FTX vs Kraken: Comprehensive Comparison 2022

FTX and Kraken have always been confusing to choose between when it comes to being a better option for trading. An exchange that charges a lower price is safer and consists of all the requirements you need for your trading aspirations.

Both FTX and Kraken are pretty famous in crypto trading among traders, and it is hard to choose one. But don’t worry; I will make the process easier for you and help you choose the one exchange that would be better for you.

Let’s begin with some background information about the two.  

FTX vs Kraken: Introduction

FTX

ftx

It’s a cryptocurrency derivative exchange launched in 2019 based in Antigua and Barbuda. It offers more than 150 perpetual futures and spot markets.

Kraken

kraken

Kraken is one of the few crypto exchanges registered and headquartered in the USA. It is one of the best and oldest crypto exchanges in the USA and globally. Started in 2011, Kraken is headquartered in California.

Now that you know what FTX and Kraken are let’s discuss what range of crypto assets they offer.

FTX vs Kraken: Supported Cryptocurrencies

  • FTX

There are currently 264 crypto assets presently available on FTX. With all the significant selections like Bitcoin, Ether, Solana, Litecoin, Ripple, Dogecoin, etc.

  • Kraken

On Kraken, there are currently 168 cryptocurrencies available. With all the major ones from your favourite list like Bitcoin, Bitcoin Cash, DAI, DASH, DOGE, Litecoin, Monero, Nano 

kraken supported coins

Verdict: FTX is a winner in this aspect, with far more cryptocurrencies supported than Kraken. Therefore, there is far more chance of getting your desired crypto asset on FTX, and it is a better option in this segment.

Let’s now get into the products they offer to their users on the platform.

FTX vs Kraken: Product offerings

  • FTX

1. Futures Trading

FTX offers quarterly and perpetual futures on more than 20 crypto assets, including BTC, ETH, LINK and BNB. It also has Index futures for any segments you can choose to trade in.

The index futures on FTX include large-cap coins (ALT-PERM), mid-cap coins (MID-PERP) and small-cap coins (PRIV-PERP). Additionally, they also provide privacy tokens (PRIV-PERP), exchange tokens (EXCH-PERP) and regional baskets (DRGN-PERP).

 2. Leveraged Trading

FTX currently offers leveraged trading in 45 different tokens. It provides up to 101x leverage on all FTX leveraged tokens, and as a precaution, the maximum leveraged position is set to 10x. 

You can trade BULL and BEAR tokens that automatically balance daily and manage their exposure to prevent liquidation and maintain target leverage. You can also change by choosing various assets, including BTC, ETH, BNB, XRP, XTZ and LINK.

 3. Options Trading

You can trade in Bitcoin options using FTX cash that expires in USD. You can also buy or sell Call or Put contracts similar to futures contracts.

 4. MOVE Contracts

FTX also offers MOVE contracts that function as expiring futures based on the raw amount BTC moves in a specified period. Hence, cryptocurrency traders gain on the amount Bitcoin moves, regardless of the direction.

The underlying asset volatility determines the contract’s value instead of its direction.

 5. Spot Markets

You can also trade the good old spot markets on FTX. The exchange allows spot trading in various digital assets, including BTC, ETH, FTT, BCH, PAXG, BTMX USDT, LINK and BNB.

 6. Prediction Markets

You can bet on real-world events on FTX’s prediction markets. Similar to standard betting, your contacts settle at 100% if you win, and if you lose, it drops to 0%. 

  • Kraken

1. Futures Trading

Kraken offers futures trading on coins like ETH, LTC, XRP and XBT, allowing you to seamlessly transfer your assets from spot to futures market if you want to give it a try.

If you are new to futures, they also provide a demo account that you can use to familiarise yourself with different aspects of this product.

 2. Spot Trading

Spot trading on Kraken is pretty straightforward, supporting 90 different crypto coins and tokens for its spot trading market. These assets will form at least 130 trading pairs.

Additionally, Kraken makes it easy to buy the crypto assets with fiat as they support at least seven different fiat currencies, including USD, GPB and EURO.

