Kraken Review 2024: How Good Is This Security-Centric Crypto Broker?

Given the privacy concerns we all have in 2023, it’s probably that you’re seeking a crypto broker that focuses more on fund and data security without compromising the innovative crypto-specific traits. Luckily, Kraken, a San Francisco-based crypto broker-turned-exchange, could be your answer.

Kraken has everything from top-of-the-line security to intuitive trading features like crypto futures, margin trading, and more.

But is it the right crypto broker for you? Read on to see how it stacks up!

We’ll review Kraken across several parameters, including its features, fees, quality of customer support, and more.

Kraken, launched in 2011, was one of the first exchanges for trading Bitcoin. It started in the U.S. and eventually continued expanding its services to over 190 countries.

Kraken review: Pros and Cons

First, let’s take a brief look at some pros and cons of using Kraken:

Pros

• A wide range of trading options, including futures, spot trading, and more.
• Cost-effective NFT marketplace
• Customizable interface and advanced charting tools
• Regulatory compliance
• Top-of-the-line security standards
• Offers crypto-specific passive earning options

Cons

• Certain geographical restrictions
• Mixed customer support reviews

Kraken is the first crypto broker-turned-exchange to have secured the SPDI charter. This feature reduces Kraken’s dependency on external banks for handling and processing payments.

Kraken’s background

Based out of California, Kraken is the brainchild of Thanh Luu and Jesse Powell. According to the latest insights, Kraken has over 10 million clients and a spread beyond 190 countries. At press time, Kraken is ranked 3rd according to Coinmarketcap’s trust score, only after Binance and Coinbase.

Kraken happens to be one of the first exchanges to find a place on the Bloomberg Terminal — an all-in-one financial tool for experienced traders and investors.

Features and offerings: What to expect from Kraken?

Let us now move to the specific features we usually associate with this top crypto broker:

Advanced trading options

At the end of the day, Kraken is a trading platform – you’ll find many trading options, including spot, futures, and margin trades. You can freely trade over 230 tokens or close to 770 trading pairs at the spot counter. If you are a beginner, the spot trading counter lets you buy the sought-after tokens without sweating.

As a seasoned trader, you can even trade derivatives, accessing 95+ perpetual futures contracts. You can even indulge in margin trading, corresponding to the spot market, getting a maximum of 5X leverage, depending on the trading pairs in sight.

In the case of margin trading, Kraken brings stable rollover into the mix, where fees are calculated based on your estimated trading costs.

The assets that support margin trading via leverage are extensive:

NFT marketplace

Not every exchange offers as good an NFT marketplace as Kraken. From exploring the most popular assets to tracking transactions, Kraken’s NFT marketplace is loaded with possibilities. You can find every collection, from BAYC to MAYC to CryptoPunks and more.

Kraken Pro for the seasoned traders

Even though Kraken has everything a new trader would want, it doesn’t disappoint the professionals. The feature-loaded Kraken Pro has access to advanced charting tools, a real-time asset price tracker, a customizable interface, a built-in trend analyzer, and more. From learning to even earning passively, Kraken Pro has every element sorted.

Kraken Earn with staking focus

Despite resistance from the SEC and having to discontinue its U.S.-based staking service, Kraken’s passive earning functionality is easily the best in the business. Kraken’s staking functionality lets you earn up to 26% APY, depending on the crypto you wish to stake. Depending on your preferences, you can even experience both flexible (redeemable) and bonded staking.

“Kraken uses its own funds, which is how you are able to stake and unstake without delay.”

Jesse Powell, Co-Founder of Kraken: Twitter

Besides the mentioned traits, Kraken also has a simple yet efficient reward system. Once a friend registers using your link and starts crypto shopping, you can win $10 worth of BTC.

You can even onboard Kraken as your institutional crypto partner. With access to an OTC trading desk and round-the-clock access, Kraken attracts wealth managers, trading firms, crypto miners, and more.

Kraken review: Critiquing the fee structure

Kraken has a transparent fee structure, which relies on the 30-day rolling period. Makers who place limit orders are charged at 0.16%, whereas Takers who place market orders are charged at 0.26%. Notably, Kraken follows a tiered fee structure with a 30-day trading volume of $500,000,000+ can drop the Maker fee to as low as 0%.

