- Country: USA
- Markets: Cryptocurrencies
- Deposit methods: bank transfer
- Minimum deposit: 0
- Platform: own
- Leverage: up to 5: 1
- Spread: variable
- Commissions: starting at 0.26%
- Rollover: 0.01% every four hours
What is Kraken?
Kraken is one of the world’s leading Bitcoin brokers, with a very strong institutional profile, with collaborations with the German bank Fidor, the Japanese state and Bloomberg.
The collaboration with the German bank Fidor Bank began in 2013. A year later this collaboration would give birth to the first Bitcoin bank in the world.
With Bloomberg, it was included in the price terminal of the financial giant in 2014.
Furthermore, its charts are integrated into the well-known Tradingview charting service.
This broker, founded in San Francisco, is one of the leaders in the European Bitcoin markets, being a leader in cryptocurrency trading in euros.
One of the main milestones of this broker is having been one of the first to launch leveraged Bitcoin trading in 2015.
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In 2016, it acquired Coinsetter, Carvitex and Clevercoin.
Is Kraken a Scam?
Everything seems to indicate no, since as we have seen, this is one of the cryptocurrency brokers with the best institutional connections in the world and that has a very clear public profile, unlike other darker crypto trading houses.
Kraken’s security measures include:
- Customer deposits are kept in separate systems from any online system or from the company’s funds. Those systems are called “cold wallets”.
- All wallets are encrypted for added security.
- Client access systems are secured by a double verification system.
- PGP / GPG system for login security and email verification.
- All personal information is protected by multiple encryption security systems.
- Kraken’s servers are in totally safe places, kept in fully guarded boxes, with armed surveillance and video cameras.
- The office has all completely independent networks for what reason. For example, customer verification processes and so on are completely separate from the trading network.
- Kraken has segregated funds from clients, just like the most demanding Forex or exchange accounts.
Kraken deposit and withdrawal
To open a cryptocurrency account with Kraken there is no minimum deposit but there will be expenses to be able to make them, although not in all currencies.
- Euro zone: no fees
- USD Zone: 5 USD from the United States and 10 from outside
- CAD zone: no charges for Canada
- JPY zone: 5,000 yen, only for Japan.
As we see, it is an advantageous broker for the euro zone and for that reason it is one of the leaders in Bitcoin trading in Europe.
The main form of deposit is by bank transfer, so in this sense it is somewhat limited.
For withdrawals there will be commissions for all zones, although it has better conditions in the euro zone.
- EUR: 0.09 euros for the countries of the euro zone
- USD: 5 USD for the United States, 60 for outside
- JPY: 20 yen
- CAD: 10 Canadian dollars
Kraken supports the vast majority of the world’s cryptocurrencies by offering trading on:
- Bitcoin (XBT)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Monero (XMR)
- Dash (DASH)
- Litecoin (LTC)
- Ripple (XRP)
- Stellar / Lumens (XLM)
- Ethereum Classic (ETC)
- Augur REP tokens (REP)
- ICONOMI (ICN)
- Melon (MLN)
- Zcash (Zec)
- Dogecoin (XDG)
- Tether (USDT)
- Gnosis (GNO)
- Eos (EOS)
Kraken’s commissions on all of these products are highly variable and product and volume dependent so we have a fairly large and complex commission structure.
For example, we have the following structure for the main pairs:
|Spread||commissions||Leverage||Leverage settlement||Rollover (4 hours)|
As we see, it has purchase and sale commissions that would give us 0.52% if we want to make a transaction.
The spreads vary greatly in one session.
Despite having a good spread most of the time, around 1 or 2 units, there are variations of 5, 10, 20 and more units in a fairly constant way, so it is not an environment that allows us to make a trading based on a stable spread.
This is one of the best brokers to trade with Bitcoin, without a doubt.
The best thing about it is its support and good institutional relations with some of the most important companies in the financial world like Bloomberg.
This does not mean that it is a 100% secure broker, but there is no broker that is, not even the institutional brokers of the Stock Exchange, and if we do not remember the case of Refco.
Within the world of cryptocurrency trading, it is one of the brokers that offers the best conditions.
The spreads are quite good, but if we want to trade we will already have to count that we will not be able to have a constant spread, which makes the effective cost of trading much higher than it seems and we have to use strategies with orders much more loose stop signs.
For example, the fact that it has a spread of $ 1 but it rises to 25 in the next minute, makes it difficult for us to scalp with a stop order of $ 10, obviously.
As with most Bitcoin brokers, we will have to operate in a certain way.
As for the fact of providing margin, it is a point that gives you an advantage over other brokers that only offer trading without leverage.
However, based on my experience and from what I can see in the spreads and trading costs, you should not use trading, because there is still no adequate price structure for it. Only true professionals and expert traders should try to implement Bitcoin leveraged trading , but with quite a bit of risk.
Regarding the opinions of Kraken in the market, we find a variety in them, because at the same time that it is considered a serious broker in the cryptocurrency world, we also have that it has worsened its service lately, in theory.
For example, there are opinions that say Kraken has disabled many trading orders, such as stop loss, stop limit and more, which makes trading on it difficult.
On the other hand, it also seems that there are problems to obtain customer service quickly, since the broker seems to be overflowed.
In addition, according to users it is not the best broker to trade Bitcoin with the dollar, as there are data and volume problems.
According to most traders, it is a good broker to trade in euros where it is the market leader.
One last small complaint is that it has a somewhat high deposit and withdrawal fee structure for those who operate in dollars, so we return to the initial question that it is a better broker to trade with euro accounts from Europe.
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