Luno vs Binance Singapore – Which Exchange Is Better?

Luno vs Binance Singapore

There are many crypto exchanges that you can use to buy cryptocurrency.

2 of them include Luno and Binance Singapore.

Which one is better and which one should you choose?

Here’s what you need to know:

The difference between Luno and Binance Singapore

Luno charges you much lower trading fees compared to Binance Singapore. However, you can only trade in 6 currencies on Luno, compared to the 8 currencies you can trade with Binance Singapore.

Here’s an in-depth comparison between these 2 exchanges:

Founder

Luno is based in London and was founded earlier in 2012.

Meanwhile, Binance Singapore was launched in 2019. It was launched as a separate exchange from Binance.com.

Luno can be found in 8 countries, such as Singapore and Malaysia.

Both of them seem to be rather reputable companies that have a strong background in the cryptocurrency scene.

Number of currencies

Luno allows you to trade in 6 currencies:

  1. BTC
  2. BCH
  3. ETH
  4. XRP
  5. LTC
  6. USDC
Luno Available Currencies

These currencies are the more well-known ones that have been around for quite a while!

Binance Singapore allows you to purchase 8 currencies

Meanwhile, Binance Singapore gives you slightly more variety. This is because you can purchase 8 cryptocurrencies.

This includes:

  1. BTC
  2. ETH
  3. BNB
  4. LTC
  5. BCH
  6. XRP
  7. NEO
  8. LINK
Binance Singapore Available Cryptocurrencies

One advantage that Luno has is that it allows you to trade in the stablecoin USDC. This allows you to use these coins to earn a rather high interest rate with crypto savings accounts!

Methods of funding your account

To start buying crypto on either exchange, you will need to fund your SGD wallet. Both exchanges allow you to deposit SGD using your Xfers account.

Xfers Account

Xfers is a payment solutions that allow you to transfer your money securely into the crypto exchanges.

It sort of acts like the middleman between your bank accounts and the exchanges.

Binance Singapore Xfers

However, you will need to first transfer your SGD to your Xfers account via FAST. After that, you can transfer your SGD from your Xfers account to either Luno or Binance Singapore.

Methods of buying crypto

For both exchanges, you can use SGD to purchase your crypto.

Binance Singapore only allows you to buy the 8 currencies directly from SGD. It does not allow you to exchange between currencies.

Binance Singapore Buy Crypto

However for Luno, you are able to exchange between different cryptocurrencies.

Luno Exchange Between Currencies

You are able to buy crypto directly from SGD, or exchange it from another currency.

This makes Luno’s platform slightly more flexible.

You are buying crypto directly instead of trading

When you are purchasing crypto on either exchange, you are buying it directly based on the prevailing market rate.

This is slightly different from trading, where you get to choose the limit price that you pay!

As such, the exchange rate of the crypto that you’re paying may differ slightly.

Here is Luno’s rate,

Luno Exchange Rate SGD to BTC vs Binance Singapore

and Binance Singapore’s rate at around the same time.

Binance Singapore BTC to SGD vs Luno

The rates for Luno are much higher compared to Binance Singapore!

This means that you’ll require more SGD to purchase the same amount of BTC in Luno.

Withdrawal of funds

Both Luno and Binance Singapore allow you to transfer your funds to your Xfers wallet.

Luno Withdraw to Xfers

This is slightly more troublesome compared to Coinhako or Gemini, which allows you to withdraw directly to your bank account!

Sending and receiving crypto

Both Luno and Binance Singapore allow you to send and receive crypto from external wallets.

This makes it easy for you to transfer your crypto to another exchange.

You can also send your crypto to a savings wallet that earns you high interest, such as:

  1. Celsius
  2. BlockFi
  3. Hodlnaut
  4. Youhodler
  5. Nexo

Fees

The most important thing when it comes to trading crypto are the fees. You should try to minimise your fees as much as possible!

Here are some of the fees you may incur when using either exchange:

#1 Depositing and withdrawing fees

There are no deposit or withdrawal fees for either platform.

This is better compared to Coinhako, which charges you:

  1. 0.55% deposit fees (if you use Xfers)
  2. $2 for every withdrawal

#2 Buying and selling crypto

Here are the fees that you’ll be charged for both exchanges:

Luno has lower fees if you use their Exchange platform

If you want to use Luno’s instant buy function, you will incur a 1% fee.

This is similar to the fee that Coinhako charges.

Luno Buy BTC Fees Instant

However, Luno has an exchange platform as well.

Luno Exchange Platform

Luno charges you the trading fee based on your 30-day trade volume:

Trade VolumeFee
SGD 0.00 – SGD 349,999.990.10%
SGD 350,000.00 – SGD 699,999.990.09%
SGD 700,000.00 – SGD 1,399,999.990.08%

There are much higher trade volumes, but I do not think you will hit those amounts.

Even at the lowest tier, the fee charged by Luno is really low.

Luno Exchange Trading Fee

At 0.10%, it is cheaper compared to most platforms!

The only drawback is that the Luno Exchange only has BTC/SGD as their SGD trading pair.

Luno BTC SGD Trading Pair

If you wish to buy other currencies, you will have to make at least 2 trades.

Binance Singapore charges 0.6% for each trade

When you make a buy or sell order on Binance Singapore, you will be charged 0.60%.

The fees are 6 times higher compared to Luno!

If you are just looking at fees alone, Luno is definitely more cost effective.

#3 Sending and receiving fees

You may want to send or receive your crypto from an external wallet.

