Kraken

Overview of Kraken

Kraken is an unregulated broker that operates in the United States and has a global business presence. The broker has a high potential risk and has received a low score of 1.48/10 from WikiFX due to numerous complaints. The lack of regulation means that there is no government agency overseeing Kraken's activities and protecting its customers. The complaints against Kraken allege fraudulent and unethical practices, including refusing to allow customers to withdraw their funds.

Kraken offers various market instruments, including cryptocurrencies, NFTs (Non-Fungible Tokens), and Kraken Futures. Users can buy and sell over 200 cryptocurrencies, participate in the growing world of NFTs, and engage in futures trading with leverage. However, it's important to note that these offerings come with the associated risks of the volatile cryptocurrency market.

Kraken provides different account types but does not support joint accounts with two different names. While they offer a demo account for Kraken Futures to practice trading, they do not provide test accounts with virtual balances for other services. The broker allows the designation of multiple accessors for business accounts but does not support linking multiple accounts together.

In terms of trading platforms, Kraken offers the Kraken app, Kraken Pro for power users and professionals, and the discontinued Kraken Futures app. The Kraken Classic platform is accessible through the Kraken website, and users can switch between different interfaces using the App Switcher feature.

Kraken provides a range of payment methods, including bank transfers, debit/credit cards, and digital wallets. However, each method may have specific requirements, fees, and processing times.

While Kraken offers educational resources on cryptocurrencies, NFTs, and technical aspects of cryptocurrency, it's important to consider the broker's unregulated status and the associated risks before engaging in any transactions with them.

Pros and Cons

Kraken, a popular cryptocurrency exchange, presents a range of pros and cons for users. On the positive side, Kraken offers a diverse selection of cryptocurrencies, allowing traders to explore various investment options. Additionally, the platform provides different account types to cater to different user needs. For those seeking leverage options, Kraken offers leverage trading, enabling users to amplify their positions. The exchange also provides educational resources to help users enhance their understanding of cryptocurrency trading. Moreover, Kraken supports multiple payment methods, making it convenient for users to deposit and withdraw funds. On the flip side, Kraken lacks regulation and oversight, which may raise concerns about the security of user funds. The exchange has faced multiple complaints and allegations of fraudulent practices, casting doubt on its credibility. Furthermore, while Kraken primarily focuses on cryptocurrencies, it may not be suitable for those looking for a broader range of assets. Users may also experience uncertainty regarding the deposit and withdrawal processes, as well as face withdrawal holds and limitations. Additionally, Kraken has limited support for joint accounts and linking multiple accounts, which may be a drawback for certain users. Lastly, the platform lacks a comprehensive set of trading tools, which could limit the options available for advanced traders.

Is Kraken Legit？

Kraken is not regulated by any major financial regulator, such as the Securities and Exchange Commission (SEC) or the Financial Conduct Authority (FCA). This means that there is no government agency that is overseeing Kraken's activities and protecting its customers.

In addition, Kraken has received 7 complaints from WikiFX in the past 3 months. These complaints allege that Kraken has engaged in fraudulent or unethical practices, such as refusing to allow customers to withdraw their funds.

Market Instruments

1. Cryptocurrencies: Kraken offers the ability to buy and sell over 200 cryptocurrencies, including popular ones like Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB), and more. Users can take advantage of the platform to engage in cryptocurrency trading.

2. NFTs (Non-Fungible Tokens): Kraken also provides NFTs for every wallet, allowing users to explore and participate in the growing world of non-fungible tokens. Users can view and potentially acquire NFTs from various collections, such as Castle Kid, SlimHoods, Nyolings, and more. Kraken showcases top collections of NFTs, giving users access to high-quality and sought-after digital art and collectibles. Collections like CLONE X - X TAKASHI MURAKAMI, Milady Maker, Damien Hirst, The Currency, and others are featured, enabling users to explore and potentially acquire items from these collections.

3. Kraken Futures: Users can expand their crypto trading experience with over 95 perpetual futures available on Kraken Futures. These futures contracts are denominated in USD and provide users with the opportunity to trade with leverage. Kraken Pro's futures trading platform offers low fees and advanced trading analytics, allowing users to make informed decisions and monitor their performance and balances from a single portfolio view.

Video URL: https://youtu.be/pCVnpZee5Pk

Account Types

Kraken offers different types of accounts to cater to the needs of its users. Unfortunately, creating a joint account with two different names is not currently supported by Kraken.

Kraken does not provide test accounts with virtual balances for clients to practice trading on their platform. However, they do offer a demo account specifically for Kraken Futures. If you're interested in exploring the futures market, you can create a demo account to familiarize yourself with the platform.

