Binance vs. Kraken: Which Is Better?

    The best place to buy digital currencies is a cryptocurrency exchange. Exchanges always have the best rate. They provide high liquidity, so assets are easy to buy and sell. Also, many trading platforms offer buying crypto by fiat and support a large number of payment methods.

    TGDRating experts reviewed two popular crypto exchangesBinance and Kraken. Each platform offers users something unique, but at the same time has its drawbacks. Binance or Kraken – which exchange is better?

    Binance

    Binance is #1 by trading volume in the world and the fastest growing cryptocurrency exchange. Everyone who works with crypto knows about Binance.

    Binance or Kraken
    Binance homepage

    Basic information about Binance:

    • Founding year: 2017;
    • Founder: Changpeng Zhao;
    • Verification: required;
    • Trading pairs: 1400;
    • Available markets: spot, derivatives, quick buying from card, P2P, OTC, margin trading, NFT;
    • Trading fees: 0,02% – 0,1% for makers and 0,04% – 0,1% for takers (25% discount when paying BNB);
    • Coingecko trust rating: 10/10.
    #1 exchange by trading volume;
    Licensing (France, Italy, Lithuania, Spain, Cyprus, Poland; Dubai, Kazakhstan, New Zealand, Canada, South Africa);
    1400 trading pairs;
    Fiat pairs;
    One of the lowest fees on the market, plus discounts when paying in BNB or with large trading volumes;
    Access to various markets: spot, derivatives, card purchasing, P2P, OTC, margin trading, NFT;
    Exclusive conditions for institutional clients;
    Trust Wallet;
    Additional services: deposits, liquidity farming, DeFi staking, Binance Pool, Launchpad, ETH 2.0, etc;
    High level of users' trust.
    Difficult interface for beginners;
    Mandatory verification = no possibility to trade anonymously.

    Kraken

    Kraken entered the crypto market back in 2011 and is also one of the largest exchanges in terms of trading volumes. The exchange has 9+ million users from 190+ countries.

    Cryptocurrency exchange homepage Kraken
    Kraken homepage

    Basic information about Kraken:

    • Founding year: 2011;
    • Founder: Jesse Powell;
    • Verification: required;
    • Trading pairs: 660+;
    • Available markets: spot, futures, OTC, margin trading, NFT;
    • Trading fees: 0% – 0,16% for the maker and 0,1 – 0,26% for the taker (depending on the trading volume in the last 30 days);
    • Coingecko trust rating: 9/10.
    On the market since 2011;
    Availability of a license;
    User-friendly multilingual interface;
    A wide range of trading pairs;
    Fiat pairs;
    Discounts on trading fees;
    Margin trading (leverage up to x5);
    Staking with high reward rates;
    Access to the OTC market;
    High trust rating.
    Cannot trade anonymously;
    Quite complicated verification;
    Limited number of available fiat currencies;
    No demo account.

    Binance vs. Kraken Fees

    Commissions are one of the important criteria to consider when choosing a crypto exchange. Any trading platform charges commission fees, however the lower they are, the better for users. There are different ways to reduce the fees. For example, paying fees with the native currency of the exchange or reaching are large amount of trading volumes. Let’s compare the commissions of both exchanges to determine the most profitable.

    Binance Fees

    Binance trading fees:

    • Spot Market: 0,02% – 0,1% for maker and 0,04% – 0,1% for taker (when paying in BNB – 0,075%), 0% commission on BUSD pairs and individual BTC pairs/fiat and BTC/stablecoin;
    • Futures: USDⓈ-M Futures – 0% – 0,02% for maker and 0,017% – 0,04% for taker (-10% when paying BNB), COIN-M Futures – -0,009% – 0,01% for the maker and 0,024% – 0,05% for the taker.

    Kraken Fees

    Kraken Trading Fees:

    • Spot market: 0% – 0,16% for maker and 0,1% – 0,26% for taker (depending on trading volume over the last 30 days);
    • Stablecoins/Pegged tokens/FX pairs: 0% – 0,2% for all market participants (depending on trading volume over the last 30 days);
    • Commissions for margin trading: for opening a position – 0,01% – 0,02% (depending on the coin), for position rollover – 0,02% for 4 hours;
    • Futures: 0% – 0,02% for a maker and 0,01% – 0,05% for a taker (depending on trading volume over the last 30 days).

