In this definitive guide, we analyze customer ratings, Kraken’s security, interface, and customer service to see if it’s truly the best exchange in 2024.
Kraken is a cryptocurrency exchange where millions have chosen to buy and trade crypto.
The current CEO of Kraken is David Ripley, who replaced co-founder Jesse Powell in 2022.
2024 legal battles: The SEC filed a lawsuit against Kraken and argued the platform operates as an unregistered securities exchange.
Brief overview of Kraken Exchange
Current revenue
In 2024, Kraken is expected to have revenue of between $1 billion and $2 billion. (The wide range of that estimate is due to the volatility of the crypto market). The bullish case assumes a 7% share of crypto-trading worldwide and continued synergies between its exchange and bank operations.
Current fees
Kraken fees depend on how you use the platform. Using the instant buy/convert feature on the beginner platform cost more than it does to trade on its Pro platform. Kraken’s fee schedule is posted here.
Kraken Pro users reasonable fees and can access a wide range of crypto trading markets. Additionally, fees decline as trading volumes increase.
Kraken benefits
Offers a wide range of cryptocurrencies — over 230 different cryptocurrencies and more than 130 crypto trading pairs
Kraken Pro (the platform’s advanced service) offers relatively low fees, especially for high-volume traders
Secure platform: Kraken emphasizes security (e.g. two-factor authentication (2FA) and cold storage for funds)
Many customers report successful interactions with customer support
Offers staking and margin trading for people based outside America
Why customers dislike Kraken
On Kraken’s beginner platform, Instant Buy charges hefty fees compared to other exchanges (i.e., a 0.9% flat fee for stablecoins and a 1.5% flat fee for other cryptos). Also, margin trading is restricted to users with large account balances.
Complaints about Kraken
Entry-level fees can be high
There are limitations to depositing funds for American customers
Some customers complain about slow response times and accounts that were frozen unfairly
Customer service issues are mentioned frequently
Kraken exchange review
User interface and design
Kraken claims that its “Easy onboarding process and sleek user interface let you manage your financial freedom with ease.”
Not everyone agrees though. On Reddit, a customer wrote,
“I think that the new UI is so bad that it goes way beyond a simple preference for the familiar… I feel like I’m flying blind with the new UI.”
Another customer there concurs, writing,
“Thank you for bringing up this point. I have been doing trading on Kraken for years now, & as much as I love Kraken, I absolutely loathe (hate) this new pro interface. It is absolutely horrendous in every possible way…They have sacrificed functionality for pretty colors & gradients.”
Trading fees and limits
Kraken’s fees are similar to or lower than those of other popular exchanges. For example, the maker-taker fees on its Pro platform are higher than those of some other platforms yet lower than those of Coinbase. “Middle of the road” is a good description.
How do trading fees work at Kraken? The platform’s site explains it all.
Kraken charges a fee when an order is executed (matched with another client’s order). The fee ranges from 0% to 0.40% of the total cost (value) of the order and depends on the following:
Customer’s 30-day trading volume (in USD)
The currency pair that is being traded
Whether the order is maker or taker
Orders that are cancelled before being executed (also known as “untouched” orders) do not incur any fees.
Kraken currently offers 245 cryptocurrencies, including Bitcoin (BTC), Ether (ETH), EOS (EOS), Solana (SOL), and non-fungible tokens (NFTs). Here is a complete list.
It also allows cryptocurrency derivatives and futures and deals with seven fiat currencies, which is similar to other comparable cryptocurrency exchanges. The platform also has high liquidity, which it says makes it easier to buy and sell at a fair price.
Security measures
Kraken bills itself as leading the industry in security (both physical and financial) and it definitely encourages users to develop healthy security habits.
Some of the security measures the platform uses to protect customers:
2FA to keep accounts secure
No Phone/SMS account recovery
Configurable account timeout
Global settings time lock
Sensitive account information is encrypted
User funds stored in offline “cold” wallets isolated from online systems and hackers
Security flaws
However, in June of 2024, an unnamed security researcher exploited an “extremely critical” zero-day flaw in Kraken’s platform to steal $3 million in digital assets.
After, Kraken’s Chief Security Officer, Nick Percoco, wrote on X,
“The ‘security researcher’ disclosed this bug to two other individuals who they work with who fraudulently generated much larger sums. They ultimately withdrew nearly $3 million from their Kraken accounts… They demanded a call with their business development team (i.e. their sales reps) and have not agreed to return any funds until we provide a speculated $ amount that this bug could have caused if they had not disclosed it. This is not white-hat hacking; it is extortion!”
Given this activity, one might reasonably wonder what other potential flaws may exist within the platform.
