Kraken Review 2023: Exchange Fees, Safety & More
The Kraken Exchange is a popular cryptocurrency trading platform that offers low transaction fees for buying and selling a good collection of tokens. Kraken supports many cryptocurrencies, with 9 million registered users across 190 countries. It has a quarterly trading volume of more than $207 billion.
There are plenty of cryptocurrencies with deposits as low as $10 for crypto traders. Kraken offers additional features like margin and futures trading, indices, OTC trading, Crypto Watch, NFT marketplace, Kraken Pro, and staking.
With the Kraken mobile app, Kraken users can buy and sell cryptos quickly and earn rewards by staking their assets. The centralized exchange also has an affluent educational segment with crypto guides, videos, and podcasts. It checks all the relevant boxes to be the most secure and reliable cryptocurrency exchange in the United States.
This Kraken review will focus on the exchange’s pros and cons, security, fee structure, funding options, staking, OTC and margin trading, and more.
Kraken Review Summary
| Official Website | https://www.kraken.com/ |
| Headquarters | San Francisco, California |
| Found in | 2011 |
| Native Token | Native Utility Token (NUT) |
| Listed Cryptocurrencies | 185 cryptocurrencies, including Bitcoin, 1inch, Ethereum, Avalanche, Bitcoin Cash, Cardano, ChainLink, Dogecoin, EOS, Ethereum, Classic, Litecoin, Polygon, Ripple, Shiba Inu, Terra Classic, Tether USD, Tron, USD Coin, and ZCash |
| Trading Pairs | Cash to Crypto – USD/BTC, EUR/ETH, GBP/BCH, CAD/BTC Crypto to Crypto – BTC/ETH, BCH/ETH Cash to Cash – USD/EUR, CAD/USD, JPY/EUR |
| Supported Fiat Currencies | USD, EUR, CAD, GPY, GBP, CHF, AED, AUD |
| Minimum Deposit | Starts at $1 |
| Trading Fees | Low fees starting at 0% |
| Withdrawal Fees | No withdrawal fees |
| Customer Support | Live chat, email support, phone support, FAQs, Help Centre |
With more than 185 cryptocurrencies Kraken that Kraken offers, the platform has stepped up from multiple brokers. It also boasts high liquidity, making it easier for active traders to sell and buy Bitcoin at reasonable prices. Kraken is also popularly known for offering advanced trading options like margin trading, crypto short sales, and stop orders. It also provides high leverage of up to 5x, allowing pro traders to access up to $500,000 in margins.
However, on the downside, Kraken can significantly improve customer support and make educational resources more accessible. Kraken also has a limited starter account that only lets traders do something with submitting photo IDs and other relevant documents. However, it is also a part of what makes Kraken a secure crypto exchange before allowing traders to enjoy the advanced features.
Kraken Pros and Cons
| Pros | Cons |
| A simple and neat user-friendly interface is suitable for beginners and experienced traders. | Limited payment options. |
| Deep liquidity and tight spreads. | The cryptocurrency exchange accepts a few fiat currencies. |
| Supports more than 185 cryptocurrencies. | No personal wallet service for traders. |
| Offers advanced trading features like margin trading, futures trading, indices, OTC trading, and staking. | |
| Extremely low transaction fees. |
Kraken: Company Overview
Established in 2011, Kraken has been at the blockchain technology forefront as one of the world’s most significant and oldest Bitcoin exchanges. It has been consistently known for being the best place to buy and sell cryptocurrencies online, owing to its excellent service, payment options, rigorous security measures, and excellent service.
Whether the traders are crypto beginners or advanced, Kraken empowers all kinds of traders by providing educational resources, an ever-growing list of crypto pairs, advanced trading tools, and advanced trading features to leverage as they diversify their portfolios.
Kraken supports institutions by providing personalized account management and over-the-counter (OTC) trading. Institutions of all sizes can get competitive pricing and exceptional liquidity for all markets to achieve their investment goals quickly and with the utmost confidence.
