Kraken is a cryptocurrency exchange lesser known than rivals like Coinbase. However, it seems to be a viable alternative for those who are looking for a good crypto exchange. This review will be a complete deep dive into the Kraken fees associated with trading and purchasing on the Kraken crypto exchange.
If you are looking for an alternative to Coinbase or Gemini, Kraken might be a good option considering their unique fee schedule. They offer a web platform and mobile app just like most cryptocurrency exchanges.
They also have unique features that are geared towards more experienced traders. And with most crypto exchanges, the fees get better and better based on your purchasing and trading volume. If you are looking to take trading to the next level with Kraken features, read on to get the full scoop on avoiding fees.
Basic Overview
To set up a basic account, you’ll need to provide information like your name and date of birth. You need to be over 18 years old and live anywhere in the U.S apart from New York or Washington state.
They have 3 different levels of verification:
- Starter – You can deposit, withdrawal and trade crypto but can not withdraw fiat currencies like USD from your account.
- Intermediate – In order to upgrade, you have to provide a valid form of Photo ID, proof of residence and your SSN. Once this is complete, you will be able to deposit fiat currencies and use advanced trading features such as Kraken Futures.
- Pro – If you want to take your crypto trading to the next level with Kraken, the pro account is for you. It offers higher account limits. Additionally, you get access to the anonymous “dark” trading pool and over the counter desk which is designed to facilitate large orders without effecting price on the public exchange.
You’ll need to place a transfer to fund your Kraken account, check out the “purchasing fees” structure below.
Kraken is available online and through their various mobile apps, they offer the Kraken Pro platform and features like Kraken Futures.
Does Kraken have high fees?
Compared to most exchanges, Kraken offers reasonable fees when purchasing and trading crypto.
Every Crypto exchange tries to catch a very wide net and appeal to new traders and seasoned vets alike, Kraken is no different. So, they have a variable trading fee schedule that is heavily based on your 30-day trade volume.
It has a maker-taker fee structure, which is reduced for those with large trading volumes.
Trading Fees
The fee for processing your order will vary depending on the total cost of what you’re ordering. It can range from 0% to .26%.
- Currency pair being traded
- Your 30-day trading volume (in USD)
- If you are a maker or a taker for the order
Maker Fee and Taker Fee orders
| 30- Day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.16% | 0.26% |
| $50,001 – $100,000 | 0.12% | 0.24% |
| $100,001 – $250,000 | 0.12% | 0.22% |
| $250,001 – $500,000 | 0.10% | 0.20% |
| $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% |
If you place a trade order and it gets matched immediately, they are considered a “taker” and will be charged that fee.
If no orders match your trade for awhile in the system (until someone takes them), then it is placed on “the book” until somebody matches their trades with yours to charge each other- Maker fees go to those who made trading pairs when others take them.
Purchasing Fees
| Kraken fees | Card Processing fee | Online banking processing fee |
|---|---|---|
| 0.9% fee for any stablecoins* 1.5% fee for any other crypto or FX pair | 3.75% | 0.5% |
For normal Kraken app users, their is a processing fee for credit card (3.75%) and online bank account (.5%) purchases.
Another Kraken fee that is applied to your purchase is determined by if you are purchasing a stablecoin (.9%) or an altcoin (1.5%).
The card processing fee with Kraken is significantly less than their biggest competitor, Coinbase.
Is Kraken better than Coinbase?
Kraken is a cryptocurrency exchange made best for those who are a little bit more familiar and active with trading. (compared to Coinbase) For those individuals, Kraken offers much lower fees because of the moving fee schedule based on your trading volume over the past 30 days.Kraken offers Kraken Pro which is meant for those who are actively trading. Similarly, Coinbase has Coinbase Pro that offers much better trading rates.
When it comes to purchasing cryptocurrencies with a card, the fees are much lower on Kraken compared to popular competitors.
The modern world is all about flexibility. With both platforms offering mobile apps and 24/7 customer service, there’s no excuse for not being able to check up on your investments any time of day or night! But while they’re each appealing in their own way, the features that are most important depend more on who you are as an investor than anything else.
Kraken provides various features that are suited for worldwide or U.S. investors who can afford giving up convenience for low fees and more services.
Coinbase often charges a .5% fee on trades which is significantly higher than even the highest percentage that Kraken charges (.26%).
When it comes to purchasing fees, Kraken offers a better rate when using a card but Coinbase is cheaper if you are purchasing with a bank account. Check out the table below to see a quick comparison:
| Types of Fee | Kraken | Coinbase |
|---|---|---|
| Trading fees | 0% to 0.26% per trade | 0.50% per trade |
| Credit Card Purchases | 3.75% | 3.99% |
| Online Bank Transfer | 1.7% | 1.49% |
| Wallet Transfer | Free | 1.49% |
| Maximum trade amount | $100,000 | $25,000 |
| Extra Purchase Fees | None | $.99 to $2.99 depending on amount |
Kraken is unique because of the fact that they offer futures trading and staking. Kraken’s margin trading system offers up to five-times leverage, which is on the high side of standard in the industry. Coinbase just integrated this into their platform as well and made it available at three times leverage for a limited time only!
