Kraken Review 2022 | The bank rate
Kraken offers cryptocurrency traders a way to buy and sell dozens and dozens of different coins at some of the lowest costs in the industry. It is important to keep trading fees low as some exchanges charge huge fees for cryptocurrency orders. But you won’t have to sacrifice customer service to get those lower fees with Kraken. You’ll have 24/7 access to specialists via live chat and can even speak to customer support over the phone Monday through Friday, a rarity in the crypto world. New traders will also benefit from Kraken’s educational materials available on many different coins.
Customers looking to trade more than just crypto might be better off with apps like Robinhood or Webull, although these only offer the most popular coins. Crypto traders looking for other low-cost options should consider Binance.US or Coinbase Pro.
- Customer service
- High Volume Traders
- Educational content
Kraken at a glance
|The minimum balance:||None, but there is a minimum redemption of $10|
|Negotiable securities:||More than 95 cryptocurrencies|
|Cost per transaction:||
|Customer service:||24/7 live chat, email, phone support Monday-Friday 6am-6pm ET|
|Mobile app:||The Kraken mobile app is available on the Apple App Store and Google Play Store|
Pros: Where Kraken Stands Out
Low trading fees
Kraken’s trading fees are near the bottom of the industry, with some fees starting at just 0.16%. The costs for active traders decrease from there and can even be eliminated entirely if you trade very large amounts based on your 30-day average trading volume.
Like other cryptocurrency exchanges, Kraken uses a maker-taker model that rewards those who add liquidity to the market (makers) and charges a little more to those who take liquidity out of it (takers). Here’s how the fees break down based on monthly transaction volume.
|$0 – $50,000||0.16 percent||0.26 percent|
|$50,001 – $100,000||0.14 percent||0.24 percent|
|$100,001 – $250,000||0.12 percent||0.22 percent|
|$250,001 – $500,000||0.10 percent||0.20 percent|
|$500,001 – $1 million||0.08 percent||0.18 percent|
|$1,000,001 – $2.5 million||0.06 percent||0.16 percent|
|$2,500,001 – $5 million||0.04 percent||0.14 percent|
|$5,000,001 – $10 million||0.02 percent||0.12 percent|
|$10 million or more||0.00 percent||0.10 percent|
Trades made through Kraken’s Instant Buy feature incur additional processing fees and do not count towards your 30-day trading volume.
Kraken sets itself apart from other exchanges by offering one of the best customer service experiences in the industry. You will be able to reach one of the hundreds of qualified specialists that Kraken employs 24/7 through its live chat function. You can even get your questions answered during major holidays.
Kraken also offers phone support Monday through Friday from 6 a.m. to 6 p.m. ET. Phone support is extremely rare in the crypto world, so the fact that Kraken offers it is a major bonus. Some questions just can’t be answered easily over chat or email and having the ability to speak with an expert is important, especially for something as new as cryptocurrency.
You will also have access to Kraken’s support library which can help you with more basic questions like account setup and how to start trading.
Kraken is also one of the few crypto exchanges that tries to educate traders on what they are trading. Through its crypto guides, Kraken provides information on how to buy and sell many different cryptocurrencies and also explains the theory and origin of different coins. You don’t know what Dogecoin is? Kraken has a guide for you.
Although the guides are quite basic, they are better than nothing, which most other exchanges offer. Given that most traders are new to cryptocurrency and the significant risks involved in trading them, more exchanges should seek to educate users about what they are getting involved in.
Availability of cryptocurrency
Kraken offers enough cryptocurrencies to satisfy even the most demanding traders. With over 95 cryptocurrencies available, it is among the industry leaders, although it falls short of Crypto.com’s offering of over 250 coins. Kraken will get you all the most popular coins such as Bitcoin, Ethereum, Cardano, and Solana, as well as more obscure coins.
Kraken far exceeds the number of cryptocurrencies available through more popular financial apps such as Robinhood and Webull, although these offer trading in additional securities such as stocks and ETFs. Kraken should meet the needs of most crypto traders, whether new or more experienced.
Cons: where Kraken could improve
Instant Buy Fee
If you’re looking to use Kraken’s Instant Buy feature, you should be prepared to pay considerably higher prices. Fees start at 0.9% for stablecoins and increase to 1.5% for all other crypto. On top of that fee, you’ll pay an additional 3.75% if the purchase is made with a debit or credit card, or 0.5% if made via an ACH transfer.
You’d better transfer money to your account and wait a few days for it to clear. Fees are a killer when it comes to investment returns.
Restrictions in some states
Kraken does not currently offer services to residents of New York or Washington State. The company says it wants to provide services to all US residents, but the costs of maintaining regulatory compliance are too high in some regions. Other exchanges, including Binance.US and Crypto.com, also have restrictions in certain jurisdictions, so it can be difficult to find one that operates in all US states.
Trading platform and mobile app
Kraken’s trading platform and mobile app handles the basics very well, but you might be disappointed if you’re looking for more advanced features. You will be able to check prices on dozens of cryptocurrencies, create watchlists and set up alerts. More experienced traders may appreciate additional charting tools or research.
At the end of the line
Kraken is a solid choice for cryptocurrency traders looking for low trading fees and top-notch customer service. This can suit both new and experienced traders, with new traders benefiting from Kraken’s educational materials and traders more familiar with cryptocurrency enjoying the large number of coins available.
Be aware of additional fees if you use the exchange’s instant buy feature and make sure Kraken is doing business in your area before creating an account. Traders only interested in the most common cryptocurrencies can also consider Robinhood or Webull, which also allow you to trade stocks and ETFs. Crypto traders interested in other low-cost exchanges should check out Binance.US and Coinbase Pro.
How we make money
Bankrate is an independent, ad-supported comparison service and publisher. Bankrate is compensated in exchange for the featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation can impact how, where, and in what order products appear. Bankrate does not include all companies or products available.