    Binance vs. Kraken Fee Comparison Table

    Fees type Binance Kraken
    Deposit/Withdraw fiat from the card 1,8%; Not supported;
    Fiat top-up via a third-party EPS For USD:
    through Simplex – 2,5% per transaction for EEA users and 3,5% per transaction for users from other countries;

    via Banxa – 1,99% per transaction;

    Not supported;
    Fiat top-up by bank transfer 0 – 1 euro (input methods and conditions depend on the user’s currency and country of residence); 0 – 10 USD, 0 – 3 EUR, 0 – 21 GBP, 0 JPY etc.;
    Crypto replenishment 0%; 0%;
    Spot trading fees 0,02% – 0,1% for the maker and 0,04% – 0,1% for the taker (when paying in BNB – 0,075%);
    0% commission on BUSD pairs and selected BTC/fiat and BTC/stablecoin pairs;
    0% – 0,16% for the maker and 0,1% – 0,26% for the taker;
    Derivatives trading fees USDⓈ-M Futures – 0,02% for maker and 0,04% for taker (10% discount when paying in BNB);
    COIN-M Futures – 0,01% for maker and 0,05% for taker;
    0% – 0,02% for maker and 0,01% – 0,05% for taker
    P2P trading P2P transaction fee is charged only from the maker (no fee is charged from the taker). Its size depends on the currency (for example, 0,35% for USD and 0% for EUR); Not supported;
    Options trading 0,02% for regular users, 0% for VIP makers and 0,015% for VIP takers; Not supported;
    Swap farming 0,02% for regular users, 0% for VIP makers and 0,015% for VIP takers; Not supported;
    Staking fee Not charged; Not charged;
    Mining fee Binance Pool commission rate is 2,5% (VIP status has reduced commission rates for high hash rate users). Not supported;
    Withdrawals Depends on currency, network and network load at the time of withdrawal.

    Bitcoin: 0,0000042 (Bitcoin), 0,00018 (ERC20), etc.

    Ethereum: 0,0012 (ERC20), 0,000057 (BEP20), 0 (Arbitrum One, Optimism), etc.

    USDT: 0,29 (BEP20), 3,55 (ERC20), 1 (TRC20, Polygon, Solana, Tezos, EOS, AVAX C-Chain).

    Depends on currency and network load at the time of withdrawal.

    Bitcoin: 0,00001 BTC

    Ethereum: 0,0035 ETH

    USDT: 3,55 USDT (ERC20), 2,5 USDT (TRC20);

    Binance vs. Kraken: Features

    Let’s consider the main features of both crypto platforms.

    Binance Unique Features

    Binance is the world’s largest crypto exchange by trading volume. The platform offers 1400 trading pairs, including Crypto/Fiat pairs.

    Binance clients get access to various markets: spot, derivatives, P2P, OTC, NFT. Up to x125 leverage is avalaible for futures trading (COIN-Margined and USDS-Margined contracts) and margin trading.

    In addition to trading opportunities, there are many ways to earn passive income on the platform: DeFi staking, Launchpad, dual currency investments, autoinvestment, Binance Pool, liquidity farming, BNB Vault (an options to earn income from holding BNB) and others. Additional services include cryptocurrency conversion (swap), native crypto wallet called Trust Wallet, crypto loans, Binance Card, Binance Pay.

    Binance cryptocurrency wallet
    Binance cryptocurrency wallet

    Kraken Unique Features

    US exchange Kraken is also one of the largest crypto platforms in terms of trading volume. Most of the volume is traded in the pairs USDT/USD and USDT/EUR. In total, 660+ trading pairs are available on Kraken in Crypto/Crypto and Crypto/Fiat pairs types.

    The following markets are available to platform users: spot, indexes and futures, over-the-counter trading (OTC), margin trading, NFT. Kraken has staking, referral program, Bug Bounty (reward for founding errors) as passive earnings options on the crypto. Other additional services: cryptocurrency guide, podcasts, account management, Cryptowatch (trade on multiple crypto exchanges through one platform).

    Cryptocurrencies Available

    Both trading platforms offer wide listing as well as fiat support.

    Binance Supported Currencies

    Currently about 1400+ trading pairs are available on Binance, including pairs of Crypto/Crypto and Crypto/Fiat types. The main trading volume takes BTC/USDT pair.

