Showdown of South African Crypto Giants: VALR vs. Luno

In the crypto space, South African investors and traders are faced with a big choice difference between two comparable heavy-hitter exchanges: VALR and Luno. Both crypto exchanges provide users with a plethora of unique features tailored to both newcomers and veterans, but yet, each has its advantages and downsides.

Here we delve into the fundamentals of each contender in the ring, weighing up their main features, fee structures, security measures, and their regulatory compliance. By considering both the pros and the cons of each South African crypto exchange, users can ensure the platform they use is tailored as closely as possible to their trading requirements.

Main Features and Trade Options

VALR offers a wide array of features to traders, with specialized services and advanced tools available through its Pro Trading interface for more seasoned users. On this platform, users can use up to 5x leverage in Spot Margin Trading and gain access to both spot and futures markets.

For newer and more unfamiliar crypto users, VALR offers a simplified experience through its Simply Buy Sell service, accompanied by an Auto-Buy option that automates crypto purchases. When it comes to payments, VALR Pay offers users an instant and fee-free crypto transaction option, while businesses benefit from more bespoke solutions to keep one step ahead of the markets.

Luno offers an accessible and educational platform, geared more towards newcomers to the crypto space. This exchange enables users to automate their crypto investments through its Repeat Buy feature while ensuring smooth and fast fund transfers through its range of payment partners.

Luno also offers an educational hub through its Explore section and price alerts to ensure users remain aware of market shifts. Paired with the platform’s bundles service — which functions similar to exchange-traded funds (ETFs) — users can diversify their portfolio effectively while enjoying passive income from Luno’s staking services.

Market Accessibility

VALR supports a large selection of crypto options, supporting over 90 currencies through its Simple Buy Sell service. It also provides market access to 33 spot trading pairs (including 11 for ZAR), 10 spot margin pairs, and 18 futures pairs. By offering this wide array of market options, VALR ensures both new and returning traders and investors find exactly what they seek.

Luno, although limited in variety in comparison, offers 20 crypto options and over 120 trading pairs through its Exchange services — focusing on ZAR trading pairs. This broad range of trading pairs keeps Luno in a competitive position for those seeking to trade primarily with traditional local fiat currency pairs and spot markets.

On-ramps and Off-ramps

Both VALR and Luno support EFT bank transfer — a common preference in South Africa — for users wishing to deposit and withdraw funds from the platform.

VALR allows users to use Visa and Mastercard for their deposits while Luno offers traders an instant deposit option via the payment integration service, Stitch. Luno also offers users normal and express bank transfer withdrawal options to suit their preference and enables instant crypto purchases via credit or debit cards for faster transactions.

Fees, Fees, and More Fees

When choosing a crypto exchange, one of the first things investors and trades alike want to know is: what will this cost me in fees?

VALR offers a competitive option with a trading fee structure that benefits Makers (those offering the trade) and doesn’t hinder Takers (those taking the trade). On VALR’s exchange, Makers trading in fiat pairs are rewarded with a -0.01% rebate on trades, while Takers pay a small 0.1% fee for trades.

Luno fees are more varied based upon trading volume, charging Maker fees ranging from -0.02% to 0.4% with Takers fees reaching as low as 0.05% — based on 30-day trading volume. Luno also charges a set 3.9% instant card transaction fee and 2% for transactions made through its wallet service.

Security and Regulatory Measures

VALR uses a combination of hot and cold wallet storage to ensure user funds are safe alongside strict internal controls, and advanced security features, such as two-factor authentication (2-FA). VALR is also licensed by the Financial Sector Conduct Authority (FSCA) in South Africa and it set to expand its regulatory compliance across Europe, Dubai, and Mauritius.

Luno utilizes security protocols like 2-FA, deep freeze storage management via Bitgo Custody and Fireblocks, password protection, and multi-signature hot wallet setups. Luno holds licenses in seven jurisdictions, maintaining a secure and regulated platform for traders and investors.

Who Wins?

When considering whether VALR or Luno is the best option to proceed with, it’s important to consider individual needs and trading requirements.

VALR is recommended for those that require comprehensive trading options and features, particularly veteran traders. Whereas, Luno is more suited to beginners that require a more educational approach to crypto trading options.