Our Verdict

Founded in 2011 and headquartered in San Francisco, Kraken is one of the oldest cryptocurrency exchanges. The platform allows users to trade over 250 cryptocurrencies across spot, margin, and futures markets. With separate Lite and Pro platforms, Kraken caters to both beginner and advanced users without compromising on features.

Thanks to Kraken Pro’s advanced desktop trading platform and low fees, I found this exchange suitable for experienced traders, particularly those focused on trading derivatives. Additionally, the platform may be a good fit for algorithmic traders with support for high-frequency trading, strategy backtesting, and API testing environments.

Kraken Pros and Cons

Is Kraken Right for You?

When reviewing exchanges, we cater to all types of traders, from occasional to frequent. Our thorough yet straightforward method ensures a clear understanding of trading strategies and their requirements. By assessing, ranking, and recording key factors, we determine how well the exchange meets the needs of each target group. Here’s our verdict:

Casual Traders: Acceptable Choice

Kraken is good enough for casual traders. It offers two dedicated apps for both beginners and advanced users, a wide variety of cryptocurrencies to trade, and support for multiple fiat currencies. However, during our trading test, we noticed that spot and margin trading fees are rather high. Plus, the lack of P2P, bot, and copy trading options means Kraken is less competitive than some other top exchanges for casual traders.

Hodlers & Position Traders: Acceptable Choice

Kraken is good enough for hodlers, offering an intuitive and user-friendly platform. With options to stake assets and earn passive income, dedicated Lite and Pro apps, and a wide variety of cryptocurrencies, Kraken is a solid choice for those looking to hold and grow their crypto assets.

It’s also a great option for those looking to buy crypto and transfer it to a cold wallet or use Kraken’s self-custody wallet. However, security concerns regarding the coverage of user assets and the lack of insurance might be significant drawbacks for many hodlers.

Bot, Social & Copy Traders: Not Recommended

As Kraken does not support copy, social, or bot trading features, it is not suitable for these types of trading.

DCA Investors: Perfect Match

Kraken is a great option for DCA investors due to its ability to configure recurring fiat-to-crypto orders based on time or price. I found that the convenience of instant crypto purchases using a credit or debit card adds further appeal for dollar-cost averaging (DCA) investors. However, the platform’s limited withdrawal options and higher fees could deter some DCA investors.

Algorithmic Traders: Acceptable Choice

Kraken is good enough for algorithmic traders looking for API access, support for high-frequency trading, and a reasonable liquidity score. It’s especially appealing due to its back-testing environment for strategy testing and a sandbox environment for API functionality. However, the limits of 50 calls per second for futures trading and up to 20 calls per second for spot trading may be a drawback for some.

Day Traders: Perfect Match

Kraken is great for day traders due to its advanced desktop trading platform, designed with traders in mind. It offers a variety of tools and features for a seamless trading experience, with top crypto-ranking websites rating Kraken highly for liquidity.

From my experience, the integration of TradingView charts provides a familiar interface, complete with advanced technical indicators and drawing tools. The platform is well-suited for derivative traders, although I experienced lower liquidity and unpredictable order execution when trading spot markets due to lower trading volume on the exchange.

Leverage & Derivative Traders: Perfect Match

Kraken is a great fit for leverage and derivative traders, as Kraken Pro’s advanced desktop trading platform can also be used to trade derivatives. It offers the same seamless experience and robust features, along with TradingView integration, to aid in technical analysis. Fees for trading futures on Kraken are competitive compared to other exchanges.

While competing exchanges offer higher leverage and a wider selection of markets, Kraken remains a solid option for derivative traders who avoid excessive leverage and focus on major markets. However, it is less suitable for those looking to trade altcoins and smaller markets with high leverage.

Supported Countries and Regions

Kraken accepts users from over 190 countries and 250 different regions, more than many competitors like Binance, Coinbase, and Bybit, which have tighter geographical restrictions.

While Kraken accepts users from the United States, it does not offer services to New York and Washington residents. Additionally, futures trading, on-chain staking, rewards, and trading between fiat currencies are restricted for all US users. Certain assets cannot be traded by US residents.

In Europe, residents of Italy, Spain, and the UK are restricted from trading futures. Funding options and support for third-party payment providers vary by location.

Kraken Bonuses and Special Offers

Kraken does not currently offer sign-up bonuses, welcome offers, or referral programs. Previously, a referral program offered $10 in BTC for both parties upon registration with a referral code, but it has been temporarily suspended.

Content creators and influencers interested in crypto or personal finance can apply to join Kraken’s affiliate program. Approved affiliates earn 20% of the trading fees collected from referred clients. Note that only approved users can join the affiliate program.