    The exchange has its own token – BNB. It gives the following privileges: 25% discount on trading fees, BNB Vault (various options for earning income from holding BNB);

    Binance actively supports young crypto projects and announces the listing of new tokens in the special section of the site.

    Kraken Supported Currencies

    Crypto exchange Kraken supports 660+ trading pairs in types of Crypto/Crypto, Crypto/Fiat and Fiat/Fiat. The main trading volume takes USDT/USD pair.

    KYC Requirements

    Binance and Kraken are crypto exchanges with mandatory verification. In order to gain access to the functionality of the trading platforms, new users must pass a full identity verification. Let’s consider what steps this process consists of on both platforms.

    Binance Verification Requirements

    Binance offers 2 levels of verification:

    • Basic (Verified) involves the provision of personal information and ID card, as well as passing the face recognition procedure;
    • Extended (Verified Plus) requires confirmation of the users’ address of residence. To do this, you can use bank statement, utility bill, etc.

    Trading opportunities after passing different levels of verification on Binance:

    Basic Verified Plus
    Fiat deposit and withdrawal limits $50K daily $2M daily
    Cryptocurrency deposit limit Unlimited Unlimited
    Cryptocurrency withdrawal limit 8M BUSD daily 8M BUSD daily
    P2P transaction limits Unlimited Unlimited
    Other features LPD/OTC LPD/OTC/Binance card

    Kraken Verification Requirements

    Kraken has three levels of verification:

    • Basic is limited to providing personal information (name and surname, date of birth, address, phone number);
    • Standard involves uploading identity card, as well as a paper confirming address of residence;
    • Pro consists of checking the financial information about the user of the exchange.

    Trading opportunities after passing different levels of verification on Kraken:

    Limits Basic Standard Pro
    Bank transfers not available $100k/day, $500k/month unlimited
    Deposits in cryptocurrency unlimited unlimited unlimited
    Cryptocurrency withdrawal $5k/day $500k/day 10,000,000 (may be increased)
    Account Features Basic Standard Pro
    Buy/sell/convert cryptocurrency yes yes yes
    Margin trading none Available to most users outside the US; Available to most users outside the US;
    Receiving rewards from staking On-chain staking available Off-chain staking available. Excluding users from certain countries (USA, Australia, Canada, etc.); Off-chain staking available. Excluding users from certain countries (USA, Australia, Canada, etc.);
    Crypto futures trading (outside US only) none yes yes
    OTC none none yes

    Binance vs. Kraken: Security

    One of the main requirements for a cryptocurrency exchange is a high level of security. As a rule, exchanges offer users various methods of account protection, which we advise you not to neglect.

    Binance Security Features

    Binance is registered in the Cayman Islands. Exchange has a license to operate in the following countries: France, Italy, Lithuania, Spain, Cyprus, Poland, Dubai, Kazakhstan, New Zealand, Canada, South Africa.

    Exchange users can enhance the security of their account in many ways:

    • Complex password to enter your personal account;
    • Passing full identity verification;
    • Activate two-factor authentication immediately after registration;
    • Linking a phone number;
    • Configure email confirmations;
    • Configure anti-phishing code;
    • Regularly monitoring of account activity, etc.

    Kraken Security Features

    The exchange is owned by Payward Inc, a US registered company.

    Kraken became the first US cryptocurrency exchange to receive a banking license. The platform has all the functions of a traditional financial institution.

    The exchange is regulated by the following authorities:

    • FinCEN (Financial Crimes Enforcement Network) in the USA;
    • FINTRAC (The Financial Transactions and Reports Analysis Center of Canada) in Canada;
    • FCA (The Financial Conduct Authority) in the UK;
    • AUSTRAC (The Australian Transaction Reports and Analysis Centre) in Australia;
    • FSA (The Financial Services Authority) in Japan.

    The exchange offers users following security measures:

    • Use a complex and unique login password;
    • Enable two-factor authentication (2FA can be used when logging into an account, transferring, trading);
    • Check the timeline for active sessions for suspicious activity in the account;
    • Check devices connected to the exchange account, etc.

    Binance vs. Kraken: Staking Rewards

    Both trading platforms offer users a popular way to make passive income on the crypto – staking. By sending unused assets for staking, you can regularly receive additional rewards.

    The conditions for staking on platforms are different. Let’s consider what Binance and Kraken have to offer.

    Binance Staking

    On Binance, DeFi staking is available, i.e. using smart contracts, as well as Ethereum 2.0 staking.