Features of Kraken Exchange
The Kraken crypto exchange is available to traders worldwide and is one of the safest crypto exchanges. Its top-notch safety measures, low transaction fees, and wide range of available cryptocurrencies make Kraken one of the best options for traders experimenting with digital tokens and experienced investors.
Novice traders should note that Kraken is an ideal platform, but it comes with a flat fee of 0.9% for stablecoins and 1.5% for other cryptocurrencies. However, the Kraken Pro platform is more suitable for more advanced traders as it has reasonable fees and other benefits of the crypto markets.
Traders can also use Kraken’s wide variety of tokens for margin trading and earn interest through crypto staking. According to multiple Kraken reviews, while many Kraken users experienced smooth trading, only a few experienced significant problems that were immediately resolved.
Account management on Kraken is mostly self-service and managed through either the Kraken mobile application or the Kraken website. Compared to other exchanges and industry competitors, Kraken has a slightly lower pricing fee structure, making it an excellent choice for beginners to familiarize themselves with the crypto trading market.
Here are some of the notable features that are available on the Kraken crypto exchange –
Kraken Pro
Advanced crypto traders can gain access to spot, margin, futures trading, and crypto staking in an interactive and robust interface. With highly customizable modules, traders can use the advanced interface per their requirements and convenience. Constantly being fed with live-market data, traders can receive real-time performance with Kraken Pro.
Kraken Pro users can confidently use the platform to generate trading strategies and execute trades where traders can discover opportunities by browsing markets per category, sorting them as per their winnings and losses, new entries, and most traded.
With each market, Kraken Pro helps high-volume traders analyze trends and traders with charting tools and indicators. Traders may even watch for up to 4 markets and compare them all at once.
Its advanced features continue even when Kraken Pro users can manage their trades using instructions and advanced order types, including stop loss, take profit, trigger options reduce-only, and IOC. Pro users are spoiled for choice when there is room to trade, stake, or invest with over 210 crypto assets, fiat currencies, and stablecoins.
Pro users are spoiled for choice when there is room to trade, stake, or invest with over 210 crypto assets, fiat currencies, and stablecoins. With futures trading as flexible as they come, more experienced traders are welcome to try out long and short positions, along with capital efficiency, and engage the crypto space with competitive, low fees down to 0.01%.
The Kraken Pro app is available on Android and iOS devices and offers the best features cryptocurrency exchanges can offer. This includes, and is not limited to, the following:
- Deep liquidity
- Kraken support: phone and chat support
- Kraken security
Kraken Security
The Kraken trading platform takes the most comprehensive approaches to protect the NFT market and crypto assets on the Kraken platform. Kraken has never been hacked and is recognized as a secure cryptocurrency exchange to safeguard your digital assets.
The key features that Kraken provides to protect the Platform Security for Crypto Trading, NFTs, and more are as follows:
Proof of Reserves
Kraken has assembled a team of leading security professionals to safeguard all support and maintain unparalleled performance and exceptional client experience. With the help of an external auditor, Proof of Reserves is audited, aiming at bringing greater transparency and trust in cryptocurrency assets held on the currency exchange.
The Proof of Reserves audit is simple to access and verify their balances backed by assets. However, tech-savvy traders can utilize third-party tools independently rather than verifying with the auditor’s portal.
Custody Security
Kraken customers can log into their trading accounts to verify that the exchange’s custody covers all tokens in their clients’ accounts while auditing. Kraken uses advanced hot wallet and cold storage solutions to protect client funds. The crypto infrastructure is built inside secure cages under surveillance 24×7 by alarm systems, video monitors, and armed guards.
Kraken encrypts all important contact information at system and data levels, in addition to physical security practices, and regularly conducts vulnerability testing on its system.
Information Security
All sensitive data relating to clients’ trading accounts are encrypted at the data and system levels. In addition to this, access to these data is strictly monitored and controlled by the Kraken platform.
