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Phemex vs Kraken: Comparing Key Features !?

Written by Charles

Written by:

Charles

Hi, I'm Charles Johns, a Finance graduate with a specialization in Financial Management from the University of Chicago. My journey through financial markets has fueled a passion for both traditional and digital assets, where I continuously explore evolving investment opportunities. As an active trader and cryptocurrency enthusiast, I strive to bridge the gap between complex financial concepts and practical, real-world applications. My goal is to empower everyone, whether seasoned investors or newcomers, with valuable insights and knowledge to confidently navigate the world of finance and crypto investing.

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Last Updated on November 11, 2024

Choosing the proper cryptocurrency exchange can be challenging, especially when considering platforms like Phemex and Kraken, each known for its distinct strengths.

In this article, we’ll compare Phemex and Kraken, focusing on their key features to help you understand each platform’s unique advantages.

Whether you prioritize advanced trading tools or a user-friendly, secure experience, this comparison will provide the insights you need to make an informed choice.

Our 2024's Recommendation

  • Upto 100x Leverage for BTC

  • Provides BTC and USD settling

  • Taker:0.075% Maker:-0.025%

  • Support orders & positions 

Phemex vs. Kraken: Comparative Table

Feature Phemex Kraken
Founded 2019, by ex-Morgan Stanley executives 2011, by Jesse Powell
Supported Coins Over 40 cryptocurrencies, including BTC, ETH, XRP, and LINK Over 70 cryptocurrencies, including BTC, ETH, LTC, and DOT
Leverage Up to 100x on crypto derivatives and futures Up to 5x on spot trading and up to 50x on futures
Trading Volume Medium to high varies based on market conditions High, consistently among the top exchanges by volume
Fees Maker fee: 0.075%, Taker fee: 0.075% Maker fee: 0.16%, Taker fee: 0.26%
Deposit Methods Cryptocurrency deposits, bank transfers Cryptocurrency deposits, bank transfers, SEPA, SWIFT
Products Spot trading, futures contracts, staking Spot trading, futures contracts, margin trading, staking
Security Features Cold wallet storage, multi-signature withdrawals Cold wallet storage, 2FA, advanced encryption
Customer Support 24/7 live chat, email support 24/7 live chat, phone support, email support
User Interface User-friendly, intuitive mobile app Advanced interface with robust charting tools
Sign up Bonus Get up to $8800 Sign up Bonus

Phemex vs Kraken: Products and Services

When comparing Phemex and Kraken, you’ll find distinct offerings tailored to different crypto trading needs and preferences.

Spot Trading

  • Phemex: Offers more than 40 cryptocurrencies for spot trading. Provides a user-friendly interface and low fees.
  • Kraken: Supports a broader range of cryptocurrencies with over 60 options. They are known for robust liquidity and advanced trading features.

Futures Trading

  • Phemex: Stands out with up to 100x leverage on futures contracts. It was built for high-frequency traders looking for substantial leverage.
  • Kraken: Only offers up to 5x leverage on futures. Provides a more conservative approach catering to risk-averse traders.

Options Trading

  • Phemex: Does not currently offer options trading.
  • Krakenย also does not offer trading options.

Leveraged Tokens

  • Phemex: Supports leveraged tokens for various cryptocurrencies, allowing you to have leveraged exposure without the risk of liquidation.
  • Kraken: Does not support leveraged tokens. Focuses more on traditional margin and futures trading.

NFT Marketplace

  • Phemex: It does not have an NFT marketplace.
  • Kraken: Recently launched its own NFT marketplace. Allows you to trade and store NFTs securely.

Staking

  • Phemex: Offers staking services with competitive APYs for cryptocurrencies like ETH and DOT.
  • Kraken: Provides extensive staking options with easy-to-use interfaces and reward structures. They are known for reliability and transparent reward distribution.

Customer Support

  • Phemex: Available 24/7 with support in multiple languages. Accessible via email and social media.
  • Kraken: Provides live chat support from 6 AM to 6 PM EST. She is known for prompt responses and professional service.

Each platform has strengths, and choosing the right one depends on your trading needs and risk tolerance.

