on Binance is quick and instant. You can start trading with just an email address but later on you might need to verify your account for higher limits. There are three levels of personal verification which are Basic, Intermediate and Advanced verification.

Who Is Eligible?

Requirements

  • Unverified: Email address only (instant)
  • Basic Verification: Name, date of birth, address (instant)
  • Intermediate Verification: Government-issued ID, facial verification (up to 10 days to review)
  • Advanced Verification: Proof of address (up to 10 days to review)

Funding and Withdrawals

Binance doesn't let you connect a Canadian bank account so it's harder or more expensive to fund compared to a crypto exchange based in Canada. The best option is to also have a Canadian crypto exchange so you can easily deposit crypto to Binance and have a reliable method to cash out as well. You can also check out the P2P exchange to pay and cash out with e-transfer however, it is not as fast for cashing out large amounts.

Deposit Options for Canadians

Method

Fee

Time

Minimum

Credit/Debit Card

2.00%-3.50%

Instant

$20

P2P Exchange (via e-transfer)

Free

Varies on seller

Varies on seller

Crypto

Free

Instant

Varies for each coin

Withdrawal Options for Canadians

Method

Fee

Time

Minimum

P2P Exchange (via e-transfer)

Up to 0.35%

Varies on buyers

Varies on buyers

Crypto

Instant

Varies for each coin

Cheapest Way to Fund Binance in Canada

In this video, I explain the best way to fund your Binance account:

In summary, Binance doesn't let you connect a Canadian bank account. So, the cheapest option is to buy crypto on a Canadian exchange (like Newton) and transfer it to your Binance account.

The cheapest way to do it is to deposit $CAD onto Newton for free, buy Stellar, then send the Stellar to Binance which will cost $0 in fees and take under 1 minute to arrive. Watch the video above for a full walkthrough.


Fees

Binance has incredibly low spreads and minimal fees once you have funds on the platform. The only expensive part is actually funding your account unless you do it the right way. To do it cheaply, refer to the section and video above and the total BTC purchase fee will be 0.24% instead of 2.24%. You can also try the P2P exchange.

Total BTC Purchase Fee

2.24% (via credit card

Trading Fees

Up to 0.10%

CAD Deposits

2.00% (credit card)

CAD Withdrawals

Unavailable

BTC Withdrawals

0.0005 BTC

Other Fees

N/A

Spread (Mar 01, 2021)

BTC Spread

0.03%

BTC Buy Price

$62,173

BTC Sell Price

$62,156

Ref. Price Difference

Buy: +0.19%

Sell: +0.16%

Reference Price (Google)

$62,058


Binance List of Features

Binance has tons of features which is why they are one of the largest exchanges in the world. Many of these features are not available on crypto exchanges based in Canada. Let's take a look at what they offer:

  • Web, iOS, and Android app - Binance has an incredibly detailed platform that you can access on all of your devices. It also has thousands of positive reviews for the mobile app which works great.
  • Binance Lite - A feature on the mobile app which is an easy way to buy cryptocurrencies. It's specifically designed for beginners to navigate the exchange without getting overwhelmed.
  • P2P Exchange - This feature lets you buy and sell crypto locally to other Canadians. Since Binance doesn't allow deposits and withdrawals into Canadian bank account directly, the P2P exchange is a good workaround to use e-transfers and other payments methods.
  • Futures - Advanced users can speculate on future prices of cryptocurrencies. They give you access to more funds and you can open a long or short position depending on your predictions.
  • Margin Trading - Experienced users can get access to more funds and up to 20x leverage on your positions.
  • Interest Accounts - Earn rewards for HODLing your crypto using Binance Earn. They have multiple products with different yields and risk tolerances such as BNB vault, savings, locked staking, ETH 2.0 staking, launch pool, and more. 
  • Education Centre - The Binance Academy is a huge library of content that educates people on crypto, mining, trading, and a wide array of blockchain topics. Everyone can get educated whether you're a new investor or advanced trader.
  • Binance Research - Access high-end reports on a range of topics in the digital asset industry. This includes blockchain, finance, economics, etc.
  • Trust Wallet - Binance owns this popular crypto software wallet. You can hold your crypto assets on the Binance exchange or transfer it to the trust wallet for more safekeeping. The wallet also has many additional features such as staking, storing NFTs, and crypto for crypto exchanges.
  • Referral Program - Every Binance account has access to the referral program where you can earn rewards for inviting friends. You're able to create custom invite links and earn up to 40% of your referrals trading fees for life. There is also a separate affiliate program with higher rewards for influencers with 5,000+ followers.