Security Testing
Kraken’s expert professional team tests its systems through potential attack vectors. In addition, the developers run bug bounty programs to leverage a broader security development community. The Kraken collective NFT marketplace and the advanced trading platform are secured by a variety of security features, such as:
- A 2-factor authentication protocol
- Granular and customizable API keys
- SSL encryption protocol
- Global settings time lock
- Zero settlement risk
- Constant monitoring in real-time
- Encrypted sensitive data
- High-priority email and live chat support are available 24×7
- PGP encrypted and signed email for secure communication, and many more
Kraken Fees Schedule
Whether the traders are getting started on their cryptocurrency trading journey or are seasoned crypto traders, Kraken products are highly affordable and fit every need of the traders at the most competitive prices. Using the Instant Buy option for converting, buying, or selling crypto assets, traders must pay a small fee displayed at the transaction’s time.
The fee schedule may vary based on transaction size, chosen payment methods, market conditions, and transacted assets.
Fee Schedule Table
The Kraken NFT marketplace provides traders with zero gas fees but charges a low flat fee of 2% for all Kraken NFT transactions. There are no listing fees, cancellation fees, or deposit fees on the platform.
| Kraken Transaction Fee | Creator Earnings | Listing Fee; Cancellation Fee; Deposit Fee | Withdrawal Fee |
|---|---|---|---|
| 2% | 1. The amount of Creator Earnings that can be collected from NFT transactions depends on the specific collection involved. 2. When an NFT is sold, the Seller’s sale price will be reduced by the corresponding Creator Earnings. |
$0 | Ethereum-based transactions: 0.01 ETH
Solana-based transactions: 0.02 SOL |
However, for every Ethereum-based and Solana-based transaction, Kraken charges 0.01 ETH and 0.02 SOL, respectively.
Kraken Pro Fees
Kraken Pro users must note that the platform charges variable maker and taker fees for spot crypto trading, stablecoin, tokens, forex currency pairs, futures, and margin trading. Here is a breakdown of how the fees are calculated over 30 days:
Kraken charges variable maker and taker fees based on 30-day trading volume for spot crypto trading. The maker-taker fee for spot crypto trading starts at 0.16% and 0.26%, respectively, and it goes to as low as 0% with higher trade volumes.
| 30-Day Volume USD | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.20% | 0.20% |
| $50,001 – $100,000 | 0.16% | 0.16% |
| $100,001 – $250,000 | 0.12% | 0.12% |
| $250,001 – $500,000 | 0.08% | 0.08% |
| $500,001 – $1,000,000 | 0.08% | 0.18% |
| $1,000,001 – $2,500,000 | 0.06% | 0.16% |
| $2,500,001 – $5,000,000 | 0.04% | 0.14% |
| $5,000,001 – $10,000,000 | 0.02% | 0.12% |
| $10,000,000+ | 0.00% | 0.10% |
For stablecoins, forex currency pairs, and pegged tokens, the maker-taker fee is 0.2% and goes to as low as 0% with higher trade volumes.
| 30-Day Volume USD | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.20% | 0.20% |
| $50,001 – $100,000 | 0.16% | 0.16% |
| $100,001 – $250,000 | 0.12% | 0.12% |
| $250,001 – $500,000 | 0.08% | 0.08% |
| $500,001 – $1,000,000 | 0.04% | 0.04% |
| $1,000,001+ | 0.00% | 0.00% |
The rollover fee and opening fees are charged for margin trading on different cryptocurrency assets and fiat currencies.
| 30-Day Volume USD | Maker Fees | Taker Fees |
|---|---|---|
| DOGE (Dogecoin) | 0.02% | 0.02% per 4 hours |
| ETC (Ethereum Classic) | 0.02% | 0.02% per 4 hours |
| ETH (Ethereum) | 0.02% | 0.02% per 4 hours |
| USD (US Dollar) | 0.015% | 0.015% per 4 hours |
| USDC (USD Coin) | 0.02% | 0.02% per 4 hours |
| USDT (Tether) | 0.02% | 0.02% per 4 hours |
| BAT (Basic Attention Token) | 0.02% | 0.02% per 4 hours |
| BCH (Bitcoin Cash) | 0.02% | 0.02% per 4 hours |
| BTC (Bitcoin) | 0.01% | 0.01% per 4 hours |
| CAD (Canadian Dollar) | 0.015% | 0.015% per 4 hours |
| EUR (EURO) | 0.015% | 0.015% per 4 hours |
| GBP (British Pound) | 0.015% | 0.015% per 4 hours |
For futures trading, the maker-taker fee starts at 0.02% and 0.05%, respectively, and goes to as low as 0% and 0.01% with higher trade volumes.
