At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About Kraken
Kraken has operated since 2011 and has never been hacked -- a distinction that matters enormously in crypto, where exchange hacks and collapses are disturbingly common. Founded by Jesse Powell, Kraken was built with a security-first mentality: the company conducts regular proof-of-reserves audits (verifiable on-chain), maintains the majority of customer crypto in air-gapped cold storage, and was one of the first exchanges to implement mandatory two-factor authentication. When Mt. Gox collapsed in 2014 (losing 850,000 BTC), Kraken was appointed to assist with the bankruptcy proceedings -- a role that speaks to its standing within the industry. The fee structure is where Kraken separates itself from Coinbase for active traders. Kraken Pro uses a maker-taker model starting at 0.16% maker / 0.26% taker -- roughly half of Coinbase Advanced Trade's 0.40% / 0.60%. At higher volume tiers ($100K+ monthly), Kraken fees drop to 0.00% maker / 0.10% taker. For a trader executing $50,000/month in volume, the annual fee difference between Kraken Pro and Coinbase Advanced Trade is approximately $1,440. The standard Kraken interface (for simple buys) charges 0.90% taker / 0.40% maker for stablecoins, and up to 1.50% for instant buys -- still cheaper than Coinbase's simple trade fees but significantly more than Kraken Pro. Kraken also offers margin trading (up to 5x leverage on select pairs) and futures trading for eligible U.S. customers through Kraken Futures, which operates under a separate regulatory framework. This makes Kraken the most feature-rich crypto exchange for U.S. traders who want to go beyond simple spot buying. The trade-off is complexity: Kraken's interface, while improved, still feels designed for traders rather than casual buyers. The mobile app has gotten better but remains less polished than Coinbase's consumer-focused design.
Key Features
Kraken Pro Trading Interface
Kraken Pro provides real-time order books, advanced charting with TradingView integration, multiple order types (limit, market, stop-loss, take-profit, trailing stop), and customizable layouts. The maker-taker fee model rewards liquidity providers with lower fees. For traders executing over $10,000/month, Kraken Pro is significantly cheaper than Coinbase Advanced Trade.
Proof-of-Reserves Audits
Kraken publishes regular proof-of-reserves reports conducted by third-party auditors, allowing anyone to verify that the exchange holds sufficient assets to cover all customer balances. This is done using Merkle tree cryptographic proofs, meaning you can individually verify your account's inclusion. After FTX's collapse revealed massive shortfalls between customer deposits and actual reserves, proof-of-reserves became a critical trust signal. Kraken was among the first major exchanges to implement this.
Staking (20+ Assets)
Kraken offers staking on 20+ proof-of-stake assets with some of the highest yields among major exchanges. Kraken's staking commission is lower than Coinbase's (Kraken takes roughly 15% versus Coinbase's 25-35%). On-chain staking rewards are distributed biweekly. Note: the SEC forced Kraken to shut down its staking-as-a-service program for U.S. users in February 2023, paying a $30M fine. Staking may be available to U.S. users through restructured programs -- check current availability.
Margin and Futures Trading
Kraken offers up to 5x margin on spot crypto trades and futures trading through Kraken Futures. Margin allows amplified exposure (and amplified losses) without fully funding a position. Futures enable shorting and hedging strategies. These features are subject to eligibility requirements and are not available in all U.S. states. For qualified traders, this makes Kraken the only major U.S. exchange offering leveraged crypto trading to retail users.
How It Works
Create Account and Complete Verification
Sign up with email. Complete Starter verification (name, DOB, country) for limited trading. Complete Intermediate verification (ID, SSN, proof of address) for full trading and fiat deposits/withdrawals. Express verification uses automated ID scanning and typically completes in under 10 minutes.
Fund via Bank Transfer
ACH deposit is free but takes 3-5 business days to clear. Wire transfer ($5 fee) settles same-day. Kraken does not support debit/credit card purchases in the U.S. For immediate trading, consider wire transfer; for recurring deposits, set up ACH.
Switch to Kraken Pro Immediately
Like Coinbase, the standard Kraken interface charges higher fees. Navigate to the Pro trading interface for maker-taker pricing. Use limit orders (maker, 0.16%) instead of market orders (taker, 0.26%) to minimize fees further.