 

Phemex vs Kraken: Contract Types

Phemex

  • Inverse Perpetual Contracts: Trade contracts like BTC/USD, where Bitcoin is the base currency. These contracts are not tied to an expiration date.
  • Linear Perpetual Contracts: ETH/USD, with USD as the quote currency. Like inverse perpetual, they do not expire but involve different mechanics.

Kraken

  • COIN-M Futures: Futures contracts are settled in the underlying cryptocurrency. These contracts have specific expiration dates, which is beneficial for hedging long-term positions.
  • USD-M Futures: Futures contracts settled in USD. They also come with expiration dates and are suitable for managing USD-denominated gains or losses.
  • Options: Kraken offers options trading, providing flexibility in hedging and speculative strategies. You can choose expiration dates and strike prices to fit your trading needs.

Benefits and Drawbacks

  • Phemex’s Inverse Perpetual Contracts: High leverage up to 100x, but higher risk.
  • Phemex’s Linear Perpetual Contracts: Easier calculation with USD-denominated quotes, but limited to specific trading pairs.
  • Kraken’s COIN-M Futures: Ideal for long-term hedges, but less liquidity compared to perpetual contracts.
  • Kraken’s USD-M Futures: Better for short-term speculation with clear USD profits, but limited to futures only.
  • Kraken’s Options: Offers hedging and strategic trading, yet may require more advanced strategies and understanding.

By understanding the contract types, you can align them with your trading strategy, balancing risk and reward.

 

Phemex vs Kraken: Supported Cryptocurrencies

Phemex and Kraken offer various options for spot trading and futures trading when considering supported cryptocurrencies.

Supported Cryptocurrencies

Phemex:

phemex supported coins
  • Phemex supports over 270 cryptocurrencies for spot trading.
  • Phemex provides almost 40 trading pairs for futures trading, including significant pairs like BTC/USD, ETH/USD, and XRP/USD.
  • Phemex offers leverage of up to 100x on future contracts.

Kraken:

kraken supported coins
  • Kraken supports over 180 cryptocurrencies for spot trading.
  • Kraken features about 20 pairs for futures trading, including prominent ones like BTC/USD, ETH/USD, and LTC/USD.
  • Kraken allows leverage of up to 5x on future contracts.

Popular Futures Trading Pairs

Phemex:

  • BTC/USD
  • ETH/USD
  • XRP/USD

Kraken:

  • BTC/USD
  • ETH/USD
  • LTC/USD

By providing a variety of cryptocurrencies for both spot and futures trading, Phemex and Kraken cater to diverse trading needs. Phemex has a more extensive selection and higher futures trading leverage than Kraken.

 

Phemex vs Kraken: Leverage and Margin Trading

Phemex and Kraken offer unique leverage and margin trading features, allowing you to amplify your positions and potential returns.

Phemex provides leverage up to 100x. This high leverage means you can control a more substantial position with a smaller initial investment. However, such high leverage increases liquidation risk if the market moves against your position.

Kraken, in contrast, offers a maximum leverage of 5x. This more conservative approach still allows amplified trading positions with a lower risk than Phemex.

Feature Phemex Kraken
Maximum Leverage Up to 100x Up to 5x
Margin Requirements Depends on asset class Varies by asset
Liquidation Risks High due to high leverage Lower due to lower leverage
Funding Rates Competitive varies by position Competitive varies by position

Both platforms require you to understand margin requirements, which differ depending on the asset class.

Kraken’s lower leverage minimizes the risks, but positions can remain liquidated if the market moves unfavorably.

Funding rates on both exchanges are competitive, but they vary based on the positions you hold. As you trade, you need to monitor these rates, which can affect the overall cost of maintaining leveraged positions.

Trading with leverage and margin on Phemex and Kraken provides opportunities for significant returns, but knowing and managing the associated risks is crucial.

 

Phemex vs Kraken: Trading Volume

When comparing Phemex and Kraken regarding trading volume, you’ll notice significant differences that impact their trading efficiency, execution, and slippage.