For Luno, the fees for most currencies that you send are dynamic. This depends on the network demand and traffic when you’re sending your crypto.

The only exception is the fixed fee for sending XRP (0.3%).

For Binance Singapore, the withdrawal fees are fixed. This depends on which crypto you’re sending:

CryptoWithdrawal FeeMinimum
BTC0.00040.001
ETH0.010.02
BNB0.0010.002
LTC0.0010.002
BCH0.0010.002
XRP0.252
NEO01
LINK0.72

If you send NEO, then you will not be charged any fees.

If you want to receive crypto from an external wallet, no fees are charged by either exchange.

However, you’ll need to consider the fees you incur when sending crypto from your external wallets!

Limits and minimum amounts

When you want to buy crypto on either exchange, you may be subject to certain limits and minimum amounts.

ExchangeMinimum per TradeLimits
LunoSGD $20SGD $30,000 (monthly)
Binance SingaporeSGD $20SGD $20,000 (daily)

Both exchanges have the same minimum amount to trade.

Earning interest on your crypto

Luno has one advantage over Binance Singapore as it has a Bitcoin Savings Wallet.

Luno Bitcoin Savings Wallet

This is similar to a savings account. Instead of earning interest on your fiat currency, you will earn it with Bitcoin!

Crypto.com has a similar programme with its Crypto Earn.

Luno projects that you can earn up to 4% p.a. on your Bitcoin. However, the interest rate may fluctuate!

If you intend to buy and hold your cryptocurrency, this is a great way for you to earn some interest!

Security

You may have heard of how crypto exchanges can be hacked, and these hackers can steal your cryptocurrencies!

So how do these exchanges try and combat this?

Luno stores the majority of your currencies in a cold storage

Luno also uses 2 places to store your crypto:

  1. Deep freeze storage
  2. Hot wallet
Luno Security

This approach is quite similar to how Coinhako is doing it. Most of your funds are stored in the cold wallet.

However, some of your funds are in their hot wallet, in case you want to quickly withdraw them.

In the hot wallet, another set of keys are held with BitGo. They are considered to be a secure custodian of your crypto.

Once again, your crypto stored with Luno should be rather secure.

Luno provides 2FA to either your email or mobile phone whenever you login to your account.

Binance Singapore does not disclose their security measures

Unlike Luno, Binance Singapore does not disclose the security measures they have put in place. This may be slightly worrying if you are very concerned about security.

Binance.com faced a security breach in 2019. However, Binance Singapore declared that the breach did not affect their exchange.

Although the platform is quite new, Binance Singapore has not been hacked so far!

Platforms

Luno has both a web platform,

Luno Web Platform

as well as a mobile app.

Luno Mobile App

Meanwhile, Binance Singapore only has a web platform.

Binance Singapore Web Platform

In my opinion, their platform is slightly ‘less stable’ and doesn’t really have the same ‘professional’ feel compared to Luno.

Verdict

Here is a comparison between Luno and Binance Singapore:

LunoBinance
Singapore
Year Founded20122019
HQLondonSingapore
Number of Currencies68
Funding MethodsXfersXfers
Methods of BuyingSGD WalletSGD Wallet
Withdrawal of FundsXfersXfers
Deposit FeesNoneNone
Withdrawal FeesNoneNone
Trading Fees1% (Instant Buy) and
0.10% (Exchange)
0.60%
Sending FeesDynamic 
(Except for
XRP: 0.30%)
Depends on
currency
Minimum Per TradeSGD $20SGD $20
Bitcoin WalletPresent (Up to 4%)Absent
SecurityCold storage
+ hot wallet
Not specified
PlatformWeb + MobileWeb only

So which platform should you choose?

Choose Luno for lower fees

Luno’s Exchange has one of the lowest trading fees, at 0.10%. It is cheaper than Liquid or Gemini, which both have rather cheap fees already!

However, their instant buy option is more expensive compared to Binance Singapore (1% vs 0.60%).

The main limitation is that you can only buy 6 currencies on their platform. This makes it rather limiting, especially if you want to buy other currencies like DOGE.

Apart from that, Luno is a great platform to get some exposure into cryptocurrency!

Choose Binance Singapore for slightly greater variety

Binance Singapore allows you to trade 8 currencies, which is slightly higher than Luno.

Their 0.60% fee is also cheaper compared to Luno’s Instant Buy.

Overall, I do not really like the feel of the platform, however it could just be my personal preference.

Binance Singapore is also an easy way to get exposed to cryptocurrency. However, their higher fees may eat into your returns in the future.

Conclusion

Both exchanges allow you to purchase cryptocurrency directly from SGD.

The exchange that you ultimately choose depends on:

  1. The type of currency you wish to buy
  2. The trading fees that you wish to incur
  3. Whether you want to have a BTC savings wallet

Luno Referral (Earn SGD $5 in Bitcoin)

If you are interested in signing up for a Luno account, you can use the referral code ‘T5N74J‘ or my referral link to sign up for an account.

You’ll be able to earn SGD $5 worth in Bitcoin!

Luno Referral

Here’s what you need to do:

  1. Sign up for a Luno Account
  2. Deposit and buy ≥ SGD $100 of BTC via Instant Buy
  3. Receive SGD $5 in Bitcoin

You will need to purchase BTC using the Instant Buy function. The fees that you incur will be 1%.

Luno Buy BTC Fees Instant

It would be best to buy only $100 SGD worth of BTC, which only incurs you a $1 fee. The $5 SGD bonus will be able to offset the fee!


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