Kraken is a popular cryptocurrency exchange that offers a variety of trading options for users looking to invest in digital assets. To make transactions on this platform, you’ll encounter fees that may vary depending on the type of trade and your trading volume. Understanding these fees is essential for maximizing your trading experience and minimizing costs as you navigate the world of cryptocurrencies.
The fees on Kraken primarily consist of two components: the displayed fee and the spread, which is included in the price where applicable. These fees apply to buying, selling, or converting assets using Instant Buy/Sell Services, custom orders, and recurring transactions. The platform’s fee schedule is based on your 30-day rolling volume, meaning that the more you trade, the lower your subsequent fees will be.
Keep in mind that fees on Kraken Futures are calculated as a percentage of the notional order value for a matched trade. Trading fees can range from 0% to 0.26% of the total cost of your order, depending on the currency pair being traded and your 30-day trading volume. By familiarizing yourself with these fee structures, you can make informed decisions as you explore the platform and engage in various trading activities.
Understanding Kraken Fees
Kraken is a popular cryptocurrency exchange known for its low fees and wide range of supported coins. Trading on Kraken involves a fee structure based on a maker-taker schedule, with volume incentives for increased trading activity within the past 30 days.
When trading on Kraken, there are two types of fees you might encounter: maker fees and taker fees. Maker fees apply when you create liquidity by placing an order that doesn’t immediately get matched, while taker fees occur when you take liquidity by placing an order that immediately matches with an existing one.
To make it even more user-friendly, Kraken offers a tiered fee structure, which means the more you trade on the platform, the lower your fees can become. For example, according to their fee schedule, at a certain volume of ETH/USD trading, you might be charged a maker fee of 0.16% or a taker fee of 0.26%. In a scenario where your order was executed with taker fees, an initial trade fee of $20,000 would result in a fee calculated as: $20,000 * (0.26 / 100) = $52.
In addition to spot trading fees, Kraken also offers Futures trading, for which fees are calculated as a percentage of the notional order value for a matched trade. These fees are also subject to a 30-day rolling volume basis, so the more you trade, the lower your subsequent fees will be.
Remember that Kraken fees can vary based on your trading volume, the currency pair being traded, and whether you’re acting as a maker or taker in the transaction. By understanding this fee structure, you can assess the costs involved in your trading activities and optimize your strategy accordingly.
Asset Trading Fees
Maker and Taker Fees
When you trade assets on Kraken, there are two types of fees you’ll encounter: maker fees and taker fees. Maker fees are charged when you add liquidity to the order book by placing a limit order below the current market price for a buy or above the current market price for a sell. Taker fees are charged when you remove liquidity from the order book by executing a market or limit order at the current market price.
Volume and Trading Fees
Kraken’s fee schedule is based on your 30-day rolling trade volume. As your trading volume increases, both your maker and taker fees decrease on subsequent trades. To help illustrate the relationship between volume and fees, here’s a table:
| 30-Day (USD) Volume | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.16% | 0.26% |
| $50,001 – $100,000 | 0.14% | 0.24% |
| $100,001 – $250,000 | 0.12% | 0.22% |
| $250,001 – $500,000 | 0.10% | 0.20% |
| $500,001 – $1,000,000 | 0.08% | 0.18% |
| $1,000,001 – $2,500,000 | 0.06% | 0.16% |
| $2,500,001 – $5,000,000 | 0.04% | 0.14% |
| $5,000,001 – $10,000,000 | 0.02% | 0.12% |
| $10,000,000 – $100,000,000 | 0.00% | 0.10% |
| $100,000,000 – $250,000,000 ** | 0.00% | 0.08% |
| $250,000,000 – $500,000,000 ** | 0.00% | 0.06% |
| $500,000,000+ ** | 0.00% | 0.04% |
In summary, trading fees on Kraken are determined by the type of order (maker or taker) and your 30-day trading volume. As your volume increases, both maker and taker fees decrease, benefitting more active traders.
Deposit and Withdrawal Fees
When using Kraken, it’s essential to be aware of the deposit and withdrawal fees associated with various transaction methods. Here is a brief overview of these fees on Kraken.
Deposit Fees: Kraken generally offers free deposits for most cryptocurrencies. However, some cryptocurrencies might incur a small fee charged by the respective blockchain network. For cash deposits, there may be fees, minimums, and processing times depending on your chosen deposit method. To avoid any surprises, it’s best to check Kraken’s website for the most up-to-date fees associated with each deposit method.
