Kraken Exchange Review: Security, Rankings, Fees, and Pros & Cons

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Kraken is one of the longest-standing names in the cryptocurrency exchange landscape, established in 2011 in San Francisco, USA. Known for its strong focus on security, regulatory compliance, and institutional-grade services, Kraken has built a reputation as a trusted platform for crypto investors worldwide. This comprehensive review explores Kraken’s background, global standing, security protocols, supported countries, fee structure, unique features, and user feedback—helping you determine whether it’s the right platform for your trading needs.


What Is Kraken Exchange?

Founded by Jesse Powell, Kraken emerged in the aftermath of the first major Mt. Gox hack in 2011. Witnessing the vulnerabilities of early exchanges, Powell set out to build a more secure and transparent platform—leading to the creation of Kraken. Over the years, it has evolved into a full-service digital asset exchange offering spot trading, futures, margin trading, OTC services, staking, and even an NFT marketplace.

Kraken serves over 7 million users across 190+ countries and consistently ranks among the top five exchanges globally by trading volume and credibility. It was among the first crypto platforms listed on Bloomberg Terminal, lending it legitimacy in traditional finance circles.

Key Highlights:


Is Kraken Legit and Secure?

One of the most common concerns for new users is whether Kraken is a scam. The short answer: no. Kraken is a fully regulated, centralized exchange with a transparent operational model and no history of security breaches.

Founder and Company History

Jesse Powell, Kraken’s founder and former CEO (now board member), is a long-time advocate for secure digital finance. His experience with Mt. Gox’s collapse directly influenced Kraken’s design—prioritizing cold storage, auditability, and regulatory compliance.

In 2014, Kraken became the first crypto exchange featured on Bloomberg Terminal, signaling recognition from institutional investors. Later, after Mt. Gox’s bankruptcy, Kraken was appointed as an asset distribution channel—further solidifying trust.

Notably, in 2020, Kraken Financial obtained a special purpose depository institution (SPDI) charter in Wyoming, becoming the first crypto-native bank in the U.S., authorized to offer crypto deposits and fiduciary services.

Security and Proof of Reserves

Security is where Kraken truly shines:

These measures ensure users’ funds are protected and verifiably accounted for. As of early 2022, Kraken held over $19 billion in BTC and ETH alone—fully backed according to public audits.

👉 Discover how top-tier exchanges maintain fund security and user trust


Kraken’s Global Ranking and Market Presence

Kraken remains a major player in the global crypto market despite increasing competition.

Exchange Rankings

According to CoinMarketCap, Kraken ranks #3 globally in overall exchange ratings, with a high score of 8.5/10. Its 24-hour spot trading volume averages around $690 million, placing it behind Binance but ahead of many regional competitors.

While not the largest by volume, its consistent ranking reflects strong performance in liquidity, user trust, and regulatory compliance.

Trading Volume and Market Share

Data from CryptoCompare shows Kraken holds approximately 5% of the global spot trading market, trailing Coinbase in the U.S. market but maintaining steady institutional inflows.

However, rising platforms like Binance and OKX—with broader product offerings and lower fees—have captured significant market share, especially in derivatives trading.

Supported Countries

Kraken operates in over 190 countries, including:

It does not support users from:

Always verify eligibility on Kraken’s official site before registering.


Key Features and User Experience

Kraken offers several advanced tools tailored to serious traders and institutions.

1. Kraken Pro: Advanced Trading Platform

Kraken Pro is a powerful trading interface that supports:

Designed for professionals, it provides low-latency execution and API access—ideal for algorithmic traders.

2. Staking-as-a-Service

Kraken allows users to earn passive income through staking on over 20 proof-of-stake networks. Annual yields can reach up to 20%, depending on the asset.

⚠️ Note: In February 2023, Kraken suspended staking services for U.S. customers following an SEC enforcement action. Non-U.S. users can still participate.

3. NFT Marketplace

Kraken launched its own NFT platform supporting popular collections like:

The marketplace enables direct buying, selling, and bidding using crypto—though it remains smaller than OpenSea or Blur.

4. PTT and Community Feedback

On forums like PTT (a popular Taiwanese discussion board), Kraken receives generally positive reviews:

“One of the few exchanges I trust besides Coinbase.”

However, some users note drawbacks:

“Higher fees compared to other platforms,”
“Fewer altcoins and lower leverage options.”

These sentiments reflect a broader perception: Kraken prioritizes safety over aggressive product expansion.


Registration Process and Verification

Signing up is straightforward:

  1. Visit kraken.com (external link removed per guidelines)
  2. Enter email, username, and password
  3. Verify your email address

To unlock full trading capabilities, complete Intermediate Verification:

Most users gain approval within 24–48 hours.

👉 Learn how fast and secure exchange verification can enhance your trading experience


Fee Structure: Spot, Futures, and Withdrawals

Kraken uses a tiered fee model based on 30-day trading volume.

Spot Trading Fees

30-Day Volume (USD)Maker FeeTaker Fee
$0 – $50,0000.16%0.26%
$50K – $100K0.14%0.24%
$100K – $250K0.12%0.22%
$250K – $500K0.10%0.20%
$500K – $1M0.08%0.18%

Fees decrease incrementally for higher-volume traders.

Futures & Derivatives Fees

30-Day VolumeMakerTaker
$0 – $100K0.02%0.05%
$100K – $1M0.015%0.04%
$1M – $5M0.125%0.03%
$5M – $10M0.01%0.025%

Note: There appears to be a typo in original data; likely "0.0125%" intended.

Additional Costs

Compared to competitors like OKX or Binance, these fees are relatively high—especially for small traders.


Frequently Asked Questions (FAQ)

Q: Is Kraken safe for long-term crypto storage?
A: Yes. With 95% of assets in cold storage and regular Proof of Reserves audits, Kraken is among the safest custodial options available.

Q: Can I trade with USD or EUR on Kraken?
A: Absolutely. Kraken supports direct fiat on-ramps using USD, EUR, CAD, GBP, JPY, and others via bank transfer or wire.

Q: Does Kraken offer a mobile app?
A: Yes. The Kraken app is available on iOS and Android for trading, staking, and portfolio tracking.

Q: Why are Kraken’s fees considered high?
A: While not the cheapest, Kraken justifies its pricing with superior security, compliance, and institutional tools—targeting serious investors rather than day traders.

Q: Is Kraken suitable for beginners?
A: It can be used by beginners, but its interface leans toward advanced users. Newcomers may find platforms with better tutorials and lower fees more approachable.

Q: Is customer support available in Chinese?
A: Limited. While some content is translated, most documentation and support channels are English-only—posing challenges for non-English speakers.


Final Verdict: Pros and Cons

Pros:

Cons:

👉 Compare leading exchanges with robust security and low fees


Conclusion

Kraken stands out as a secure, compliant, and institutionally trusted cryptocurrency exchange—ideal for users who prioritize fund safety over aggressive yield or expansive token listings. While its fees are on the higher side and its user experience less beginner-friendly than some rivals, its track record since 2011 speaks volumes.

If you're based in a supported country and value transparency over low costs, Kraken remains a top-tier choice in the evolving digital asset ecosystem.

For those seeking lower fees or broader altcoin exposure without sacrificing reliability, alternatives like OKX offer compelling benefits—especially for active traders.

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