Kraken vs Binance: Comparing Features, Fees, & Security

Kraken and Binance are two of the most popular platforms, each offering a wide range of features tailored to different types of traders.

In this article, we’ll dive into a head-to-head comparison of Kraken and Binance, focusing on their key features, fee structures, and security measures to help you determine which exchange is best suited to your trading needs.

Whether you’re a seasoned trader or just starting, understanding these differences can significantly impact your crypto journey.

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Kraken vs. Binance: Comparative Table

Feature	Kraken	Binance
Founding Year	2011	2017
Founder	Jesse Powell	Changpeng Zhao
Supported Coins	185+	350+
Trading Volume	$1.1 billion (daily average)	$2 billion (daily average)
Leverage	Up to 5x	Up to 125x
Deposit Methods	Bank transfer, cryptocurrencies	Bank transfer, credit/debit card, cryptocurrencies
Withdrawal Methods	Bank transfer, cryptocurrencies	Bank transfer, credit/debit card, cryptocurrencies
Fees	Maker: 0% – 0.16% Taker: 0.1% – 0.26%	Maker: 0% – 0.1% Taker: 0.04% – 0.1%
Security Measures	2FA, cold storage, encrypted emails	2FA, SAFU, cold storage
User Interface	Intuitive and user-friendly	Advanced and customizable
Mobile App	Yes	Yes
Geographic Availability	Over 190 countries	Over 100 countries

Kraken has been a prominent player since 2011, making it one of the oldest cryptocurrency exchanges. Binance, launched in 2017, quickly became a leading exchange due to its variety of supported coins and high trading volumes.

Kraken supports over 185 cryptocurrencies, while Binance offers more than 350.

Both exchanges provide deposit and withdrawal methods, including bank transfers and cryptocurrencies.

Trading fees on Kraken are slightly higher, with maker fees ranging from 0% to 0.16% and taker fees from 0.1% to 0.26%. Binance offers lower fees, with maker fees from 0% to 0.1% and taker fees between 0.04% and 0.1%.

Security features on both platforms include two-factor authentication and cold storage, ensuring your assets are protected.

 

Kraken vs. Binance: Products and Services

When comparing Kraken and Binance, you will find that both exchanges offer a wide range of products and services designed for various trading needs.

• Spot Trading: Both Kraken and Binance provide robust spot trading options. Binance features more than 600 cryptocurrencies, giving you extensive choice and flexibility. Kraken is slightly more conservative, offering around 150 cryptocurrencies but maintaining high liquidity and reliability.
• Futures Trading: Binance offers an advanced futures trading platform allowing leverage up to 125x. This could appeal if you are an experienced trader seeking high-risk, high-reward opportunities. Kraken’s futures platform supports leverage up to 50x, catering to traders who prefer slightly less risky trading environments.
• Options Trading: Binance has recently introduced options trading, allowing you to buy, call, and put options on various cryptocurrencies. On the other hand, Kraken does not currently offer options trading, which might be a limiting factor if options trading is part of your strategy.
• Staking: Both exchanges allow staking, where you can earn rewards on your cryptocurrency holdings. Binance supports staking for over 100 coins with flexible and locked options. Kraken offers staking for around 15 cryptocurrencies, but it is known for its security and ease of use.
• NFT Marketplace: Binance has launched a full-service NFT marketplace where you can buy, sell, and create NFTs. This could be an excellent opportunity if you are interested in digital art and collectibles. Kraken plans to enter the NFT market but has not yet launched its platform, making Binance the current leader.
• Leveraged Tokens: Binance offers a variety of leveraged tokens, which can amplify your trading gains without the need to maintain collateral. Kraken does not offer leveraged tokens, focusing instead on traditional margin trading.

You will find that each platform has its strengths. Your choice should depend on which products and services are most relevant to your trading needs and risk appetite.

 

Kraken vs Binance: Contract Types

Understanding each platform’s contract type is crucial when choosing a crypto exchange. Kraken and Binance provide a range of contract types, catering to different trading preferences and strategies.