Kraken Background

Kraken was founded in 2011 by Jesse Powell, who served as CEO until April 2023, when Dave Ripley took over. The exchange operates in over 190 countries and states that its mission is to accelerate global crypto adoption, aiming for financial freedom and inclusion for all.

Security & Transparency

Proof of Reserves

Kraken performs proof of reserve audits every six months. As of November 2023, Kraken maintained ≥100% reserve ratios across seven different assets, but only 78% of all customer assets were covered. This is positive but falls short compared to competitors like Binance and Bybit, which maintain 100% reserve ratios across a wider range of crypto assets and perform monthly audits.

Account Security

User accounts can be secured with two-factor authentication (2FA) using apps like Google Authenticator or Authy, along with dedicated passkeys supported by the exchange. Biometric authentication is also supported on desktop and mobile platforms, allowing users to unlock their accounts using FaceID or fingerprint scanners.

I personally secured my Kraken account by combining 2FA with Google Authenticator, fingerprint scanning on my computer, and FaceID on my phone. Setting up Google Authenticator was quick and easy, and configuring biometric authentication was even faster. It simply utilizes the biometric scans already stored on your device, requiring only authorization for Kraken to access them. This streamlined process added an extra layer of security to my account with minimal effort.

Third-Party Security Rankings

Kraken has received high ratings from leading third-party cryptocurrency websites, often ranking among the top 10 for safety and security. Despite this, Kraken does not provide insurance on crypto or fiat deposits. However, it’s worth noting that the bank associated with the exchange, Kraken Financial, is licensed and regulated within the United States, adding a layer of credibility and regulatory oversight to Kraken’s financial operations.

General Reliability

Kraken is headquartered in San Francisco and registered as Payward Inc. in the United States. The exchange complies with financial regulatory bodies in all jurisdictions where it operates. Transparency about its corporate structure, regulation, and leadership is available on the Kraken Blog and in the support center.

Kraken’s impeccable safety record evidences its commitment to security and transparency. This is partly due to its bug bounty program, which encourages users to report platform vulnerabilities by offering rewards of up to $1.5 million.

Is Kraken Safe to Trade With?

Our findings show that Kraken is a solid choice for safety and security. It adheres to industry-standard security protocols and is regulated by strict financial authorities, including the US FinCEN, the UK’s FCA, and various central banks across Europe. These registrations ensure compliance with industry requirements to safeguard user assets. Kraken has a long history without hacks, and its proof of reserves is independently audited every six months.

However, there are some drawbacks. Only 78% of customer assets are covered by Kraken reserves, and the lack of insurance coverage for deposits might deter some users. Despite these concerns, Kraken remains a reliable choice for trust and stability due to its robust regulatory compliance and strong security track record.

Trading Experience

Trading Test

Step 1: Setting Up and Funding Your Account

Signing up for Kraken was quick and easy. Click “Sign Up” on the homepage to create an account. Then, pass KYC checks by providing a copy of your ID and proof of residence. In contrast to other exchanges, you can use a wider range of personal documents to register. My account was verified in about an hour, though times may vary.

 

Depositing assets using crypto networks is straightforward on both Kraken and Kraken Pro platforms. You can choose from various assets and specify the network you are willing to use.

During my testing, I transferred LTC from Binance, which charged a 0.0001 LTC fee. Kraken did not charge any transaction or wallet creation fees, but there is a minimum deposit of 0.01 LTC. Deposits via the Litecoin network require 12 confirmations and have an estimated 30-minute processing time. It took me about 45 minutes to confirm when I was depositing crypto.

Step 2: Trading

My experience on the Kraken Pro desktop platform was straightforward. I quickly executed a market order to sell LTC for USDT, which was completed almost instantly and cost just over 0.20 USDT in fees. Opening positions is a breeze. I selected the LTC/USDT trading pair, placed a market order to buy LTC, and configured a tight stop loss. The order was executed immediately, costing just about 0.20 USDT.

During my testing, my stop loss was triggered even though the market price was almost $0.10 away from my stop loss trigger price. This discrepancy could deter most serious traders, as this level of unpredictability is not ideal when trading large position sizes.

Step 3: Withdrawal and Review

I withdrew LTC over the Litecoin network to Binance. Kraken charged a withdrawal fee of 0.002 LTC ($0.17), significantly higher than Binance’s 0.0001 LTC fee, suggesting that Kraken applies additional fees. Despite this, the withdrawal was quick, taking only 15 minutes, likely due to Binance requiring just 3 network confirmations compared to 12 on Kraken.

