Kraken Review 2024: Is it Really the BEST Exchange? (2024)

Industry

Kraken isone ofthe oldest and most popular Bitcoin and cryptocurrency exchanges. Where does itrank inJuly 2024? Let’s take acloser look!

Inthis definitive guide, weanalyze customer ratings, Kraken’s security, interface, and customer service tosee ifit’s truly the best exchange in2024.

Kraken isacryptocurrency exchange where millions have chosen tobuy and trade crypto.

Some details onthe platform:

• Ithas 10M+ clients, 190+ countries supported, and $207B+ inquarterly trading volume (according toits site).

• Kraken’s TrustPilot Rating is1.4 out of5 stars based on2,289reviews.

• Kraken was founded in2011 by Jesse Powell and ThanhLuu.

• Kraken isaprivately heldcompany.

• The current CEO ofKraken isDavid Ripley, who replaced co-founder Jesse Powell in2022.

• 2024 legal battles: The SEC filed alawsuit against Kraken and argued the platform operates asanunregistered securitiesexchange.

Brief overview ofKraken Exchange

Current revenue

​​In 2024, Kraken isexpected tohave revenue ofbetween $1 billion and $2 billion. (The wide range ofthat estimate isdue tothe volatility ofthe crypto market). The bullish case assumes a7% share ofcrypto-trading worldwide and continued synergies between its exchange and bankoperations.

Current fees

Kraken fees depend onhow you use theplatform. Using the instant buy/convert feature onthe beginner platform cost more than itdoes totrade onits Pro platform. Kraken’s fee schedule ispostedhere.

Kraken competitors

• Swan

• Binance

• Coinbase

• UPHOLD

• Kucoin

• CEX.IO

Pros ofKraken Exchange

• Relatively low fees

• Large range ofcryptocurrencies

• High liquidity/trading volume

• Advanced trading options and tools

• Relatively low Bitcoin (BTC) withdrawal fees

• Strong security measures

• Educational material

Cons ofKraken Exchange

• Payment options are limited

• UIiscomplex, especially for newbies

• Reports ofslow customer support

• Unavailable inmany countries and some states

• Lacking mobile app

• Only accepts afew fiat currencies

• Issues with the SEC

Reputation ofKraken Exchange

Why customers like Kraken

Kraken Pro users reasonable fees and can access awide range ofcrypto tradingmarkets. Additionally, fees decline astrading volumes increase.

Kraken benefits

• Offers awide range ofcryptocurrencies— over 230 different cryptocurrencies and more than 130 crypto trading pairs

• Kraken Pro (the platform’s advanced service) offers relatively low fees, especially for high-volume traders

• Secure platform: Kraken emphasizes security (e.g. two-factor authentication (2FA) and cold storage for funds)

• Many customers report successful interactions with customer support

• Offers staking and margin trading for people based outside America

Why customers dislike Kraken

OnKraken’s beginner platform, Instant Buy charges hefty fees compared toother exchanges (i.e., a0.9% flat fee for stablecoins and a1.5% flat fee for other cryptos). Also, margin trading isrestricted tousers with large accountbalances.

Complaints about Kraken

• Entry-level fees can behigh

• There are limitations todepositing funds for American customers

• Some customers complain about slow response times and accounts that were frozen unfairly

• Customer service issues are mentioned frequently

  See Also

  A Thorough Guide to Kraken Futures TradingKraken Cryptocurrency Scandal: The Unveiling of Exploitation and Extortion

Kraken exchange review

User interface and design

Kraken claims that its “Easy onboarding process and sleek user interface let you manage your financial freedom with ease.”

Not everyone agrees though. OnReddit, acustomer wrote,

• “Ithink that the new UIissobad that itgoes way beyond asimple preference for thefamiliar… Ifeel like I’m flying blind with the new UI.”

Another customer there concurs, writing,

• “Thank you for bringing upthispoint. Ihave been doing trading onKraken for years now, & asmuch asIlove Kraken, Iabsolutely loathe (hate) this new prointerface. Itisabsolutely horrendous inevery possible way…They have sacrificed functionality for pretty colors & gradients.”

Trading fees and limits

Kraken’s fees are similar toorlower than those ofother popularexchanges. For example, the maker-taker fees onits Pro platform are higher than those ofsome other platforms yet lower than those ofCoinbase. “Middle ofthe road” isagood description.

