Is TD Bank Crypto Friendly and Can You Buy Crypto with Them

Published: May 13, 2024 | Last Updated: May 13, 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.

Is TD Bank crypto-friendly? In the evolving landscape of digital finance, TD Bank offers customers avenues to invest in cryptocurrencies while upholding Canada’s stringent compliance regulations. This article examines the bank’s role in cryptocurrency transactions, outlines how to buy crypto through TD Bank, and explores additional crypto-related services it offers.

Key Takeaways

  • TD Bank enables customers to invest in cryptocurrencies through compliant Canadian exchanges, adhering to regulations set by FINTRAC, and offers a variety of transaction methods excluding credit cards for these purchases.
  • While TD Bank does not allow direct transactions with cryptocurrencies, it supports cryptocurrency trading via platforms like Wealthsimple and others and through investments in Crypto ETFs, which offer exposure to the crypto market without the direct handling of digital wallets.

TD Bank’s Stance on Cryptocurrency

When it comes to digital currencies, TD Bank has shown a progressive approach.

The Toronto-Dominion Bank assists its customers by enabling them to legally invest in the cryptocurrency market through Canadian digital asset exchanges. These exchanges adhere to regulatory standards. This ensures compliance with Canadian regulations designed to prevent financial malpractices in cryptocurrency transactions.

The bank offers its customers various methods to purchase cryptocurrencies, including eTransfer, debit transfer, and wire transfer. Although they have stopped the use of credit cards for cryptocurrency purchase, other transaction methods remain available. 

TD Bank supports its customers in exploring a diverse range of cryptocurrencies, including Bitcoin, Ethereum, Solana, and more.

TD Bank’s Regulatory Compliance

On the regulatory front, TD Bank has been diligent in its adherence to standards set by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). FINTRAC, as Canada’s financial intelligence unit, emphasizes the safeguarding of personal data in the crypto sector.

TD Bank requires the use of exchanges that comply with FINTRAC’s regulatory framework. 

Direct Transactions with Cryptocurrencies

While TD Bank is positive towards digital currencies, it does not facilitate direct transactions with cryptocurrencies. 

However, Customers interested in cryptocurrency trading can use licensed platforms supported by TD Bank.

These include

  • Kraken
  • Coinbase
  • NDAX
  • Newton,
  • Wealthsimple 
  • ShakePay
  • VirgoCX
  • CoinSmart
  • CoinSquare
  • BitBuy

See my review of the best Canadian crypto exchanges for more. 

Additionally, investors can gain exposure to crypto via Bitcoin ETFs.  This allows you to get exposure to the crypto world without the complexity of managing digital wallets.

Buying Crypto Using Your TD Bank Account

Illustration of a person depositing funds to a cryptocurrency exchange from a TD Bank account

Alright, now that we know TD Bank’s stance on cryptocurrencies, how do you actually buy crypto with your TD Bank account? 

The process involves a couple of steps: depositing funds to a regulated exchange and choosing a platform that’s both CAD-friendly and FINTRAC-compliant.

Customers can buy and sell cryptocurrencies through 

  • Interac e-transfer
  • Debit card
  • Wire transfer 

Terms and conditions vary for each exchange. There is usually a minimum and maximum deposit amount that they allow with E-transfers or debit cards. In my research, I found that wire transfers often have a larger minimum deposit amount but no limit on withdrawals. 

Fees and Charges Associated with TD Bank and Crypto

The fees that TD Bank charges for transferring money to a crypto exchange are negligible. 

For Interac E-Tranfers TD Bank charges $1 for an amount exceeding $100 if you have a personal account. Other types of accounts offer free transfers. You can find more details here.

Outgoing Domestic wire transfers cost $15 while incoming wire transfers cost $30.

Standard fund transfers are free. 

Most of the costs you will incur with crypto are on the exchange itself. When reviewing an exchange in Canada take note of the:

  • Deposit fees
  • Withdrawal charges
  • Spreads
  • Transaction fees

For instance, if you’re using Bitbuy, a transaction fee starting at 2% applies. While Bitbuy does not charge for deposits it does have a hefty 1.5% for withdrawals. 

TD Bank’s Services for Crypto Investors

Beyond facilitating transactions, TD Bank also offers services for crypto investors. These services include trading crypto ETFs through TD Direct Investing and providing educational resources to support customers in making informed decisions.

Crypto ETFs, or cryptocurrency exchange-traded funds, offer a convenient way to invest in cryptocurrency without the need for direct crypto ownership or storage. 

TD Bank’s offerings, such as Bitcoin ETFs, provide an investment avenue for those interested in cryptocurrencies but who want to avoid the complexities of direct ownership. The bank may also provide educational resources to guide customers when investing in Crypto ETFs or other crypto products.