Kraken Contract Types:

• Futures Contracts: Kraken offers various futures contracts, including inverse perpetual and inverse futures contracts. These contracts use cryptocurrency, like BTC or ETH, as the underlying asset.
• Options: Kraken provides limited options and tools compared to Binance, which is focused mainly on future trading setups.

Binance Contract Types:

• Inverse Perpetual Contracts: These contracts on Binance allow you to hold positions without an expiry date, settled in cryptocurrency.
• Linear Perpetual Contracts: Settled in USDT or BUSD, these offer the advantage of using stablecoins to reduce volatility risk.
• Inverse Futures Contracts: With an expiry date, these contracts are also settled in cryptocurrency.
• COIN-M and USD-M Futures: COIN-M futures are similar to inverse futures, using crypto as a margin. USD-M futures use stablecoins like USDT or BUSD for margin, offering a stable settlement.
• Options: Binance offers a more extensive options market, allowing you to hedge or speculate on price movements effectively.

Features	Kraken	Binance
Inverse Perpetual	Yes	Yes
Linear Perpetual	No	Yes
Inverse Futures	Yes	Yes
COIN-M Futures	No	Yes
USD-M Futures	No	Yes
Options	Limited	Extensive

The variety of contracts on Binance provides more flexibility. While offering essential futures, Kraken has fewer option types and lacks some advanced features on Binance.

 

Kraken vs. Binance: Supported Cryptocurrencies

Kraken and Binance offer a wide array of cryptocurrencies for trading, catering to different types of traders.

Kraken supports over 120 cryptocurrencies and stablecoins worldwide. This includes popular assets like Bitcoin (BTC), Ethereum (ETH), and Augur (REP) tokens. In the U.S., Kraken provides access to more than 65 cryptocurrencies.

On the other hand, Binance stands out with a selection of over 350 cryptocurrencies globally.

This extensive list includes significant coins like Bitcoin (BTC), Ethereum (ETH), and Binance Coin (BNB), along with numerous altcoins and stablecoins.

Here’s a comparison of the number of supported cryptocurrencies for spot trading:

Exchange	Global	The U.S.
Kraken	120+	65+
Binance	350+	100+

 

For futures and leverage trading, Kraken and Binance both offer a variety of options. Binance leads in future trading volume with trendy pairs like BTC/USDT and ETH/USDT. Kraken also supports futures trading with BTC/USD and ETH/USD.

Most Popular Futures Trading Pairs:

• Kraken: BTC/USD, ETH/USD
• Binance: BTC/USDT, ETH/USDT

You will find a comprehensive selection of assets on both platforms, allowing for diverse trading opportunities whether you’re interested in significant cryptocurrencies or lesser-known altcoins.

 

Kraken vs Binance: Leverage and Margin Trading

When comparing Kraken and Binance, it’s essential to understand their leverage and margin trading options. These features enable you to amplify your positions and potentially increase your returns.

Maximum Leverage

Kraken offers up to 5x leverage for margin trading. This allows you to borrow additional funds, potentially increasing your buying power significantly.

Binance provides more flexibility with varying leverage options:

• Up to 3x for regular accounts
• Up to 5x for master accounts with cross-margin trading
• Up to 10x with isolated margin trading

Margin Requirements

Kraken has precise margin requirements. To open a margin position, you need to meet specific collateral requirements. This ensures you’re able to maintain your positions.

Binance also has defined margin requirements. However, the requirements will depend on your margin trading account—regular, cross, or isolated.

Liquidation Risks

Both Kraken and Binance carry liquidation risks due to their high leverage. If your position’s value falls below the maintenance margin level, the platform may liquidate your assets to cover the borrowed funds.

Funding Rates

Kraken charges interest on borrowed funds, which varies depending on the asset and the borrowing period.

Binance has a similar approach with funding rates applicable to borrowed funds. The rates can fluctuate based on market conditions and the asset being traded.

The right platform for you will depend on your trading strategy, risk tolerance, and preference for different leverage options.