Phemex boasts a daily crypto derivatives trading volume of approximately USD 2.2 billion, making it the 10th highest in the market. This high volume contributes to better liquidity, often resulting in smoother trade execution and reduced trader slippage.

In contrast, Kraken, established in 2011 and recognized for its robust trustworthiness, also displays impressive trading volumes, particularly in spot trading.

Kraken’s high liquidity in spot markets ensures efficient trade executions and minimal slippage, appealing to professional and retail traders alike.

The following table summarizes vital trading volume metrics for both exchanges:

Metric Phemex Kraken
Daily Trading Volume USD 2.2 billion (Derivatives) High (Spot)
Market Ranking 10th in Derivatives Top Tier for Spot

Both exchanges employ a market maker-taker fee structure, incentivizing high-volume traders with lower fees.

Given its high derivatives volume, this structure is particularly effective on Phemex, ensuring competitive spreads and efficient market operations.

Krakenโ€™s market depth and liquidity are bolstered by its compliance with U.S. regulatory standards and banking license, attracting a broad user base and institutional investors and enhancing the overall trading environment.

 

Phemex vs Kraken: Futures Trading Fees and Rewards

When trading futures on Phemex or Kraken, understanding their fee structure and rewards is crucial for profitability.

Phemex uses a flat-fee model:

  • Maker fee: -0.025% (rebate)
  • Taker fee: 0.075%

Kraken employs a tiered system for futures trading:

kraken fees
  • Maker fee: 0.02%-0.025%
  • Taker fee: 0.05%-0.075%

Example Scenarios for Fee Calculation

Phemex Example:

  1. Trade size: $10,000
  2. Maker fee rebate: -$2.50 (0.025% of $10,000)
  3. Taker fee: $7.50 (0.075% of $10,000)

Kraken Example:

  1. Trade size: $10,000
  2. Maker fee: $2.00-$2.50 (0.02%-0.025% of $10,000)
  3. Taker fee: $5.00-$7.50 (0.05%-0.075% of $10,000)

Deposit and Withdrawal Fees

Phemex:

  • Withdrawal fee: Depends on the crypto, e.g., 0.0005 BTC for Bitcoin.
  • Deposit fee: Typically free for crypto.

Kraken:

  • Withdrawal fee: Varies, e.g., 0.0005 BTC for Bitcoin.
  • Deposit fee: Varies by method; it is free for some crypto deposits.

Incentives and Discounts

Phemex offers up to 100x leverage, amplifying gains and losses. Fee rebates for market makers enhance profitability, encouraging liquidity provision.

Kraken also provides high leverage but caps it at 5x, which is more conservative. The tiered fee structure benefits high-volume traders with reduced fees as trading volume increases.

By carefully choosing your trading platform and understanding the fee structures, you can optimize your trading strategy to enhance profitability and take advantage of the available rewards and incentives.

 

Phemex vs Kraken: Deposits & Withdrawal Options

When choosing between Phemex and Kraken, consider deposit and withdrawal options. Both platforms offer distinct features in this area, affecting the convenience, speed, and cost of transferring funds.

Supported Currencies and Payment Methods

  • Phemex supports a variety of cryptocurrencies for deposits and withdrawals. Fiat currency deposits are not typically supported. Payments are primarily in crypto, which can be quick but pose limitations for those who prefer fiat.
  • Kraken accepts both fiat and crypto deposits. You can use bank transfers, wire transfers, and SEPA for fiat deposits, making it more versatile. This flexibility can be helpful if you frequently deal with different currencies.

Fees

  • Phemex does not charge for deposits but has higher withdrawal fees. The fee structure can vary depending on the cryptocurrency you are withdrawing, impacting the overall cost.
  • Kraken may charge fees for fiat deposits that can vary based on your location and payment method. However, it typically boasts lower withdrawal fees than Phemex, which can be an advantage.

Processing Times

  • Phemex offers quick processing times for crypto deposits, often reflecting within minutes. Withdrawals can also be swift but are subject to network conditions.
  • Kraken has longer processing times for fiat transactions, especially international ones, which can take several days. Crypto deposits and withdrawals, however, are usually processed quickly, often within minutes to a few hours.