Kraken also levies margin charges, anywhere between 0.01% to 0.02% per 4-hour timeline for specific cryptocurrencies. For futures trading, the Maker fee ranges between 0% to 0.02%, whereas Takers need to pay anything between 0.01% to 0.05%.

Kraken is one of the few exchanges to support forex pairs, including EUR/USD and even stablecoin pairs for a seamless trading experience. The charges for the same vary between 0.20% to 0%, depending on the nature of the trade.

Kraken exchange: All limits explored

The deposit and withdrawal limits at Kraken are based on your verification level. For starters, the verification tiers can be separated as Express, Intermediate, and Pro. If you wish to deposit and withdraw crypto, it’s not possible at the “Express” level. However, the monthly deposit and withdrawal limits are set to unlimited for the Intermediate and Pro levels.

That means the minimum deposit and withdrawal limits start at zero, whereas the maximum limits range up to unlimited.

As for the fiat currencies supported, Kraken opens doors to AUD, USD, EUR, and more. Much like the lot size, the minimum purchase limit is $10.

In case you wish to deposit cash, the Express verification level lets you handle $9,000 but doesn’t allow withdrawals. Intermediate and Pro levels let you deposit and withdraw much more, as depicted by this chart:

Do note that the Express level deposit limit of $9,000 is the lifetime limit, and to increase it, you must upgrade your account.

As for the fiat currency support, here are the options supported at Kraken:

• USD
• EUR
• GBP
• CAD
• AUD
• JPY
• CHF
• SEK
• NOK
• DKK
• MXN
• BRL

Note that for USD, minimum deposit and withdrawal amounts are set to $1 and $5, respectively. Another important thing to keep in mind is that the deposit and withdrawal limits vary depending on the payment method you are using. Kraken offers standard payment methods such as bank transfers, SEPA transfers, and other deposit and withdrawal methods.

User experience at Kraken

Navigating Kraken’s ecosystem is straightforward and easy to learn. While the web interface is good enough, you can always rely on Kraken’s mobile apps — for both Android and iOS — to offer further convenience.

There is also Kraken Pro for the advanced traders, which also has a dedicated ecosystem-specific app. Kraken also offers a separate platform for futures trading to keep things simple.

Setting up a Kraken account, in a few steps

The ease of account setup further boosts the user experience at Kraken. Here are the steps to follow:

• Head to the website, sign up and provide basic information.
• Verify your email ID and enable two-factor device-based authentication
• Once complete, verify your KYC details using your passport, driver’s license, or any other documents required for your verification tier
• Start depositing funds to start trading! You can even send and withdraw crypto to and from Kraken, albeit paying the set network fees.

Amplifying the user experience is the exhaustive “Learn” section, helping you learn about all things crypto.

Customer support and security standards

Despite garnering mixed online reviews, Kraken takes pride in offering a diverse set of customer service options, including:

• A dedicated “Knowledge Base” or support center with access to tutorials and FAQs
• Ticket-based issue escalation system
• A live chart interface for real-time assistance
• Community and social media coverage
• Multilingual support
• Status page
• User-onboarding assistance
• 24×7 telephonic assistance

As far as Kraken’s security is concerned, there are multiple ways to secure your assets. While the strong password choice is a given, you can also access the multi-factor authentication support and the device whitelisting feature.

When it comes to handling client information, Kraken keeps things controlled and encrypted. User funds are securely stored across cold wallets, offering an additional line of security.

Kraken is one of the few crypto brokers to offer a master key for account recovery. Additionally, there is a “bug bounty” program in place offering rewards to users who can find security vulnerabilities, as well as time-locked fund vaults and extensive security audits.

Should you take a crack at Kraken, or look elsewhere?

Kraken prioritizes a streamlined user experience, which can be ideal for straightforward traders. Unlike Binance, which has a crypto feature for every kind of crypto-curious user, Kraken keeps its focus on the best possible trading and staking experience. Its robust and top-of-the-line security standards make it the most secure crypto broker.

Kraken was the first exchange to pass a cryptographic PoR (Proof-of-Reserves) audit in 2014, further strengthening its legacy as a security-focused exchange.