 

Kraken vs Binance: Trading Volume

When comparing the trading volumes of Kraken and Binance, you will notice significant differences.

Binance boasts an average daily trading volume exceeding $2 billion. This high trading volume translates to enhanced trading efficiency, better execution speeds, and minimal slippage. Binance’s large user base contributes to this impressive liquidity.

On the other hand, Kraken has an average daily trading volume exceeding $1.1 billion. While lower than Binance, Kraken still maintains substantial liquidity.

The difference in trading volume might impact your trading experience, especially if you’re a high-frequency trader.

Key Metrics

Exchange	Average Daily Trading Volume
Binance	Over $2 billion
Kraken	Over $1.1 billion

Impact on Trading

With Binance’s higher trading volume:

• Better Execution: Orders are filled swiftly.
• Minimal Slippage: Prices are more stable.
• Higher Liquidity: Easy to buy/sell large quantities without affecting market prices.

With Kraken’s trading volume:

• Good Liquidity: Suitable for most traders.
• Efficient Execution: Orders might have slight delays compared to Binance.
• Moderate Slippage: Small price variations can occur.

When choosing between Kraken and Binance based on trading volume, you should consider your trading strategy and volume.

High-frequency traders may benefit from the liquidity and efficiency of Binance, while Kraken offers robust liquidity suitable for various traders.

Sources:

• Investopedia
• Forbes Advisor
• Moneywise
• Bitcompare

 

Kraken vs Binance: Futures Trading Fees and Rewards

When comparing Kraken and Binance regarding futures trading fees and rewards, you’ll find distinct differences that can influence your trading approach and profitability.

Futures Trading Fees

Maker and Taker Fees:

• Kraken:
  • Maker fees range from 0.02% to 0.20%
  • Taker fees range from 0.05% to 0.20%
• Binance:
  • Maker fees range from 0.01% to 0.02%
  • Taker fees range from 0.04% to 0.05%
  • Discounts are available for using Binance Coin (BNB)

Deposit and Withdrawal Fees

Kraken:

• Deposit: Varies based on the method, typically small to none for crypto deposits and up to 0.25% for fiat deposits.
• Withdrawal: Crypto withdrawals vary by currency, while fiat withdrawals can range up to $60 depending on the method.

Binance:

• Deposit: Primarily free for crypto deposits; slight fees for some fiat methods.
• Withdrawal: Fees vary by cryptocurrency; for example, Bitcoin withdrawals cost around 0.0005 BTC.

Rewards and Discounts

Both Kraken and Binance provide incentives:

• Kraken: Offers volume-based fee reductions—higher monthly trading volumes lead to lower fees.
• Binance: Provides discounts for paying fees with Binance Coin (BNB) and similarly offers tiered fee discounts based on trading volume.

Example Calculation

• Kraken: If you execute a $10,000 trade with a 0.10% taker fee, you pay $10.
• Binance: For the same trade, with a 0.05% taker fee, you pay $5. Using BNB might reduce this further.

Fee Comparison Table:

Fee Type	Kraken	Binance
Maker Fees	0.02% – 0.20%	0.01% – 0.02%
Taker Fees	0.05% – 0.20%	0.04% – 0.05%
Crypto Deposit	Varies	Free
Crypto Withdraw	Varies by coin	Varies by coin
Fiat Deposit	Up to 0.25%	Varies
Fiat Withdraw	Up to $60	Varies
Discounts	Volume-based	BNB and volume-based

These various costs and incentives impact your net returns from trading, so it’s crucial to understand them fully when choosing between Kraken and Binance.

 

Kraken vs Binance: Deposits & Withdrawal Options

When comparing Kraken and Binance, deposit and withdrawal options significantly affect your experience on each platform.

• Supported Currencies

Kraken supports various fiat currencies, including USD, EUR, CAD, AUD, GBP, JPY, and CHF. Binance also supports multiple fiat currencies, although the selection might be more extensive due to its larger user base.

• Payment Methods

Kraken offers various payment methods, such as bank transfers (SWIFT, SEPA), wire transfers, and, in some cases, domestic transfers.