Withdrawal Fees: Withdrawing cryptocurrencies from your Kraken account will involve fees dependent on the specific digital asset. These fees are adjustable to keep them in line with the average network fees for each respective cryptocurrency. For cash withdrawals, charges will vary based on your preferred withdrawal method. There might also be minimum withdrawal amounts. To ensure you’re well-informed about these fees, consult Kraken’s website for the most current information.
Here is a sample comparison of common withdrawal fees:
| Cryptocurrency | Fee |
|---|---|
| Bitcoin (BTC) | 0.00015 BTC |
| Ethereum (ETH) | 0.005 ETH |
| Litecoin (LTC) | 0.001 LTC |
Please note that these fees are subject to change and may vary depending on external factors such as network congestion.
It’s important to be aware of temporary holds that may apply to your account, especially if you’re a first-time user. For instance, a temporary (72-hour) withdrawal hold may be applied to your account for security purposes after making your first deposit using a debit or credit card.
In summary, when using Kraken, be mindful of the deposit and withdrawal fees associated with different transaction methods and digital assets. For the most accurate and up-to-date information, always refer to Kraken’s official website.
Kraken Futures
Contract Specifications
Kraken Futures offers a variety of contracts for trading cryptocurrencies. Each contract has its own specifications, such as the contract size, tick size, and contract value. By understanding these specifications, you can better manage your positions in the market. Here are some key points to consider:
- Contract size: This refers to the number of units of the underlying cryptocurrency in each contract. For example, a Bitcoin futures contract might have a contract size of 1 BTC.
- Tick size: This is the minimum price movement that a futures contract can experience. Smaller tick sizes allow for more granular price changes and potentially more opportunities for profit.
- Contract value: The value of a futures contract is determined by multiplying the contract size by the current price of the underlying cryptocurrency. This is important when calculating margin requirements and potential profits or losses on a position.
Settlement Procedures
In Kraken Futures, the settlement of contracts is handled in a well-defined and efficient manner. Settlement refers to the process of closing out a futures position at the end of the contract period. Here’s an overview of the settlement procedures:
- At the end of the contract period, your position will be marked to market. This means that the value of your position will be determined based on the current market price of the cryptocurrency.
- Any unrealized P&L (profit and loss) on your position will be realized. This means that any gains or losses on your position will be added to or subtracted from your account balance.
- Your collateral will be returned to you, and you will no longer have an open position in that particular futures contract.
By understanding the contract specifications and settlement procedures on Kraken Futures, you can effectively manage your cryptocurrency trading positions and navigate the futures market with confidence.
Payment Methods and Fees
At Kraken, there are several payment methods available for depositing funds, including ACH, bank transfers, and debit/credit card options such as Visa and Mastercard. The specific payment methods available to you may depend on your account level. Here’s a list of some common deposit options and their processing times:
- Visa and Mastercard debit/credit card: Instant for supported countries
- FedWire (MVB Bank, Customers Bank, Etana Custody, SynapseFi): Same business day or within 24 hours during business days
- ACH: 3-5 business days
- SWIFT (Etana Custody): 3-5 business days
Kraken fees for buying, selling, or converting assets using Instant Buy consist of a displayed fee as well as a spread, which is included in the price displayed. These fees vary and are based on the payment method, and the spread is calculated before orders are executed. Additionally, fees on Kraken Futures are determined as a percentage of the notional order value for a matched trade, with lower fees for higher trading volumes.
For a comprehensive overview of Kraken’s fee schedule, please refer to their Fee Structures page.
When selecting your preferred payment method, it’s essential to consider factors such as speed, convenience, and fees, so you can make an informed decision that works best for your needs.
Kraken Pro Fees
When trading on Kraken Pro, your fees depend on your 30-day rolling volume, meaning that the more you trade, the lower your fees are on subsequent trades. Kraken Pro fees are calculated as a percentage of a trade’s quote currency volume (by default).
The platform provides fee discounts for high volume traders, and certain periods may even offer a fee trial for extremely high volume traders like those with volumes between $100,000,000 and $500,000,000 till November 30, 2023. When you sign up, you may be eligible for a bonus, so ensure to claim your $10 BTC bonus.
A summary of Kraken Pro’s trading fees is as follows:
| Fee Tier | Maker Fee | Taker Fee |
|---|---|---|
| USDV ≤ $50,000 | 0.16% | 0.26% |
| USDV ≤ $100,000 | 0.14% | 0.24% |
| USDV ≤ $250,000 | 0.12% | 0.22% |
| USDV ≤ $500,000 | 0.10% | 0.20% |
| USDV ≤ $1,000,000 | 0.08% | 0.18% |
*Note: USDV represents your 30-day rolling volume. This table shows only a few fee tiers; the complete fee schedule can be found on the Kraken website.
