Kraken Review: Comparing The Fees & Trading Experience

Kraken is a popular cryptocurrency exchange that allows users to buy, sell, and swap cryptocurrencies. The site includes a slick user interface, a comprehensive list of supported digital currencies, and a professional trading platform. However, in recent times, it has introduced several complementary features to broaden its appeal to a wider audience. 

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Quick Verdict

Kraken is a favorite exchange that is straightforward to use but has enough trading features and markets to suit a wide range of traders and investors. The Kraken platform doesn’t appear to excel in one area. The Kraken Pro interface is more streamlined than the complexities offered by other global exchanges, seemingly to make it appealing to a wider audience. The exchange is reliable, trustworthy, and has an immaculate security track record. 

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Pros:

• A straightforward user interface and features.
• Well-designed mobile app.
• Futures fees that start at 0.02% (maker) and 0.05% (taker).
• Users can earn interest on 24 crypto.

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Cons:

• Crypto purchases with fiat carry fees.
• Only up to 5x margin.

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Get started and open a Kraken account today.

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Our Experts Review on Kraken

Up to 5x margin on spot trades

Kraken offers margin trading up to 5x for spot trades. More than 170 trading pairs are available for margin trading, and most jurisdictions enable access to this service, with several orders available to provide traders with control. Residents of the United States, on the other hand, must meet severe eligibility standards for margin trading, which include having at least $10 million in investable assets (excluding their primary residence).

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Kraken futures

Kraken Futures is a derivatives trading platform that offers conventional and perpetual futures on dozens of cryptocurrencies. Users can trade with up to 50x leverage. Standard futures contracts are paid quarterly, whereas perpetual contracts never expire.

Kraken Futures can be traded as single or multi-collateral contracts, and the trading interface is similar to Kraken Pro, with extensive charting and trading tools. Kraken Futures also provides a demo trading account for cryptos, allowing consumers to practice trading with fictitious funds rather than their own. The Futures platform is quite straightforward, but it will enable traders to short cryptocurrencies on Kraken for low fees and up to 50x leverage.

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NFT trading

A relatively new feature is Kraken’s NFT marketplace, where digital artworks and collectibles can be traded with zero gas fees. Buyers must pay for their NFTs using the listed crypto asset, usually ETH. Although gas fees won’t apply, a 2% fee will be incurred for all NFT transactions. NFTs that are purchased will be instantly transferred to the Kraken web3 wallet. 

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Supported Deposit Methods

Kraken accounts can be funded using a variety of payment methods. Customers can use bank transfers, SEPA payments, wire transfers, SWIFT, or even deposit funds with a debit card to instantly buy cryptocurrency.

Get started and open a Kraken account today.

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Supported Cryptos 

At the time of writing, Kraken offers 278 cryptocurrency assets to purchase and trade, including Bitcoin, Ethereum, Tether, Solana, and Litecoin. Popular DeFi tokens include Compound (COMP), Aave (AAVE), and Uniswap (UNI).

According to CoinMarketCap, Kraken provides excellent liquidity on most major cryptocurrencies that are only second to Binance and Bybit which we’ve also reviewed. Having said that, the selection of crypto on Kraken is fewer compared to other platforms. 

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Kraken Fees 

Instant Buy & Sell Fees

With instant buy transactions, a spread cost is added, which is not fixed and can vary depending on market conditions. This will be in addition to a transaction fee, depending on the asset being purchased or sold. 

Generally, the fee for standard fiat purchases is 0.9% for stablecoins and 1.5% for all other cryptocurrencies.  

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Spot market fees

Trading fees on Kraken Pro follow a tiered structure. Maker and taker orders start at 0.25% and 0.40%, respectively, and can be reduced with an increasing 30-day trading volume. These fees are comparable to Coinbase (0.4% and 0.6%) but more expensive than Binance (0.1%). 

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Margin and futures fees

Fees for margin trading depend on the crypto asset. Almost all of Kraken’s opening fees start at 0.02%, with a rollover fee of 0.2% every 4 hours. Some differences may occur where the rolling fee slightly differs. 

Traders who like leverage should use Kraken's Futures platform. A maker-and-taker mechanism with volume-based incentives is implemented, much like spot trading costs. Futures fees start at 0.02% and 0.05% for maker and taker orders, respectively, can be reduced depending on the users trading volume.

Get started and open a Kraken account today.

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Using Kraken

Buying crypto

Kraken Pro aside, the crypto exchange has focused on simplicity and a no-fuss user experience. The Buy Crypto feature swiftly allows users to instantly exchange fiat to their preferred crypto asset. Although similar to those offered by other global exchanges, there are fewer distractions to make the experience as straightforward as possible. 

Purchased crypto will be stored in Kraken’s on-chain wallets, where customers can opt for long-term storage, use it to accrue interest payments, or buy NFTs.

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Kraken Pro trading interface

With a clean and modern UI, the Kraken Pro interface challenges the complexities of other trading interfaces like Bybit and OKX. Despite this, the Pro version is still stocked with all the necessary TradingView charting and analytical tools that a trader could ever want, with hundreds of overlays and indicators to choose from. 

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With spot and margin trading available, hundreds of crypto-to-crypto and crypto-to-fiat trading pairs can access up to 5x leverage. 

To complement the trading interface, Kraken has introduced another tab, Analytics, where several charts depicting real-time prices, trading volumes, volatility, order book imbalances, and slippage can be viewed for each trading pair. This could be useful for traders who need a holistic view of the markets.

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Final Verdict

‍Kraken is a user-friendly cryptocurrency exchange with advanced features for experienced traders. It offers various cryptocurrencies, competitive fees, and reliable security. However, some users may find fees for purchasing crypto with fiat and limited margin trading options disadvantaged. Overall, Kraken's simplicity and functionality, especially with the Kraken Pro interface, make it suitable for both novice and seasoned traders.

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We aim to publish information that is factual and accurate as of the date of publication. For specific information about a cryptocurrency exchange or trading platform please visit that provider’s website. This information is general in nature and is for education purposes only. We do not provide financial advice nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own inquiries.

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