Kraken Review 2024: The Best Exchange for UK Users?
Dom Farnell
Co-Founder
Dom is a Co-Founder of TIC, a passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management. "My goal is to empower individuals to make informed investment decisions through informative and engaging content."
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In assessing the performance and capabilities of crypto exchange platforms like Kraken, our grading system offers a structured and objective way to evaluate various aspects of the service. This system uses specific criteria that are crucial for users when reviewing choosing a cryptocurrency exchange. These criteria include the range of cryptocurrencies available, security measures, user experience, fee structure, mobile app functionality, community engagement, staking options, transparency, and the availability of advanced trading tools.
Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.
Please keep in mind that Crypto assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.
TIC Kraken Review 2024
The Investors Centre rating for Kraken is 4.3 out of 5.
In our kraken review it scores highly in areas like security, trading tools, and the range of cryptocurrencies available, highlighting its strengths as a robust and comprehensive cryptocurrency trading platform. The user experience is well-regarded, particularly for its balance between beginner-friendly interfaces and advanced features for practised traders. The platform’s transparency and regulatory compliance also stand out as key positives.
However, the fee structure, while competitive for active traders, is noted to be potentially higher for casual or low-volume traders. It is our recommendation to fund your account through bank transfer to avoid any inflated credit or debit card fees. Staking options on Kraken are attractive, offering competitive yields, although they can be complex for newcomers. The platform is transparent, especially regarding fees and security, fostering trust among its users and the customer support is responsive. The community aspect and the mobile app, although functional and user-friendly, are areas where there’s room for enhancement. Overall, Kraken’s average score of 4.3 out of 5 reflects its status as a highly competent and reliable platform in the cryptocurrency exchange market.
Please click to expand the various criteria below for more in depth analysis.
Kraken’s selection of over 220 cryptocurrencies makes it one of the most diverse crypto exchanges on the market. This range includes popular choices like Bitcoin and Ethereum, catering to mainstream crypto investors, and extends to a wide array of altcoins and ERC-20 tokens, appealing to those seeking diversity in their crypto portfolios. The inclusion of niche tokens allows users to explore and invest in emerging blockchain projects and technologies.
The platform’s commitment to continuously updating its cryptocurrency offerings ensures that it stays abreast of market trends and user demands. Whether users are looking to trade in established cryptocurrencies or experiment with newer, lesser-known coins, Kraken provides a comprehensive and evolving crypto marketplace that caters to a wide spectrum of trading preferences and investment strategies.
Kraken’s reputation for security is one of its strongest aspects. The exchange employs robust security measures such as two-factor authentication (2FA) and cold storage for the majority of its assets. These measures significantly reduce the risk of unauthorized access and potential cyber threats. The platform’s security protocols are regularly updated to address evolving security challenges in the crypto landscape.
In addition to technical safeguards, Kraken’s approach to operational security includes constant monitoring and surveillance to pre-emptively identify and mitigate risks. The platform’s proactive stance on security, coupled with its transparent communication about safety measures, fosters a high level of trust among its users, making it one of the most secure cryptocurrency exchanges in operation. This is backed up my responsive customer support.
The Kraken exchange offers a user experience that strikes a balance between accessibility for beginners and depth for advanced traders. The interface is designed for ease of use, with clear navigation and straightforward functionalities that make it easy for newcomers to start trading. For those new to crypto exchanges, Kraken provides a range of educational resources, guiding them through the complexities of crypto trading.
For more experienced traders, Kraken Pro offers an array of advanced trading tools, including detailed charting, a variety of order types, and comprehensive market analysis capabilities. While these features are invaluable for sophisticated trading strategies, they can present a steep learning curve for beginners. However, the platform’s overall design and resource availability help bridge this gap, making Kraken a versatile choice for a broad range of users.
Kraken’s fee structure is known for its competitiveness, particularly beneficial for active traders. The standard trading fees on the platform are relatively low, with a 1.5% fee for stablecoin purchases and a 0.9% fee for transactions involving fiat currencies or stablecoins. This pricing structure makes Kraken an attractive option for regular trading activities.