| 30-Day Volume USD | Maker Fees | Taker Fees |
|---|---|---|
| $0 – $100,000 | 0.0200% | 0.0500% |
| $100,001 – $1,000,000 | 0.0150% | 0.0400% |
| $1,000,001 – $5,000,000 | 0.0125% | 0.0300% |
| $5,000,001 – $10,000,000 | 0.0100% | 0.0250% |
| $10,000,001 – $20,000,000 | 0.0075% | 0.0200% |
| $20,000,001 – $50,000,000 | 0.0050% | 0.0150% |
| $50,000,001 – $100,000,000 | 0.0025% | 0.0125% |
| $100,000,001 + | 0.0000% | 0.0100 |
Note that trade volumes on spot markets, stablecoins, and forex pairs order books do not contribute any discounts on Futures and vice versa.
Funding Options
The Kraken crypto exchange is dedicated to offering the lowest prices and a plethora of fiat currency and digital funding options to empower cryptocurrency investments and trades. Whether traders execute spot trades or schedule recurring buys, Kraken’s flexible and fast payment options make it easier to buy and sell assets from any part of the world. Traders at Kraken can fund their accounts in three ways –
- With traditional or fiat currencies –
- All new and experienced crypto investors can use fiat currency funding options to get the most seamless trading experience in a few steps. Traders can fund their accounts using US dollars (USD), Canadian dollars (CAD), European euros (EUR), Japanese yen (JPY), Pound Sterling (GBP), Swiss franc (CHF), Australian dollars (AUD), and United Arab Emirates Dirham (AED).
- Note that the processing time and deposit fees for fiat currencies vary greatly depending on the currency the traders choose. Hence, checking the official website before joining the platform is essential.
- With digital assets –
- Traders who own cryptocurrencies and other digital assets supported on the Kraken cryptocurrency exchange can use them to fund their accounts. All crypto deposits are instantly credited to the trading account after account confirmation.
- With a convenient and quick verification process, Kraken allows easy deposits of crypto funds so that traders can focus on trading activities.
- With a payment card –
- Kraken allows traders to instantly buy crypto using their digital wallets, bank transfers, or qualifying a credit or debit card to purchase crypto instantly. Kraken provides a digital wallet for traders to hold crypto between purchases; however, there is no personal wallet service for traders. Traders can refer to the debit and credit card fees on Kraken’s support page.
Kraken also features Corporate funding options for corporate-level traders, such as international wire transfers. Note that traders can also trade fiat to crypto securely and quickly with a wide selection of fiat and digital currency funding methods that provide traders with complete freedom to trade from any part of the world with just a few limitations.
Staking
Traders on Kraken can earn 24% annually by staking their crypto. Staking on Kraken gives traders the power to earn massive rewards on their fiat and crypto holdings. Traders can also unstack their assets at any point in time without any penalties.
Kraken features both on-chain and off-chain staking. It also supports Proof of Stake, which works differently than Proof of Work, as in the case of Bitcoin and Ethereum, where cryptocurrencies are generated using machines that compete to solve complex equations to mine digital assets.
Proof of Stake allows choosing from a pool of traders holding the coins. With Kraken’s Proof of Stake, traders can earn rewards by staking cryptocurrencies and fiat currencies for a specific time as an incentive to hold onto their assets. To earn profits through staking, traders need to choose their assets, and after completing the bond, they can start staking and earning rewards twice a week from the Proof of Stake process.
