Phemex vs Kraken (2022) Comparison

Phemex and Kraken are two top-rated cryptocurrency exchanges that cater to various crypto traders with different product types. Also, they have deep liquidities thanks to a large daily trading volume, and each platform has millions of registered traders.

Kraken is among the oldest exchange globally as the platform has been live since 2011. Phemex is a relatively new entrant into the market as it started operation in 2019, but it is now one of the fastest-growing crypto exchanges.

The right crypto exchange for you between these top companies will ultimately depend on your preferences. However, let’s look at how they stack up against each other.

Phemex vs Kraken: Spot Trading Products

phemex

Phemex has a robust spot market that supports over 21 different cryptocurrencies, including BTC, ETH, LINK, DOGE, ADA, LTC, and BCH. Traders can form dozens of trading pairs on the platform.

Traders on the Phemex platform can also enjoy free trades if they subscribe to the premium plan. Premium traders also get super-fast execution of spot trades, but all the traders on the platform can be sure of easy conversion from one asset to the other.

Kraken has a wider coin offering compared to Phemex. Currently, their catalog includes over 110 different digital assets ranging from BTC ad ETH to Solana and Sushi. The exchange allows traders to form hundreds of trading pairs, and they can also use margin to increase their gains.

Phemex vs Kraken: Margin & Derivatives Trading Products

Phemex allows traders to buy and sell crypto derivatives with a margin of up to 100x. Traders can access over 40 trading pairs for their derivatives contracts, including BTC/USD, ETH/USD, LTC/ETH, and XRP/ETH.

It is essential to note the 100x leverage is for contracts that involve BTC/USD pairs. For others, the maximum you can use is 20x. Additionally, the exchange offers Gold/USD with a maximum leverage of 100x. Traders can use conditional, stop-loss, and take-profit orders for these pairs.

Although Kraken is primarily a spot exchange where traders can buy and sell BTC and altcoins, it also has a crypto derivatives market. The market offers traditional futures and perpetual swaps. Additionally, traders can also open positions with a margin.

Kraken supports maximum leverage of 5x for all the futures contracts. While this is lower than what you get from other exchanges, including Phemex, Kraken is a well-regulated exchange that operates in some of the strictest markets like the USA.

Phemex vs Kraken: Trading Fees for Spot & Derivatives

Both Phemex and Kraken use the maker-taker fee structure and categorize traders into several tiers depending on their 30-day trading volume.

Phemex

Phemex fees for Spot traders will depend on their status on the platform. Standard traders will pay a 0.1% flat-rate fee for all trades they execute regardless of the trading pair or size. Premium traders will not pay any fees for spot transactions, but they have to pay a monthly membership fee.

Premium trial users will also not pay fees for spot trading whether they are using the web-based platform or trading on their phone via their app.

Phemex uses the maker-taker model for their contract trading. Here market makers that add liquidity to their books will not pay any fees and instead get a market maker rebate of 0.025%. Market takers pay a 0.075% taker fee for all their transactions, regardless of the trade size or pair.

phemex trading fees

Kraken

Kraken has 7 tiers of traders based on their monthly trading volume. Traders at tier 1 have a 30-day volume of less than $100,000, and they pay the highest fees on the platform as the exchange charges them 0.02% and 0.05% in maker and taker fees, respectively.

The Kraken trading fees keep decreasing as you increase your volume, and once you get to the last tier by trading over $100 million, you will not pay any maker fees, and your taker fee will be 0.0100%.

Also, it is worth noting that the fees on Kraken are settled using the collateral currency. For example, if you are trading BTC/USD futures contracts, the payments must be settled using BTC.

kraken trading fee

Phemex vs Kraken: Deposit & Withdrawal Fees

Most crypto exchanges will try not to charge and deposit and withdrawal fees to make their platform cheaper to use.

  • Phemex

Phemex does not charge any fees for adding funds to your account. However, they have a minimum amount you can add to your account, depending on the specific asset you are depositing. For example, the minimum deposit into your BTC wallet is 0.00000001 BTC, and for ETH, it is 0.00000001 ETH.

The exchange also has minimum withdrawal limits, and the fees you pay also depend on the specific asset you are withdrawing. For example, the minimum withdrawal for BTC is 0.001 BTC, and the withdrawal fee is 0.00057 BTC.

  • Kraken

Kraken does not charge any deposit fees. However, some assets will attract an address setup fee. For example, you must pay 0.0119 AAVE as an address setup fee when depositing Aave.

The minimum amount you can add to your account will depend on the specific asset you are depositing. For example, the minimum deposit for BTC is 0.0001 BTC.

Withdrawal fees on the Kraken platform also depend on the particular asset you are withdrawing. Charges for BTC withdrawal are 0.00002 BTC, and you can withdraw a minimum of 0.0005 BTC.

Phemex vs Kraken: Account Funding Methods

Now that you know how much it will cost you to add different assets to your Phemex and Kraken accounts, another essential factor to note is the method you can use. The good news is that depositing on both platforms is relatively easy and quick.