Kraken and Coinbase are often hailed as some of the most popular crypto exchange platforms in the world. Each one gives you a way to buy various currencies with fiat money, like US dollars or Euros, and both are geared for experienced investors and novice ones alike.
Pros
- Easy to use interface and simple design
- Supports 100 different countries
- Cash funds are FDIC insured
Cons
- High fees
- Lackluster customer service options
- Pro version charting features
Coinbase Conclusion
Coinbase can be a good platform for beginners. However, the complex fees and limited amount of altcoins often sends users to popular competitors, like Gemini, who has a much easier fee structure.
High- and low-volume traders enjoy Kraken’s low fee structuress, which are a huge benefit for those just starting out. This is because trading fees can really eat away at one’s account balance if they’re not careful!
Newer investors who are based in the United States tend to like Coinbase’s digital wallet and funding capabilities that makes it easier to manage their funds on the go.
Pros
- Advanced trading features like margins and futures
- More reasonable fees
- Never been hacked.
Cons
- Low rated customer service
- Starter account very limited
- Account funding can take a while
Kraken Conclusion
Kraken is a unique exchange that is best for advanced investors who are trading in higher volumes. The fee structure is much less complex than Coinbase and the Kraken exchange is more secure as well.
Futures Fees
Kraken Futures fee schedule gives volume incentives based on your futures trading activity over the last 30 days. Kraken is one of the only exchanges that offers futures trading and is trusted by advanced crypto traders across the world.
| 30-Day Volume USD | Maker Fees | Taker Fees |
|---|---|---|
| $0 – $100,000 | 0.0200% | 0.0500% |
| $100,001 – $1,000,000 | 0.0150% | 0.0500% |
| $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% |
Margins Fees
Margin fees are applied in addition to any trading fees at the open and close of the positions.
| Base currency | Quote currency | Opening fee | Rollover fee |
|---|---|---|---|
| BTC (Bitcoin) | EUR, USD | 0.01% | 0.01% per 4 hours |
| USDT (Tether) | EUR, USD | 0.01% | 0.01% per 4 hours |
| ETH (Ethereum) | EUR, USD, USDT, BTC | 0.02% | 0.02% per 4 hours |
| LTC (Litecoin) | EUR, USD, BTC | 0.02% | 0.02% per 4 hours |
Kraken is a company that offers margin trading and short sells. With margin trading, you are able to leverage your investment by up to 5x! Kraken also lets pro clients access up $500k in margins which can be risky but extremely profitable if done right.
As with the rest of Kraken’s exchange, it uses currency pairs, so you are always trading one type of currency for another. The associated fees above give a snapshot of what to expect.
Security
As with most financial institutions, investors should be aware of how secure their assets are. Luckily, Kraken has a plethora of security features designed to protect your investments.
Kraken is one of the most popular cryptocurrency exchange with a large variety of coins and tokens. To start trading on Kraken, all you need to do is verify your account by providing personal information like phone number or address as well as documentation that supports it such as license or other ID.
Here are some of the various security features offered by Kraken to help keep your digital assets secure:
- Cold storage- Most exchanges keep the bulk of their stored assets in unhackable physical locations. This is known as cold storage and offers users a peace of mind knowing that their funds can’t be touched. Specifically, Kraken claims about 95% of it’s crypto assets are currently in cold storage.
- 2FA- Kraken uses an exclusive 2 factor authentication app that is unique for them while Coinbase uses less secure third party authenticators like Google authenticator.
- PGP (Pretty good privacy) – PGP allows you to encrypt messaging and communications having to do with your purchases and trades, keeping them secure. Kraken walks you through exactly how to set this up.
Kraken was founded in 2011 and launched in 2013, making it one of the world’s largest exchanges. One thing that sets Kraken apart from other platforms is its focus on safety since day one. Even with constant attacks, not once has any data been breached—Kraken’s security speaks for itself!
Conclusion on Kraken’s Fee Schedule
Kraken is one of the oldest and most well-known crypto exchanges in the world. It has a highly intuitive interface that makes it easy to start trading immediately, with low fees for all kinds of traders! Not only that, but it also offers much more advanced trading features than their competitors like Coinbase.
As with most exchanges, they offer various learning resources that is meant to help educate users about crypto and how trading works.
Personally, I recommend Kraken for those looking to avoid fees and are already involved in active crypto trading. Additionally, Kraken is a perfect option for higher risk investors who can utilize the advanced features that they offer.
Kraken is not the cheapest exchange, but its maker-taker fees are lower than something like Coinbase. Trading fees vary with different crypto exchanges and often depend how much you trade in a 30 day period.
Kraken is recommended for:
- Advanced traders who want more features like margin trading.
- Traders who’s #1 priority is security and you want to store your assets as safely as possible.
Kraken offers unique, easy to use features compared to most cryptocurrency exchanges. Use Kraken if you are in search of a good user interface and also want to take your crypto to the next level.
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