Kraken Pro adopts a maker-taker fee model, which is even more favourable for users with high trading volumes. Fees start at 0.16% for makers and 0.26% for takers and decrease with increased trading volume over a 30-day period. This tiered fee system incentivizes frequent trading and provides cost-effective trading options for high-volume traders. Although the fee structure is advantageous, its complexity and the variety of factors affecting fees may require some time for new users to fully grasp.
The Kraken mobile app is an extension of its desktop platform, offering a wide range of functionalities in a user-friendly format. It’s designed to cater to the needs of traders who prefer managing their portfolios and executing trades on the go. The app’s interface is intuitive, making it easy to navigate and conduct transactions, which is particularly useful for users who are not always able to access the desktop version.
While the mobile app provides a comprehensive trading experience, it may lack some of the advanced features available on Kraken Pro. Despite this, the app’s efficiency, real-time data updates, and security features make it a reliable tool for mobile trading, ensuring users have continuous access to their accounts and the crypto market.
Kraken’s presence in the crypto community is solid, with active engagement across various social media platforms and forums. The crypto exchange frequently updates its community on developments, market trends, and educational content. This level of engagement demonstrates Kraken’s commitment to maintaining an open line of communication with its users and fostering a knowledgeable and informed user base.
While its community engagement is notable, there is potential for Kraken to further enhance its user interaction. More direct and interactive community support initiatives, such as live Q&A sessions, webinars, and user forums, could elevate the sense of community among users. Expanding its community outreach efforts would not only support user education but also strengthen user loyalty and engagement.
Kraken offers an attractive staking feature, allowing users to earn rewards by holding certain cryptocurrencies. The platform supports a decent range of stakable assets, providing users with opportunities to earn passive income on their crypto holdings. The staking options include popular coins and tokens, making it a versatile option for users interested in various staking opportunities.
The platform’s staking rewards are competitive, and the process of staking is simplified, making it accessible even to those new to the concept. However, the range and complexity of staking options may require some initial research and understanding. Kraken’s commitment to providing staking services not only diversifies its offerings but also adds value for its users, who can benefit from the growing trend of earning through crypto assets.
Transparency is a key aspect of Kraken’s operations, especially in terms of its fee structure and security protocols. The platform’s transparent approach in these areas has earned it a high level of trust among users. By openly communicating about fees, security measures, and compliance with regulatory standards, Kraken establishes itself as a trustworthy and reliable exchange.
The platform’s commitment to regulatory compliance further reinforces its transparency. Regular updates and clear policies regarding trading, withdrawals, and other platform activities ensure that users are well-informed. This level of openness is crucial in the cryptocurrency exchange market, where trust and clarity are essential for user confidence.
Kraken Pro is a testament to the platform’s commitment to catering to advanced crypto traders. The trading platform offers a suite of sophisticated trading tools, including extensive charting options, a variety of order types, and in-depth market analysis. These tools are crucial for users employing complex trading strategies and looking for in-depth market insights.
The trading environment on Kraken Pro is complemented by its high liquidity and range of supported cryptocurrencies. However, the complexity and depth of these tools may be overwhelming for beginners. For users looking to advance their trading skills, Kraken Pro’s trading platform provides a conducive environment with the resources necessary for developing sophisticated trading strategies.
Kraken has managed to maintain a strong foothold in the UK market, offering services that comply with local regulations. The platform supports GBP transactions and tailors its services to meet the needs of UK-based users. Kraken’s ability to adapt to regulatory changes and maintain operations in the UK is indicative of its commitment to serving a global user base.
Despite the challenges posed by the dynamic regulatory landscape, Kraken’s presence in the UK remains robust. The platform’s efforts to ensure compliance and provide a range of services have kept it accessible and relevant to UK users. However, like all platforms operating in multiple jurisdictions, Kraken must continuously navigate evolving regulations to maintain its level of service and accessibility in the UK.
Kraken Exchange Key Features
Extensive Cryptocurrency Selection: Kraken stands out for its broad range of over 220 cryptocurrencies, including major tokens like Bitcoin (BTC) and Ethereum (ETH), as well as lesser-known altcoins. This variety caters to diverse investment preferences, whether you are looking to stick with established coins or explore emerging tokens.
