Kraken Review: Too Expensive For Canadians

Kraken is a well-known cryptocurrency exchange offering access to over 100 cryptocurrencies. Having been in the crypto trading space since 2016 and tested over 50 exchanges, I created an account and tested the platform to determine whether it’s a good choice for Canadians. Here’s my detailed Kraken review.

Kraken Crypto Exchange Summary

Kraken offers a wide range of popular cryptocurrencies, including Bitcoin, Ethereum, Cardano, Polkadot, Chainlink, Dogecoin, and many more, making it a solid choice for trading altcoins. With the largest euro trade volume globally, Kraken has established itself as one of the biggest crypto exchanges in the world.

The platform is available worldwide and supports deposits in multiple currencies, including USD, EUR, CAD, GBP, JPY, CHF, AUD, and AED. For Canadians, Interac deposits come with a 1.5% fee, while withdrawals cost $10, which might feel a bit steep compared to other exchanges.

Kraken also provides features like staking and futures trading, along with 24/7 customer support—a big plus for anyone trading across time zones or needing assistance at odd hours.

Features

Kraken comes packed with features to cater to a variety of users. The Instant Buy option allows for quick purchases of crypto using card or digital wallet payments, making it convenient for beginners. For more experienced traders, Kraken Pro offers advanced order types, detailed charting, and order book data to meet professional trading needs.

The platform also provides a wealth of educational content, including a blog, videos, a podcast, and comprehensive guides. These cover everything from service overviews and crypto basics to security tips, opinion pieces, webinars, and more—making it a helpful resource for learning about cryptocurrency.

Kraken’s affiliate program is another highlight, allowing users to earn 20% of trading fees by referring friends—a nice incentive for spreading the word.

For developers, Kraken offers a quarterly open-source developer grant to support innovative projects, demonstrating its commitment to advancing the crypto ecosystem.

Looking ahead, Kraken plans to launch an NFT marketplace and a “crypto bank” for U.S. customers under the oversight of the Wyoming Division of Banking. While these features aren’t yet available to Canadians, they showcase Kraken’s ambition to remain at the forefront of crypto innovation.

Registration & Verification Process With Kraken Crypto Exchange

The process of verification is quite simple for Kraken for Canadians. Unlike Canadian exchanges Kraken does not ask you to submit a selfie nor does it ask you personal financial and investment questions. Verifying with Kraken took just a few minutes and was one of the easiest processes we’ve experienced. 

What You Need to Open an Account:

• Must be 18+
• A government-issued ID
• Enter occupation

To get verified you first need to create an account and choose a username. Next, fill out all your details including your address. 

Next, add your occupation.

Then upload your ID.

Kraken will then check your information and email you once your account is verified. 

Kraken Fees

Kraken’s full fee schedule can be found here, but here’s a quick breakdown of the key fees based on deposit methods and trading types:

• Instant Buy: A 0.9% trading fee for stablecoins and 1.5% for other cryptocurrencies.
• Kraken Pro: A volume-based maker/taker fee model. For a 30-day trading volume between $0 and $50,000, fees are 0.16%/0.26%.

If you’re using Instant Buy, trading fees are on top of additional processing fees:

• Card or digital wallet: 3.75% + $0.25 per transaction.
• Bank wire: 0.5%.

For Canadians, there’s also a 1.5% deposit fee for Interac e-Transfer, which adds up quickly for frequent deposits.

In my experience, Kraken’s fees feel high compared to other crypto exchanges available in Canada. While Kraken offers a range of features, the cost can be a deterrent, especially for those making smaller or frequent trades.

Kraken Spreads

Kraken charges trading fees instead of a high spread, to cover their costs. It means you won’t be caught out by a large hidden spread. However, the spread is about 0.2%.

How Much Does it Really Cost to Trade with Kraken?

To test Kraken’s fees, we bought $100 worth of Bitcoin using a debit card. After paying Kraken’s 1.5% trading fee and card processing fees, we ended up with $94.58 worth of Bitcoin, effectively paying $5.42 or 5.42% in fees—quite steep for a single transaction.

