Kraken vs. Binance.US: Which is Better?

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Bottom line: Both Kraken - Product Name Only and Binance.US are investment platforms for cryptocurrency trading and NFT marketplaces. Kraken is best for hands-on crypto investors and institutions who want low-cost trading, educational content, and margin trading. While Binance.US offers a similar selection of investment opportunities and futures, we don't consider Binance.US to be one of the most trustworthy exchanges right now.

Kraken vs. Binance: At a Glance

Kraken and Binance.US - Product Name Only are popular global exchanges offering cryptocurrency and NFT trading for individual investors and institutions. While both platforms offer low fees, advanced trading interfaces, and educational resources, they differ when it comes to fees, cryptocurrency choices, and account features.

It's important to note that at the tail end of 2023, the CEO of Binance Changpeng Zhao pleaded guilty to anti-money laundering violations. Zhao and Binance representatives agreed to a settlement with the Justice Department, the Treasury Department, and the Commodity Futures Trading Commission that required he pay a $4.3 billion fine and step down as CEO of Binance.

Although Zhao will no longer be operating as CEO, we don't consider Binance.US to be one of the most trustworthy cryptocurrency exchanges at the moment.

Kraken is one of the best cryptocurrency exchanges. But it is not the best option for futures as it no longer offers futures trading options to US investors.

Check out our guide for the best stock trading apps for more options.

Is Kraken Right for You?

Kraken - Product Name Only is a global cryptocurrency exchange serving individuals and institutions in more than 190 countries worldwide. The exchange offers multiple trading platforms — including its Kraken mobile app, Kraken Pro mobile app, and Kraken Futures app — and more than 200 cryptocurrencies.

Kraken Pros and Cons

Who is Kraken Best For?

Kraken is best for active and experienced crypto investors wanting to trade popular cryptocurrencies, including dogecoin and bitcoin, as well as NFTs through Kraken's beta NFT marketplace. Individual investors, businesses, and high-net-worth individuals can also benefit from Kraken's account management and consultation services.

Kraken is not a good option for US investors wanting access to futures trading and staking.

Ways to Invest With Kraken

If you're an individual trader looking for a personal investment crypto account, you'll have a variety of options to choose from. When it comes to payment methods, Kraken lets you fund your account with fiat money (e.g., USD or EUR) or cryptocurrencies.

Kraken's NFT marketplace is currently live for beta testers. The exchange offers a wide range of NFT options that can be sorted by price, trait, or rarity. Purchased NFTs are kept in the exchange's secure account. 24/7 customer support is available.

In addition, Kraken offers margin accounts and over-the-counter (OTC) trading. To open a margin account — or access other advanced trading features like limit orders, stop orders, and take-profit orders — you can sign up for Kraken Pro. Moreover, anyone with a Kraken account can upgrade to Kraken Pro with no additional fees or minimum requirements.

Advanced traders and institutions will also have a plethora of trading services and platforms to utilize. This includes Kraken's OTC Desk, which has a $100,000 minimum order size requirement and provides expert market insights, high-volume trading, and one-on-one service to institutions and high-net-worth individuals (these are people with at least $1 million in liquid assets).

If you're a beginner trader or want to learn more about cryptocurrencies, you'll find that there are numerous educational resources at Kraken. These include crypto guides, videos, and podcasts.

Kraken: Costs and Fees

Kraken requires a $10 minimum to get started. Fees vary depending on the cryptocurrencies you're trading but can be as low as 0%. The platform does not charge fees for listing, canceling, or depositing.

Kraken's maker-take fee schedule is calculated based on your last 30-day trading volume.

Makers fees range from 0.00% (for trading volumes of $10 million or more) to 0.16% (for trading volumes of $50,000 or less). Taker fees range from 0.10% to 0.26%.

Margin fees vary by currency but are usually around 0.02%. Fees for stablecoins, pegged tokens, and FX pairs range from 0.00% (for volumes of more than $100 million) to 0.20% (for trading volumes of $50,000 or less) for makers. Takers fees range from 0.001% to 0.20%.

If you convert balances less than the minimum order size (varies by currency) then you'll be charged a 3% fee by Kraken. You'll also be charged a 2% for all NFT transactions.

Is Binance.US Right for You?

Like Kraken, Binance.US - Product Name Only is also a global cryptocurrency exchange offering a vast array of services to individuals and institutions. Its US-supported platform, Binance.US offers over 150 popular cryptocurrencies for trading, including bitcoin, dogecoin, and ether.

Binance.US Pros and Cons

Who is Binance.US Best For?

Binance.US is a suitable platform for cryptocurrency investors looking to trade a wide range of coins, tokens, and NFTs. Beginners can benefit from Binance.US's Binance Academy to learn and earn free crypto.

However, due to Binance.US's CEO Zhao Changpeng pleading guilty to money laundering violations, Binance.US doesn't have a reputation as the most trustworthy exchange right now.

Ways to Invest With Binance.US

Although Binance.US doesn't offer as many assets as its parent platform, Binance, you still get access to over 150 cryptocurrencies and altcoins. Binance.US also offers NFT trading through it's the exchange's web platform. Once you own an NFT, you can view it in the NFT wallet, but it won't be available for mobile trading.

Beginner crypto-traders can benefit from Binance.US's educational hub called Binance Academy for access to articles, courses, guides, and study week events. Plus, the platform's Learn and Earn feature allows users to earn free crypto when they complete blockchain and NFT-related quizzes.

You can also earn rewards by staking your cryptocurrencies. Binance.US offers a range of currencies for staking like bitcoin, ether, solana, polkadot, and tezos for up to 17.10% rewards (varies by currency). Any user who has filled out the basic information section of their account can access staking rewards.

Additionally, Binance.US has institutional accounts and services for asset managers, hedge funds, family offices, VC firms, trading firms, and more. Binance.US Institutional Services provides customized, market-tested solutions and 24/7 account management. Accounts receive industry-leading APIs, market-maker programs, staking opportunities, and advanced multi-custodial solutions.

Binance.US: Costs and Fees

Just like Kraken, Binance.US has a Binance.US - Account Minimum minimum deposit requirement to open an account and is a low-cost trading platform overall. There are zero trading fees for bitcoin and no fees when you convert between cryptocurrencies. Crypto deposits are free.

Fees vary by tier level. Tier 0 trading pairs (BTC/USDC and BTC/USDT) also have zero trading fees — Tier 1 pairs vary but may qualify for volume-based discounts. Service fees for crypto and staking rewards range from 20% to 35%.

Another similarity to Kraken, Binance.US uses a 30-day trading volume to determine fees. Fees are calculated on a rolling basis every 8 p.m. ET. But investors may receive a 5% discount on spot trading fees on the Binance.US Advanced Trading platform when they pay with the exchange's own cryptocurrency Binance Coin (BNB).

Kraken vs Binance.US: Which is Right for You?

Kraken - Product Name Only and Binance both offer cryptocurrency exchange services on a global level, providing features like advanced trading interfaces, asset management, institutional services, and more. However, there are still notable differences in each platform's fees, investment choices, and products.

Though Kraken doesn't serve New York or Washington state residents, it's a better option for US traders in search of a relatively simple user interface and trading platform. It has a larger cryptocurrency selection than Binance.US - Product Name Only. Moreover, Kraken offers margin trading whereas Binance.US does not.

Binance.US offers more staking rewards for US customers, low trading fees, a library of educational content, and over 200 crypto trading pairs. However, Binance's guilty plea should be taken into consideration. You may want to consider Kraken if this recent plea makes you uneasy about Binance.US.