Investing in Crypto ETFs with TD Direct Investing

To get started, you must:

  1. Open a TD Direct Investing account, which can be a cash, margin, RSP, or TFSA account
  2. Fund your account through a funds transfer, or recurring deposits
  3. Trade Crypto ETFs with the same ease as buying and selling stocks, making them accessible to both novice and experienced traders.

Types of ETFs that TD Bank offers

Canada was the first country to introduce crypto ETFs.

TD Bank offers two types of Crypto ETFs. 

  1. The first type, Crypto Spot ETFs, track the price of a specific cryptocurrency through holding the actual coin. This is ideal for investors looking for an easy way to invest in crypto. Spot bitcoin ETFs are the most popular. 
  2. The second type is Crypto Futures ETFs, which track cryptocurrency prices through futures contracts based on the speculation of future prices of the currency. 

If you are not experienced in finance spot ETFs are more intuitive. 

Transaction Restrictions

While TD Bank is crypto-friendly, it’s important to be aware of certain transaction restrictions, including its decision to block cryptocurrency transactions using its credit cards.

These restrictions are implemented to adhere to security and regulatory standards. Moreover, TD Bank does not permit the use of its bank accounts or services for customers to purchase gift cards or cryptocurrencies as part of any investigation or undercover operations.

Alternative Crypto-Friendly Banks in Canada

If you’re exploring options beyond TD Bank, there are several alternative crypto-friendly banks in Canada. These include:

  • National Bank of Canada
  • Royal Bank of Canada
  • Scotiabank
  • First Horizon Bank
  • Canadian Imperial Bank of Commerce
  • HSBC Canada
  • ATB Financial
  • Desjardins
  • Manulife Bank
  • JPMorgan Chase
  • PNC Bank
  • BNY Mellon (Bank of New York Mellon)
  • Vancity

These financial institutions are progressively adapting to the growing demand for cryptocurrency transactions, offering services that accommodate crypto transactions among traditional banking activities.

National Bank of Canada

The National Bank of Canada is recognized as one of the most digital currency-friendly banks, allowing customers to purchase digital assets. They offer a Minimalist checking account at $3.95/month plus additional fees for cryptocurrency users.

Customers can conveniently fund their exchange accounts using eTransfer, bank transfer, and debit card transactions. 

Royal Bank of Canada

The Royal Bank of Canada also permits the purchase of cryptocurrencies. Here too, customers can buy cryptocurrencies using wire transfer, debit card, and eTransfer.

By offering these options, the Royal Bank of Canada makes it easy for its customers to engage in cryptocurrency transactions, further validating the crypto-friendly nature of Canadian banks.

Other Notable Banks

Other notable banks supporting cryptocurrency transactions include Scotiabank, HSBC Canada, and Desjardins among traditional banks. ATB Financial, Desjardins, and Vancity Credit Union not only support cryptocurrency transactions but also offer efficient processing platforms.

These financial institutions, including a prominent Canadian bank, highlight the progressive approach of most Canadian banks towards digital currencies, offering customers a variety of choices to engage in digital currency activities.

Summary

In conclusion, TD Bank has emerged as a forward-thinking institution, supporting legal cryptocurrency trading through compliant exchanges. They offer a range of services for crypto investors, including trading of crypto ETFs through TD Direct Investing and provision of educational resources. TD Bank also adheres to FINTRAC regulations, ensuring legality and security in its cryptocurrency-related activities.

While TD Bank is a solid choice for crypto enthusiasts, it’s worth considering alternative crypto-friendly banks in Canada like the National Bank of Canada, Royal Bank of Canada, and others. 

Frequently Asked Questions

What is TD Bank’s stance on cryptocurrency?

TD Bank supports its customers in legally investing in cryptocurrencies through Canadian digital asset exchanges that adhere to regulatory standards. Therefore, customers can invest in cryptocurrencies through approved channels.

How can I buy crypto with my TD Bank account?

You can buy cryptocurrencies by depositing money onto a crypto exchange using your TD Bank account through e-transfer, debit card, or wire transfer. Fees and limits vary per exchange. TD bank fees vary depending on the type of account you have. 

What are the fees and charges associated with TD Bank and crypto?

When buying cryptocurrencies using TD Bank, customers can expect to incur costs such as deposit fees and withdrawal charges. They also need to account for deposit fees, withdrawal fees, spreads, and transaction fees on the exchange. This can impact the overall investment outcome.

What services does TD Bank offer for crypto investors?

TD Bank offers services for crypto investors, including trading crypto ETFs through TD Direct Investing and providing educational resources.

What are some alternative crypto-friendly banks in Canada?

Consider using the National Bank of Canada, Royal Bank of Canada, Scotiabank, HSBC Canada, ATB Financial, Desjardins, Manulife Bank, and Vancity as alternative crypto-friendly banks in Canada. These banks have shown support for cryptocurrency transactions and could be suitable for your needs.

What other financial services does TD Bank Group offer? 

Apart from crypto ETFs, you can invest in stocks, mutual funds, and traditional ETFs through TD Bank’s online platform

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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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