    Binance offers two types of staking with different % rewards:

    • With flexible lock: you can withdraw staked assets at any time;
    • Fixed lock: assets are locked for a fixed period (30/60/120 days) and cannot be withdrawn early.

    The yield depends on coin and type of staking and ranges from 0,6% to 5,39%. You can stake 14 assets on Binance: BTC, ETH, LTC, XRP, BUSD and others.

    Kraken Staking

    The exchange offers 20+ staking assets, including BTC, ETH, USDT, DOT, ADA, SOL, MATIC, etc., as well as in EUR and USD.

    Each asset has its own interest rate: it varies from 1% to 21% per annum. Rewards can be earned weekly or biweekly (depending on the asset being staked).

    Binance vs. Kraken: Main Differences

    Binance Kraken
    Launch year 2017 2011
    License yes yes
    Verification Required Required
    Number of trading pairs 1400+ 660+
    Fiat pairs yes yes
    Available markets Spot, derivatives, purchase by card, P2P, OTC, margin trading, NFT; Spot, indexes and futures, over-the-counter trading (OTC), margin trading, NFT;
    Spot trading commission 0,02% – 0,1% for makers and 0,04% – 0,1% for takers (25% discount when paying with BNB);

    Zero commission on BUSD pairs and selected BTC/Fiat and BTC/stablecoin pairs;

    0% – 0,16% for makers and 0,1% – 0,26% for takers;
    Staking Yes (Fixed/flexible lock DeFi staking and Ether staking) yes
    Crypto wallet Trust Wallet none
    Additional Services Cryptocurrency conversion, liquidity farming, crypto loans, Launchpad, dual-currency investments, auto-investment, Binance Pool, Binance Pay, ETH 2.0, etc; NFT, Cryptocurrency Guide, Podcasts, Account Management, Cryptowatch, Bug Bounty;
    Security settings 2FA, phone binding, SMS notifications, withdrawal whitelist, anti-phishing code, etc; 2FA, history of active sessions, devices management, etc;
    Exchange hacks yes none
    Coingecko rating 10/10 9/10

    FAQ

    What are Binance and Kraken?
    These are two cryptocurrency exchanges with large trading volumes, high liquidity, wide listings, low commissions, the possibily to earn on staking and other opportunities.

    Binance was founded in 2017 by Chinese entrepreneur Changpeng Zhao. Kraken is an American crypto platform founded in 2011.

    Which is safer, Binance or Kraken?
    Binance has been successfully hacked while Kraken has not. At the same time, both Binance and Kraken are tge exchanges with mandatory verification, which enhances account protection. The platforms also offer advanced security settings that should not be neglected. The security of funds largely depends on the user behavior. You should use complex password to log in, enable 2FA immediately after registration, regularly monitor account activity, etc.
    Is Binance bigger than Kraken?
    Yes. In terms of trading volume, Binance outperforms Kraken (as well as other crypto exchanges).
    Is Kraken cheaper than Binance?
    The base spot market fees for a new user is 0,1% (or 0,75% if paying with BNB). Kraken charges 0,16% for makers and 0,26% for takers on the spot market. So basic level fees on Binance spot market are lower than the Kraken ones.
    Who should use Binance and Kraken?
    Both platforms are able to meet the needs of users: they offer large trading volumes, support a large number of trading pairs and charge low commissions. At the same time, Binance is more suitable for those who are looking for various opportunities for passive income on cryptocurrency, such as deposits, bi-currency investments, several types of staking (including DeFi), launch pools, etc. Kraken has a simpler and more intuitive interface, so it is better for beginners. And since this is an American crypto exchange, it may be a more convenient option for US users.
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    Agatha Redich
    Agatha Redich
    Articles author, editor
    Articles author and website editor. Works with texts for over 12 years. Among Agatha’s clients: Rossman, Zara, Bosch, ING Bank, Lexus and others. Crypto journalist since 2018. She wrote more than a hundred articles about cryptocurrencies and the crypto market. Agatha's professional credo is to reveal complex topics in an accessible and simple way.
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    Emil Rabin
    Emil Rabin
    Site expert
    Cryptocurrency expert and financial analyst. Emil has working experience in Bain and KPMG, collaborated with PayPal and Revolut, organized more than 30 educational events about blockchain and cryptocurrencies in Eastern Europe. An expert of the TGDRatings.com portal since 2022.
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