Adapted Trading Options for UK Users: While some services like futures and margin trading are restricted in the UK due to regulatory constraints, Kraken compensates with robust instant buy and spot market features. This flexibility ensures UK traders have access to essential trading tools within the regulatory framework.
Fiat Currency Integration: Kraken supports multiple fiat currencies, including GBP, making it convenient for UK users to deposit and withdraw funds. This support extends to USD, EUR, JPY, and more, reflecting Kraken’s global reach and its adaptability to various markets.
User-Centric Interface and Customer Support: The platform’s interface balances the needs of both beginners and advanced traders. New users can find the interface welcoming, while practised traders appreciate the advanced features. Additionally, Kraken’s customer support, available via phone and 24/7 chat, is renowned for its responsiveness and helpfulness.
Commitment to Security: Kraken’s emphasis on security is evidenced by its track record – no hacks in its over 10-year history. The crypto platforms rigorous security measures such as 2-factor authentication and regular independent audits to safeguard user assets.
Educational Resources: Recognizing the importance of informed trading, Kraken offers an array of educational materials. These resources are instrumental in helping both new and practised traders understand the market dynamics and the platform’s functionalities.
Transparent Fee Structure: Kraken adopts a clear fee policy, favouring active traders with lower fees. The detailed fee structure is designed to cater to various trading volumes and frequencies, making it transparent for users to understand their trading costs.
Efficient KYC and Transaction Processes: The platform ensures a seamless Know Your Customer (KYC) process, enabling quick access to trading. Additionally, the deposit and withdrawal processes for both fiat and cryptocurrencies are streamlined for efficiency, with a clear fee and processing time structure.
TIC Kraken Review Score 4.3./5
Kraken
Founded in 2011, Kraken.com is a leading cryptocurrency exchange known for its extensive cryptocurrency options, strong security, and user-friendly platform, catering to both new and experienced traders.
Pros
Cons
- Over 220 Cryptocurrencies Available
- Enhanced Security Protocols: Including 2fa
- The Intuitive User Interface: For both novice and experienced traders.
- Competitive Staking Options
- Robust Mobile App
- Low Trading Fees: Competitive fee structure, Inc lower rates on Kraken Pro.
- Advanced Trading Tools on Kraken Pro: Inc Stop-losses and charting options
- Complexity for Beginners on Kraken Pro: Advanced featured and detailed interface can be intimidating.
- Limited Trading Features for UK Users: restrictions on trading options such as futures and margin trading.
- Credit & Debit Card Purchase Fees Higher fees compared the bank transfers.
Please keep in mind that Cryptocurrency assets are volatile and currently unregulated. This volatility presents risk to your investment, and you may lose your funds. Profits from Cryptocurrency sales may be subject to Capital gains tax under UK law.
What is Kraken Exchange
Kraken.com is cryptocurrency exchange, with a history that traces back to the early days of digital currencies. Founded in 2011 by Jesse Powell, Kraken emerged in response to the growing need for a reliable and secure platform for trading cryptocurrencies. Powell, recognizing the potential of Bitcoin and the necessity for more regulated and user-friendly crypto exchanges, established Kraken in the aftermath of the infamous Mt. Gox hack. This event underscored the importance of security in crypto exchanges, a principle that became a cornerstone of Kraken’s operations. Over the years, Kraken has built a reputation for its robust security protocols, which have helped it earn the trust of users worldwide.
Kraken’s journey from a start-up to a leading global crypto exchange is marked by significant milestones. It was one of the first crypto exchanges to provide detailed price data to the Bloomberg Terminal, enhancing the credibility of cryptocurrencies in traditional finance. Kraken also played a vital role in helping recover lost funds after the Mt. Gox collapse, further solidifying its position as a trustworthy and capable player in the industry. The platform has consistently expanded its offerings, now including a wide array of cryptocurrencies, advanced trading features like margin and futures trading, and comprehensive services like staking and OTC trading. This growth reflects Kraken’s commitment to evolving with the market and addressing the diverse needs of its users, from retail investors to institutional traders. Today, Kraken stands not only as a crypto exchange hub, but also as an influential entity in the broader digital asset and blockchain space, contributing to the development and maturation of the cryptocurrency market.