How dotrading fees work atKraken? The platform’s site explains itall.

Kraken charges afee when anorder isexecuted (matched with another client’s order). The fee ranges from 0% to0.40% ofthe total cost (value) ofthe order and depends onthe following:

• Customer’s 30-day trading volume (inUSD)

• The currency pair that isbeing traded

• Whether the order ismaker ortaker

• Orders that are cancelled before being executed (also known as“untouched” orders) donot incur anyfees.

You can take alook atKraken’s fee schedulehere.

Available cryptocurrencies

Kraken currently offers 245 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), EOS (EOS), Solana (SOL), and non-fungible tokens (NFTs). Here isacompletelist.

Italso allows cryptocurrency derivatives and futures and deals with seven fiat currencies, which issimilar toother comparable cryptocurrencyexchanges. The platform also has high liquidity, which itsays makes iteasier tobuy and sell atafairprice.

Security measures

Kraken bills itself asleading the industry insecurity (both physical and financial) and itdefinitely encourages users todevelop healthy securityhabits.

Some ofthe security measures the platform uses toprotect customers:

• 2FA tokeep accounts secure

• NoPhone/SMS account recovery

• Configurable account timeout

• Global settings time lock

• Sensitive account information isencrypted

• User funds stored inoffline “cold” wallets isolated from online systems and hackers

Security flaws

However, inJune of2024, anunnamed security researcher exploited an“extremely critical” zero-day flaw inKraken’s platform tosteal $3 million indigital assets.

After, Kraken’s Chief Security Officer, Nick Percoco, wrote onX,

• “The ‘security researcher’ disclosed this bug totwo other individuals who they work with who fraudulently generated much largersums. They ultimately withdrew nearly $3 million from their Krakenaccounts… They demanded acall with their business development team (i.e. their sales reps) and have not agreed toreturn any funds until weprovide aspeculated $ amount that this bug could have caused ifthey had not disclosedit. This isnot white-hat hacking; itisextortion!”

Given this activity, one might reasonably wonder what other potential flaws may exist within the platform.

Customer support

Kraken has both live support and aphone number customers cancall. Already, that’s astep better than manyexchanges.

Kraken even touts its customer service:

• “Kraken’s support team isthe best intheindustry. Issues that take weeks tosolve onother exchanges are usually solved within 24 hours byyour support team.”

However, Trustpilot isfilled with negative reviews ofKraken’ssupport. There, customer Kevin Soell writes,

• “Ihave aproblem with adeposit, opened aticket and after aninitial response, the team hasn’t given meany update since 2months. I’m still waiting for mymoney.”

Here are some other negative comments posted there:

• “It’s nearly impossible toreach support.”

• “Iwish Icould leave azero stars for support!”

• “Their support desk iscompletely unresponsive.”

• “Contacted support several times got noreply.”

• “Terribleservice. Myticket has been pending for months and there isnoother follow upthan some standard templates.”

Kraken users should beware ofthis outpouring ofnegativity when itcomes tocustomersupport.

Pros ofKraken exchange

Fees

Explore Kraken Fee Schedule

Deposits

Ifyou’re inAmerica, you can deposit money (using aPlaid bank transfer) for free atKraken.Fees for other ways ofdepositing fiat money vary depending onthe paymentmethod.

For example, one customer reported buying $50 worth ofETH via debit card and paying afee of$2.84 (about 5% ofthe transaction) plus aspread ofalmost 1%.

Purchases must beatleast $10, and there isalimit tohow much you can buy inany oneweek.

Withdrawals

Kraken’s withdrawal fees depend onthe cryptocurrency and blockchain networkinvolved. Withdrawals toU.S. bank accounts are free viaACH. These can take uptotwo business days toprocess. Crypto bought inUSD using acredit ordebit card may lead toahold ofupto72 hours onwithdrawals.

Spot Trading (Kraken Pro)

• Maker Fees (when adding liquidity): Ranges from 0.25% to0%.

• Taker Fees (when removing liquidity): Ranges from 0.4% to0.1%.

Futures Trading

• Maker Fees: Varies from 0.02% to0%.