Minimum and Maximum Amounts

  • Phemex requires no minimum deposit for cryptocurrencies. Withdrawal minimums are set per crypto, with some having relatively small thresholds.
  • Kraken has a minimum deposit amount for both fiat and crypto transactions. These minimums are usually low, making it accessible. Maximum withdrawal limits are also subject to user verification levels.

Different needs and preferences will affect which platform suits you better. Phemex caters to those focused on cryptocurrency, while Kraken provides more traditional banking options.

 

Phemex vs Kraken: Native Token Usage

Phemex and Kraken have native tokens, each serving distinct ecosystem roles.

Phemex: Phemex offers the Phemex Token (PHEMEX), designed to enhance the user experience on the platform. Holding PHEMEX can lead to reduced trading fees, giving traders an advantage.

Benefits of PHEMEX:

  • Trading Fee Discounts: Significant reductions on standard trading fees.
  • Subscription Services: Access to premium features and services.
  • Promotional Offers: Exclusive deals and promotions for token holders.

Kraken: Kraken utilizes the Kraken Token (KRAKEN) to reward loyalty and deliver added value to its users. By holding KRAKEN, traders can enjoy multiple benefits.

Benefits of KRAKEN:

  • Fee Reductions: Lower fees for trading activities on the platform.
  • Staking: Additional opportunities to earn by staking the token.
  • Voting Rights: Participation in governance decisions affecting the ecosystem.
Feature Phemex (PHEMEX) Kraken (KRAKEN)
Trading Fee Discounts Yes Yes
Premium Services Access Yes No
Staking Opportunities No Yes
Governance Participation No Yes

By incorporating their native tokens, both Phemex and Kraken aim to provide an enriched trading experience, though each token’s specific utilities and benefits differ.

 

Phemex vs Kraken: KYC Requirements & KYC Limits

When choosing between Phemex and Kraken, KYC (Know Your Customer) requirements are crucial in determining your experience.

Both exchanges have different procedures and levels of verification, affecting privacy, security, and accessibility.

Phemex offers a straightforward KYC process. You must provide an identity document such as a passport or valid ID card to verify your identity. The steps involve:

  1. Log in to your account using the Phemex app.
  2. Accessing the account settings.
  3. Selecting the KYC verification option.
  4. Following the on-screen instructions to complete the verification.

Verification on Phemex is essential for higher deposit and withdrawal limits and access to additional trading features.

Kraken has more detailed verification tiers, each requiring varying levels of information:

  • Starter: Requires basic information and grants limited access.
  • Intermediate: Requires proof of address and a government-issued ID, providing higher limits.
  • Pro: Demands detailed financial information and proof of residency for the highest limits on deposits and withdrawals.

Hereโ€™s a comparison of KYC limits for both exchanges:

Exchange Verification Level Deposit Limits Withdrawal Limits
Phemex Basic Limited Limited
ย  Verified Higher Higher
Kraken Starter Low Low
ย  Intermediate Moderate Moderate
ย  Pro High High

These verification levels determine your overall accessibility to various services within each platform. While Phemex focuses on simplicity, Kraken provides granular control over user verification for enhanced security.

Understanding these requirements lets you choose the proper exchange that fits your privacy, security, and trading capacity needs.

 

Phemex vs Kraken: User Experience

When comparing Phemex and Kraken in terms of user experience, both platforms offer unique advantages.

phemex ui

Interfaces

  • Phemex: Designed with a clean and intuitive interface, it aims to streamline the trading process for beginners and experienced traders.
  • Kraken: Known for its robust and reliable design, Kraken offers a more traditional interface that may appeal to users who prioritize familiarity and straightforward navigation.
kraken ui

Mobile App

  • Phemex: The mobile app features an easy-to-use layout, quick access to essential features, and seamless navigation between different sections.
  • Kraken: Provides a well-organized mobile experience, though it can feel slightly more complex. Nevertheless, it ensures all necessary tools are within reach.

