Kraken Review

Kraken is a US-based cryptocurrency exchange founded in 2011 and opened to the public in 2013, making it one of the longest-running exchanges still operating. In an industry where platforms have collapsed, been hacked, or vanished with customer money, longevity itself is a meaningful credential. Kraken matters to Canadian readers in particular because it is now a fully registered crypto trading platform in Canada.

What it is and how it works

At its core, Kraken is a centralized exchange — a company that holds customer funds and matches buyers with sellers on its own order books, rather than trades settling directly on a blockchain. It offers two main experiences: the simple Kraken app, built around instant buys and recurring purchases, and Kraken Pro, a full trading platform with charts, order types, and much lower fees.

Beyond spot trading, Kraken offers staking — locking up coins such as ether to help secure a proof-of-stake network in exchange for rewards — plus a Kraken+ subscription that waives trading fees up to a monthly volume cap. In the US it has also expanded into stock trading and derivatives.

Security model

Kraken's security reputation is arguably its strongest selling point. Over roughly thirteen years of operation, it has never suffered an exchange-level hack that cost customers their funds. The closest incident came in June 2024, when researchers exploited a deposit bug and withdrew about $3 million — but the money came from Kraken's own corporate treasury, not customer accounts, and was returned after a public dispute.

The exchange keeps the large majority of assets in cold storage — wallets kept offline where internet-based attackers cannot reach them — and requires two-factor authentication. It also publishes regular proof of reserves — a verification exercise, attested by an outside accounting firm, showing the exchange actually holds the assets clients have deposited. Kraken's version covers major assets like BTC, ETH, SOL, USDC, and USDT, and lets each client independently confirm their own balances were included.

Fees and usability

The simple interface is genuinely easy for beginners, but convenience costs money: instant buys carry a 1% trading fee plus a spread — a markup built into the quoted price — and card payments add processing charges on top.

Kraken Pro is far cheaper. It uses a maker-taker model — makers add orders to the book, takers fill existing ones — starting at 0.40% maker / 0.80% taker for the smallest accounts and falling steadily with 30-day volume, down to zero maker fees and 0.10% or less for takers at the highest tiers. The Pro interface looks intimidating at first, but anyone planning to trade regularly should learn it; the fee difference is substantial.

Limitations worth knowing

Kraken has a real regulatory history. In February 2023 it paid $30 million to settle SEC charges that its US staking-as-a-service program was an unregistered securities offering, and shut that program down in the US. Later that year the SEC sued Kraken for allegedly operating as an unregistered exchange, but the agency dropped that case with prejudice in March 2025 without penalties, and Kraken subsequently restored staking for eligible US users.

For Canadians, the news is mostly positive: in April 2025, Kraken's local entity, Payward Canada Inc., was registered as a restricted dealer — a registration category Canadian securities regulators created for crypto platforms — with the Ontario Securities Commission, recognized across provinces and territories. Be aware, though, that crypto platforms are not covered by the Canadian Investor Protection Fund, some staking options are restricted in Canada, and customer support reviews are mixed.

Pros

• Thirteen-plus years of operation with no customer-fund hack
• Regular proof-of-reserves attestations with client-verifiable proofs
• Registered restricted dealer in Canada; SEC case dismissed in 2025
• Low fees on Kraken Pro; wide asset selection and staking

Cons

• Instant-buy fees and spreads on the simple app are high
• Past regulatory run-ins, including the $30 million SEC staking settlement
• No CIPF-style insurance; some features restricted for Canadians

Verdict

Kraken earns its reputation as one of the safest large exchanges: a long unbroken security record, transparent reserves, and proper Canadian registration. The drawbacks — pricey instant buys and a regulatory history, even if its biggest US case was dismissed — keep it short of perfect. For Canadians who want a credible, security-focused exchange and are willing to use the Pro interface, it is an easy platform to recommend. 4/5

This review is for educational purposes only and is not financial advice.

Sources

• Kraken fee schedule (official)
• Kraken Proof of Reserves (official)
• SEC press release on the 2023 Kraken staking settlement
• Kraken blog: restricted dealer registration in Canada