Security

Before you use Binance, it's important to ask, "can this exchange be trusted?" 

Binance is one the world's largest crypto exchanges and has many layers of security features. Let's take a look at what they are:

User Security Features

  • Multiple 2FA options (Google authenticator, phone number verification, email verification, and hardware authentication such as Yubikey)
  • Withdrawal whitelists available (only send crypto to wallet addresses you've saved)
  • Whitelist certain devices and IP addresses
  • SAFU (Secure Asset Fund for Users) - Binance pools 10% of their trading fees into this insurance account. If they are ever hacked these funds will repay users

Is Binance Safe?

Yes, Binance is as safe as any other popular crypto exchange. You can find multiple layers of security features like 2FA, email confirmations for withdrawals and Binance itself holds it's crypto in cold storage and has an insurance pool for its users incase they are hacked. 

However, it's not recommended to hold large amounts of crypto on any exchange. That's because exchanges can be hacked so the safest option is always to get your own wallet, ideally a hardware wallet.

Has Binance Ever Been Hacked?

Yes, Binance was hacked back in 2019. The hackers took 7000 BTC worth over $40 million! The good news is this was just 2% of their funds and Binance covered the loss for its users so no customers actually lost anything. Today, Binance has the SAFU account. They pool 10% of their trading fees into this fund which will repay users if they are ever hacked again.

This goes to show that even the largest exchange in the world like Binance can be hacked. The safest way to store your crypto will always be a hardware wallet.


Support

Binance Support

Binance offers an extensive self-serve help centre where there is a list of FAQs, walkthroughs and more. If you need to speak with a team member directly you can submit a request via their 24/7 live chat. According to reviews online, their live chat support can be slow, especially when the crypto market is surging.


Binance vs. the Competition

Compare Binance with popular crypto exchanges for Canadians below. You can see all of the data here or skip to the best exchanges of the year.

Name

Coins

*Total BTC Purchase Fee

Best CAD Deposit Fee

Trading Fee

BTC Withdrawal Fee

2

1.43%

Free

0%

Free

7

1.41%

Free

0.50%

0.0005 BTC

9

2.60%

Free

0.20%

0.00025 BTC

9

2.29%

1.50%

0.1% / 0.2%

0.00025 BTC

10

0.72%

Free

0.1% / 0.2%

0.0005 BTC

16

0.50%

Free

0.20%

0.000399 BTC

19

2.83%

Free

0%

0.0003 BTC

20+

3.48%

Free

1.48%

N/A

20+

1.48%

Free

0%

0.00025 BTC

25+

0.66%

Free

0%

0.0005 BTC

40+

0.69%

Free

0%

Network fees minus $5

50+

0.80% + $1.25

Free

0.16% / 0.26%

0.00015 BTC

75+

4.55%

3.99%

0.50%

Network fees

100+

1.52%

Free

0%

0.0004 BTC

350+

2.24%

2.00%

0.10%

0.0005 BTC

*Total BTC Purchase Fee was calculated on Mar 01, 2021 and changes daily. It adds all fees to make a purchase (CAD deposit fees, trading fees, etc) plus the % difference to Google's price of Bitcoin which was the reference price.

This table is up to date as of Aug 13, 2021


Best Binance Alternatives

If you live in Ontario, Kraken is a close alternative to Binance that also has advanced features, staking options, and 50+ altcoins you can trade. It was founded back in 2011 and it's one of the largest crypto exchanges in the world with one of the best reputations in the crypto industry.