When it comes to linking multiple accounts or creating subaccounts, Kraken supports different types based on the service being used. Kraken Futures Subaccounts are available for use on Kraken Futures, whereas Kraken.com Subaccounts are supported on Kraken Spot for managed institutional clients. While you can create multiple separate accounts, it's important to note that these accounts cannot be linked together. Each account will have its own unique sign-in information, balances, trading volume, fee discounts, and verification status. It is not possible to transfer any of these attributes from one account to another.

For business accounts, Kraken allows the designation of multiple account accessors. However, these accessors would still need to share the same account sign-in information for a business account. This feature allows for multiple individuals to access and manage a business account while using a shared set of login credentials.

How to Open an Account？

To open an account on Kraken, follow these steps:

1. Visit the Kraken website and click on the “Signup” button.

2. Choose between creating a personal account or a business account. For a personal account, select “Create your personal account.”

3. Fill in the required information in the provided fields. Enter your email address, choose a username, and create a strong password.

4. Select your country of residence from the provided options. Note that Kraken's services may be restricted in certain areas, so make sure your country is supported.

5. Read and review the Terms of Service and Privacy Policy. Check the box to indicate your agreement.

6. Click on the “Create account” button to proceed.

If you are interested in opening a business account, follow a similar process but select “Create your business account” instead. Provide the necessary details, including your email address, username, and password. Select your country of residence and agree to the Terms of Service and Privacy Policy.

Leverage

Kraken Futures is a trading platform that offers users the opportunity to engage in leveraged trading. Leveraged trading is a method of trading where traders can borrow funds to amplify their positions in the market. With Kraken Futures, traders have the ability to leverage their trades by up to 50 times the value of their initial investment.

Fee

Futures Trading Fees:

Kraken charges fees on Futures trades based on a percentage of the notional order value for a matched trade. The fee schedule is determined by the 30-day rolling volume, which means that as traders increase their trading volume, their fees decrease for subsequent trades. The fees vary according to different ranges of 30-day volume, with the Maker Fee ranging from 0.0200% to 0.0000% and the Taker Fee ranging from 0.0500% to 0.0100%.

Margin Trading Fees:

In addition to the margin fees for opening and rolling over positions, Kraken applies the usual trade fee to the opening and closing volume of a spot position on margin. However, there is no fee for settling a spot position on margin. The margin fees are calculated based on the total value of the margin extended for the trade, without deducting any collateral held in the account.

For example, when going Long on BTC/USD, Kraken provides the USD used to purchase the BTC for opening the position. In this case, the margin fee is based on the quantity of USD, and the fee rate will be 0.015%. On the other hand, when going Short on BTC/USD, Kraken utilizes funds from their BTC margin pool for the client to short sell. Here, the margin fees are based on the quantity of BTC sold, and the fee rate will be 0.010%.

Specific Currency Margin Fees:

Kraken also provides a list of specific currencies and their corresponding opening and rollover fees for trading on margin. The opening fee is applicable when opening a position, while the rollover fee is charged for maintaining a position after 4 hours. The margin fees for these currencies are consistently set at 0.02% for both opening and rollover transactions, except for a few fiat currencies like the British Pound (GBP), Canadian Dollar (CAD), Euro (EUR), and US Dollar (USD), which have margin fees of 0.015%.

Deposit & Withdrawal

Cash Deposit Options:

Kraken offers various cash deposit options for users to fund their accounts. These options include bank transfers, debit/credit card purchases, and digital wallet purchases. The availability, fees, minimum deposit amounts, and processing times vary depending on the specific currency and funding provider. However, it's important to note that certain deposits, such as first-time ACH purchases, debit or credit card purchases, or digital wallet purchases, may trigger a temporary 72-hour withdrawal hold on the account for security purposes.

Withdrawal Hold:

Certain deposits, such as first-time ACH purchases, debit or credit card purchases, or digital wallet purchases, can trigger a temporary 72-hour withdrawal hold on the account for security reasons. This hold is implemented to ensure enhanced security. It's important to be aware that for debit and credit card purchases using USD, the 72-hour lock may apply to all purchases, not just the first purchase.

Deposit Methods:

To deposit funds into a Kraken account, users can choose from a range of supported currencies. The most common method is via a bank transfer, where funds are transferred from the user's bank account to their Kraken account using a unique reference number. Additionally, depending on the user's country of residence and account verification level, they may have access to payment methods such as Visa and Mastercard debit/credit cards, digital wallet purchases, or ACH online banking.

Withdrawal Options:

Kraken supports withdrawals in multiple currencies, including USD, EUR, CAD, AUD, GBP, CHF, and JPY. The withdrawal options vary depending on the currency, and each option has its own minimum withdrawal amount, withdrawal fee, and processing time. It's important to note that cash, checks, credit/debit cards, and third-party payment processor withdrawals are not possible on Kraken.