Customer support
Kraken has both live support and a phone number customers can call. Already, that’s a step better than many exchanges.
Kraken even touts its customer service:
“Kraken’s support team is the best in the industry. Issues that take weeks to solve on other exchanges are usually solved within 24 hours by your support team.”
However, Trustpilot is filled with negative reviews of Kraken’s support. There, customer Kevin Soell writes,
“I have a problem with a deposit, opened a ticket and after an initial response, the team hasn’t given me any update since 2 months. I’m still waiting for my money.”
Here are some other negative comments posted there:
“It’s nearly impossible to reach support.”
“I wish I could leave a zero stars for support!”
“Their support desk is completely unresponsive.”
“Contacted support several times got no reply.”
“Terrible service. My ticket has been pending for months and there is no other follow up than some standard templates.”
Kraken users should beware of this outpouring of negativity when it comes to customer support.
If you’re in America, you can deposit money (using a Plaid bank transfer) for free at Kraken. Fees for other ways of depositing fiat money vary depending on the payment method.
For example, one customer reported buying $50 worth of ETH via debit card and paying a fee of $2.84 (about 5% of the transaction) plus a spread of almost 1%.
Purchases must be at least $10, and there is a limit to how much you can buy in any one week.
Withdrawals
Kraken’s withdrawal fees depend on the cryptocurrency and blockchain network involved. Withdrawals to U.S. bank accounts are free via ACH. These can take up to two business days to process. Crypto bought in USD using a credit or debit card may lead to a hold of up to 72 hours on withdrawals.
All margin fees are applied in addition to trading fees at the opening and closing of margin positions. Eligible clients are able to maintain open spot positions on margin for an unlimited duration, as long as margin requirements are met.
These fees are current as of publication (June 2024) but may change based on market conditions and other factors. Always check Kraken’s official website for the latest information.
Cons of Kraken exchange
Common issues at Kraken
Downtime: Kraken maintenance periods mean services can sometimes be temporarily unavailable. Funding Delays: Some customers say deposits can wind up delayed Sign-in difficulties: Some customers report problems logging in. Browser Issues: Customers report issues with different web browsers (e.g., Page Not Found errors or blank pages).
Issues with the SEC
Kraken and several other crypto exchanges have been targets of the SEC. The SEC accused Kraken of selling unregistered securities, among other issues. Kraken denies the charges and has filed a motion to dismiss them. More on this ahead.
Geographic limitations
New York and Washington State residents are ineligible to create an account and start trading on Kraken. There are also restrictions on how Americans can use it (e.g., they can’t earn rewards via staking or trade futures on the exchange). Margin trading is also restricted to institutional investors and people with a high net worth.
Customer service
Kraken offers 24/7 customer service, phone support, and a help center. However, it scores only 1.4 out of 5 at Trustpilot (a home for customer reviews). Reviewers complain about lackluster support and delays in funds hitting their accounts.
Also, due to increased demand, account verification may be delayed. Please avoid submitting multiple requests, and for best results, review our document requirements beforehand.
2024 legal battles
The SEC says Kraken unlawfully facilitated the trading of crypto asset securities, leading to nine-figure profits.
SEC Lawsuit
The U.S. Securities and Exchange Commission (SEC) filed a 90-page lawsuit against Kraken, accusing it of multiple securities law violations.
The lawsuit contends Kraken unlawfully did the following:
Unlawfully facilitated the trading of crypto asset securities.
Commingled customer funds with corporate assets, exposing customers to a “significant risk of loss.”
Operated as an unregistered securities exchange, broker, dealer, and clearing agency since 2018.
It’s worth noting Kraken is mounting a vigorous defense against the SEC’s claims.
Impact of SEC lawsuit
How will the SEC’s actions affect Kraken?
Kraken exchange may need to adjust operations, obtain new licenses, and enhance customer protections.
Kraken’s reputation may take a hit if customers think it’s operating within legal boundaries.
Kraken might need to spend more on compliance and security, which could impact profitability.
Kraken exchange in 2024
Potential for growth and expansion
Funding
Kraken is reportedly seeking more than $100 million in a funding round before launching a possible initial public offering (IPO). Kraken has said:
“We are always exploring strategic paths toward Kraken’s Mission: accelerating the global adoption of crypto.”
Acquisition
In other growth news, Kraken acquired TradeStation Crypto, the digital assets unit of TradeStation Group, in April of 2024, saying it wants to expand its regulatory licensing in America:
“The transaction is part of our efforts to accelerate our U.S. presence and will unlock further growth and new product opportunities for Kraken in the U.S., ” a Kraken spokesperson said.