I also tested the efficiency of fiat withdrawals from Kraken. After exchanging my crypto assets into EUR, I initiated a withdrawal to my bank account via SEPA transfer. SEPA and SEPA Instant transfers have a minimum withdrawal amount of 3 EUR and incur a fee of 0.90 EUR. Remarkably, the funds appeared in my bank account within just 10 minutes of initiating the transfer.

Kraken Desktop Platform

In this review, we tested Kraken Pro. The standard Kraken desktop platform is identical to the mobile version, offering the same functionality and experience. In contrast, the Kraken Pro desktop platform provides a slightly different experience from the mobile platform, with some additional features available exclusively on the desktop.

Kraken Pro’s desktop trading platform is organized and intuitive, even though its layout differs significantly from the competition. In my experience, the platform performed well on Safari, Firefox, and Google Chrome, providing a smooth trading experience without any bugs or glitches.

The desktop interface of Kraken Pro clearly displays price data, order book data, and recent trades. Order forms, open positions, and account balances are also clearly displayed, allowing you to place and manage trades without taking your eyes off the charts. The desktop platform is fully customizable, enabling you to rearrange and resize all modules to suit your preferences.

 

The desktop platform has integrated TradingView charts, which provide traders with all the indicators and drawing tools needed for advanced technical analysis. However, unlike larger exchanges like Binance and Bybit, you cannot connect your Kraken account to the TradingView application to place trades directly within the TradingView app.

Switching between markets is straightforward. Click the trading pair in the top left to open a dropdown menu with all available markets. You can filter markets by price, 24-hour change, volume, and funding rates or search by category.

Order Placing

Placing trades on the Kraken Pro desktop platform is fast and easy, with a high level of order customisation. The order form interface is consistent across spot, margin, and futures trading, with leverage options available for margin and futures trading.

My Key Takeaways After Testing Kraken Desktop Platform

Kraken offers two distinct platforms. They have an intuitive design and provide a pleasant trading experience. Beginners enjoy a simple, user-friendly interface, while experienced traders benefit from the full-featured Kraken Pro.

During my testing, the Kraken Pro desktop platform delivered a seamless trading experience. I used many tools to conduct detailed technical analysis without leaving the platform. Its customizability allowed me to arrange the various modules in a format that suited my preferences. The platform compares well to its competitors and can more than support advanced traders.

Mobile App

Kraken and Kraken Pro offer mobile versions for traders who want to buy or trade crypto on the go. Both apps are available for iOS and Android devices. I had a positive and smooth experience using both apps.

Kraken App

Like the desktop version, the basic Kraken app allows users to buy and sell crypto with cash, deposit and withdraw cash or crypto, and exchange between assets. The platform offers a simplified interface perfect for beginners new to cryptocurrency investing.

Buying and selling crypto for cash, depositing and withdrawing crypto, and exchanging between assets are quick and easy. The user experience feels like a regular banking app, with familiar features that help new users. The user interface is responsive and intuitive.

Kraken Pro

Kraken Pro is designed for experienced traders, allowing them to continue trading away from their desktops. It offers a variety of additional features, such as margin and futures trading. The Kraken Pro mobile interface resembles the Pro desktop interface, providing a seamless trading experience.

 

Placing new orders and managing existing positions is straightforward. Any open positions and balances are clearly displayed within the app, while new positions can be opened using the order form, which closely mirrors the desktop version.

The mobile app gives access to the same conditional orders as on the desktop. The only missing feature is the lack of TradingView charts, which means you don’t have access to the same indicators and drawing tools.

Price Alerts

Price alerts can be easily configured to deliver push notifications when the price of a token reaches a certain level. This feature is only available to Kraken Pro users, meaning beginner users won’t be able to take advantage of it. One drawback is that, unlike some competing exchanges, you cannot configure the frequency of alerts.

Portfolio Clarity

Kraken’s portfolio overview screen varies depending on whether you use Kraken or Kraken Pro. The basic version shows your overall balance and percentage allocation of your assets. The Pro version is slightly more complex, as your assets are separated between spot, margin, futures, and earn accounts. Kraken has designed its portfolio overview page to be drastically different from the competition while still effectively displaying account balances and visualizing changes in account value over time.

My Key Takeaways After Testing Kraken on Mobile

Just like its desktop platform, Kraken separates beginner and experienced traders with its Basic and Pro applications, creating a uniquely tailored experience for each. Beginners enjoy an easy-to-use, intuitive interface on Kraken without being overwhelmed by advanced trading features. Meanwhile, advanced users on Kraken Pro have access to a variety of advanced trading options and order form configurations to suit different trading styles.