  • Phemex

Phemex allows you to fund your account with both crypto and fiat currencies. Finding your account with crypto is straightforward as you only need to copy the address from the “Deposit” section on the “Assets” page. You can also scan the QR code to get the address to send the crypto from your external wallet.

Although the exchange does not allow direct fiat deposits, it currently supports more than 90 fiat currencies. You can use fiat to fund your Phemex wallet by buying crypto with your debit/credit card, bank transfers, or even using supported third-party apps like Simplex. 

  • Kraken

Kraken is a well-established exchange that has been around for a long time, so you can be sure they will always give you more options when it comes to funding your account. They now accept both fiat and crypto deposits.

Crypto deposits are straightforward as you only need to copy the address and paste it when sending the assets from another wallet. However, it is vital to make sure you send from a wallet within a supported network.

Kraken supports fiat funding through several fiat currencies such as USD, CAD, EUR, GBP, JPY, AUD, and CHF. The actual funding methods you can use will depend on the specific currency you are depositing. For example, the deposit methods available for USD deposits include Fedwire, SWIFT, Silvergate Exchange Network, Etana Custody, and Wire transfer.

Phemex vs Kraken: Trading Platform Comparison

Any exchange you choose should have an easy-to-use trading platform with all the basic trading tools you need to execute a successful trade. Both Kraken and Phemex have some reasonably simple trading platforms that even beginner traders will figure out quickly.

  • Phemex

One of the key highlights of the Phemex trading platform is that it does not have any performance issues such as crashing, downtimes, and excessive lagging, as is the case with many other top platforms.

When it comes to the actual trading platform, the exchange uses the TradingView charting system to make chart visualization easier and clearer. The platform also has basic and advanced trading tools, including indicators and several chart types.

Phemex provides an order book and allows traders to place orders using multiple order types like conditional, limit, and market orders.

Traders using the Phemex platform can also create sub-accounts, which allows them to open and manage several positions under the same account. Moreover, there is also a mobile app for both iOS and Android devices for trading on the go.

  • Kraken

Kraken has one of the most robust trading platforms out there. The platform also uses TradingView like Phemex, which gives you access to basic and advanced functionalities, including chart types and indicators.

Besides TradeView, the platform now has Cryptowatch, an advanced market visualization system that allows for more advanced market analysis.

Kraken has two trading platforms: Kraken and Kraken Pro. The two platforms provide an option for both beginner and professional traders.

Phemex vs Kraken: Account Opening Process

It should only take a few minutes to create an account, whether you are using Phemex or Kraken, as the process is quite straightforward.

Phemex

Phemex makes account opening super easy as it does not require mandatory KYC verification. However, traders who do not verify their identity will face certain limitations like not getting Premium membership.

How to open a Phemex account

  • Click “Register Now” on the homepage Phemex.com

phemex register

  • Add your email and create a password
  • Enter the invitation code if you have one
  • Click the blue “Create Account” button at the bottom
  • Verify your email using the code you receive
  • Start trading!

Kraken

KYC requires traders to undergo some verification before they can use the platform. There are several levels of verification, such as Starter, Express, Intermediate, and Pro. Your verification level determines what you can do with your account and your deposit/withdrawal limits. For example, Starter traders cannot deposit or withdraw fiat.

How to open a Kraken account

kraken register

  • Enter your email and username and create a password
  •  Choose your country of residence
  •  Agree to terms of service/privacy policy
  •  Click “Create Account”
  • Activate your account using the activation key you receive in your email

Phemex vs Kraken: Customer Support

Phemex has one of the most reliable customer support teams among all crypto exchanges. The team is available 24/7 and in multiple languages. You can get them via email and social media or even tweet their CEO and get a response.

Kraken offers support via live chat from 6 AM to 6 PM EST. Also, you can get them via email ticketing, and they are available across most social media platforms.

Phemex vs Kraken: Security Features

Phemex and Kraken are two of the most secure crypto exchanges out there, as both have never been hacked. Both use a combination of security protocols and industry-standard systems.

Phemex uses 2FA to protect all user accounts and relies on security features like AWS cloud and endpoint firewalls to protect their trading platform.

Kraken is regulated in both the USA and Canada. Also, it uses multiple security features like advanced encryption, firewalls, mandatory authorization, and 2FA.

  • Is Phemex Safe?

Phemex is a safe platform that has never been hacked. The exchange uses industry-standard security features like cold wallets to keep the assets out of reach even if the platform was ever hacked.

  • Is Kraken Safe?

Kraken is one of the safest crypto exchanges out there, and the fact it has never been hacked despite being around for over a decade is enough proof of this. Additionally, the exchange stores more than 95% of the assets in offline cold storage and enforces strict platform surveillance round the clock.

Conclusion

You can be sure of a fantastic trading experience and exposure to several methods of making money with your crypto when using both Phemex and Kraken.

However, Phemex seems to have the edge over Kraken in several aspects and will be a better fit for most traders. The exchange has higher maximum leverage as it allows for up to 100x, meaning traders can amplify their potential earnings greatly.

Phemex also charges relatively lower fees than Kraken and has excellent customer support that is available 24/7 in multiple languages.

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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.