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Kraken Review - Is it scam or safe?

Kraken Review - is kraken.com scam or good cryptocurrency exchange?

RATING: 4 / 16 REVIEWS

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Account type

 

Account type Minimum deposit Leverage Maker fee Taker fee
Standard Undisclosed 1:5 Max of 0.16% Max of 0.26%

 

Kraken is one of the most popular crypto currency exchanges. It is currently the world’s leader, in terms of Bitcoin to EUR trading volumes. 

 

The company, security of funds

 

Company Country Regulation
Payward, Inc, USA N/A

 

The Kraken exchange is operated by the San Francisco-based Payward Inc. The company is not under direct regulation by any agency, but this is not unusual in the crypto currency space (at least for now). 

 

The company’s overall reputation is pretty solid. It hasn’t experienced any major hacks yet. Furthermore, it was chosen as the platform, through which payments to creditors of ill-fated Mt.Gox received their claims. If you are not familiar with the case,  Mt.Gox was a huge Bitcoin exchange in Japan, which filed for bankruptcy protection in 2014, following a shady turn of events, which are another topic altogether. The company was then under special administration, which chose Kraken as a reliable partner, in order to facilitate payments to creditors.

 

Most of the coins on Kraken are kept in cold storage, with the exception of the ones currently used for trading, of course.

 

User reviews on Kraken are fairly mixed. Complaints vary from slow processing of deposits, lack of response by the customer support to stop-loss orders not triggering. While the latter is concerning the former two may be related to lack of staff, similarly to the issues which Poloniex currently has.

 

Trading conditions

 

Trading instruments (cryptocurrencies)

 

Kraken offers quite a few trading instruments. Although the exchange is most famous for its Bitcoin and Ethereum to cash (EUR and USD) markets, altcoins are also available. Here is a list of all the coins you can trade one way or another: Bitcoin, Ethereum, Litecoin, EOS, Dash, Ripple, Monero, Iconomi, Zcash, Augur, Gnosis, Stellar Limens, Dogecoin, Melon. Kraken plans to add new coins in the future.

 

It is worth mentioning this is one of the rather few exchanges which provides trading Bitcoin against currencies like the CAD and GBP. Although majors in the forex market, these are not often provided at crypto-exchanges. That being said liquidity may be an issue.

 

Minimum initial deposit

 

No minimum deposit level is specified by Kraken. Although this is not unusual in the cryptoverese, forex brokers (some of which allow Bitcoin trading) specify this on their websites. As an example, the industry leaders at IG proudly claim they do not have a minimum deposit requirement.

 

Leverage

 

Leverage is only offered for some of the instruments at the Kraken Exchange. It varies from 1:2 to 1:5. These levels may seem low, if you are used to forex trading, where a lot of brokers offer 1:500 in leverage. That being said, even they provide lower levels for crypto currency trading. For instance, the FCA-regulated industry veterans at HYCM currently offer 1:10 for Bitcoin trading.

 

Kraken charges a fee for leveraged trading. It varies from 0.01% to 0.02%, based on the instrument and is applied every four hours. This is a hassle you will not have if you chose to trade Bitcoin with a forex broker. Do keep in mind there is a huge difference between the services provided by forex brokers and crypto-exchanges. For a full breakdown, read this article

 

Fees

 

Kraken charges different fees for market “makers” and “takers”. At the time of writing of this review, they are 0.16% for the makers and 0.26% for the takers (for the lowest volumes). 

 

For those of you who are unaware of what these terms mean, trading on an exchange is slightly different than, forex trading. If you want to buy a particular instrument, you can do this directly, by getting it from the lowest available ask price (offer). This is an “aggressive” entry, which takes away market liquidity and is connected to a bigger fee (the taker fee). On the other hand, you can place your own bid in the order book, which then has to be triggered by another trader, who would sell his asset to you. In this case, you are providing liquidity to the market and pay a lower fee (the maker fee).

 

Overall, the fees provided by Kraken are in line with offerings by other exchanges.

 

Trading platform

 

When it comes to the trading platform, Kraken provides their own solution for some of the functionality, while relying on TradingView for the charting, similarly to Bitfinex.

 

There is pretty detailed access to the short term market dynamics. The tape, includes a historical bid/ask chart, which can be useful. Here is a preview:

 

 

The depth of the market is also presented in an easy to understand manner. Here is a preview:

 

You can see the book on the right side, with a graphical depiction on the left. 

 

The charts, provided by TradigView are a good tool for technical analysts. They are available via a click of a button next to the instrument list. The chart pops-up as a small external window, which you can later move, resize and so on. You can create an entire layout (even on a separate monitor) of your PC can handle the hardware requirements of modern browsers. Here is a preview:

 

 

Kraken also offers a mobile app, which is currently only available on iOS. Hopefully an Android implementation will come soon.