 3. Margin Trading

Kraken allows you to trade with margin on cryptocurrencies like BTC, ETH, LTC and XRP. They provide a maximum leverage of 5x, and the top margin level is $500,000.

Leveraged trading is also straightforward as you need to choose the pair to leverage, your desired leverage, order types, and trade size and complete the trade.

Verdict: It can be seen that FTX offers a far more range of products that you can choose from than Kraken; therefore, FTX is undoubtedly a better option.

Next, let’s look at the fee structure of both these exchanges.

FTX vs Kraken: Fees Comparison

  • FTX

Trading Fees

Trading fees follow a Maker/ Taker fee structure in FTX. 

Market maker orders enter the order book (limit orders), adding liquidity to the market. On the other hand, market orders don’t go to the order book and get immediately executed (market orders), taking the liquidity away from the market.   

You can refer to the following fee table for both spot and futures.

trading fees in FTX

If you are a VIP trader, you can get an upfront discount of up to 50% on the overall FTX trading fees. However, you’ll have to trade at least $100 million in a month to become a VIP trader.

FTX Deposit and Withdrawal Fee

FTX doesn’t charge a fee on deposits or withdrawals from its users. However, a lifetime withdrawal limit for non-KYC users is set at USD 1,000.

Also, a network and mining fee is applied to all transactions by default. These fees are charged by the blockchain network you’re using to deposit or withdraw funds.

FTX Funding Rates/ Fees

Funding rates are paid to the traders based on the difference between the perpetual contract market price and spot price. For example, short traders will pay funding fees to long traders if the futures trading price is lower than the spot price.

Long traders pay the short traders if the trading price is higher than the spot price. The platform doesn’t take the funding fee itself. Instead, it’s sent to the opposite contract holders. 

  • Kraken

Trading Fees

Kraken has a separate fee structure for spot and futures, following the maker/taker model; you can refer to the tables below for a better overview.

Spot Trading Fees

30- Day Volume (USD) Maker Taker
$0 – $50,000 0.16% 0.26%
$50,001 – $100,000 0.14% 0.24%
$100,001 – $250,000 0.12% 0.22%
$250,001 – $500,000 0.10% 0.20%
$500,001 – $1,000,000 0.08% 0.18%
$1,000,001 – $2,500,000 0.06% 0.16%
$2,500,001 – $5,000,000 0.04% 0.14%
$5,000,001 – $10,000,000 0.02% 0.12%
$10,000,000+ 0.00% 0.10%

Futures Trading Fees

30-Day Volume USD Maker Fee Taker Fee
$0 – $100,000 0.0200% 0.0500%
$100,001 – $1,000,000 0.0150% 0.0400%
$1,000,001 – $5,000,000 0.0125% 0.0300%
$5,000,001 – $10,000,000 0.0100% 0.0250%
$10,000,001 – $20,000,000 0.0075% 0.0200%
$20,000,001 – $50,000,000 0.0050% 0.0150%
$50,000,001 – $100,000,000 0.0025% 0.0125%
$100,000,001 + 0.0000% 0.0100%

With the primary Kraken platform, most crypto purchases will attract a 1.5% fee, but when using stablecoins like the USD, you only pay 0.9%. Also, some additional costs depend on the method you are using. 

All in all, trading fees on Kraken are structured on a maker/taker fee module as well.

Verdict: FTX charges way less in terms of trading fees, and therefore, it is undoubtedly a better option in this segment as well.

Let’s now look into the various funding methods these platforms support.

FTX vs Kraken: Account Funding Methods

  • FTX

FTX offers a wide range of funding methods; you can deposit BTC, ETH, USDC, Litecoin, Tether, TUSD, BTC Cash and PX.

FTX doesn’t support fiat currencies. If you don’t have crypto in your account, you’ll need first to convert your fiat currencies into cryptocurrency. And then you will be able to place an order.

  • Kraken

Kraken supports deposits via cash, debit/credit card or adding crypto from another wallet.

