Ndax Review: Is the Canadian Exchange Any Good

Published: 8th July, 2024 | Last Updated: 1st July, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

This review explores the pros and cons of using the NDAX exchange. We will explore the user interface, product features, and security measures. We’ll decide how safe it is to use and the risks of using NDAX. In addition, we’ll compare NDAX’s trading fees and deposit and withdrawal options against other Canadian crypto exchanges. 

This review is part of my series on the best Canadian crypto exchanges.

Overall Rating: 3/5

Ndax is a Canadian cryptocurrency exchange that offers more than 40 coins to choose from. The main benefits are a sleek user interface that has beginner and pro modes and decent fees. The biggest drawback is that it does not offer as wide a range of tokens as other competitors in Canada do.

Pros

  • It’s Secure
  • Good customer service
  • Easy to use
  • Option to stake assets
  • Low fees
  • Regulated
  • Support for businesses

Cons

  • Limited range of cryptocurrencies
  • Custodial solution
  • Requires KYC

Features

  • 40+ crypto assets
  • Instant ID verification
  • Simple and advanced trading mode
  • Over-the-counter trading for high-net-worth individuals
  • Available as a mobile app on iOS and Android as well as a website
  • Option to earn passive income through staking
  • Regulated and licensed as a money service business with SOC2 Type II certification, which allows them to offer staking.
  • Caters to both individuals and institutional investors in Canada
  • A hub called lighthouse that offers educational resources
Ndax Homepage
Source: ndax.io

Pros

1. Security

The Ndax platform offers its users advanced security measures such as multi-party computation, two-factor authentication, and cold storage.

Ndax stores 98% of user funds in cold storage and is the first digital asset trading platform to comply with SOC2 Type II certification.

They also hold insurance for $5 million for cold wallets and  $3 million for hot wallets, as well as $5 million in general business liability insurance.

They also hold customers’ fiat deposits in a segregated Canadian bank account, meaning they do not use your funds to take on risky bets, as has happened with Canadian exchanges in the past.

Cold storage transactions require multi-signature approvals by senior management.

2. Customer service

The crypto exchange receives good reviews for its customer support, which you can contact via live chat, email, or by filing a support ticket.

You can also reach out to them via phone during working hours. 

3. Ease of use

The app and website have an intuitive user interface and are easy to navigate.

For beginners, the simple Trade platform allows you to execute market orders with the press of a button. This interface is less cluttered.

Advanced users will find all the trading tools and order types they might need. Order types include: 

  • Market Orders
  • Limit Orders
  • Stop Orders
  • Stop-Limit Orders
  • Trailing Stop Orders

The advanced interface offers them customizable charts and real-time order books.

You can also add technical indicators such as moving averages, Bollinger Bands, RSI, MACD, and more.

In addition, you can easily check your order history and past trades, as well as your open orders. Overall, the user experience is really positive. 

4. Staking

NDAX is one of the few Canadian crypto exchanges where you can stake your assets to earn a return at the click of a button.

Staking is the practice of sending your tokens to a validator who uses them to participate in validating transactions on a blockchain network.

Proof of Stake blockchains such as Ethereum, Cardano, and Cosmos all reward you with staking rewards.

You can manage the staking process on your own but this requires that you set up a crypto wallet and read the resources on this site to figure out how to do it on your own.

Alternatively you can just open an NDAX account and stake through them and avoid all the hassle.

Mind you, they do take a hefty cut from the staking rewards in return for doing so. 

5. Low fees

NDAX does not charge any deposit fees and offers low withdrawal fees.

In addition, they offer low trading fees of only 0.2%, which is one of the lowest on the market

. There are no additional hidden fees or spreads.

The only fees that are on the higher side are their staking fees, which are 20%. However, 20%-30% seems to be the industry standard these days.

6. Support for businesses

The platform offers custom treasury and investment solutions for businesses.

NDAX also offers business partners a white-label solution for them to launch their own exchange powered by NDAX, access to extensive liquidity pools, services for Bitcoin mining companies, and other institutional solutions. 

7. Regulated

NDAX has filed a Pre-Registration Undertaking (PRU) with the Canadian Securities Administrators (CSA). It is registered with FINTRAC and adheres to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). 

Cons

1. No privacy

NDAX is required to collect personal information in order to comply with anti-money laundering regulations. You will need to share your name, email address, and phone number.

2. Custodial solution

NDAX holds custody of customer funds. This means that should the exchange go bankrupt, you won’t be able to get your digital assets back.

3. Limited range

NDAX’s biggest drawback is that it has a limited range of cryptocurrencies.

Some of the larger exchanges that are licensed in Canada, such as Coinbase, Kraken, and Crypto.com, offer a much wider range of cryptocurrencies to choose from.

This is important because as you get involved in crypto you will likely want to get exposure to coins with a lower market cap and more growth potential. 

Deposit Options

To buy cryptocurrencies on Ndax, you will need to open an account and deposit Canadian dollars from your bank account.

Ndax accepts the following deposit methods.

  • Interac e-transfer: no limits on the amount you can deposit, while there is a $3,000 limit on withdrawals. While there are no fees for deposits, there is a small flat rate fee for withdrawals. You can find the fee schedule here. Deposits and withdrawals using Interac are usually instant but can take up to 30 minutes.
  • Wire transfer: no fees and no limits on deposit amounts, which are also free. Deposits take 0-1 business days.

Background

Ndax Review
Source: ndax.io

Ndax stands for national digital asset exchange and it launched in 2018 under the leadership of Bilal Hammoud.

At the time, Quadriga was the largest exchange and had just collapsed after its founder passed away under obscure circumstances in India. Many people lost their money, and Bilal set out to create a crypto exchange that would build trust in an emerging industry. 

How to Buy Crypto on NDAX

To set up an account with Ndax, you need to be over 18 years old and hold Canadian citizenship. The bank that you use to fund your account also needs to be Canadian.

Pro tip: If you use a VPN, make sure you use a Canadian IP; otherwise, your account might get rejected. 

1. Set up an account

The easiest way to set up an account is to download the app to your phone. This way, you will be able to photograph your ID during the verification process. 

You will be required to share your name, email, phone number, and home address and upload verification of your ID and a utility bill. 

2. Choose your interface

Once you sign up, decide if you want to use the simpler interface or the advanced one. If you are a beginner, go for the simple version. 

3. Deposit Canadian dollars

The easiest way to deposit cash is via Interac Transfer.

Click on the deposit button and follow the instructions. You will receive an email with instructions. Follow those to fund your account.

4. Buying crypto

Once you’ve made your deposit, follow these steps

  • Search for the cryptocurrency you wish to purchase
  • Enter the amount you want to buy
  • Click on buy
  • Check the fees and details
  • Click on Confirm

You will now be able to see your crypto under the portfolio tab. 

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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