 

 

Methods of payment

 

Fiat currency payments at Kraken are only done via Bank Transfer. There is a slight advantage, if you have a bank account within the European Economic Area, since the SEPA payment system is supported. Crypto currency deposits are also available, but instant real money options such as Credit Card, PayPal or Neteller are not.

 

Conclusion

 

Kraken is a US-based crypto currency exchange. That being the case, the company operates a lot with Europan customers, as it is the world’s leader in terms of Bitcoin to EUR trading volumes. Kraken is as reputable, as one can get in the cryptoverse, with no major hacks or scandals so far. The trading environment feels good, providing detailed tape-reading potential. Commissions are in-line with the current industry averages. Here are Kraken’s strong and weak sides:

 

Pros Cons
Reputable company, no hacks yet  Credit cards and Paypal not accepted
High Bitcoin to EUR liquidity  Mobile app available only for iOS
Solid charting, by TradingView  Recent negative user reviews
Commissions in line with the industry  
Bank Transfers available  

 

No news about Kraken. Check back later.
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Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Traders` reviews for Kraken

Deposit Missing for 3 Weeks

Kraken is a complete SCAM ! I have a deposit pending with them for 3 weeks now, submitted all the documents they requested SoPoF, my wire IMAD/OMAD numbers, escalated the issue several times, missed out on a lot of opportunities when the market went down. They marked every ticket I opened as “Solved” and they closed it, while my deposit is still on Hold or missing! They either got Hacked during their uodgrade and lost a lot of our deposits and funds or they are using the funds (trading or earning interest) and that’s why they are not releasing them to us. The worst customer service I ever seen in my life. Not having a phone is very convenient for these scammers! I’m talking to an attorney to bring in a Class Action Lawsuit. Please contact me if you want to join. It’s time to teach these gangsters a lesson and get our money back! Kraken & Jesse Powell are the New Face of the Crypto Mob

Mike Elmurranie 01/29/2018

Do not get involved with kraken!!!

I would give them 0 stars if possible. I sent them all my personal info over a month ago and still can’t withdraw the money I put into my account. Emailed them twice with no response. It’s an absolute scam and if you deposit money with them you will not be able to get it back. Do not get involved with kraken at all!

Paul M. 01/27/2018

waiting for my verification

Hi to everybody.
My experience with Kraken is horrible, i don't recommend at all use that page for trading. That was my experience: I make an account the 26th of December. When you make a new account you have to wait until someone of the support verify your account. At the day of today ( 14th January ), i still waiting for my verification. I been writing at least 4 emails without answer, nobody helps me, nobody matter my situation. And the problem is that i want to trade and buy criptos but i can't. And the price of it dont stop growing, with the prejudice that that supposes to me. In summary I DONT RECOMMEND KRAKEN FOR TRADING. Better other pages for trading as Plus 500, eTORO or Coinbase.

Alejandra83 01/14/2018

Withdraws

Kracken is up to something very negative.. They have disabled their withdraw button but still allow deposits.. If you have any funds on this site remove them as soon as possible. They say it will be down a MIN.. of 12 hours but will not give a MAX..
This site is BAD and falling apart.. I believe they disabled the "WITHDRAWN" button to stop people from leaving.. Their customer service is the WORST of anything I ever seen in my life.. Tier 2 says you can us USD they when you try it says you must be Tier 3.. I am not believing they are using peoples info or maybe selling it and will say they got hacked.. STAY AWAY FROM KRAKEN

Promise 01/14/2018

Wire of funds

I wire funds after tier2 verified and its week ago
I sent request to the company but no answer as of yet
There is no telephone support
and I hope I am not losing my money
I will call my bank to try to withdrawal or cancel this wire
I am tried of there tech support

eli arieli 01/10/2018

Kraken cheats on users

Better find something else, they always have problems with everything, their platform is one big bug. And they try to cheat users as much as they can, for example if you have BTC funds on Kraken, when BTG fork occurs, you will not receive any BTG, all users BTGs are kept by Kraken, they will not send them to users. They made a statement, that they will not support BTG after actual fork. So in conclusion, I do not recommend this platform at all. My rate 1/5.

Raanger 01/07/2018

Kraken Scam! Thieves! Stole $25K USD

Kraken Stole $25,000 USD for over 3 months. They claimed they sent it back to me but never did. I asked them to look into and it took over 3 months, with dozens of messages. They kept pointing fingers at my bank and finally the found out they "supposedly sent it to the wrong bank account". I had to threaten them with legal action and lost over $90000 gain. Bitcoin was 4000 when i sent them the money, by the time they settled it into my account, bitcoin was over $15000. Kraken is a piece of crap. Never do business with this shady exchange. Better of with Gemini. Anyone else have problem? Maybe we can file a class action law suit.