Newton is my #1 pick for Canadians. It lacks advanced features but has the most coins on a Canadian based platform (25+) and some of the lowest overall fees in Canada. Low fees include free $CAD deposits and withdrawals, cheap crypto withdrawals, zero trading fees, and tight spreads.

NDAX is the best Canadian based crypto exchange that has advanced charts, a transparent order book, multiple order types and more. The benefit of a Canadian exchange is you can easily and cheaply deposit and withdraw funds to your bank account. NDAX is also very inexpensive for buying crypto and has 15+ coins. The downside is a $25 fee to withdraw $CAD and relatively high crypto withdrawal fees.


Where Binance Shines:

Lots of Altcoins - Binance has over 350+ cryptocurrencies you can trade. The most on any Canadian crypto exchange is around 25.

Low Spreads - Binance is one of the largest and most popular exchanges in the world. With their high volume, they are able to offer very tight spreads and low fees.

Lots of Features - Binance has endless features and advanced traders can find lots of stuff like futures, margin, liquidity pools and much more.

Where Binance Falls Short:

Buying/Selling with $CAD - Currently, Binance does not let you deposit or withdrawal from a Canadian bank account. You can use a credit card to purchase but this includes a minimum 2.00% fee and the transaction might get blocked by your bank. So, the best way to fund and cash out of Binance is by having a Canadian crypto exchange as well.

Overwhelming for Beginners - Beginners might get overwhelmed with all the charts and features on the platform. If you use the mobile app there is a beginner mode you can toggle on.


In Summary

Binance is one of the world's largest crypto exchanges and it's great for Canadians outside of Ontario who want to trade 350+ altcoins that they can't find on Canadian crypto exchanges. All you need is an email address to get started however, you'll also need an account on a Canadian based crypto exchange so you can deposit and cash out of your Binance account cheaply.

Who Should Use Binance?

  • If you want 350+ altcoins that can't be found on Canadian based exchanges
  • If you want many professional and advanced features
  • If you want large volume and low trading fees
  • If you want to try Binance Earn to earn interest on your crypto

Who Should Not Use Binance?

  • Beginners because they might get overwhelmed
  • Anyone wanting to deposit $CAD from your bank account (it's unavailable, best option is to deposit crypto from a Canadian exchange)
  • Ontario residents because it's unavailable for them
Binance Exchange
  • Trade 350+ cryptocurrencies
  • Tight spreads and low fees
  • Get 10% off trading fees

FAQ

Is My Crypto Insured?

On Binance, your crypto is not CDIC insured like in a traditional Canadian bank account. If Binance loses your crypto, it can be gone. However, Binance does have their own insurance mechanism called SAFU. They take 10% of all trading fees and put it into this account. In case they are ever hacked this will go to anyone affected.

Does Binance Accept Canadian Credit Cards?

Yes, Binance says it accepts credit and debit cards using Canadian Dollars. However, your credit card company might block the transaction because it's a "suspicious" purchase. If this happens, you'll have to call your credit card issuer to let it go through. Binance also charges a 2.00% fee which is expensive. The best way to fund your Binance account is by depositing crypto from a Canadian exchange such as Newton.

How Do I Cash Out from Binance in Canada?

Binance is not based in Canada and does not let you cash out directly to a Canadian bank account. So, to cash out from Binance, you must send your crypto to a Canadian crypto exchange such as Newton and then sell your crypto for $CAD to cash out to your bank.

How Does Binance Make Money?

Binance lets you buy, sell and trade digital assets and offers dozens of features. They make money from several places, including trading fees, interest on loans, spreads, fees from its broker program, liquidity fees, cloud offerings, interchange fees, mining services, profits from investments and more.

Is Binance Good for Beginners?

The Binance web platform can be overwhelming however, the mobile app has a feature called Binance Lite. It was specifically made for beginners. Just toggle it on in the app for access to easy, seamless trading.

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