| |
Kraken Fee Type | Approximate Fee |
Trading Fees (Standard Platform) | 1.5% for stablecoin purchases, 0.9% for fiat/stablecoin transactions |
Trading Fees (Kraken Pro) | Maker: Starting at 0.16%, Taker: Starting at 0.26%, decreasing with higher volume |
Deposit Fees (GBP) | SEPA transfers are usually free or have minimal fees |
Withdrawal Fees (GBP) | Varies; SEPA withdrawals typically have lower fees |
Credit/Debit Card Payments | Varies; generally higher than bank transfers |
Cryptocurrency Deposit Fees | Generally free, network fees may apply |
Cryptocurrency Withdrawal Fees | Varies by cryptocurrency; adjusted based on network conditions |
Kraken Fees
Kraken’s fee structure is multifaceted and tailored to accommodate a variety of trading styles and volumes, which is one of its key attractions. For spot trading, Kraken employs a volume-based fee schedule, where fees are determined by the user’s 30-day trading volume. As an example, for a trader with a volume of less than $50,000, the maker fees are 0.16% and the taker fees are 0.26%. These fees gradually decrease with increasing trade volume, dropping to as low as 0.00% for makers and 0.10% for takers at the highest volume tier, which requires a 30-day trade volume of over $10 million. This tiered system makes Kraken highly appealing to high-volume traders, as their transaction costs can significantly decrease.
On the standard Kraken platform, the fees for instant buy transactions, typically preferred by casual users, are higher. For instance, purchasing cryptocurrencies using a debit or credit card incurs a fee of around 3.75% + €0.25. Similarly, the fee for using an online bank transfer is around 0.5%. These higher fees for convenient buy/sell options can be a pitfall for users not engaged in high-volume trading. While Kraken’s fee structure for these types of transactions is designed for simplicity, it’s important for users to be aware that convenience comes with a higher cost.
Kraken also offers staking services, where users can stake their coins and earn rewards. The staking fees vary depending on the cryptocurrency, but Kraken generally takes a small percentage of the staking rewards as its fee. For example, staking Ethereum on Kraken might involve a fee of 15% of the staking rewards earned. Another area to consider is margin trading, where Kraken charges an opening fee and a rollover fee. The opening fee for margin trading starts at 0.02%, and a rollover fee of 0.02% is charged every 4 hours. These specific fees for margin trading are essential for traders to consider as they can add up, especially in long-term or high-volume trading scenarios.
Understanding Kraken’s fee structure is crucial for users to make informed trading decisions. While the platform offers competitive fees for high-volume traders, casual traders need to be mindful of the costs associated with instant buy transactions and other convenience features. Additionally, users engaging in staking or margin trading should consider the respective fees associated with these services. By being aware of these details, users can better navigate the fee structure and optimize their trading and investment strategies on Kraken.
Kraken UI: Kraken vs Kraken Pro
The user interface (UI) of Kraken and Kraken Pro is designed to cater to different types of users, from beginners to advanced traders, each offering unique features and experiences.
Kraken Standard Platform:
Designed for Beginners: The standard Kraken interface is tailored towards beginners or those who prefer simplicity in their trading experience. The design is intuitive and user-friendly, making it easy for newcomers to navigate the platform.
Simplified Trading Process: It offers a straightforward approach to buying, selling, and exchanging cryptocurrencies. Users can easily view their balances, monitor market trends, and execute trades without the complexity of advanced trading tools.
Educational Resources: Kraken provides various educational resources and guides within its standard platform, helping users understand the basics of cryptocurrency and trading. This feature is particularly beneficial for those new to the crypto space.
Limited Advanced Features: While it covers the essentials, the standard platform doesn’t offer the extensive charting and analytical tools found in Kraken Pro. This limitation makes it less daunting for beginners but may not suffice for more practised traders seeking in-depth analysis.
Kraken Pro:
Advanced Trading Features: Kraken Pro is designed for practised traders and offers a sophisticated suite of tools. This includes detailed charting options, a variety of order types (like limit, stop-loss, and margin trading), and comprehensive market analysis tools.
