Kraken Review 2024: Top Crypto Exchange [For Canada]
Key Takeaways
1. A Platform for Experienced Traders
Kraken is an intuitive trading platform but is definitely designed with more advanced traders in mind.2 .Very Strong Site Security
Kraken has world-class security for its platform including 2FA for logins and crypto assets being held in cold storage.3. Wide Range of Cryptos to Trade
Kraken has one of the most complete lists of cryptos to trade in Canada with over 220 different coins.4. Committed to Staying in Canada
Kraken has committed to staying in the Canadian market and is working with regulators to comply with Canadian Securities laws.5. Low Trading Fees
Kraken Pro has some of the lowest spreads in the industry with a maker/taker structure that has lower fees the more you trade.
- Intuitive trading platform
- Low trading fees
- Desktop and mobile apps for both iOS and Android
- Over 220 different cryptos to trade
- Licensed to operate across Canada
- Around-the-clock customer support
- Industry-leading staking services
- Strong security features
- Deposits and withdrawals can be confusing
- Slow deposit and withdrawal transactions
- No support for income tax reporting
- Not a beginner-friendly platform
What is Kraken?
Kraken is an American centralized cryptocurrency exchange that is based in San Francisco, California. It was established in July 2011 by Jesse Powell, Thanh Luu, and Michael Gronager. Powell was one of the consultants for crypto’s first centralized exchange, the infamous Mt. Gox.
He started working on Kraken as a replacement for Mt. Gox which would succumb to security breaches from hackers in 2014 [1]. Kraken is considered one of the largest global crypto exchanges with over 9 million users across 190 different countries.
As of 2022, Kraken had a business valuation of over $10 billion.
Kraken is well-respected in the crypto industry as one of the oldest crypto exchanges. Considering that Bitcoin itself was only founded in 2009, Powell was already developing Kraken in 2011. Kraken also boasts one of the strongest security reputations in the industry and has never had a major security breach in its history.
It is also a full-service crypto exchange as it offers things like crypto staking, futures trading, and margin trading. As of June 2023, residents of Ontario cannot partake in Kraken’s margin or futures trading services.
Despite major crypto exchanges like Binance and OKX exiting Canada earlier in 2023, Kraken is determined to continue to operate in the country. Kraken is working with the Ontario Securities Commission (OSC) to become a registered Restricted Dealer. The exchange already operates as a money services business with FINTRAC in Canada.
In this Kraken review article, I will provide an in-depth analysis of using the site for trading and investing in various cryptocurrencies. I will look at Kraken’s fee structure, its vast coin selection, as well as its general advantages and shortcomings. If you are looking for a new Canadian crypto exchange now that Binance is on its way out, here is my honest take on using Kraken in Canada in 2023.
Kraken Review: A Comprehensive Analysis
In the following section, I’ll dissect my rating and dive into the specific aspects that justify why Kraken has earned a solid 4 out of 5 score from me.
Ease of Use (3.5/5)
Fees (4/5)
Cool Features (4/5)
Coin Selection (5/5)
Mobile App (4/5)
Safety Features (5/5)
Customer Support (4/5)
Where Kraken Shines
1. Intuitive Trading Platform
Whether you are using Kraken or Kraken Pro, the trading process is smooth and intuitive for both new and experienced traders. Kraken cuts out any of the fluff and focuses purely on crypto trading.
The interface of both the mobile and desktop apps has always been clean and simple. While it isn’t exactly bare-bones or no-frills, the Kraken trading platform certainly lacks the graphic appeal of some other crypto exchanges.
As you can see, trading is the heart and soul of the Kraken Pro platform. The main sub-pages allow you to check your portfolio analytics, portfolio holdings, staked cryptos, and transaction history.
With the platform devoted to trading, you are not overburdened or overwhelmed with unnecessary menus and sub-pages. The basic Kraken site is even simpler, with only an option to Buy Crypto and transfer funds.
Again, nothing flashy here but the site is intuitive and provides you with exactly what you need to do. Kraken might not win any graphic design awards but its simplicity has certainly stood the test of time and is a reason why it is so popular with crypto enthusiasts.
2. Low Trading Fees
Kraken is a global brand and one of the largest crypto exchanges in the world. Due to its high trading volume, Kraken Pro institutes a taker/maker fee structure that allows advanced traders to pay fewer fees the more they trade. Unlike other Canadian crypto exchanges which use a spread fee system, Kraken Pro uses your 30-day trading volume as your rate for fees. Kraken Pro’s fee structure is amongst the best in the crypto industry which is why it is such an appealing platform for experienced crypto traders.
For the basic Kraken app, the site uses a spread fee structure which is usually about 1.5% of any transaction. It also depends on the method with which you buy cryptos as debit and credit card payments come with higher fees. As you can imagine, the basic Kraken app’s fees will be higher than the taker/maker structure on the Kraken Pro app.
With the Kraken NFT Marketplace, users will pay a 2.0% transaction fee as well as a withdrawal fee. There are no gas fees for NFTs on Kraken, and NFT creators will continue to earn Creator Earnings for every subsequent transaction that the NFT is involved in.