Web Interface

  • Phemex: The web interface is highly responsive and quick, allowing users to execute trades efficiently. Various tools and charts are presented clearly.
  • Kraken: Leans towards a more detailed web setup, offering comprehensive tools for in-depth analysis. It may require a slight learning curve for newcomers.

Functionality

  • Phemex: Offers a wide range of trading options, including spot, futures, and the ability to leverage up to 100x on specific contracts. This provides significant flexibility for different trading strategies.
  • Kraken: While it offers a maximum leverage of up to 5x, Kraken stands out for its compliance with regulatory standards and banking license, adding an extra layer of trust and security. To know more, check out this Kraken futures trading tutorial.

Ease of Use

  • Phemex: Generally favored for its user-friendly design, making it easier for new traders to navigate the platform.
  • Kraken: Though slightly more complex, it remains a popular choice for reliable and experienced exchange.

Ultimately, both exchanges cater to different user needs while providing a high-quality trading environment.

 

Phemex vs Kraken: Order Types

When trading on Phemex or Kraken, you have several order types, each tailored to different strategies and risk management techniques.

Market Orders

  • Phemex: Enables buying or selling at the best available current price.
  • Kraken: Also allows immediate execution at the market price.

Limit Orders

  • Phemex: Set a specific price you want to buy or sell.
  • Kraken: Offers the same functionality, letting you lock in desired entry or exit points.

Stop Orders

  • Phemex: Useful for setting stop-loss or take-profit levels, triggering when a specified price is reached.
  • Kraken: Similar functionality, crucial for protecting your positions.

Conditional Orders

  • Phemex: Allows more complex trading setups, executing when certain conditions are met.
  • Kraken: Conditional orders offer flexibility in your trading strategy.

Post-Only Orders

  • Phemex: Ensures the order gets added to the order book, avoiding taking liquidity.
  • Kraken: Provides the same option, ensuring you receive the maker fee.

Reduce-Only Orders

  • Phemex: Orders only reduce your position, preventing accidental increases.
  • Kraken: Similarly, it allows orders that strictly reduce your positions.

Trailing Stop Orders

  • Phemex: Adjusts a stop price at a fixed amount below the market price.
  • Kraken: Offers trailing stops for dynamic risk management.

You can see that both platforms offer a comprehensive set of order types.

This variety helps you implement diverse trading strategies and manage risks effectively. These tools are crucial whether youโ€™re involved in spot trading or playing with leverage in futures and derivatives.

 

Phemex vs Kraken: Security Measures & Reliability

When evaluating the security measures and reliability of Phemex and Kraken, you’ll find robust frameworks designed to protect your funds and data.

Security Measures

Phemex

  • Utilizes multi-signature cold wallets for storing customer assets offline.
  • Implements two-factor authentication (2FA) for account access.
  • Offers encryption protocols for data transmission and storage.
  • Conducts regular security audits and updates.

Kraken

  • Employs 95% cold storage for digital assets.
  • Provides two-factor authentication (2FA) and Global Settings Lock (GSL).
  • Uses encryption for sensitive data.
  • Undergoes regular third-party audits.

Reliability

Phemex

  • Focuses on a high-performance trading engine with 300,000 TPS (Transactions Per Second) capability.
  • Maintains a reputation for minimal downtime and prompt customer support.
  • No significant security breaches have been reported to date.

Kraken

  • Known for its reliability and strong uptime record.
  • Handles millions of transactions daily with a robust matching engine.
  • It experienced a significant security incident in 2016 but strengthened its security protocols and measures.

Both exchanges are committed to delivering a secure and reliable trading environment, leveraging advanced technology and best practices in the industry.

 

Phemex vs Kraken: Insurance Fund

Phemex has established an insurance fund to protect its users from unexpected losses during trading.

This fund comes into play primarily for contract trading, helping to cover significant losses and liquidations. By maintaining an insurance fund, Phemex aims to ensure the stability and reliability of its trading platform.

You can find detailed information about Phemex’s insurance fund on their website. They openly disclose the fund’s size and operational mechanisms, promoting transparency and trust.

Their goal is to provide a safety net for traders, which is an essential feature for those involved in high-stakes trading activities.

Kraken, on the other hand, does not explicitly mention having an insurance fund comparable to Phemex’s.