Customization and Analytics: The platform allows for a high degree of customization in terms of trading dashboard setup. Users can analyse market trends with advanced charting functionalities, utilize trading indicators, and access historical data for in-depth market analysis.
Enhanced Trading Experience: Kraken Pro provides an enhanced trading experience with additional features like margin trading and futures trading. These features cater to traders employing more complex and diverse trading strategies.
Interface Complexity: The interface of Kraken Pro is more complex compared to the standard platform. It’s packed with features and tools that, while powerful, might be overwhelming for beginners. This complexity is, however, a boon for professional traders who require these advanced functionalities.
In summary, Kraken offers two distinct interfaces to meet the needs of its diverse user base. The standard Kraken platform is ideal for those new to cryptocurrency trading or who prefer a more straightforward approach. In contrast, Kraken Pro offers a more complex and feature-rich environment suited for advanced traders who need detailed analytical tools and a wider range of trading options. The choice between the two depends largely on the user’s experience level and trading needs.
Which Cryptocurrencies are Available on Kraken
Kraken’s cryptocurrency portfolio is extensive and diverse, catering to a wide array of investor interests and strategies. Here’s a more detailed look at the types of cryptocurrencies available on Kraken:
Major Cryptocurrencies: The backbone of Kraken’s offerings includes major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). These are popular among both seasoned and novice traders due to their established market presence and relatively stable histories.
Altcoins: In addition to the major players, Kraken provides access to a variety of altcoins. These include Cardano (ADA), with its unique proof-of-stake mechanism, and Polkadot (DOT), known for enabling cross-blockchain transfers of any type of data or asset. Solana (SOL) and Chainlink (LINK) are also part of this mix, offering innovative blockchain solutions and real-world data integration, respectively.
Niche Tokens: For those interested in the rapidly evolving landscape of niche cryptocurrencies, Kraken lists tokens like Axie Infinity (AXS), a blockchain-based trading and battling game, Moonbeam (GLMR), which simplifies the integration between the Ethereum and Polkadot blockchains, and Mango (MNGO), a decentralized, cross-margin trading platform.
Stablecoins: Stablecoins such as Tether (USDT) and USD Coin (USDC) provide an alternative for traders looking to avoid the extreme volatility often associated with cryptocurrencies. These coins are pegged to stable assets like the US dollar, offering a degree of stability in the tumultuous crypto markets.
ERC-20 Tokens: Kraken’s selection also includes a range of ERC-20 tokens, which are based on the Ethereum blockchain and represent a diverse set of assets and utilities in the crypto ecosystem.
This comprehensive range ensures that Kraken users have access to a wide spectrum of cryptocurrencies, from the most popular and widely traded to more speculative and niche options, catering to different risk appetites and investment strategies. If you want a detailed list of cryptocurrencies available then visit Kraken.com
How to Open an Account with Kraken
Opening a Kraken account is a straightforward process, designed to be user-friendly while ensuring security and compliance with regulatory standards. Here’s a step-by-step guide to setting up your Kraken account:
Visit the Kraken Website: Start by navigating to the Kraken website (kraken.com).
Sign Up: Click on the “Sign Up” button usually located at the top right corner of the homepage.
Enter Your Details: You will be prompted to enter basic personal information, such as your email address, a username, and a strong password. It’s crucial to use a unique password for added security.
Email Verification: After submitting your details, Kraken will send a verification email. Open this email and click on the provided link to verify your email address.
Account Activation: Upon email verification, you will be redirected to the Kraken website to activate your account.
Provide Additional Information: For KYC (Know Your Customer) compliance, you’ll need to provide additional information such as your full name, date of birth, country of residence, and phone number.
Identity Verification: Depending on your intended use and the account type, further identity verification may be required. This could include uploading government-issued ID documents, proof of residence, and possibly additional verification steps for higher account tiers.
Enable Security Features: Before you start trading, it’s advisable to set up security features such as two-factor authentication (2FA) for added account protection.
Fund Your Account: Once your account is set up and verified, you can fund it using one of the supported fiat currencies or by depositing cryptocurrency.
Start Trading: With your account funded, you are now ready to start trading on Kraken.