3. Mobile Apps for Both iOS and Android
In this day and age, mobile apps for any crypto exchange in Canada are a no-brainer. Kraken offers both iOS and Android platforms for the Kraken and Kraken Pro platforms. Each mobile app comes with the ability to trade, deposit or withdraw funds, stake, and directly communicate with customer support.
Note that the Apple Store reviews for both Kraken apps are higher than on the Google Play store. Having used the mobile app for both Android and iOS, I didn’t experience much of a difference between the two systems. Always take those ratings with a grain of salt, but the Google Play versions did have a lot more ratings and reviews than the Apple Store apps.
4. Over 220 Different Cryptos to Trade
With over 220 different cryptocurrencies available for trading, Kraken offers one of the widest ranges of coin selections in Canada. I won’t list them all, but Kraken has all of the largest crypto projects available as well as some of the smaller altcoins and DeFi projects as well.
Kraken supports all of the major networks including Bitcoin and the Bitcoin Lightning Network, Ethereum ERC-20, Solana, Polygon, Arbitrum, and Ripple. On top of that, Kraken accepts a number of different currencies including Canadian Dollars, US Dollars, the Euro, and Japanese Yen.
5. Licensed to Operate Across Canada
Many of you will have heard about the recent reshuffling of the Canadian crypto industry. Due to increased regulations over the industry, crypto giants such as Binance, OKX, and dYdX have all announced they will be ceasing operations in Canada in 2023. Kraken looks to be one of the beneficiaries of the game of crypto exchange musical chairs as it has committed to accepting the new regulations and remaining in Canada.
Kraken is fully licensed to operate across Canada including in Ontario. The only difference is that Ontario residents cannot use Kraken’s margin or futures trading services. Kraken is also a registered Money Services Business with FINTRAC and remains one of a handful of global crypto exchanges that the OSC approves. Kraken is also working with the government of Canada to become a Restricted Dealer with the Canadian Securities Administrator (CSA) [2].
6. Around-the-Clock Customer Support
One of the most important features of any exchange is a good customer support team. Given how many countries that Kraken is in, it is not surprising that it has around-the-clock customer service. You can live chat, email, or call, at any time of the day and you will be able to connect with a Kraken customer service agent within minutes.
Another great feature of Kraken is that it connects you to customer service directly within the mobile app too. There are plenty of platforms that only offer customer support through the desktop app but mobile Kraken users can get help no matter where they are. Kraken also offers support in multiple different languages to help support its international clientele.
7. Industry-Leading Staking Services
Canadian Kraken users outside of Ontario have the opportunity to earn more from their crypto investments through the Kraken Earn program. This allows you to stake 14 different types of cryptocurrencies to earn between 1-16% APY on your investment. This service was discontinued in the United States as of February 2023 due to Kraken complying with new stricter regulations from the SEC.
Here is a list of Kraken’s staking options as of June 2023:
8. Strong Security Features
If there is one thing that Kraken is known for it is its reputation for strong security on its site. In the 12 years that Kraken has been in business, it has yet to see a major hack on its platform. This is an incredible feat considering that other major exchanges like Coinbase and Binance have experienced several major hacks.
Kraken has some of the industry’s strongest security measures. It stores over 95% of its crypto assets offline in secure cold storage. Kraken’s network infrastructure is guarded 24 hours per day by armed guards and surveillance, and it holds the highest level of online security standards with an ISO/IEC 27001:2013 certification.
On both the Kraken mobile and desktop applications it enforces 2FA through a third-party authenticator app. Kraken also uses email confirmations for any withdrawals and proper SSL site encryption to protect your data while on the site. If there is one thing Kraken takes seriously, it is security.
Where Kraken Falls Short
1. Making Deposits and Withdrawals Can Be Confusing
For a crypto platform that has figured out site security and trading, it certainly does not make making deposits and withdrawals an easy task. Many users will be confused by the process, especially when trying to deposit or withdraw fiat currencies. Kraken lists all of its fiat currencies with its cryptocurrencies, so you will need to know to search for CAD Canadian Dollars within the list.
When making a deposit or withdrawal, you will need to select CAD from the currency list. Fiat currencies are mixed in with cryptocurrencies creating confusion for inexperienced crypto traders. It isn’t the most complicated system, but from my experience, it wasn’t intuitive enough to search for fiat Canadian Dollars under the crypto asset list.
2. Slow Deposit and Withdrawal Transactions
Kraken has long been criticized for having limited deposit and withdrawal options. While in recent years, Kraken has improved this there still isn’t a lot of optionality for Canadian traders. On top of that, the options that are available like bank wire transfers and through Canada Post outlets are slow to get the funds to your account.
On that note, Kraken has recently introduced Interac eTransfers through a third-party processor called Payper. On Kraken, Interact transfer limits are set at $3,000 CAD. You can also use Bank Frick (SWIFT), wire transfer through Credit Union Atlantic, or use Etana. All of these methods can take a day or more to reach your account. Kraken accepts credit cards as well but a majority of credit cards in Canada do not allow crypto payments.