In my experience, both apps work flawlessly and serve their purposes without any issues. I found it easy to purchase crypto using fiat currency on the Kraken app. At the same time, Kraken Pro allowed me to manage existing trades effectively and place conditional orders for new trades. I found Kraken to be able to replace the Kraken desktop platform, while Kraken Pro served more as a companion to its desktop version.

Fees

The basic Kraken platform fees for buy/sell orders and converting between assets include a displayed fee and, where applicable, a spread incorporated into the price. This means that fees can vary due to the spread, even for similar orders. If your order amount falls below the minimum order size, Kraken charges a flat 3% fee for the conversion. The minimum order size varies depending on the asset being traded. You can find a list of the minimum order sizes for each asset here.

Kraken Pro Spot Maker/Taker Fees

In our review of spot fees, we examine spot fees across three distinct tiers. Our focus is on the fees for different trading volumes. We spotlight the basics and the possible savings through native tokens and other discount schemes. We developed this method to ensure a clear look at the fee structures and savings avenues for traders of all experiences. Additionally, we compare these fees to industry standards to show how each exchange ranks in terms of affordability.

Deposit Fees

Kraken supports a variety of cash deposit options, with most being free of charge. Minimum deposit amounts are generally equivalent to $1, though this may vary depending on the deposit option and provider. Cash deposits can take anywhere from 0 to 5 days to be credited to your account, depending on the payment method.

Withdrawal Fees

Using flat fees instead of variable fees means you are not penalized for making large transactions. This incentivizes making singular large withdrawals rather than frequent small ones. Kraken’s fiat withdrawal fees are competitive with the rest of the market and support more major currencies than its competitors.

I found Kraken’s crypto withdrawal fees comparable to the market; however, the number of supported networks for withdrawal is slightly lower than competitors’.

Leverage and Futures Trading Fees

Margin Fees

The fee structure for margin trading follows the same maker/taker fees as spot trades for opening and closing positions. Additionally, there is a 0.2% fee for opening a margin position and a 0.2% rollover fee applied every 4 hours. There is no additional fee for settling a margin position outside the standard trading fee.

I found margin trading on Kraken ideal for intermediate traders looking to progress from spot trading but not yet ready for futures trading.

Kraken’s margin trading fees are significantly higher than those of market leaders Binance and Bybit, who charge only 0.1% to their lowest-tiered users. Unlike Kraken, neither Binance nor Bybit charges additional opening and closing fees. Kraken also handles margin interest payments differently, resulting in slightly higher interest rates compared to other exchanges. Due to these higher fees, it’s hard to recommend Kraken for margin traders.

Futures Fees

Experienced traders looking to trade futures will find Kraken’s fee structure differs slightly from spot and margin trading fees. It is still based on a maker/taker model but with different percentages due to larger position sizes possible with higher leverage.

While futures trading fees may seem lower, they apply to larger positions due to leverage. This is important when deciding position sizes. A full breakdown of fees is available in Kraken’s support center.

I found Kraken’s base futures trading fees to be among the lowest compared to Binance, Bybit, and OKX. Trading a $100 worth of margin at 10x leverage cost me just $2 when using limit orders to take advantage of lower maker fees. I also found Kraken’s funding fees to be noticeably lower than those of its competitors, with fees being 3-5x cheaper than Binance and Bybit.

Kraken Futures Trading Fee Structure

Fee Discounts

Kraken does not currently offer any discounts on trading fees outside of the discounts based on 30-day trading volume. This is different from exchanges like Binance and Kucoin, which offer up to 25% discounts when using their native tokens to pay fees.

Kraken periodically offers Kraken fee credits (KFEE), which can be used to pay for trading fees, with 1000 KFEE equivalent to $10. KFEE can be used for all types of trading fees, including spot, margin, and futures. However, I did not receive any discounts during my testing of the exchange.

Are Kraken Fees Competitive?

In summary, the fees for spot and margin trading, as well as buying crypto with cash on Kraken, are higher than on competing exchanges. In my experience, purchasing crypto using fiat currency via card and Apple/Google Pay on Kraken cost up to 5% more than competing exchanges.

On the other hand, Kraken Pro offers competitive conditions for futures trading, with low trading and funding fees.

In my experience trading on Kraken, I minimized trading fees by using limit orders to benefit from lower maker fees. I optimized position sizes and avoided excessive leverage to reduce interest and funding fees. By using larger position sizes, I maximized my monthly trading volume and unlocked lower fee rates.

