Our review of Kraken crypto platform: 3/5

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Kraken in brief

Our opinion of Kraken

Kraken is one of the oldest cryptocurrency exchanges, offering a vast selection of digital assets and advanced trading features. We liked its wide range of cryptocurrencies, with over 200 available, which is more than what many Canadian platforms provide. The platform's spot, margin, and futures trading make it attractive for experienced traders who require advanced tools. Additionally, its staking service allows users to earn passive income on their holdings, adding an extra layer of utility to the platform.

However, we would have liked a more seamless deposit and withdrawal process for Canadian users. Unlike competitors such as Bitbuy or Shakepay, Kraken does not support Interac e-Transfers, which is the fastest and most convenient funding method for most Canadians. Instead, funding requires wire transfers or other slower alternatives, often accompanied by fees. While Kraken claims to offer 24/7 customer support, response times can be slow, and many users report unresolved account restrictions and verification delays.

We found Kraken’s fee structure to be one of its major drawbacks. The instant buy option comes with a 1.5% fee, making it one of the most expensive exchanges for casual investors. Spot trading fees are more competitive but still higher than some alternatives, especially for lower-volume traders. Additionally, despite being a registered entity with FINTRAC, Kraken lacks IIROC or provincial regulatory oversight, which may be a concern for traders seeking a fully compliant platform in Canada.

While Kraken offers a strong feature set for experienced traders, beginners may find the interface complicated and overwhelming compared to more user-friendly platforms like Wealthsimple Crypto or Newton. We would have liked to see more educational resources to help new users navigate the platform effectively.

Who is Kraken best for?

Kraken is best suited for experienced traders looking for advanced trading options and a wide selection of cryptocurrencies. However, its high fees, slow funding methods, and customer service issues make it less appealing compared to other exchanges available in Canada.

Before you zero in on Kraken, compare the best crypto platforms in Canada:

Let's find out more about our test results on Kraken.

Reliability and Security 2.8/5

Founded in 2011, Kraken is one of the longest-standing cryptocurrency exchanges in the industry. With over 9 million users worldwide, it has built a reputation as a major global platform. Over the years, Kraken has received recognition for its security practices, though it has not won any significant industry awards in Canada. Despite its global presence, Kraken’s reputation among Canadian users is mixed, with numerous complaints about customer service, sudden account restrictions, and withdrawal delays.

For Canadian traders, Kraken is registered with FINTRAC, which allows it to operate legally in the country. However, it is not registered with the OSC (Ontario Securities Commission), BCSC (British Columbia Securities Commission), ASC (Alberta Securities Commission), or IIROC (Investment Industry Regulatory Organization of Canada). This means it lacks the same level of oversight as regulated platforms like Bitbuy or Wealthsimple Crypto. While this does not make Kraken inherently unsafe, it does leave Canadian users with less regulatory protection in case of disputes.

On the security front, Kraken has a strong track record of never being hacked, which is a major plus. It offers cold storage for the majority of funds, two-factor authentication (2FA), and withdrawal whitelisting to prevent unauthorized transactions. However, we would have liked to see more insurance coverage for user funds, as some Canadian exchanges offer greater protection in case of breaches.

Despite its strong security infrastructure, Kraken’s customer service issues and lack of full regulatory approval in Canada reduce its reliability score.

Cryptocurrencies Available 4/5

Kraken positions itself as a global exchange with a broad selection of digital assets, making it attractive for traders looking for diversity. With over 200 cryptocurrencies, including major coins and a wide range of altcoins, it surpasses many Canadian exchanges in terms of selection. Additionally, Kraken offers an NFT marketplace, expanding its asset diversity beyond just crypto trading. However, compared to leading global platforms like Binance, its selection is still somewhat limited, particularly in newer altcoins and niche tokens.

Here’s how Kraken’s cryptocurrency offering compares to the market average:

Our opinion on Kraken's offerings

Kraken’s strong selection of cryptocurrencies and its dedicated NFT marketplace set it apart from many competitors, but it does not offer as many niche assets as some leading global exchanges.

Services and Tools 3/5

Kraken provides a variety of services tailored mainly to advanced traders and institutional users, but it lacks some features that are becoming standard in the crypto space.

