Launched in 2013, Kraken is one of the longest-standing and most reliable cryptocurrency exchanges. With a selection of over 200 coins, including some of the more obscure alt-coins, Kraken is a popular choice for investors and traders. The platform’s emphasis on security makes it a standout in the crypto industry, and its history of no recorded hacks provides reassurance for users.
The ability to stake and earn passive income on your cryptocurrency holdings sets Kraken apart from many other exchanges. All of these benefits come at a competitive price point, making Kraken a great option for both beginners and experienced traders, and the reason it was one of the top performers in our best exchanges for Australians guide.
Note that the collapse of FTX in 2022 has raised concerns about centralised exchanges and their management of user funds, so it’s important to do your research first and don’t invest what you can’t afford to lose. With any third-party custodian, there is always a risk associated with trusting them to hold your crypto assets. You can read more about the safest ways to store crypto with our dedicated guide.
Pros
- Sophisticated features available on Kraken Pro, like margin trading and staking
- Good customer service options, including a chatbot and phone support
- Strong security measures with no reported hacks in the past
- Publishes a wide range of educational material on cryptocurrency.
Cons
- Comparatively high flat trading fees
- No insurance fund for assets on the platform
- Doesn’t offer a crypto credit card.
Table of Contents
Who Is Kraken Good For?
Kraken is available to Australians and supports AUD deposits, withdrawals and has AUD denominated trading pairs; the platform also supports many other countries’ currencies. However, the features available can vary by country or jurisdiction and if you are based overseas, it’s important to check whether the fiat currency you would like to deposit is supported. Kraken supports a limited range of fiat currencies, so if you are based overseas and would like to deposit an unsupported fiat currency, you may need to convert it to AUD first.
What Makes Kraken a Good Choice
Kraken’s top-notch security, low trading fees and solid range of available cryptocurrencies makes it a popular choice for investors who are just experimenting with crypto, as well as more experienced traders.
New users may not wish to stay on Kraken’s beginner platform for too long. Kraken Instant Buy charges a high 0.9% flat fee for stablecoins and a 1.5% flat fee for all other cryptocurrencies. When looking at competitor exchanges, this is definitely on the higher side.
Advanced traders who use the Kraken Pro trading platform are charged very reasonable fees, and also benefit from access to a wide range of cryptocurrency trading markets. Even better, fees decline as trading volumes increase.
More experienced investors should also appreciate Kraken’s wide range of coins, plus their margin trading features which allows Australians to trade different cryptocurrencies against AUD with leverage. There are more than 200 coins available and no bank processing fee.
Kraken’s Disadvantages
Kraken’s beginner trading program, Instant Buy, has some pretty hefty trading fees, and unfortunately, beginner crypto investors may not be aware of how uncompetitive they are.
For traders using Instant Buy, the platform charges 1.5% on all trading pairs and 0.9% if the user wants to trade stablecoins. Investors should tread cautiously with even the most simple crypto trading on Kraken, or any other platform.
Kraken Features
Trading Fees
There are different fees for using Kraken’s Instant Buy option, which may appeal to beginners less experienced with maker/taker models. Instant Buy allows you to buy crypto quickly, but fees are much higher than if you used the Kraken Pro trading platform. Users would be better served learning how to use the trading platform to minimise costs.
With Instant Buy, the company charges a fee of 0.9% for stablecoins and 1.5% for other cryptos. Users are also saddled with a 0.5% processing fee if they use an online bank account to purchase their crypto. If you use a credit or debit card, other fees apply.
For users who opt for Kraken Pro, fees are considerably lower. It charges a 0.16% maker fee and a 0.26% taker fees for trades of $50,000 or less based on activity within the last 30 days.
The table below shows the pricing tiers for Kraken Pro:
Security
Over the years, cryptocurrencies have proven particularly vulnerable to hacks resulting in millions of dollars in lost coins. While most hacked exchanges have reimbursed their clients for any lost value, you don’t want to wind up at a crypto exchange with poor cybersecurity that might leave your coins ripe for the picking.
Kraken takes its commitment to security seriously, ranking second on the crypto exchange security review site CER. Notably, Kraken has not had any major hacking events. That said, there are user complaints about Kraken on online forums about hacked individual accounts.
Not only does Kraken offer safe coin storage, with 95% of deposits held offline in cold storage units spread across the world, but it also promises platform security. Its servers are kept in secure cages under 24/7 surveillance by armed guards and video monitors.