Tips and Tricks for Getting the Most Out of Kraken.com
Leverage Educational Resources: Utilize Kraken’s extensive educational materials to enhance your understanding of cryptocurrency trading and the platform’s features.
Customize Your Trading Interface: If you’re using Kraken Pro, take time to customize the interface to suit your trading style and preferences.
Explore Advanced Trading Tools: Familiarize yourself with the advanced tools and features available on Kraken Pro to develop and execute more sophisticated trading strategies.
Utilize Staking Services: Take advantage of your Kraken account staking options to earn rewards on your cryptocurrency holdings.
Stay Updated with Security Features: Regularly update your Kraken account security settings, including two-factor authentication, to protect your account.
Monitor Fee Structure: Keep an eye on the fee structure, especially if your trading volume changes, to manage transaction costs effectively.
Engage with the Community: Participate in Kraken’s community forums or social media channels to stay informed about market trends and insights from other traders.
Use Mobile App for Convenience: For trading on the go, make the most of Kraken’s mobile app while ensuring you’re aware of any limitations compared to the desktop version.
Regularly Review Account Performance: Periodically review your trading activity and account performance to refine your strategies and make adjustments as needed.
Stay Informed About Regulatory Changes: Especially for UK users, stay informed about any regulatory changes that might affect your trading activities on Kraken.
Key Takeaways:
Extensive Cryptocurrency Options: Kraken offers a wide range of over 220 cryptocurrencies, including major coins and niche tokens.
TIC Kraken Review rating: 4.35/5
Tailored Services for UK Users: Adheres to UK regulations with services like spot market trading, while some features like margin and futures trading trading are restricted.
Kraken Pro for Advanced Cryptocurrency Traders: Offers sophisticated tools and lower fees for crypto trading, but with a complexity that may not suit beginners.
Competitive and Structured Fee System: Designed to benefit high-volume traders, but might be costlier for casual or low-volume crypto investors.
Robust Security Protocols: Emphasizes strong security measures, including two-factor authentication and cold storage of assets.
User-Friendly with Educational Support: Balances simplicity for new traders and advanced features for experienced ones, backed by extensive educational materials.
Easy Account Setup and Crypto Purchases: Streamlined processes for opening a Kraken account and buying cryptocurrencies, with a focus on compliance and user security.
Frequently Asked Questions
Is kraken safe? Kraken is considered one of the safest cryptocurrency exchanges. It prioritizes security with comprehensive measures such as extensive two-factor authentication, cold storage of the majority of its assets, and continuous system monitoring to mitigate potential risks. Kraken’s security protocols are among the most rigorous in the industry, earning it a reputation for safety and reliability.
Yes, Kraken is legal in the UK. The platform operates in compliance with UK regulations and offers services to UK residents. Kraken adheres to local regulatory standards and provides GBP trading pairs, making it a compliant and accessible option for UK-based users. However, it’s always advisable to stay updated on any changes in cryptocurrency regulations in your jurisdiction.
To withdraw money from Kraken, log into your account, navigate to the ‘Funding’ tab, and select ‘Withdraw.’ Choose the currency you wish to withdraw, and then select your preferred withdrawal method (e.g., bank transfer). Enter the amount and the details of your withdrawal method (like your bank account information), and confirm the transaction. Ensure that your account is verified and that you adhere to the withdrawal limits and conditions for your account level.
The time it takes to withdraw funds from Kraken depends on the method and currency. For GBP withdrawals using SEPA, the process can take 1-5 business days, depending on the bank. Cryptocurrency withdrawals are usually processed more quickly, often within a few minutes to a few hours, depending on the network status. It’s important to note that withdrawal times can be affected by factors such as account verification level, withdrawal limits, and network congestion.
Yes, Kraken offers a mobile app that provides a wide range of trading functionalities. The app is designed to be user-friendly, allowing users to trade, manage their portfolio, and monitor market trends on the go.
Yes, Kraken offers staking services for various cryptocurrencies. Users can earn rewards by staking eligible cryptocurrencies directly through the Kraken platform.
You may also be interested in our Crypto vs series, OKX vs Coinbase, OKX vs MEXC, Coinbase vs MEXC. and OKX vs Kraken.