• Staking: Kraken offers on-chain staking for over a dozen cryptocurrencies, allowing users to earn passive income. However, staking for Canadian users is more limited due to regulatory constraints.
• Futures & Margin Trading: Kraken supports futures contracts and margin trading up to 5x leverage, making it attractive for professional traders.
• OTC Trading: A dedicated Over-the-Counter (OTC) desk is available for large-volume traders, ensuring better liquidity and pricing.
• NFT Marketplace: Kraken features an NFT marketplace, though it is still relatively new and lacks the variety offered by leading NFT platforms.
• Crypto App & API: The mobile app and advanced API tools cater to both retail traders and institutions, offering a high degree of automation and customization.

However, Kraken falls short in several areas:

• ❌ Crypto Card: Unlike Binance or Crypto.com, Kraken does not offer a crypto debit card for spending crypto in daily transactions.
• ❌ Lending & Farming: Unlike platforms that allow crypto lending or yield farming, Kraken has no lending or DeFi integration, limiting passive income options beyond staking.

While Kraken provides strong trading tools and staking options, the absence of lending, farming, and a crypto card reduces its appeal for users looking for a full suite of financial services.

Fees and Commissions 2.5/5

Kraken positions itself as a premium exchange with a strong focus on security and liquidity, but its fees are higher than many competitors, particularly for casual traders. While the platform offers lower trading fees for high-volume users, its instant buy and sell fees (1.5%) are significantly higher than those of most other exchanges. Additionally, funding and withdrawal fees can make transactions more expensive compared to platforms that offer free Interac e-Transfers.

Below is a comparison of Kraken’s fees for some of the most traded cryptocurrencies against the market average:

Other Fees

• Instant Buy Fees: 1.5% for crypto purchases, significantly higher than most competitors.
• Deposit Fees: Varies by method; wire transfers incur fees, while Interac e-Transfers are not supported.
• Withdrawal Fees: Dependent on the asset, but generally higher than some Canadian exchanges.
• Conversion Fees: Additional spreads apply when converting crypto, making swaps more expensive.
• Inactivity Fees: No inactivity fees, unlike some competitors.

Our opinion on Kraken's fees and commissions

Kraken’s fee structure makes it a costly choice for casual traders, particularly for those using the instant buy feature. While high-volume traders can access lower fees, the lack of free deposit methods and high withdrawal fees make Kraken less competitive for Canadian users.

Customer Reviews 1.4/5

Kraken has a Trustpilot rating of 1.4/5 based on 2,663 reviews, reflecting widespread dissatisfaction among users, particularly regarding customer support, account restrictions, and withdrawal issues. 

Here are some recent reviews from Canadian users:

• Mark L (January 10, 2025): "I’ve been using Kraken for a few months, and everything was fine until I tried to withdraw my funds. My account was suddenly ‘under review,’ and customer support kept giving me vague responses. It took almost three weeks to regain access to my own money, and by then, the market had moved against me. Very frustrating experience, and I won’t be using them again."
• Sophie R (December 22, 2024): "I signed up for Kraken because they offer a good selection of altcoins, but I regret it. The fees are way too high, especially for smaller trades. I tried to buy ETH through their instant buy feature, and they charged me 1.5% on top of a bad exchange rate. I later found out I could have gotten a much better deal elsewhere. It feels like they penalize casual traders while only benefiting big investors."
• Daniel M (November 5, 2024): "Kraken’s staking feature was the main reason I joined, but after staking some of my DOT, I found out that the rewards were lower than advertised, and withdrawing my staked assets was not as simple as they claimed. Their help articles didn’t clarify anything, and support took forever to respond. I’ve since moved my assets to a different platform with better rewards and more transparency."

How does Kraken compare to other Crypto brokers?

Conclusion of our analysis of Kraken

Kraken provides a strong selection of cryptocurrencies and advanced trading features but falls short in key areas. Funding options for Canadian users are limited, and fees are significantly higher than those of some competitors, particularly for small-volume traders. While Kraken's security and trading tools are appealing to experienced users, the lack of Interac e-Transfers, no crypto card, and weaker regulatory coverage make it a less competitive option for everyday crypto investors.

Before opening an account on Kraken, compare the best crypto brokers and platforms in Canada:

What types of accounts are available with Kraken?

