FTX and Kraken are two of the world’s most popular cryptocurrency exchanges. Both platforms offer their users a wide variety of features and products, but which offers lower trading fees? This article will provide an overview of trading on both platforms and examine their fees side-by-side.
Founded in 2011, Kraken is one of the world’s longest-running cryptocurrency trading platforms. The San Francisco-based exchange is available to users in 176 countries and allows users to trade a wide variety of digital and fiat assets.
Kraken is among the top bitcoin exchanges in euro volume and liquidity. It offers its users a wide variety of features, including spot and margin trading, staking, and advanced order types.
Though smaller in overall scale and volume compared to exchanges like Coinbase and Binance, Kraken offers a robust trading experience for advanced traders on a US-regulated, secure platform.
What are the pros of trading on Kraken?
Kraken offers many benefits to its users. The exchange hosts over 145 digital assets and allows users to fund their accounts with a variety of traditional currencies including US Dollars, Euros, and Canadian Dollars.
In addition to trading between cryptocurrencies, Kraken users can also engage in forex trading between fiat currencies. Kraken was one of the first exchanges to offer advanced order types and trading tools to cryptocurrency traders. Today, users still take advantage of the platform’s stop loss, profit-taking, and automated strategy features. Kraken offers 24/7 live chat support, a rare but popular feature among cryptocurrency exchanges.
- Large selection of cryptocurrencies and tokens
- Advanced trading features for high volume traders
- Margin trading for advanced users
- Lower fees for advanced traders
- 24/7 Live Chat Support
What are the cons of trading on Kraken?
Kraken’s user interface is geared towards advanced users and may confuse beginning traders. Though the platform offers a wide variety of features, some users find the interface to be overloaded and difficult to navigate.
The exchange also requires new users to undergo a lengthy verification process, which can be frustrating for those who want to start trading quickly.
As one of the first cryptocurrency exchanges to come online, Kraken has seen the industry through rapid growth and adoption periods. During periods of high traffic and trading volume, the exchange has struggled with connectivity and performance problems in the past. Though based in the United States, Kraken is not available for residents of New York and Washington State.
- Interface and services tailored to advanced users
- Lengthy verification process & slow account funding
- High fees for instant purchases and SWIFT withdrawals
- Connectivity and performance issues during high traffic periods
- Not available in all 50 states
What tokens are available on Kraken?
Kraken hosts over 145 cryptocurrencies and tokens for trading as of April 2022. The most popular assets in the industry are available on the exchange, including Bitcoin, Ethereum, Litecoin, Ripple, Monero, and Zcash.
Advanced users can unlock leverage and futures trading capabilities after completing the platform’s highest level of Know Your Customer (KYC) verification.
What are the fees on Kraken?
Kraken charges different fees in different locations on the platform. Its instant buy and withdrawal fees are among the industry’s highest, while trading fees through Kraken Pro offer advanced users a reduced fee structure.
Instant Buy Transaction Fees:
- 0.9% for stablecoin purchase
- 1.5% for all other cryptocurrency and FX assets
Payment Card Processing Fees:
Digital Wallet Payments Processing Fee:
Online Banking/ACH Processing Fee:
Kraken Pro Trading Fees:
Kraken offers a tiered fee structure that rewards users who trade more frequently with lower fees.
FTX is a cryptocurrency and derivatives exchange established in 2019. Founded by traditional finance and big tech veterans, FTX offers innovative products and services to beginning and advanced traders alike.
The FTX platform is designed to address the needs of professional traders while providing an easy-to-navigate interface suitable for beginners as well.
The exchange currently supports over 320 digital assets. It offers a variety of features to its users, including industry-first derivatives products, options contracts, and support for both Ethereum and Solana-based NFT trading.
FTX is licensed in several jurisdictions and offers services to over 150 countries with some of the lowest fees in the industry.
What are the pros of trading on FTX?
The FTX platform offers a wide variety of features and products tailored to both beginning and advanced traders alike. The exchange supports spot, margin, and derivatives trading and provides users with a variety of innovative products, including industry-first products like leveraged tokens, tokenized stocks, and volatility tokens.
FTX offers additional benefits to its users through the platform’s utility token, FTX Token (FTT). Users can unlock trading fee discounts, maker fee rebates, participate in airdrops by holding FTT and unlock further benefits by staking the token on the platform.
- Some of the lowest trading and funding fees in the industry
- Over 320 cryptocurrencies available for trading
- Support for Ethereum and Solana-based NFTs
- Intuitive user interface appropriate for beginners and advanced traders
- Wide variety of innovative products like leveraged tokens, tokenized stocks, and volatility products
- Account registration and KYC verification completed within minutes
- 1% of all net trading fees will be donated to the world’s most effective charities via the FTX Foundation
What are the cons of trading on FTX?
FTX is a global cryptocurrency exchange with a wide array of products and services. To comply with local regulations, FTX cannot offer its full suite of services to residents of the United States and other restricted jurisdictions. While advanced users may take full advantage of its entire suite of products and services, these may be overwhelming for beginning traders at first. At this time, FTX does not offer live customer support.
- US & prohibited jurisdictions barred from holding & staking FTX Token
- Wide variety of advanced trading options and products may be intimidating to new users
- No live phone or chat support at this time
What tokens are available on FTX?
FTX supports over 320 digital assets, including popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, and XRP. The exchange also supports a variety of altcoins, stablecoins, and tokenized assets. FTX is a proponent of the Solana ecosystem and was one of the first exchanges to offer support for Solana-based NFTs.
In addition to spot trading, users can also trade various derivative products on FTX, including futures, options, and leveraged tokens. FTX was one of the first exchanges to offer options trading and currently offers industry-leading options liquidity.
What are the fees on FTX?
FTX offers some of the lowest trading and funding fees in the industry via a tiered fee structure for all futures and spot markets as follows:
Users can further reduce their trading fees by holding FTX Token (FTT). FTT holders can receive trading discounts of up to 60%.
FTX vs. Kraken at a glance
FTX and Kraken are two of the world’s most prominent cryptocurrency exchanges. Both platforms offer a wide variety of features and products. However, there are some key differences between the two. FTX offers industry-leading products and services. However, not all features are available to US residents.
On the other hand, Kraken is a US-based exchange and offers a wide variety of fiat-to-crypto and crypto-to-fiat pairs. When it comes to fees, FTX offers some of the lowest in the industry. In comparison, Kraken’s fee structure aligns with most other exchanges in the industry. Kraken fees compared to FTX range from 45X the amount for stablecoins or 75X more for trading bitcoin or Ethereum.
- Based in the US
- Offers a wide variety of fiat-to-crypto and crypto-to-fiat pairs
- Industry-leading security
- Advanced trading options
- Fee structure on par with other exchanges in the industry
- Designed for beginning and advanced traders
- Industry-leading products and services
- Some of the lowest fees in the industry
- Full suite of features unavailable to US residents
Choosing Between FTX or Kraken
When choosing between FTX or Kraken, there are a few things to consider. Both exchanges offer a variety of features and products on regulated, secure platforms. Both Kraken and FTX are regarded as industry leaders in their own right, so it’s important to evaluate your individual needs before choosing an exchange.
If you’re a US resident, Kraken offers access to more trading pairs, as FTX’s full suite of products and services is unavailable in the United States. For non-US residents, FTX provides a more comprehensive platform with industry-leading products, services, and some of the lowest fees in the industry.
To sum it up, Kraken and FTX are great exchanges with a lot to offer users. It’s essential to evaluate your individual experience and needs and choose the best exchange for your specific situation.