• Taker Fees: Ranges from 0.05% to0.01%.

Margin

All margin fees are applied inaddition totrading fees atthe opening and closing ofmarginpositions. Eligible clients are able tomaintain open spot positions onmargin for anunlimited duration, aslong asmargin requirements aremet.

See leverage available for allpairs.

See margin allowancelimits.

See margin trading fees

Other Considerations

• Fees depend onthe 30-day tradingvolume.

• The currency pair being traded affectsfees.

• Cancelled orders donot incurfees.

These fees are current asofpublication (June 2024) but may change based onmarket conditions and otherfactors. Always check Kraken’s official website for the latest information.

Cons ofKraken exchange

Common issues atKraken

Downtime: Kraken maintenance periods mean services can sometimes betemporarily unavailable.
Funding Delays: Some customers say deposits can wind updelayed
Sign-in difficulties: Some customers report problems loggingin.
Browser Issues: Customers report issues with different web browsers (e.g., Page Not Found errors orblank pages).

Issues with the SEC

Kraken and several other crypto exchanges have been targets oftheSEC. The SEC accused Kraken ofselling unregistered securities, among otherissues. Kraken denies the charges and has filed amotion todismissthem. More onthisahead.

Geographic limitations

New York and Washington State residents are ineligible tocreate anaccount and start trading onKraken. There are also restrictions onhow Americans can use it(e.g., they can’t earn rewards via staking ortrade futures onthe exchange). Margin trading isalso restricted toinstitutional investors and people with ahigh networth.

Customer service

Kraken offers 24/7 customer service, phone support, and ahelp center. However, itscores only 1.4 out of5 atTrustpilot (ahome for customer reviews). Reviewers complain about lackluster support and delays infunds hitting theiraccounts.

Also, due toincreased demand, account verification may bedelayed. Please avoid submitting multiple requests, and for best results, review ourdocument requirementsbeforehand.

2024 legal battles

The SEC says Kraken unlawfully facilitated the trading ofcrypto asset securities, leading tonine-figureprofits.

SEC Lawsuit

The U.S. Securities and Exchange Commission (SEC) filed a90-page lawsuit against Kraken, accusing itofmultiple securities lawviolations.

The lawsuit contends Kraken unlawfully did the following:

• Unlawfully facilitated the trading ofcrypto assetsecurities.

• Commingled customer funds with corporate assets, exposing customers toa“significant risk ofloss.”

• Operated asanunregistered securities exchange, broker, dealer, and clearing agency since 2018.

It’s worth noting Kraken ismounting avigorous defense against the SEC’s claims.

Impact ofSEC lawsuit

How will the SEC’s actions affectKraken?

• Kraken exchange may need toadjust operations, obtain new licenses, and enhance customer protections.

• Kraken’s reputation may take ahit ifcustomers think it’s operating within legalboundaries.

• Kraken might need tospend more oncompliance and security, which could impact profitability.

Kraken exchange in2024

Potential for growth and expansion

Funding

Kraken is reportedly seeking more than $100 million inafunding round before launching apossible initial public offering (IPO). Kraken has said:

• “Weare always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption ofcrypto.”

Acquisition

Inother growth news, Kraken acquired TradeStation Crypto, the digital assets unit ofTradeStation Group, inApril of2024, saying itwants toexpand its regulatory licensing inAmerica:

• “The transaction ispart ofour efforts toaccelerate our U.S. presence and will unlock further growth and new product opportunities for Kraken inthe U.S., ” aKraken spokesperson said.

Kraken International

InFebruary of2024, Kraken also introduced Kraken International. Itaims tobeaone-stop shop for Kraken products for institutions, asset managers, hedge funds, and high net-worth individuals.

• “We’ve been the leading crypto exchange for more than adecade and through Kraken International, we’ll offer the same deep expertise and cutting-edge technology topropel trading excellence for institutions, ” said Kraken CEO DavidRipley.

Impact offuture regulations onKraken

How will regulators impact Kraken movingforward? The platform isunder the microscope, and wewill need tomonitor the situationclosely.

Marcus Hughes, Kraken’s global head ofregulatory strategy, said,

• “From aKraken standpoint, weare focused oneducating regulators and legislators intheir efforts tobuild out their regulatory frameworks along with others onaglobalstage. Aligning these regimes effectively ensures that crypto investors and institutional adopters have clear and consistent rules ofengagement, regardless ofwhere inthe world they are based.”