Cryptocurrencies Available on Kraken

Despite its wide variety of cryptocurrency offerings, Kraken does not offer as many options as some other leading exchanges. Binance and Bybit offer over 400 and 600 cryptocurrencies respectively, appealing to traders seeking a wider range. Kraken’s futures market is also limited, with only 160 markets compared to nearly 350 on Binance and Bybit.

Trading restrictions also vary by region. US residents cannot trade 45 cryptocurrencies, and Europeans are restricted from trading up to 5 cryptocurrencies. For detailed regional limits and to understand how these limitations might affect your trading experience, visit Kraken’s support center.

Deposits & Withdrawals

While Kraken supports various currencies and payment methods, it falls short compared to its competitors. The absence of P2P trading and e-wallet options means most users must rely on bank transfers, which can take up to 5 business days, depending on the region. Although credit/debit cards can be used to purchase crypto directly, they cannot be used to deposit fiat currency.

Kraken Deposit Options

Kraken supports various fiat currencies and deposit options; however, most of these deposit methods are simply different types of bank transfers. Unlike other major exchanges, Kraken lacks support for P2P trading, third-party payment providers, and E-Wallets, except for PayPal for GBP and EUR deposits. This means most clients must wait for bank transfers, which can take up to 5 business days.

Minimum deposit options vary depending on the payment method and fiat currency. Generally, minimum deposit amounts using ACH and SEPA are 1 USD/EUR. Wire transfers may have higher minimum deposits, ranging from 150 USD/GBP/EUR to 150-1000 CAD, depending on the region and currency.

My experience depositing fiat currency to Kraken was positive. I was able to make a SEPA Instant deposit with EUR that was credited to my account in less than 15 minutes. The deposit process is easy, with Kraken providing all the relevant information that could be easily copied and pasted into my banking app. If you’re not in a rush to trade, I’d suggest going for the option that comes with the lowest fees and minimum deposit amount.

Some FinTech banks like Revolut and Wise, and certain traditional banks, may not support deposits to Kraken. Deposit options and funding providers vary by region, so you may not always have access to the fastest option for your currency. Always check Kraken’s support center for accurate, region-specific deposit information.

Kraken Withdrawal Methods

The fiat withdrawal process with Kraken is straightforward but limited to bank transfers, unlike deposits that support cash and PayPal. Competing exchanges like Binance and Bybit offer free and instant withdrawals via third-party providers like ZEN, but Kraken users can only use bank transfers.

Minimum withdrawal amounts for ACH and SEPA range from 1 to 3 USD/EUR, while SWIFT transfers have higher minimums, from 150 USD/GBP/EUR to 150-1000 CAD.

My experience withdrawing fiat from Kraken was overwhelmingly positive. After converting my crypto to EUR, my SEPA Instant withdrawal took less than 10 minutes. Transaction and processing fees will vary by method and region. Similar to deposits, I recommend choosing the withdrawal method with the lowest fees and minimum withdrawal amount.

Always check Krakens support center for accurate, region-specific deposit information.

Kraken Daily Withdrawal Limits

Daily withdrawal limits on Kraken will depend on your level of verification. Intermediate-level verification allows up to $500,000 via crypto networks and $100,000 via bank transfer. Higher limits of up to $10,000,000 daily are available with further KYC verification for both crypto and bank transfers.

While Pro-level verification offers high daily withdrawal limits, Kraken’s standard withdrawal limit is significantly lower than many competitors, who offer base limits of $1,000,000 for KYC users. Additionally, intermediate users on Kraken are limited to $500,000 in fiat withdrawals each month, which is lower than the limits offered by competitors.

Customer Service

In addition to live chat and email support, Kraken’s support center features a comprehensive FAQ section covering registration, funding, withdrawal, and platform navigation. Kraken affiliates, high-volume traders, and VIPs receive dedicated account managers for support, a standard practice in the industry. However, Kraken lacks guides, educational resources, or forums for users interested in learning more about crypto.

Overall, Kraken’s support options are comparable to most competitors.

Kraken Customer Service Test

During my experience testing Kraken’s customer support, the results were mixed. I connected to a support agent via live chat within 2-3 minutes, while email responses took 20-30 minutes. The live chat worked well on both desktop and mobile, and the push notifications from the mobile app made it more convenient as I didn’t have to stay on the chat waiting for a reply.

While support agents answered general queries, they struggled with specific questions. For instance, when I inquired about the exchange’s uptime, I received links to support pages that did not directly answer my query. Agents were also reluctant to clarify when the exchange lacked a feature I was questioning, such as the ability to withdraw funds to a credit/debit card.

Although the speed of support provided by Kraken was positive, the lack of clarity on some questions was confusing.