While Kraken emphasizes security measures and has a strong reputation for trustworthiness and compliance with U.S. regulations, it relies more on these than maintaining a separate insurance fund.

Kraken focuses on keeping user funds secure through stringent regulatory compliance, cold storage solutions, and consistent security practices.

This approach indirectly contributes to user protection but does not offer a specific financial backup from an insurance fund.

 

Phemex vs Kraken: Customer Support

When evaluating Phemex and Kraken for customer support, you will find distinct differences in how they handle user inquiries and problems.

Phemex provides 24/7 customer support in multiple languages. You can reach their team via email, social media, or even engage directly with their CEO on Twitter. This commitment ensures that you have access to help at any time of the day.

Kraken, by contrast, offers live chat support from 6 AM to 6 PM EST. While their support is highly responsive during these hours, it does not provide round-the-clock availability. This might be a consideration depending on your trading hours and the urgency of your issue.

Below is a comparison table for quick reference:

Feature Phemex Kraken
Availability 24/7 6 AM to 6 PM EST
Languages Supported Multiple Primarily English
Support Channels Email, Social Media Live Chat

Both platforms aim to respond swiftly and provide effective solutions. Your choice may depend on the level of support availability and the preferred communication channels you require.

 

Phemex vs Kraken: Regulatory Compliance

When comparing Phemex and Kraken, consider their regulatory compliance and adherence to legal standards in their operating jurisdictions.

Kraken

Kraken, established in 2011, is known for robust regulatory compliance. It has held a U.S. banking license since 2020, ensuring adherence to American regulations.

Kraken is also registered as a Money Services Business (MSB) with FinCEN in the U.S. and FINTRAC in Canada. These certifications underline its commitment to legal standards.

Phemex

Phemex, founded in 2019, primarily focuses on serving a global audience. While it lacks a U.S. banking license, it follows international regulations.

It leverages third-party audits to ensure platform security. However, it may face challenges in countries with stringent crypto regulations, potentially limiting its user base in specific regions.

Licenses and Audits

Kraken’s banking license and MSB registrations highlight its robust compliance. Phemex, in contrast, relies on regular third-party security audits. Although both aim to safeguard user funds, Kraken’s regulatory framework appears more extensive.

Challenges and Controversies

Kraken occasionally faces scrutiny due to the dynamic nature of U.S. regulations.

Phemex, on the other hand, must navigate varying international laws, which can pose significant challenges. Neither platform is immune to regulatory pressures, underscoring the complex landscape of cryptocurrency trading.

As a user, you should weigh these regulatory aspects when choosing between Phemex and Kraken, considering the specific legal requirements of your jurisdiction.

 

Conclusion

When choosing between Phemex and Kraken, itโ€™s essential to consider your trading needs and experience level.

Phemex stands out for its advanced futures and derivatives trading options.

With leverage up to 100x, it’s ideal for experienced traders looking for high-risk, high-reward opportunities. Phemex also provides robust security features, including cold storage for assets.

Kraken offers a more comprehensive platform for U.S.-based traders. Known for its compliance with U.S. regulatory standards and transparent fee structure, Kraken suits those seeking reliability and lower-risk trading.

It also supports a diverse range of coins.

Depending on your needs, whether it’s high leverage and advanced trading or reliability and compliance, you can find a suitable option in either Phemex or Kraken.

Our 2024's Recommendation

  • Upto 100x Leverage for BTC

  • Provides BTC and USD settling

  • Taker:0.075% Maker:-0.025%

  • Support orders & positions 

Compare Phemex and Kraken with other significant exchanges

About the Authors

Hi, I'm Charles Johns, a Finance graduate with a specialization in Financial Management from the University of Chicago. My journey through financial markets has fueled a passion for both traditional and digital assets, where I continuously explore evolving investment opportunities. As an active trader and cryptocurrency enthusiast, I strive to bridge the gap between complex financial concepts and practical, real-world applications. My goal is to empower everyone, whether seasoned investors or newcomers, with valuable insights and knowledge to confidently navigate the world of finance and crypto investing.