Binance provides numerous payment options, including bank transfers, credit and debit cards, and third-party payment processors like Simplex and Banxa.

• Processing Times

Bank transfers on Kraken typically take 1-5 business days. It is the same for Binance, though credit/debit card transactions on Binance are almost instant.

• Fees

Kraken charges for withdrawals, with fees ranging from $5 to $60, depending on the cryptocurrency. Deposits are generally free. Binance also has fees, which vary based on the withdrawal method and cryptocurrency, but it tends to be more competitive in terms of lower costs.

• Limits

Kraken imposes minimum and maximum limits for deposits and withdrawals, which vary based on the method and currency. Binance also has similar limits. Ensuring you meet the verification requirements can increase these limits on both platforms.

• Convenience

Kraken might be ideal for users who prefer traditional banking methods and are okay with slightly longer processing times. Binance attracts users seeking instant processing and a broader range of payment facilities.

Your preference for deposit and withdrawal options between Kraken and Binance will depend on the speed, cost, and convenience needed.

Both platforms offer robust options but cater to slightly different user priorities.

 

Kraken vs Binance: Native Token Usage

Kraken does not have a native token specific to its ecosystem. Instead, it focuses on many cryptocurrencies without a singular token for internal operations.

Binance, on the other hand, has the Binance Coin (BNB). BNB plays a significant role in the Binance ecosystem.

Benefits of BNB:

• Trading Fee Discounts: You receive discounted trading fees when you use BNB to pay for them.
• Launchpad Participation: Access to exclusive token sales on Binance Launchpad.
• Staking: BNB can be staked to earn rewards on various Binance-supported projects.

Utility in Binance:

• Transaction Fees: Reduce your transaction fees by paying with BNB.
• Investment Projects: Use BNB to participate in Binance’s investment products, such as savings accounts and liquidity pools.

Kraken’s approach, without a native token, contrasts with Binance’s strategy, which leverages BNB to enhance user engagement and provide various benefits within the platform.

 

Kraken vs. Binance: KYC Requirements & KYC Limits

When comparing Kraken and Binance, the KYC (Know Your Customer) requirements and limits are vital.

Kraken KYC Requirements & Limits

Kraken has multiple verification levels: Starter, Intermediate, and Pro. Each level has specific requirements and limits.

• Starter: Requires basic information such as full name, email, and date of birth.
• Intermediate: ID verification is required with a government-issued ID and proof of residence.
• Pro: Requires enhanced documentation, including financial statements.

Level	Deposit Limit	Withdrawal Limit
Starter	None	$5,000/day
Intermediate	$100,000/day	$500,000/day
Pro	Unlimited	Unlimited

Kraken values security by ensuring higher levels of scrutiny at each stage. However, this can delay users’ account activation.

Binance KYC Requirements & Limits

Binance, much like Kraken, offers different user levels, impacting your transaction capabilities.

• Basic: Requires basic information such as name, date of birth, and address.
• Advanced: Requires photo ID and facial verification.
• Plus: Similar to Advanced but may include additional document verification.

Level	Deposit Limit	Withdrawal Limit
Basic	Moderate	2 BTC/day
Advanced	High	100 BTC/day
Plus	Unlimited	Unlimited

Binance provides high accessibility with less stringent entry-level requirements than Kraken. This enables quicker account setups but may raise security concerns for privacy-conscious users.

These variations in KYC requirements impact how quickly you can start trade, your privacy level, security measures, res, and account limits.

 

Kraken vs. Binance: User Experience

Comparing Kraken and Binance regarding user experience involves examining their web and mobile platforms.

Web Interface

Kraken:

• Clean, professional design.
• Advanced charting tools.
• Customizable dashboard.
• It’s a somewhat steep learning curve.

Binance:

• Sleek, modern interface.
• Easy-to-navigate layout.
• Quick access to trading pairs.
• More beginner-friendly.

Mobile Apps

Kraken App:

• Responds to user feedback regularly.
• Offers robust security features.
• Slightly complex for beginners.
• Includes advanced trading options.