24/7 Support
Kraken has multiple full-time, professional, dedicated Client Engagement finance and crypto specialists trained to provide service on all Kraken products. The team of experts is distributed in different parts of the world, fluent in multiple languages, responds instantly with customized solutions, and operates daily throughout the year, even on major holidays.
Kraken support provides unparalleled customer satisfaction via 24×7 live chat, providing efficient and quick resolution to all customers. Issues that may take weeks to resolve on different trading platforms are generally solved within 24 hours.
Customers can also contact the Kraken support team via reliable and responsive email support. With excellent response times and satisfaction rates, Kraken has an enriching support center filled with in-depth guides and articles to help traders troubleshoot their problems independently.
A robust library also covers relevant topics about the Kraken platform, such as the registration and account verification processes, security features, and deposit methods. The customer support team at Kraken has an excellent track record of offering exceptional and prompt customer service available 24×7, regardless of the client query.
Liquidity
Kraken ensures deep liquidity, offering trade execution at reasonable prices with tight spreads at one pip. The Kraken liquidity market is one of the best in the industry for the following reasons –
- High trading volume for all the Kraken-listed cryptocurrencies.
- Relatively Lower Fees motivate makers to open additional trade positions.
- Multiple funding methods cater to a wide variety of traders.
- More active crypto investors and traders to fill open trade orders.
Coming to Bitcoin liquidity on the Kraken exchange, it greatly depends on the market makers. Kraken is one of the largest crypto platforms in trade volume, which means more market makers, resulting in higher liquidity and lower maker fees. At Kraken, traders can get some of the lowest maker fees starting at 0.16% to as low as 0%.
Margin Trading
Traders at Kraken can supercharge their trading experiences with spot margin trading that offers leverage of up to 5x. Traders can access all the required tools they need on Kraken for spot margin trading, such as –
- Leverage up to 5x – Use margins easily and quickly to go short or long on crypto with up to 5x leverage in more than 100 markets.
- Stable rollover fee – With regular rollover fees on trade positions, traders can accurately predict and calculate trading costs.
- Pro trading interface – With the most intuitive platform and advanced trade order options, managing trade positions on Kraken is easy.
- High margin limits – Eligible traders can access millions of dollars of margin allowances.
- Comprehensive coverage – Traders can manage their exposure to a range of cryptocurrency assets as thousands of crypto spot markets are available for margin trading.
Indices
Kraken provides access to the most up-to-date real-time pricing data, gathered by the second, with crypto indices run by CF Benchmarks. Indices trading ensures reliable settlement prices, representing a consensus value of all assets since indices trading processes aggregated data from multiple leading cryptocurrency exchanges.
Kraken ensures index and market integrity by providing pricing indices for major cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, and Ripple through robust methods that ensure real-world integrity and applicability.
Kraken offers two market views (Indices and Spot trading) that provide more insight, accurate down by the second. The indices and spot trading rates are compiled from the order book data from leading cryptocurrency exchanges, giving instantaneous and comprehensive pricing of the aggregate demand for a particular crypto. This also enables traders to mark their portfolios and manage risks with a minimum chance of manipulation.
Futures Trading
Kraken Futures is a popular trading option offering many products on a robust, high-performance, low-latency trading platform. Kraken Futures provides a range of collateral options with superior flexibility that traders require while opening new trade positions or maintaining current ones.
The platform’s Futures feature also features a multi-collateral Futures digital wallet that allows traders to use various collateral types to manage their trade positions without moving their funds around. Trading Futures on the Kraken exchange is worth mentioning for the following reasons –
- Futures on Kraken offer leverage that allows traders to amplify their buying and selling power.
- The new margin mode functionality provides additional flexibility in risk management and will enable traders to trade crypto by using isolated margins to limit the downside for every contract.
- Traders can gain additional exposure to more fiat-to-crypto pairs using their multi-collateral Futures wallet, which offers ten different collateral options.
- Bitcoin miners can hedge volatility using the exchange’s Futures feature and protect their mining profits, irrespective of how the underlying trade markets move.