The same can be said for withdrawals ranging from 1 to 5 days to complete. You can withdraw via Interac eTransfer with Payper as well, but with a maximum withdrawal amount of $4,000 CAD. As can be expected, crypto deposits and withdrawals are without fees and are instantly completed.
3. No Support for Income Tax Reporting in Canada
Another drawback of Kraken is the lack of income tax reporting assistance. In Canada, crypto capital gains are taxed in the same way that other assets like stocks and ETFs are. If you make any money during the year with crypto trading, you will need to report those gains on your federal income tax.
Kraken provides no income tax assistance or trading summaries for Canadian users. You will notice that there is a Tax area under your account, but tax forms are only available for eligible US users. As of now, there is no tax assistance for Canadian users.
4. Not a Beginner-Friendly Platform
You might think this contradicts our first compliment to Kraken that it is an intuitive platform to use. Kraken is intuitive while at the same time not being a beginner-friendly platform.
How is this possible?
For starters, beginners are encouraged to use the basic Kraken trading app which has much higher trading fees than Kraken Pro.
For higher fees, it isn’t really worth using the basic Kraken app. But if you graduate from the Kraken Pro app, you will be thrust into an advanced trading platform with a relatively steep learning curve. Either way, Kraken is a crypto exchange for serious crypto traders and is certainly not as friendly for beginners.
Who Should Use Kraken?
If you’re still uncertain whether Kraken is the exchange for you, check out my section below.
You should use Kraken if…
Kraken might not be for you if…
My Experience with Kraken
As I mentioned, I personally used Kraken and all of its features to write this review article. The first thing that stood out to me is how advanced Kraken is compared to Canadian sites like Newton or Wealthsimple Crypto. Nothing against those apps but Kraken is just a different beast when it comes to actively trading cryptocurrencies in Canada.
I like that there are different levels of Kraken depending on your experience with cryptos. While I enjoyed the interface and layout of the basic Kraken app, I didn’t like that the trading fee structure was much higher. At the same time, the Kraken Pro app was definitely more advanced, and I don’t think I would recommend it to any beginners looking for an easy first exchange to use.
There are definitely things to like about Kraken. I knew that the platform had a reputation for not providing an easy on-ramp for fiat deposits and withdrawals. The addition of Interact eTransfer via Payper was great and for me, it is the easiest way to make crypto transactions in Canada. This is especially true when you consider that most credit cards do not accept crypto payments, especially if they are with any of the big banks.
Two other aspects that I look for in crypto exchanges are customer support and coin selection. Kraken far surpasses my expectations in both areas. The customer support is fast and responsive and is around 24/7. Kraken also has one of the most extensive coin selections in Canada. Earning rewards through Kraken’s staking program was the cherry on top.
Finally, Kraken’s site security is second to none and gave me peace of mind when using the app. If there is one thing that you want from a crypto exchange, it is a secure site and protection of your personal financial data.
Is Kraken the best crypto exchange I’ve ever used? Probably not, but it has more than earned its reputation in the crypto industry. While I can see why advanced crypto traders would enjoy using Kraken, it definitely isn’t the best app for new crypto enthusiasts. There are plenty of Canadian exchanges that offer a simpler introduction to cryptos. Once you get more serious about crypto trading, that is when I would recommend switching over to Kraken.
How to Sign Up for a Kraken Account
Time needed: 15 minutes
- Register for an Account at Kraken.com
Sign up for an account at Kraken.com in just a few minutes. Here you will create a username and a password and select your country and province of residence. Note that your username cannot be changed once you choose it.
- Receive an Activation Email
Once you register your personal information you will receive an activation email from Kraken. Head to your email inbox and open the email. You will find an activation key which you can enter back on the Kraken site. Confirm your login details and solve the CAPTCHA if required.
- Login and Fund Your Account
Here you will log in for the first time and set up your 2FA authentication for logging in. Once you have completed this head over to your portfolio and click on deposit to add funds or cryptos to your account.
- Start Trading on Kraken!
Once you have confirmed that your funds or cryptos have been added to your Kraken account, it’s time to start trading. Choose to trade over 220 different cryptos or stake them to earn rewards with Kraken Earn.
FAQs About Kraken
Absolutely, if there is one thing Kraken takes very seriously, it is its security. Kraken has the highest international rating for online security and holds nearly all of its crypto assets in secure cold storage. It also protects its infrastructure with armed guards, security cameras, and 24-hour surveillance. On top of that, Kraken protects its users with 2FA logins and SSL encryption on its site.
Yes, despite the recent tightening of Canadian crypto regulations, Kraken is determined to work with Canadian authorities to remain in Canada. While margin, leverage, and futures trading are unavailable in Ontario, it is across the rest of the country. Kraken even offers crypto staking in Canada, which was recently banned in the United States.
While Kraken is a secure site, even its CEO Jesse Powell advised crypto investors to hold their investments in cold storage and not on centralized crypto exchanges. Even though Kraken hasn’t had a major breach, it is always safer to hold your cryptos offline and away from malicious hackers.
Yes, Canadian Kraken users can stake up to 14 different crypto assets through the Kraken Earn program. Stake your cryptos and earn up to 16% APY rewards just for holding these cryptos with Kraken.