Binance App:

• Intuitive and streamlined interface.
• Faster performance.
• Low trading fees.
• Features fee discounts for holding BNB.

Ease of Use

Kraken:

• It is better for experienced traders.
• Rich in advanced tools and features.
• It requires some time to get used to.

Binance:

• Suitable for most users, including beginners.
• Simple and user-friendly design.
• Quick onboarding process.

Speed and Performance

Kraken:

• Reliable but occasionally slower during high traffic.
• Consistent updates to improve functionality.

Binance:

• Fast and efficient.
• Handles high trading volumes well.

Design and Functionalities

Kraken:

• Focuses on providing detailed trading insights.
• Customizable, which may overwhelm new users.

Binance:

• Combines simplicity with powerful tools.
• Offers a seamless experience for a wide range of users.

To learn more about both exchanges, you can check our Kraken tutorial and Binance tutorial guides.

 

Kraken vs Binance: Order Types

Regarding trading, Kraken and Binance offer a variety of order types to help you execute your strategies effectively and manage risks.

Market Orders: Kraken and Binance support market orders, allowing you to buy or sell instantly at the best price. This type of order is ideal for immediate execution.

Limit Orders: Limit orders are available on both platforms, letting you specify a price to buy or sell. These orders ensure that you either buy at your desired price or not at all, providing better control over entry and exit points.

Stop Orders: Both exchanges offer stop orders, which become active once a specified price is reached. This type includes stop-loss orders, protecting you from excessive losses by selling out at a predefined level.

Conditional Orders: Binance offers a range of conditional orders like OCO (One Cancels the Other), allowing you to place both stop and limit orders simultaneously. Kraken also provides conditional close orders to help automate your trading strategy.

Post-Only and Reduce-Only Orders: Post-only orders are supported by both Kraken and Binance, ensuring the order gets added to the order book and is not matched immediately. Reduce-only orders ensure that an order only reduces an existing position, preventing it from accidentally increasing your risk.

Order Type	Kraken	Binance
Market Orders	Yes	Yes
Limit Orders	Yes	Yes
Stop Orders	Yes	Yes
Conditional Orders	Yes	Yes
Post-Only Orders	Yes	Yes
Reduce-Only Orders	Yes	Yes

These various order types enable you to tailor your trading activities to suit your financial goals and risk management needs.

 

Kraken vs. Binance: Security Measures & Reliability

• Security Features

Both Kraken and Binance prioritize user security. Kraken employs two-factor authentication (2FA), cold storage, and PGP/GPG email encryption.

Binance also supports 2FA, multi-tier system architecture, and SAFU (Secure Asset Fund for Users), which provides insurance in case of security breaches.

• Historical Security Incidents

Kraken has maintained a solid security record, with no significant security breaches reported. Binance faced a notable incident 2019 where hackers stole over $40 million. The exchange covered users’ losses through its SAFU fund.

• Operational Reliability

Kraken is known for its stability and uptime. It offers stress-tested architecture capable of handling high trade volumes without significant outages.

Binance, with its massive user base, also boasts high uptime but has occasionally experienced performance lags during peak trading times.

• Transparency and Communication

Kraken is transparent with regular security audits and open channels for incident reporting. Binance provides prompt updates via blog posts and social media during security threats or operational issues.

• User Fund Protection

Kraken places most user funds in offline cold storage to mitigate theft risks. Binance employs similar strategies but integrates real-time monitoring to detect and prevent suspicious activity.

Aspect	Kraken	Binance
Two-Factor Auth	Yes	Yes
Insurance Fund	No	Yes (SAFU)
Major Incidents	None	2019 $40M Hack (resolved)
Cold Storage	Majority of funds	Majority of funds
Communication	Regular security audits, open channels	Blog updates, social media

 

Kraken vs. Binance: Insurance Fund

Binance and Kraken provide different levels of protection through their insurance funds.

Binance offers the Secure Asset Fund for Users (SAFU), which covers potential losses due to security breaches or other unforeseen events.