Kraken offers several account types, each designed to meet the needs of different traders. While all users start with a basic account, higher-tier accounts provide additional features such as higher withdrawal limits, access to futures trading, and institutional services. Below is a summary of the available account levels and their key characteristics:

Starter Account

The Starter account is the most basic option available on Kraken. It allows users to trade cryptocurrencies on the spot market, but funding and withdrawal options are limited. No margin trading, futures, or advanced features are available at this level. Verification is minimal, requiring only an email. While it is easy to set up, its restrictions make it unsuitable for frequent traders.

Intermediate Account

The Intermediate account unlocks higher fiat deposit and withdrawal limits and provides access to staking and margin trading (up to 5x leverage). Users must complete ID verification, including proof of residence, to access these features. This account level is suited for traders who need more flexibility and trading options without requiring institutional services.

Pro Account

The Pro account is designed for high-volume and institutional traders, offering the highest deposit and withdrawal limits along with access to futures trading and advanced API tools. Users at this level undergo enhanced due diligence verification, which includes detailed financial information and compliance screening. This account is best for professional traders, hedge funds, and institutions looking for maximum trading efficiency and security.

Kraken’s account structure ensures that casual traders, experienced investors, and institutions can access the features that best match their needs. However, compared to some competitors, the tiered system may feel restrictive for users who want more flexibility without undergoing extensive verification.

How do deposits and withdrawals work with Kraken?

Kraken supports multiple deposit and withdrawal methods, but funding options for Canadian users are limited compared to local exchanges. Below is a breakdown of the available methods, currencies, processing times, and fees:

Kraken falls behind many Canadian exchanges when it comes to funding options. Unlike Bitbuy or Wealthsimple Crypto, which support Interac e-Transfers for instant, free deposits, Kraken requires wire transfers, which are slower and often costly. Additionally, Kraken does not allow CAD deposits via debit/credit card, limiting convenience for retail users. Withdrawal times can take several days, while some competitors offer near-instant withdrawals.

On the positive side, crypto deposits and withdrawals are available for a wide range of assets, but network fees apply. This makes Kraken better suited for high-volume traders who can absorb the costs but less appealing for casual investors looking for a hassle-free way to fund their accounts.

Does Kraken offer crypto staking?

Kraken offers crypto staking, allowing users to earn passive income by holding certain digital assets. However, staking options for Canadian users are more limited than in other regions due to regulatory constraints. Below is an overview of the staking options available, including the supported cryptocurrencies and estimated annual yields:

Staking rewards vary based on network conditions and Kraken’s staking structure, and rewards are paid out weekly or bi-weekly. While staking provides a good opportunity for passive income, Canadian users should be aware of potential restrictions or changes in availability due to evolving regulations.

Good to know

Kraken does not currently offer crypto lending. Unlike some competitors that allow users to lend assets to earn interest or participate in yield farming, Kraken focuses on staking and trading services. This means users looking for DeFi-like lending solutions will need to use alternative platforms that provide crypto-backed loans or lending pools.

How are revenues generated by Kraken taxed?

Taxation of Crypto Trading on Kraken in Canada

Income generated from trading on Kraken is subject to Canadian tax laws, and the Canada Revenue Agency (CRA) treats cryptocurrency transactions as either capital gains or business income, depending on trading activity.

• Casual traders: If you trade occasionally, profits are generally taxed as capital gains, meaning only 50% of the gains are taxable at your marginal tax rate.
• Frequent traders: If trading is a regular activity resembling a business, the CRA may classify it as business income, in which case 100% of the profit is taxable.

How to declare your crypto income in Canada

• Track Transactions: Keep records of trades, deposits, withdrawals, and staking rewards, including dates, amounts, and fair market values at the time of each transaction. Kraken provides transaction history exports, which can help with tax reporting.
• Calculate Gains or Losses: Determine the difference between the purchase and selling price for each transaction. For staking, rewards must be reported as income at the time they are received.
• Report on Tax Returns:
• Capital gains are reported on Schedule 3 of your T1 tax return.
• Business income is reported as self-employment income on the general tax form.
• Staking rewards should be declared as income, and any gains from selling staked assets will also be subject to capital gains tax.

Watch out!

Failure to report crypto transactions can lead to penalties and interest charges from the CRA. Using tax software or consulting a tax professional is recommended to ensure accurate reporting.

Contact: How to contact Kraken customer service?

FAQs

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.