Next, we deposited $100 via Interac e-Transfer. After the 1.5% deposit fee, we received $98.50 in our account.

We then bought Bitcoin on Kraken’s Pro platform, which offers lower fees. We received 0.00318 BTC worth $98.04, paying just $0.46 or 0.46% in fees. The spread was only $0.20 or 0.20%, making it significantly lower than other exchanges we’ve reviewed.

Finally, we sold our Bitcoin back to CAD and paid another small trading fee. However, with Kraken’s $10 fiat withdrawal fee, we ended up with just $88.06 in our bank account. This means we lost over 10% of our original amount—an expensive experience for Canadians looking to use Kraken.

Kraken Liquidity

Kraken has high volume which means more liquidity. It is also the top crypto exchange by euro volume in the world, meaning it is one of the top exchanges for bitcoin liquidity. Kraken also has low spreads and fees incentivizing more trades which adds to its liquidity. 

Currencies & Deposit Methods

Kraken offers Canadians the ability to deposit Canadian dollars into their fiat wallets via bank wire or Interac e-Transfer. You can also use accepted credit or debit cards to purchase crypto but your bank may reject the purchase. 

You can also deposit other fiat currencies including USD, GBOP, EUR, JPY, AED, AUD, and CHF.

How Long Do Deposits Take?

Bank wire deposits from Canadian banks can take up to 5 days to process. Interac e-Transfers are almost instant. 

How Long Does it Take to Withdraw Coins?

Withdrawing crypto depends on the speed and congestion of the network. For withdrawing bitcoin to a private wallet, it can take up to 10 minutes. 

Kraken’s Security and Safety

Kraken is one of the largest cryptocurrency exchanges globally, and they take security seriously. Over 95% of digital assets are stored in cold storage, ensuring that the majority of funds are kept offline and safe from cyber threats. All account information is encrypted, and their servers are housed in locked cages under 24/7 armed surveillance. They also run a bug bounty program to reward individuals who identify vulnerabilities in their systems—a proactive step to enhance security.

For personal account security, Kraken offers two-factor authentication (2FA) to protect your login. You’ll also receive email notifications for any withdrawal requests, ensuring you’re immediately aware of account activity. Additionally, Kraken provides features like account timeouts and a time-lock option, which prevents any logins during the locked period for added peace of mind.

Kraken Mobile App

Kraken’s mobile app has received solid feedback, with a 4.2-star rating from 18,000 reviews on Google Play and a 4.7-star rating from 1,700 reviews on the App Store. Most users appreciate the app’s overall layout and its user-friendly design, making it accessible for both new and experienced traders.

For those looking for more advanced features, Kraken offers the Kraken Pro app, which is tailored to experienced traders. The Pro app provides additional tools like charting and order book data, helping you make more informed decisions. Users also rate the Pro app highly, and you can take advantage of cheaper trading fees when using this version of the app.

Trading Platform

The dashboard is easy to navigate with your account balance right in the middle. 

Kraken Pro is currently in Beta mode so there may be changes in the future. It is not suitable for beginners since the platform can seem daunting. 

For experienced traders, the Pro platform offers everything you need to make trades. There are many indicators you can choose to view on the charts and setting a limit or advanced order can be done on the left. 

The Instant Buy option is much more simple and perfect for those looking to make a quick trade or purchase with their card. 

Select the crypto you wish to buy, then if you haven’t already, you’ll be prompted to add a card. 

Once you’ve done that, you can enter the amount you wish to purchase and review the transaction.

If you wish to deposit funds instead, you can click on “funding” at the top of your dashboard. Then enter the amount and select Interac as the deposit method. 

You will receive an email with a link to complete the transfer. Log in to your bank to confirm the transaction. 

Kraken’s Customer Support for Canadians

Kraken offers 24/7 live chat and email support, which I find really convenient for getting help anytime. They also have a well-organized help center on their website, full of useful troubleshooting articles. For users in the USA, UK, and European Union, Kraken provides phone support, which adds an extra layer of accessibility for those who prefer speaking directly with a support representative.