FTX vs Kraken: Trading Platform Comparison

The trading platform holds critical importance when deciding the better alternative because this is the aspect that complies with all the functions and features of the platform. Let’s find out which among the two is better in this aspect.

  • FTX

It is one of the best trading platforms I have used so far. They are easy to use with all the features essential to provide a smooth and seamless trading experience. 

They are available for all your devices, whether desktop or mobile phones and are 100% compatible with all your devices.

It is worth to bring into your notice some of the eye-catchy best-in-class features of FTX; they are:

Trading View:

FTX provides the trading view chart kit to traders for an insightful derivative trading experience. The charting interface is clean and supports almost all chart types, such as lines, candlesticks, Heikin-Ashi, etc.

It also provides various drawing tools and indicators to carry out seamless technical analysis and make informed trading decisions.

 Analysis Tools:

FTX has robust analytical tools that support technical and fundamental analysis. 

  • Kraken

Kraken has a more beginner-friendly approach as it offers free demo account compatibility, which new traders can use.

The overall trading platform of Kraken is quite subtle and comes with a reasonably powerful engine. It is available in desktop and mobile applications with 100% compatibility with all your devices.

Verdict: Though both of these platforms are feature-rich in terms of their trading platforms, from personal experience, I would prefer the FTX platform to be better in this segment. 

Let’s now quickly discuss what the account types are, and the requirements there are on these platforms.

FTX vs Kraken: Account Types

These platforms have a tiered structure for accessibility and transaction limits; let’s differentiate them in this aspect.

FTX

FTX offers three different tiers of accessibility based on the account’s KYC. They are:

TIER 0 – Requirements

  • Email
  • Check for restricted jurisdictions.

TIER 1- Requirements

  • Email
  • Name
  • Country of residence and province/region.

TIER 2- Requirements

  • Full legal name
  • Date of birth
  • Proof of address and phone jurisdiction
  • Passport or other government-issued identity verification
  • Facial verification
  • Description of source assets

Kraken

Kraken has four levels of traders depending on your verification status; these are:

Starter- Requirements 

  • Full name
  • Phone number
  • Physical address

Express- Requirements

  • All the starter requirements
  • Occupation information
  • Social security number if you are a US trader

Intermediate- Requirements 

  • All express requirements
  • KYC verification with valid IDs
  • Proof of residence
  • Face photo

PRO- Requirements

  • All intermediate requirements
  • Fill KYC questionnaire
  • Set up 2FA

Now that you have a better grip on these platforms allow me to tell you how can you begin your trading journey on these platforms.

FTX vs Kraken: How to get started?

  • FTX

1. Open an FTX Trading Account

The registration process at FTX is seamless. Firstly, you can open a Tier 0 account with only your email address. Fill in your details asked on the registration page and open the account.

2. Add Funds to Your FTX Account 

You need to activate the two-factor authentication using Google authenticator. Now you can fund your account using a varied range of cryptocurrencies.

3. Place Your First Order

You can use various trading products to place an order after your wallet is funded. For example, let’s stick to BTC/USD. Select the contract you want to trade, and an order book will open.

You can place, Buy or Sell orders based on whether you want to go long or short. You’ll have then to choose a type of order, Limit or Market, and you can select any of them you like.

You can then select advanced order types, including reduce-only, IOC and Post Only. You’ll now be required to enter the amount of BTC you want to purchase.

Once you enter all the information, you can hit the Buy or Sell button. 

 4. Exit Your Order

There are two different options to exit a trade on the platform. The first option is when you can manually close your position and take the profit or loss. The second is when you can place a Stop Loss or Take Profit order. 

If you are a beginner, it’s advisable to use the Stop Loss and Take Profit order to ensure you don’t miss out on profits or incur hefty losses. 

  • Kraken

1. Creating Your Account

Firstly, go to Kraken’s official website and click on ‘Create an account. Subsequently, fill out the registration form with your email address, username and password. Choose your country and other location-related details as well.   

Now, activate your account using the activation key you will receive in your email. Once your account is active, you should confirm the password by completing the captcha, and your account is now ready to start trading. 