Remember to always review the complete fee schedule on Kraken Pro’s platform and keep in mind that fees may vary depending on factors such as your trading volume and the type of cryptocurrency being traded.
Understanding Cryptocurrencies on Kraken
Kraken is a popular cryptocurrency exchange that offers numerous options for traders to buy and sell. In this section, we’ll explore the cryptocurrencies available on Kraken and categorize them into mainstream and emerging cryptocurrencies.
Mainstream Cryptocurrencies
The mainstream cryptocurrencies on Kraken consist of well-established and highly liquid digital assets, widely recognized by the general public. These are the cryptocurrencies you’re most likely to encounter while trading on this platform:
- Bitcoin (BTC): The first and most popular cryptocurrency, Bitcoin is known as digital gold due to its value and widespread adoption.
- Ethereum (ETH): Ethereum is known for its smart contract capabilities and decentralized applications (DApps) built on its blockchain.
- Bitcoin Cash (BCH): A fork of Bitcoin, Bitcoin Cash aims to be a scalable and more efficient version of the original cryptocurrency.
- Ethereum Classic (ETC): Ethereum Classic is the original Ethereum blockchain that persisted after a hard fork occurred due to a major hack.
These mainstream cryptocurrencies generally have higher trading volumes, making them attractive options for those looking to buy or sell. Additionally, trading pairs involving these cryptocurrencies typically have lower fees and tighter spreads on Kraken.
Emerging Cryptocurrencies
Aside from the well-known assets, Kraken also supports a variety of emerging cryptocurrencies. These digital tokens may demonstrate potential for growth and offer opportunities for traders willing to take on higher risks. While trading these cryptocurrencies, keep in mind that they may have lower trading volumes, wider spreads, and higher fees compared to their mainstream counterparts.
Some examples of emerging cryptocurrencies on Kraken include:
- Chainlink (LINK): A decentralized oracle network aiming to connect off-chain data to smart contracts on the blockchain.
- Polkadot (DOT): A platform for the interoperability of multiple blockchains and aims to create a scalable multichain network.
- Uniswap (UNI): The governance token of a decentralized exchange built on the Ethereum blockchain.
In conclusion, Kraken offers a wide variety of cryptocurrencies for trading, ranging from established options like Bitcoin and Ethereum to newer, emerging tokens. Understanding the differences between these categories can help you make more informed decisions while trading on the platform. Remember to consider factors such as liquidity, fees, and market dynamics when choosing which cryptocurrencies to trade on Kraken.
Frequently Asked Questions
How much are the withdrawal fees for USDT on Kraken?
Kraken withdrawal fees for USDT vary depending on the withdrawal method you choose. The search results do not provide specific amounts for USDT withdrawal fees. To find the most accurate and up-to-date information on withdrawal fees for USDT, please refer to Kraken’s official website or your Kraken account.
What are the Instant Buy fees?
Instant Buy fees on Kraken depend on the payment method and the total amount of the transaction. Unfortunately, the search results do not provide detailed information about the fees. To get the most accurate information about Instant Buy fees on Kraken, it’s always best to check their official fee schedule or your account.
Are there differences between Kraken and Kraken Pro fees?
Kraken and Kraken Pro fees are usually the same. Kraken Pro is a version of Kraken with more advanced trading features, but the underlying fee structure remains the same. Trading fees on Kraken depend on your trading volume and whether you are a maker or a taker. You can find the detailed fee schedule on their official website.
What are the fees for using a credit card on Kraken?
The search results do not provide specific information about credit card fees on Kraken. Typically, fees associated with using a credit card for buying cryptocurrencies or funding your Kraken account tend to vary based on your location and payment processing partners. For the most up-to-date information, check the Kraken website or your Kraken account.
How much does Kraken charge for transfers?
Kraken charges different fees for transfers, depending on the type of transfer and the currency involved. For example, deposit fees vary for different currencies and withdrawal methods. Kraken does not charge fees for transferring funds between their own wallets or for account maintenance. To find detailed information about transfer fees, it’s best to refer to the official website or your Kraken account.
Is it possible to avoid Kraken fees?
While it’s not possible to entirely avoid Kraken fees, you can reduce them by increasing your trading volume. Kraken operates on a sliding scale for fees based on your 30-day trading volume. As your trading volume increases, your fees for subsequent trades will decrease. Additionally, you might want to explore different deposit and withdrawal options, as fees may vary between methods. To learn more about Kraken’s fee structure and potential discounts, visit their official fee schedule.