In addition to physical security measures, Kraken encrypts all of your sensitive contact information at the system and data level and regularly engages in vulnerability testing of its own system. Recently, Kraken received the CSO50 Award for its security initiatives.
Opening a Kraken Account
The Instant Buy platform can make Kraken a pricey way to get into crypto, but there are no barriers to entry if you’re just getting started. You will be verified within minutes.
Once you’re verified, you can fund your account with fiat currency, such as U.S. dollars, and start purchasing cryptocurrencies. The platform accepts credit card and debit accounts to fund your account.
New investors may also feel a little overwhelmed by Kraken’s assumption of customer knowledge, although the platform does offer decent educational information—you’re mostly on your own with the actual investing.
Top 30 Coins Available on Kraken
Kraken offers more than 160 cryptocurrencies in Australia. For a full list of the cryptocurrencies available on Kraken, see the company’s Prices page.
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- USD Coin (USDC)
- Ripple (XRP)
- Cardano (ADA)
- Polygon (MATIC)
- Dogecoin (DOGE)
- Solana (SOL)
- Polkadot (DOT)
- Shiba Inu (SHIB)
- DAI (DAI)
- Tron (TRX)
- Litecoin (LTC)
- Avalanche (AVAX)
- Uniswap (UNI)
- Cosmos (ATOM)
- Wrapped Bitcoin (WBTC)
- Chainlink (LINK)
- Ethereum Classic (ETC)
- Monero (XMR)
- Filecoin (FIL)
- Bitcoin Cash (BCH)
- Aptos (APT)
- Lido DAO Token (LIDO)
- Stellar ((XLM)
- Near Protocol (NEAR)
- Quant ((QNT)
- Internet Computer (ICP)
- Apecoin (APE)
Our Methodology
Our methodology involved a comprehensive analysis of nearly 25 international and Australian cryptocurrency exchanges, crypto-trading apps, and brokerage platforms that offer crypto trading options.
The trading fees we analysed were based on the lowest trade volume and the most basic version of the platform for each brokerage or crypto exchange.
We assessed each platform using 11 key variables to determine their overall quality:
- Basic Trading Features: We evaluated the number of cryptocurrencies available to trade, the number of fiat currencies accepted, the exchange’s overall liquidity, and trading fees.
- Advanced Trading Features: We examined the availability of complex trading features such as advanced order types and volume discounts for frequent trading.
- Margin Trading: We assessed margin trading rates, if applicable.
- Platform Availability: We analyzed the degree of accessibility to different features by country.
- Customer Service: We evaluated customer support options.
- Educational Resources: We assessed the educational content offered by each platform.
- Crypto Rewards Credit Card: We noted if any platforms offer crypto rewards credit cards.
- Security and Storage: We evaluated the types of storage options, security and insurance available, and any large-scale hacks of each exchange over its lifetime.
- Staking and Rewards: We evaluated whether some platforms allow users to stake selected cryptos and earn interest payments.
- Crypto Lending: We evaluated if some crypto exchanges allow users to lend out their cryptocurrency.
- Registration: We ensured that the exchanges we surveyed were registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to legally provide digital asset exchange services to Australians.
We then used a weighted average of these variables to calculate each platform’s overall score. Our methodology benchmarks the features and options across the crypto exchanges and brokerages we surveyed.
This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.
FAQs
Is Kraken a reliable exchange?
Established in 2011 and formally launched in 2013, Kraken is one of the oldest exchanges and is considered a reliable cryptocurrency exchange by many within the crypto community. It boasts no recorded hacks, providing reassurance for prospective users, and takes its commitment to security seriously, ranking second on the crypto exchange security review site CER.
What is the main disadvantage of Kraken?
One of the main disadvantages of Kraken is its comparatively high flat trading fees on instant buys/sells, with a 0.9% fee for stablecoins and 1.5% for other cryptos, which can be uncompetitive compared to other exchanges, and may not be suitable for beginner crypto investors who are not aware of these fees.
Does Kraken report to ATO?
Crypto exchanges operating in Australia must report certain details about their users to the Australian Tax Office (ATO). All regulated exchanges have data-sharing agreements with the ATO, which mandate the reporting of user identities, trade activity and potentially other relevant data. This is part of the ATO’s efforts to ensure transparency and compliance with Australian tax laws, particularly concerning capital gains and income from cryptocurrency transactions.
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