The fund accumulates assets over time and has been utilized in past incidents to compensate affected users.

Kraken does not have a specific public-facing insurance fund like Binance’s SAFU. Instead, Kraken focuses on robust security measures and operational transparency to protect user funds.

They highlight their emphasis on staying well-capitalized and adhering to regulatory standards.

When choosing between Kraken and Binance, consider the presence of insurance funds and how they affect your risk comfort level.

Binance’s SAFU can provide an extra sense of security, particularly for those concerned about hacks or technical issues. Kraken relies on its security architecture and regulatory compliance rather than an overt insurance fund.

Feature	Binance	Kraken
Insurance Fund	Yes, SAFU	No specific fund
Security Focus	Robust security measures	Operational transparency
Coverage	Covers security breaches	Emphasis on prevention

Make sure to weigh the importance of insurance funds in your decision-making process.

Binance’s approach with SAFU might appeal to users seeking more direct financial protection. Kraken’s model, however, focuses on prevention and robust security protocols.

 

Kraken vs. Binance: Customer Support

When comparing customer support between Kraken and Binance, there are notable differences.

Availability: Kraken offers 24/7 phone support, live chat, and email options. This extensive availability ensures you can get help anytime.

Binance, on the other hand, provides 24/7 email support but has limited live chat hours, which might be less convenient for resolving urgent issues.

Communication Channels: Kraken’s support channels include:

• Phone (24/7)
• Live Chat
• Email

Binance supports:

• Email (24/7)
• Live Chat (limited hours)

Kraken’s phone support is helpful if you prefer speaking directly with a representative.

Responsiveness: In practice, Kraken’s multi-channel approach can lead to quicker resolutions. Users often report responsive and effective assistance via phone and live chat. Binance’s email support, while comprehensive, might result in slower response times compared to Kraken’s immediate live assistance options.

User Experience: Your experience with Kraken’s customer support is quite user-friendly, allowing you to choose the best method.
If you prefer real-time communication, Binance’s reliance on email for 24/7 support could be a drawback.

These differences might influence your choice between Kraken and Binance based on how much importance you place on the accessibility and immediacy of customer support.

 

Kraken vs. Binance: Regulatory Compliance

When comparing Kraken and Binance, regulatory compliance is a critical aspect to consider. Both exchanges operate in numerous jurisdictions and must adhere to various legal and ethical standards.

• Kraken

Kraken has established itself as a highly compliant exchange, obtaining numerous licenses in different countries. It is registered as a Money Services Business (MSB) with FinCEN in the United States.

This registration ensures that Kraken adheres to strict Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.

Kraken complies with the General Data Protection Regulation (GDPR) and other local regulations in Europe. The exchange has consistently passed independent audits, showcasing its commitment to security and transparency.

• Binance

Binance, while highly popular, has faced challenges regarding regulatory compliance. Initially founded in China, Binance moved to Malta but has faced scrutiny from multiple governments.

The exchange has been investigated for various regulatory issues in several countries, including the United States, Japan, and the United Kingdom.

Despite these challenges, Binance has made strides to improve its compliance, including implementing more robust KYC procedures and obtaining licenses in specific jurisdictions. Binance also conducts regular audits to enhance its security measures.

Aspect	Kraken	Binance
Licenses	MSB with FinCEN, GDPR compliant	Licenses in specific jurisdictions
KYC/AML Policies	Strict KYC and AML	Strengthened KYC and AML
Regulatory Challenges	Few issues reported	Faced scrutiny in multiple countries
Audits and Certifications	Regular independent audits	Regular audits but faced regulatory investigations

Kraken and Binance aim to operate within legal frameworks, but their approach and challenges differ. Kraken’s more consistent compliance contrasts with Binance’s ongoing efforts to meet regulatory expectations globally.

 

Conclusion

Compare Kraken and Binance with other significant exchanges

• Kraken vs. Phemex
• Kraken vs. Bybit
• Kraken vs. KuCoin
• Binance vs. Bybit
• Binance vs BingX
• Binance vs Phemex