Kraken International
In February of 2024, Kraken also introduced Kraken International. It aims to be a one-stop shop for Kraken products for institutions, asset managers, hedge funds, and high net-worth individuals.
“We’ve been the leading crypto exchange for more than a decade and through Kraken International, we’ll offer the same deep expertise and cutting-edge technology to propel trading excellence for institutions, ” said Kraken CEO David Ripley.
Impact of future regulations on Kraken
How will regulators impact Kraken moving forward? The platform is under the microscope, and we will need to monitor the situation closely.
Marcus Hughes, Kraken’s global head of regulatory strategy, said,
“From a Kraken standpoint, we are focused on educating regulators and legislators in their efforts to build out their regulatory frameworks along with others on a global stage. Aligning these regimes effectively ensures that crypto investors and institutional adopters have clear and consistent rules of engagement, regardless of where in the world they are based.”
So far, that approach has achieved mixed results. The SEC charged Kraken with violating securities laws by not registering for its staking-as-a-service program. Kraken settled the charges by paying a $30 million fine and discontinuing its staking service in America.
Another lawsuit filed by the SEC in November 2023 alleged Kraken was operating an unregistered securities trading platform. Kraken’s lawyers are urging the court to dismiss the claims. The exchange claims the allegations are unfounded and could have a negative impact on U.S. financial regulatory structure. However, the SEC claims its enforcement action falls within its Congressional mandate.
Predictions for the cryptocurrency market in 2024
Thus far in 2024, the crypto market has continued pushing higher.
According to Fidelity, the 2024 Bitcoin halving, the possibility of a spot Ethereum ETP, and the impact of Ethereum’s Dencun Upgrade could all help crypto prices continue to rise moving forward.
Many experts are forecasting a tight supply environment for Bitcoin in 2024 too.
“The increasing percentage of illiquid coins (over 70% haven’t moved from a crypto wallet in more than a year according to coinmetrics.io, the highest percentage ever), the continuation of coins being withdrawn from exchanges, and finally, the 2024 Bitcoin halving, ” according to Fidelity’s Chris Kuiper. “On-chain metrics (data that can be seen by reading blockchain records) suggest the bull market is not showing signs of exhaustion yet.”
Many experts are also forecasting a tight supply environment for Bitcoin in 2024.
“The increasing percentage of illiquid coins (over 70% haven’t moved from a crypto wallet in more than a year according to coinmetrics.io, the highest percentage ever), the continuation of coins being withdrawn from exchanges, and finally, the 2024 Bitcoin halving,” according to Fidelity’s Chris Kuiper. “On-chain metrics (data that can be seen by reading blockchain records) suggest the bull market is not showing signs of exhaustion yet.”
Of course, there’s always the possibility of significant drawdowns, too. Investors should always consider the potential downside, too.
New features and improvements on Kraken Exchange
The best place to track improvements to Kraken is on the site’s new features page. Some of the most recent headlines there:
Introducing right-click trading: Place limit and stop orders directly from price charts
Create custom layouts on Kraken Pro
Announcing trailing stop orders on Kraken Pro
ETH deposits and withdrawals are now available on zkSync Era!
Now live: Price Alerts on Kraken Pro
Announcing Iceberg Orders on Kraken Pro
Competition in the cryptocurrency exchange industry
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Fans of Kraken enjoy the exchange’s reasonable fees, a wide range of cryptocurrencies, and security features.
On the negative side: Others complain of high entry-level fees. The exchange has also received complaints about poor customer service. The SEC has targeted it in lawsuits and may continue to do so. The potential impact on customers is unclear.
Given the poor overall rating and extremely negative reviews of Kraken at Trustpilot, potential customers would be wise to proceed with caution.
Final thoughts
If you are seeking a variety of cryptocurrencies, Kraken may be a suitable exchange option. Its fees and security offerings seem in line with those of many of its competitors.
However, Kraken’s TrustPilot Rating of just 1.4 out of 5 stars is alarming. And the SEC’s platform targeting could create additional issues for Kraken in the future.
Also, in our (admittedly biased) opinion, Bitcoin is the best way to go when it comes to crypto, and Swan is the best way to start buying it. You can use Swan to start buying Bitcoin in minutes with no fees. Plus, given the friendly customer support and educational materials there, it’s a great place to onboard your friends and family, too.
Matt Ruby
Matt Ruby is a seasoned content writer helping educate million worldwide about Bitcoin for Swan. Matt work with tech companies to create words, videos, and other content that makes them seem human. He specializes in taking boring/drab tech topics and making them interesting, educational, funny, and accessible to regular people.
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