Important Information:

There are some important considerations to keep in mind when making deposits and withdrawals on Kraken. Deposits must match the currency specified in the deposit option to avoid complications. Deposit fees cover Kraken's costs and do not include any charges imposed by the user's bank. Kraken does not accept deposits from certain third-party payment processors. Additionally, specific requirements and restrictions may apply depending on the user's location, and it's advisable to review the most current information on Kraken's website for accurate details.

Withdrawal Information:

Withdrawal methods and details can change without notice, and it's recommended to sign in to the Kraken account and refer to the relevant funding page for the most up-to-date information. The withdrawal options and their respective minimums, fees, and processing times are listed for each supported currency. Processing times are estimates and subject to factors outside of Kraken's control. Users should be mindful of banking holidays that may impact withdrawal processing. If a withdrawal does not arrive within the estimated timeframe, specific steps should be followed as outlined by Kraken's instructions.

Pros and Cons

Trading Platforms

1. The Kraken app: The Kraken app is a retail trading platform offered by Kraken. It allows users to buy cryptocurrencies using payment cards or ACH online banking. Users can also deposit and withdraw cash and crypto, monitor prices, track their portfolios, and sort by top winners or losers. The app has a beautiful and intuitive design, making it user-friendly. It is available in most regions, with a few exceptions, and can be downloaded from the Android or iOS app stores. Users can sign in with their existing Kraken account or create a new account within the app.

2. Kraken Pro: Kraken Pro is a trading platform designed for power users and professionals. It offers a professional trading experience with features like margin trading with up to 5x leverage (if eligible), advanced order types, multiple charting and order book display options, deposits and withdrawals for existing crypto and cash addresses, and the ability to stake and unstake cryptocurrencies. The platform is available as a mobile app for Android and iOS users, and users can sign in using their existing Kraken account credentials. Kraken Pro provides advanced crypto trading capabilities on the go.

3. Kraken Futures (Discontinued): Kraken Futures was a trading app offered by Kraken for futures trading. However, as of January 27th, 2022, the app has been discontinued and is no longer available for download. Although the app will continue to function on devices with it previously installed, Kraken no longer provides support or updates for it. Users can access the futures trading platform through the mobile-friendly website at futures.kraken.com.

4. Kraken Classic: Kraken Classic is the original legacy platform of Kraken. It serves as a trading platform where users can buy, sell, trade, and stake their cryptocurrencies. To access Kraken Classic, users need to visit the Kraken website (https://www.kraken.com) and sign in using their Kraken username and password. In case users are directed to the new Kraken page, they can navigate to Kraken Classic using the App Switcher, which is available on the desktop interface.

5. App Switcher: The App Switcher is a feature that allows users to seamlessly switch between different interfaces offered by Kraken. It is available on the desktop version of the platform and located in the top right corner of the screen. Users can switch between Kraken, Kraken Pro, NFT Marketplace, and Kraken Classic by selecting the desired interface from the App Switcher. This feature provides users with the options to access different platforms within the Kraken ecosystem based on their trading needs and preferences.

Payment Methods

Kraken provides a range of payment methods for users to deposit and withdraw funds. These methods include bank transfers, debit/credit cards (Visa and Mastercard), digital wallets, ACH online banking, FedWire, SWIFT, SEPA, EFT (POSCONNECT), bank transfer/Osko, FPS/BACS/CHAPS, and SIC. These options cater to users in different regions. However, it's important to consider that each method may have specific requirements, fees, and processing times associated with it.

Educational Resources

Kraken offers a wide range of educational resources to help individuals understand and navigate the world of cryptocurrency. They provide comprehensive explanations and insights into various aspects of the crypto space, presented in a neutral tone.

One set of resources focuses on different types of cryptocurrencies. Kraken offers examples and guidance on how to classify and differentiate various crypto assets, helping users grasp the diversity within the market. They also explore the concept of decentralized finance (DeFi) and its applications, shedding light on the evolving landscape of financial services powered by cryptocurrencies. Additionally, Kraken provides resources on non-fungible tokens (NFTs), explaining how these tokens are revolutionizing digital ownership.

Kraken's educational materials also cover technical aspects of cryptocurrency. They offer explanations of Bitcoin mining, highlighting how it differs from traditional currency systems and emphasizing the role of software and network consensus in managing Bitcoin transactions. The resources also compare and contrast the consensus mechanisms of proof of work (PoW) and proof of stake (PoS), providing insights into their strengths and weaknesses. Moreover, Kraken presents a side-by-side analysis of Ethereum and Bitcoin, elucidating the characteristics and market influence of these two prominent blockchains.

