In this video, the cryptocurrency exchange Kraken trading fees are explained in an easy to understand way with examples! You will learn how Kraken calculates the trading fees, margin fees, maker and taker fees, and more!
What is Kraken?
Kraken is not just a legendary sea-monster, but Kraken is also a cryptocurrency exchange. You can buy, sell, trade and learn about various crypto’s on their exchange. They allow you to deposit and withdrawal funds with multiple methods.
The platform was founded in 2011 and it is one of the oldest and most reliable cryptocurrency exchanges in the world. Kraken is really focused on security and superb customer support. You simply will not find another exchange that is more secure and offers better support for their customers than Kraken.
Kraken Fees Explained
When you’re funding your account, you may be charged with a fee for depositing FIAT currency. Kraken supports many different currencies like: USD, EUR, CAD, AUD, and more. The good news is that you most likely won’t be charged a fee for depositing, but there are circumstances where you may be charged a small fee depending on which deposit method you use.
Keep in mind these aren’t fees that Kraken charges, these are fees that come from your bank. Kraken doesn’t charge a fee when you deposit to your account crypto, such as bitcoin, and they don’t charge a fee to withdraw your crypto either. The good news is that once your account is funded, to purchase cryptocurrency with your account balance you won’t be charged a fee.
So, how do the Trading Fees work on Kraken?
The Kraken exchange matches orders from customers who want to buy cryptocurrency with other customers who want to sell cryptocurrencies (and vice versa). The Trading fees are only charged when your order is executed. Meaning that your buy or sell order, got matched with another customer’s buy or sell order. If you cancel your order before it’s executed, you won’t be charged a dime.
The fee you are charged on your trades range from 0% to 0.26%. Depending on whether you’re charged a maker or taker fee.
A maker fee is when you create an order on the order book (this could be a buy or a sell) and someone else completes it, therefore you pay lower fees and get the amount paid. The one that completed your order pays the fee.The other way around, if you sell into an order already posted, you pay the higher fee, and they do not.
Kraken actually provides an example here: Where you are buying $10,000 worth of Bitcoin and are charged the Taker fee of 0.22%. For this purchase of $10,000 worth BTC you are charged $22. Depending on your overall trade volume, if you have been trading a lot of volume over the past month, then Kraken will put you in a lower bracket of the percentage of fees they charge.
So again, Kraken charges anywhere from 0% to 0.26%.
The trading fee’s can get a little more complex if you are trading on margin, which margin means that you are borrowing funds from Kraken to trade with. They may seem pretty low at first, you know an opening fee of 0.01%, but you will also be charged every fours hours another fee of 0.01% or slightly more depending on the cryptocurrency if you keep your position open. I would just be mindful of the fact that if you’re trading on margin and you keep your position open for a while, the fees could start to add up.
📺 The video in this post was made by Will Walker
The origin of the article: https://www.youtube.com/c/WillWalkerWalkTheWire/videos
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
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