2. Deposits and Withdrawals 

Deposits

  • Go to the ‘Funding’ page on your account.
  • Click on ‘Deposit’ under the ‘Account Balances’.
  • Choose the currency and amount you want to deposit.
  • Lastly, choose the deposit method from the drop-down menu. The menus will have all the ways that Kraken supports. After this, you can complete the transaction.

Withdrawals

  • Choose ‘Withdraw’ under the ‘Funding’ tab.
  • Find the currency you want to withdraw using the search bar.
  • Follow and complete the steps that you get on the screen.

Now let’s get into the customer support of these exchanges.

FTX vs Kraken: Customer Support

Customer support is one of the critical aspects to look upon when choosing an exchange you trade on, and let me tell you, both these platforms are pretty good in this aspect. Let’s now discuss what these platforms offer.

  • FTX

Customer support at FTX is pretty straightforward; you can reach them via Telegram and WeChat with a quick response time. The customer support team is quite knowledgeable and dedicated to helping you with all your queries. 

  • Kraken

Customer support on Kraken comes with a 24×7 live chat option which is pretty convenient. Other than that, consistent traders also get a personal account representative who handles all the account-related queries and requests on their behalf.

 This service can be very helpful in helping you to focus on trading instead of getting into customer support yourself. 

Verdict: FTX and Kraken are both equally good in customer service. Therefore, it’s a tie in this segment.

Let’s get into the security features both of these exchanges implement.

FTX vs Kraken: Security Features

Security features should be the top priority while selecting a trading exchange because it is the exchange that will be liable for your hard-earned money. 

You will be happy to know that both FTX and Kraken take security and their user’s privacy very seriously. Both of them take all the necessary steps to make their platform’s security impenetrable.  

FTX

FTX implements various security measures on its trading platform to provide users with a safe, secure, and seamless trading experience. Let’s quickly discuss what they are:

  • Offline Cold Wallet Storage: FTX uses multi-signature offline cold storage to store user’s funds. These wallets are highly secure and require all the keys from signatories to access the funds.
  • 2FA Security: To deposit funds, users need to activate the two-factor authentication option. It adds an additional security layer and alleviates the risk of fund theft or other issues.
  • Cutting-Edge Trading Platform: FTX has one of the most advanced crypto trading platforms in the cryptocurrency space, built on the latest cutting-edge technologies.
  • FTX Insurance Fund: FTX offers an FTX insurance fund to protect traders from massive losses in case of price volatility. It helps traders cover all uncovered losses.

Kraken

Kraken also implements similar security measures as FTX, with 95% of deposits held offline in cold storage. They also test the third-party services themselves to identify any security issues.

Other than these, there is 2FA but no deposit insurance.

Verdict: In terms of their security features, both are equally tremendous, but FTX offers insurance as well, making it a better option than Kraken in this segment.

  • Is FTX Safe?

Yes, FTX is one of the most renowned cryptocurrency exchanges in the world and is completely safe and regulated. In addition, it deploys bank-like security features to ensure the safety of users’ funds and personal information.

So far, there haven’t been any security breaches or hacks at FTX. With the security and insurance features, you expect a safe and secure crypto trading derivative environment and experience on FTX.

  • Is Kraken Safe?

Kraken is one of the longest-running exchanges out there, and so far, there haven’t been any reports of misconduct or cyber security breaches on the platform.

With all the security protocols in place, Kraken is undoubtedly a safe and secure platform for its users. It is a trustable platform.

Conclusion

Looking at these platforms at a glance, it seems they are pretty similar in various aspects, but when analysing them in detail, clearly FTX is better than Kraken.

Whether security, fees, insurance and crypto derivatives offerings, on the whole, FTX is undoubtedly a better alternative when choosing one among them.

In FTX, it doesn’t matter whether you are a beginner or an expert. It is truly the exchange you wanted.

Now, what are you waiting for?

Get your hands on FTX and enjoy the trading experience you always wished for.

nv-author-image

Jack Bailey

I am John, a veteran trader turned into a trading coach. Especially in the realm of cryptocurrency derivatives which is now booming and expected to grow big.

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