For those interested in specific cryptocurrencies, Kraken provides resources on the top five most popular digital assets, offering brief overviews and market trends for each. They also delve into the basics of Bitcoin, exploring its invention, historical significance, and potential impact on technology and economics. Additionally, Kraken offers guidance on how to acquire Bitcoin, outlining different methods such as working for it, mining, or buying from exchanges. They address the volatility of Bitcoin, providing insights into the factors influencing its price fluctuations and helping readers understand the nature of this digital asset's market behavior.

Their video series, hosted by Kraken's Chief Security Officer, covers topics such as two-factor authentication and mobile phone security, emphasizing the importance of securing accounts and devices.

Finally, Kraken offers informative webinars featuring industry experts. These webinars cover a range of topics, including investment strategies, Bitcoin adoption for businesses, and the future of Ethereum and DeFi.

Customer Support

It is important to note that Kraken's phone support may experience temporary disruptions. From June 18th to 24th, between 20-04 UTC, their phone support will be offline. Kraken apologizes for any inconvenience this may cause.

For customers residing in the United States, Kraken offers phone support in English, Spanish, and French. The English phone number is +1 888 837 8818. To contact Kraken in Spanish, dial +1 507 620 5998, and for French support, call +1 888 874 3480.

Customers from the United Kingdom can reach Kraken's phone support in English, Spanish, and French as well. The English phone number is +44 808 501 5031. To contact them in Spanish, dial +44 808 175 3474, and for French support, call +44 808 175 3125.

In the European Union, Kraken provides phone support in English, Spanish, and French. The English phone number is +353 1 223 8162. To contact Kraken in Spanish, dial +353 1 230 8320, and for French support, call +353 1230 8558.

Aside from phone support, Kraken also offers a website that can be accessed in multiple languages. Currently, they provide support for 13 languages, with the possibility of more being added in the future. Users can visit the Kraken website in languages such as Chinese, English (UK), English (US), Filipino, French, Italian, Japanese, Portuguese (Brazilian), Russian, Spanish, Turkish, Ukrainian, and Vietnamese. Each language has its specific URL on the Kraken website.

For users who may encounter issues with receiving emails from Kraken, particularly if they are being marked as spam or ending up in other folders, Kraken provides instructions on how to whitelist their email addresses. This ensures that important emails, such as those related to withdrawal addresses, password resets, or automated communications, are not missed. Some of the common email addresses associated with Kraken include noreply@kraken.com, support@email.kraken.com, and noreply@futures.kraken.com. Kraken offers whitelist instructions for popular email clients like Outlook.com, Gmail, Yahoo, and Protonmail.

Reviews

The reviews on WiFifx of Kraken Futures highlight several issues related to the platform. Users express their dissatisfaction with the inability to withdraw funds and describe experiences of being scammed. One user states that after making a significant investment, their assets were frozen due to address-related issues, and they were required to pay additional fees for verification and risk control. Another user mentions the manipulation of graphs and losing their entire investment. Additional reviews mention the lack of customer service, name changes of the platform, pending withdrawal applications, and warnings to avoid investing with such brokers. These reviews indicate a pattern of users encountering difficulties with withdrawing funds and experiencing fraudulent activities, leading to mistrust and negative perceptions of Kraken Futures.

Conclusion

In conclusion, Kraken is an unregulated broker that operates without oversight from major financial regulators. This lack of regulation raises concerns about customer protection and oversight of the broker's activities. Additionally, Kraken has received multiple complaints alleging fraudulent and unethical practices, such as refusing to allow customers to withdraw their funds. On the positive side, Kraken offers a wide range of market instruments, including over 200 cryptocurrencies, NFTs, and futures trading. However, the disadvantages of operating without regulation and the reported complaints should be carefully considered by potential users of Kraken's services.

FAQs

Q: Is Kraken regulated？

A: No, Kraken is not regulated by any major financial regulator.

Q: What is the WikiFX Score of Kraken？

A: The WikiFX Score of Kraken is 1.48/10, indicating a high potential risk.

Q: What market instruments does Kraken offer？

A: Kraken offers cryptocurrencies, NFTs (Non-Fungible Tokens), and Kraken Futures for trading.

Q: Can I open a joint account with Kraken？

A: No, Kraken does not currently support joint accounts with two different names.

Q: What are the trading platforms provided by Kraken？

A: Kraken offers the Kraken app, Kraken Pro, and Kraken Classic as trading platforms.

Q: What payment methods does Kraken accept？

A: Kraken accepts bank transfers, debit/credit cards, digital wallets, and other methods for deposits and withdrawals.

Q: Does Kraken provide educational resources？

A: Yes, Kraken offers comprehensive educational resources to help users understand cryptocurrencies and related topics.