Kraken’s Consumer Ratings, Reports & Reviews on Other Platforms

Kraken has a poor 2.2-star rating on Trustpilot with 68% bad reviews. Some of the more positive reviews like Kraken’s smooth service and low fees when using Kraken Pro.

Other users who have used Instant Buy think the fees are too high. 

 

Does Kraken Offer Staking or Other Services?

Yes, Kraken offers Futures and margin trading, though people in Ontario are restricted from these services. 

Kraken offers staking on several digital assets including Ethereum (4-7%), Cardano (4-6%), Cosmos (12-15%), Kava (23%), Polkadot (9-12%) and more. Staking yields depend on the asset and how long you stake, but more information can be found here. 

Does Kraken Have an OTC Desk?

Yes, Kraken has an OTC Desk for institutions or high net-worth individuals making large trades. You’ll get 1-on-1 support and full asset support 24/7. 

Does Kraken Restrict or Freeze Accounts?

Unfortunately, many people have complained of Kraken closing or freezing their account for apparently no reason. 

Based on these reviews it seems that Kraken often closes accounts for seemingly unknown reasons. However, Kraken usually admits that these decisions are made based on legal and regulatory requirements. Whether it’s because these people do not meet certain requirements is unknown but if your account is suspended or closed, you may be left wondering why. 

Latest Updates on Kraken For Canadians

Kraken offers a range of flexible funding options, including wire transfers and various cryptocurrency funding methods, making it easier to move funds on and off the platform. What I really appreciate is their 24/7 customer service, which ensures that you can get help whenever you need it. This is especially valuable for global users like me, as it allows for seamless support across different time zones.

Kraken Alternatives For Canadians

There are several Canadian crypto exchanges that offer free and fast deposits, which may be a better option than Kraken. We recommend Bitbuy.

Bitbuy was Canada’s first regulated exchange and it complies with the Ontario Securities Commission. It has variable trading fees from 0 to 0.75% and it holds over 97% of funds in cold storage. Deposits are fast and free via Interac making Bitbuy a good choice for Canadians.  

	Kraken	Bitbuy	NDAX
Trading fees	0.16%/0.26%	0 to 1.5%	0.2%
Cryptocurrencies	290+	40+	36+
Additional features	Futures & margin trading, staking, OTC Desk, NFT marketplace, crypto education	OTC Desk	Staking, OTC Desk
Customer Support	Average	Good	Poor
Security	Excellent	Excellent	Good

Common Crypto Exchange Scams With Kraken

Even if you use a reputable crypto exchange, you must always be vigilant about your crypto activity. 

Often, scammers will create websites of crypto exchanges that resemble the real thing. They may also send phishing emails claiming that there is a problem with your account or request additional information. 

One Kraken user was approached by a scammer asking for a deposit in order to complete verification. Luckily the user did not send the funds.

These scams are typical and people fall victim to them all too often. 

If you are ever approached by an exchange to provide information or money, always double check the official email address or social media account of the exchange. Exchanges should never ask you for money, so if you are being requested to deposit funds, be aware that it’s probably a scam. Check out the article on common crypto scams in Canada.

Conclusion

Kraken is an “okay” exchange for Canadians, offering a wide range of features like staking and futures trading. Deposits and withdrawals are quick, and Kraken is known for its low spread and competitive trading fees.

However, if you’re using the Instant Buy platform, be prepared to pay higher fees. I’d recommend getting familiar with the Pro platform to access the lowest fees available.

One downside is that not all services are available to Canadians in Ontario due to the Ontario Securities Commission regulations, but users in other provinces can enjoy full access.

The 1.5% deposit fee and $10 fiat withdrawal fee are a letdown, but considering Kraken’s low trading fees, extensive selection of cryptocurrencies, and easy verification process, it’s still a solid choice for Canadians. That said, there are other exchanges that may offer better value, and I recommend browsing through this article to explore them.