Enable Two-Factor Authentication
Kraken supports hardware security keys (YubiKey), TOTP authenticator apps, and even a master key for account recovery. Set up 2FA on login, trading, and withdrawal separately. For maximum security, use a hardware key for all three. This granular 2FA is more secure than Coinbase's single-layer approach.
Explore Staking and Advanced Features
If holding crypto long-term, explore staking options for passive yield. If experienced with leverage, evaluate margin and futures trading -- but understand that liquidation risk exists and losses can exceed your initial investment.
What They Do
- Crypto Trading (230+ assets)
- Kraken Pro (Maker-Taker)
- Staking
- Margin Trading (up to 5x)
- Futures Trading
- OTC Desk
- NFT Marketplace
- Kraken Wallet (Self-Custody)
Debt Types They Take On
- Individual Account
- Business Account
- Institutional Account
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Fee Savings: Kraken Pro vs. Coinbase Advanced Trade
A crypto trader executing $30,000/month in spot trades compared Kraken Pro (0.16% maker) to Coinbase Advanced Trade (0.40% maker). Both used limit orders exclusively.
Security-Focused Long-Term Holding
An investor holding $200,000 in BTC and ETH chose Kraken for long-term custody based on the exchange's zero-breach track record and proof-of-reserves audits. The investor enabled hardware key 2FA on all account actions and set up withdrawal address whitelisting.
Margin Trading for Portfolio Hedging
A trader holding a long-term BTC position wanted to hedge against a short-term correction without selling (which would trigger capital gains tax). Using Kraken's margin feature, the trader opened a short position on BTC at 2x leverage, sized to offset 50% of the long exposure.
Pros & Cons
Pros
- Zero security breaches since 2011 founding -- the strongest track record of any major crypto exchange
- Kraken Pro fees (0.16% maker / 0.26% taker) are roughly half of Coinbase Advanced Trade, saving hundreds to thousands per year for active traders
- Proof-of-reserves audits provide verifiable assurance that customer assets are fully backed
- Margin and futures trading available for qualified U.S. users -- unique among regulated U.S. exchanges
- Granular 2FA (separate settings for login, trading, and withdrawals) with hardware key support provides bank-grade security
Cons
- Not available in New York or Washington state, which affects a significant portion of U.S. crypto users
- Standard interface fees (0.40-1.50%) are still high -- you must use Kraken Pro to get competitive pricing
- SEC forced shutdown of U.S. staking program in 2023 ($30M fine) -- regulatory risk for future feature availability
- Interface is less beginner-friendly than Coinbase -- the learning curve is steeper for first-time crypto buyers
User Reviews (8)
Good exchange, ugly interface
The Kraken Pro interface works but it's not pretty. Coinbase is way more polished visually. But I'm not paying double the fees for a prettier app.
Proof of reserves matters
After FTX I only use exchanges with proof of reserves. Kraken publishes theirs regularly and you can verify your own balance is included. That's real transparency not just words.
Security is top notch
They've never been hacked. In crypto that's saying something. I feel comfortable keeping a significant amount on Kraken which I can't say about most exchanges.
ok
Fine for buying bitcoin. Nothing special about the experience.
Best fees in the business
Switched from Coinbase to Kraken Pro. Fees are literally half. Same coins same functionality. I don't know why more people don't use Kraken.
Staking got killed by the SEC
Used to stake my ETH on Kraken. Then the SEC shut it down and fined them 30 million. Lost my staking yields overnight. Thanks government. Had to move to Lido for staking and keep Kraken just for trading. Very annoying.
CAN'T EVEN USE IT
Live in New York. Can't use Kraken because of the stupid BitLicense thing. Meanwhile Coinbase works fine. If you're not going to serve the biggest financial city in America what's the point. I hear the platform is great but I wouldn't know because I CAN'T ACCESS IT.
Good for serious traders
If you're a casual buyer use Coinbase. If you trade actively and want lower fees and more advanced tools, use Kraken. Simple as that.
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- All investing involves risk, including loss of principal. Past performance does not guarantee future results. Returns and yields quoted are historical and not indicative of future performance.
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