OTC Desk
What is the Kraken OTC Desk?
OTC or over-the-counter desk on Kraken offers high-quality service, allowing traders to execute their orders with deep liquidity and tighter spreads, and more personalized and private service for high net-worth individuals and institutional clients who need to place large orders. The Kraken OTC desk offers trade settlement and execution services that are secure, discreet, and highly competitive.
Kraken OTC Features
Kraken OTC features include –
- Deep liquidity with tight quotes, minimizing trade execution slippage.
- World-class customer service can assist traders anytime via chat, email, or phone support.
- The automated RFQ (quote request) system provides live codes and executes trades instantly through the Kraken account.
- 1–1 service that exceeds all expectations and builds strong relationships.
- Global access all year round for all experienced traders.
- Settlement flexibility allows traders to settle trades within 24 hours using a Kraken account, bank account, and an external cryptocurrency wallet.
How OTC Works
The Kraken OTC trading works in the most straightway way –
- Register for OTC trading – Contact the Kraken customer service and complete the onboarding process.
- Trade over chat or trade AutoRFQ via OTC portal – Traders can connect securely with the trading desk and share their queries regarding their preferred trades. After confirmation, the desk will provide wire instructions. Traders can also request an automated quote to place trades within seconds without requiring any trade-desk involvement.
- Complete trade – Once the trading desk receives the funds from the trader’s bank account, the supported assets will be sent to the digital wallet address along with a confirmation email to the registered email ID.
Account Management
For novice and advanced traders, Kraken offers exclusive additional layers for instant, hyper-personalized support through the Kraken account management program. With next-level trading – institutional investors require a next-level trading service.
Traders who consistently participate on the platform will get a personal account manager as their main point of contact to handle all requests and questions and ensure that the traders can focus on their trading without any hassles.
Since Kraken is a global trading platform with many clients worldwide, each requires unique preferences and needs. Reaching Kraken account representatives can be done via four communication channels: phone, prioritized support ticketing, email, messaging, and text apps.
Cryptowatch
Cryptowatch is a unique feature on Kraken that allows traders to trade cryptocurrencies over several crypto exchanges from one platform. It simplifies them to keep tabs on the different crypto markets and make profitable trades with favorable market conditions.
Traders can watch their portfolio and 2000 crypto markets across several exchanges at one glance. They can also create volume and price alerts to grab the best opportunity when required.
Analyzing crypto markets, with an expansive library of data visualizations for order flow, volume, price, and more, is more accessible with Cryptowatch. It features customized indicators and colors to view movements in the best possible way. All trades via multiple crypto exchanges are neatly presented on the portfolio and chart immediately, so traders always remain updated on Kraken.
Kraken Review: Conclusion
According to this Kraken exchange review, Kraken’s price and features make it a suitable choice for both novice investors who are experimenting with the crypto world and experienced crypto investors looking for top-notch security measures, a solid variety of cryptocurrencies, and low trading fees. New traders should only dwell on the cryptocurrency exchange for a short time as the Instant Buy fees are charged at a flat fee of 0.9% for stablecoins and 0.15% for other cryptocurrencies, which are not competitive.
Its cost-effective Kraken Pro and Futures Market fees are very appealing. Advanced Kraken Pro traders are charged reasonable fees and are offered various benefits, such as global access to various crypto trading markets. Even better, the trading fees decline as the volume of trades increases. More experienced traders can enjoy sophisticated trading options like futures trading, indices, and staking.
The low trading fees and high securities on Kraken Pro, high rates for trading in the futures market, and staking are worth mentioning. Unfortunately, it is not the most accessible cryptocurrency exchange to navigate compared to other crypto exchanges. Overall, it is an excellent choice for cryptocurrency investing and trading.
Traders must understand the costs, risks, and uncertainties involved in cryptocurrency trading and take all necessary steps to secure their trading accounts with two-factor authentication. With the right investment decisions and proper security, traders should have a positive trading experience on the Kraken crypto exchange.