Sofar, that approach has achieved mixedresults. The SEC charged Kraken with violating securities laws bynot registering for its staking-as-a-serviceprogram. Kraken settled the charges bypaying a$30 million fine and discontinuing its staking service inAmerica.

Another lawsuit filed bythe SEC inNovember 2023 alleged Kraken was operating anunregistered securities tradingplatform. Kraken’s lawyers are urging the court todismiss theclaims. The exchange claims the allegations are unfounded and could have anegative impact onU.S. financial regulatorystructure. However, the SEC claims its enforcement action falls within its Congressionalmandate.

Predictions for the cryptocurrency market in2024

Thus far in2024, the crypto market has continued pushing higher.

According toFidelity, the 2024 Bitcoin halving, the possibility ofaspot Ethereum ETP, and the impact ofEthereum’s Dencun Upgrade could all help crypto prices continue torise moving forward.

Many experts are forecasting atight supply environment for Bitcoin in2024too.

• “The increasing percentage ofilliquid coins (over 70% haven’t moved from acrypto wallet inmore than ayear according tocoinmetrics.io, the highest percentage ever), the continuation ofcoins being withdrawn from exchanges, and finally, the 2024 Bitcoin halving, ” according toFidelity’s Chris Kuiper. “On-chain metrics (data that can beseen byreading blockchain records) suggest the bull market isnot showing signs ofexhaustion yet.”

Many experts are also forecasting atight supply environment for Bitcoin in2024.

• “The increasing percentage ofilliquid coins (over 70% haven’t moved from acrypto wallet inmore than ayear according tocoinmetrics.io, the highest percentage ever), the continuation ofcoins being withdrawn from exchanges, and finally, the 2024 Bitcoin halving,” according toFidelity’s ChrisKuiper. “On-chain metrics (data that can beseen byreading blockchain records) suggest the bull market isnot showing signs ofexhaustion yet.”

Ofcourse, there’s always the possibility ofsignificant drawdowns, too. Investors should always consider the potential downside, too.

New features and improvements onKraken Exchange

The best place totrack improvements toKraken isonthe site’s new features page. Some ofthe most recent headlines there:

• Introducing right-click trading: Place limit and stop orders directly from price charts

• Create custom layouts onKraken Pro

• Announcing trailing stop orders onKraken Pro

• ETH deposits and withdrawals are now available onzkSyncEra!

• Now live: Price Alerts onKraken Pro

• Announcing Iceberg Orders onKraken Pro

Competition inthe cryptocurrency exchange industry

Ifyou’re aBitcoin purist, Swan (which sponsored this piece) lets you start buying Bitcoin inminutes with nofees onyour first $10,000, provides expert service, and offers world-class Bitcoineducation.

Here are other top Kraken competitors, according toCBInsights:

• Bitstamp

• Circle

• Binance.US

• HTX

• CoinDCX

• FTX

• BitPay

• Crypto.com

• ErisX

• Bitpanda

Conclusion

Summary ofkey points

Fans ofKraken enjoy the exchange’s reasonable fees, awide range ofcryptocurrencies, and security features.

Onthe negative side: Others complain ofhigh entry-levelfees. The exchange has also received complaints about poor customerservice. The SEC has targeted itinlawsuits and may continue todoso. The potential impact oncustomers isunclear.

Given the poor overall rating and extremely negative reviews ofKraken atTrustpilot, potential customers would bewise toproceed with caution.

Final thoughts

Ifyou are seeking avariety ofcryptocurrencies, Kraken may beasuitable exchangeoption. Its fees and security offerings seem inline with those ofmany ofits competitors.

However, Kraken’s TrustPilot Rating ofjust 1.4 out of5 stars isalarming. And the SEC’s platform targeting could create additional issues for Kraken inthe future.

Also, inour (admittedly biased) opinion, Bitcoin isthe best way togowhen itcomes tocrypto, and Swan isthe best way tostart buyingit. You can use Swan tostart buying Bitcoin inminutes with nofees. Plus, given the friendly customer support and educational materials there, it’s agreat place toonboard your friends and family, too.