Chris Daniels 01/03/2018

Verification for Tier 3 seems almost impossible

From the moment I heard about and wanted to invest in Ripple, I found out that Kraken was one of very few places to buy it, but I have been trying to get verified Tier 3 for 3 weeks now as my documentation was finally accepted a week ago, but still, I am not verified Tier 3 as that is the only way that one can deposit US Funds in order to purchase Ripple - In the mean time Ripple has gone from 22 cents to 1.79 which is killing me:-( ----- Seems like a great site, but verification to Tier 3 is a bear unfortantely

Michael Cavicante 12/29/2017

Works Well Enough

Have been using Kraken for more than a week. Have twice transferred around 9000 USD. Each time took 2.5 days, very acceptable indeed. The site was giving many Cloudflare errors before due to the shock of unanticipated load... but now much more stable.
No drama, orders go through even though the new cryptowatch sometimes doesn't update your remaining funds ... so it looks like the order failed at first.
Withdrew around $4000 in LTC from them to Cryptopia, and again: no drama. Over and done.
Overall, I am very satisfied with them. I have used Poloniex and Cex.io, and Kraken somehow seems much more stable. Their customer support was particularly kind in getting Tier 3 verification done (big shout out and thank you to Bruno!!!!!).

Amelita 12/28/2017

Kraken: Scam of all scams!

I am a newbee but wanted to try and I sent 1 bitcoin to Kraken. To try out I first sent 0.1 Bitcoin, this went without a flaw. Then when I wanted to send the other 0.9 Bitcoin I accidentally pressed the wrong button and got a BitcoinCash address instead of the Bitcoin address I needed to use. So I sent Kraken support an email to apologise for my mistake and to ask them to recover my funds. The answer I got was:
“It isn’t about finding your funds. The funds are held in a wallet that we control. But since you sent assets to the wrong address, there now involves a great deal of work to recover these funds. Kraken doesn’t have the time and resources to devote to every mistake made by our clients. Trust me, there are many of these cases.That being the case, we are not able to assist you with this recovery.”
So they make it possible for their clients to make these kind of mistakes but they are not willing to recover any funds. When I made the mistake it was a $ 3500,- mistake. Now it is a $ 12,000 mistake and they don’t have the ‘resources’ to do anything??? They can use (part) of my funds to hire someone to do nothing else and still make a healthy return! AND THERE ARE A LOT OF THESE AS YOU CAN READ.
In short: STAY CLEAR OF THESE SCAMMERS! On their deposit page they warn you for this so they will just keep your money!

Alexander 12/14/2017

Kraken is a Scam !!!

They place sell orders without instruction and liquidate your position at the worst time. If they site ever works !!! Don't use this platform !!!

Gareth 12/13/2017

Kraken is a definite scam

Kraken is most definitely a scam - they allow you to open margin positions, lots of time you don't place the order but they'll open the position for you anyways, then they literally shut down every avenue you have to close the position. From there, they simply wait for the market to turn, then they liquidate your funds - this has happened multiple times to myself and over 20 other individuals I've spoken with.

Whatever you do, DO NOT USE KRAKEN - they will place false orders then shut down trading abilities with the sole purpose of liquidating your funds. STAY AWAY FROM KRAKEN!

Patrick Clayton 12/12/2017

Kraken should change their name to KRAP-EN

Worst experience ever. Can exchange within the system no problem but when it is time to withdraw, you better have packed a lunch and brought your tent. Customer contact is like being on the dark side of the moon. The number of errors and other crap is too much to list. Will never deal with them again and I dont recommend them for anyone.Very stressful having money in limbo with no customer support for extended peroids of time.

Dex Ringer 12/04/2017

Kraken is a Rip Off

I have tried for days to complete trades with no success, it appears they have stolen my money. I started using them based on this review. Thanks alot

Tim 11/26/2017

Kraken Feedback

I signed up with Kraken with high anticipation and positive references. It has been over one month now and I cannot find proper language to describe my disappointment. The customer services are unacceptable, huge delays, no help at all. It is virtually impossible to place an order as one has to punch the keys times and again until a message pops up and tells you about a crazy internal error. How many trading opportunities have been lost! In another instance I transferred some coins into one of my accounts with the exchange and never received them as the ongoing glitches removed this address and installed a new one. It just goes on and on. Finally I transferred USD5,000 three weeks ago and it is nowhere in sight... I have a feeling these guys just pocketed this money and now have been putting me off with lame excuses like the money is with their Japanese bank and my bank has to send the tracking through and make them pay into my account. What is this all about? They want me to chase their bank to release my money. They must be having a bad time and have been trying to use their clients' money to patch their holes. My bank verified a million times and I have a SWIFT, which confirms that the beneficiary's account has been credited and they still deny my funds. Is this the way to maintain and expand the customer base? The only way to teach them a lesson it to come forward with concerted efforts and stop trading at their exchange.Let them go figure and change their frigging attitude or find new jobs.

Val Brown 11/16/2017

Very well trading and EUR deposit but ...

Kraken is a little slow compared with Bitfinex.

Sometimes maybe a cancel of an Order is too slow. So you are confused about the state.
Sure it works but the interaction should be more direct in feedback.

Best regards
Frank

Frank H. Ritz 10/30/2017
Forex
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