If you’ve been a part of the crypto space for a while, you must’ve heard of Kraken. Launched in 2011 and established in San Francisco, Kraken is one of the world’s oldest and most trusted cryptocurrency exchanges.
Phemex, on the other hand, is a new entrant to the crypto market. It was launched in 2019 in Singapore. But in a short period, it has emerged as one of the most popular crypto trading platforms across the globe.
So, which exchange is better to trade cryptos? Let’s find out.
Phemex vs. Kraken: Crypto Derivatives Product Offerings & Leverage
Phemex is a crypto derivative and altcoin exchange platform that offers altcoin trading and traditional and perpetual futures contracts. The following cryptocurrency pairs are available for trading on Phemex.
In addition, Phemex offers a Gold/USD trading pair that enables you to hedge your crypto holdings to invest in a more stable asset like gold.
Phemex has a daily crypto derivatives trading volume of USD 2.2 billion – the 10th-highest in the market.
Coming to leverage, Phemex offers upto 100x leverage on BTCUSD contracts, while the maximum leverage is limited to 20x for other pairs. Phemex provides up to 100x leverage on the Gold/USD pair as well.
On the other hand, Kraken is primarily a spot altcoin exchange, offering traditional futures contracts and perpetual swaps. It also supports margin staking.
The following pairs are available for futures trading on Kraken:
Kraken has a daily derivatives trading volume of USD 339 million – the 18th-highest in the market.
Kraken offers maximum leverage of up to 5x on all futures contracts, significantly lower than the industry standard but is properly regulated, unlike other exchanges.
Verdict: Phemex is the winner, as it offers higher leverage.
New to crypto trading? Learn how you can start margin trading crypto from our detailed guide.
Phemex vs. Kraken Trading Fees
Both Phemex and Kraken use a market maker-taker fees structure.
Phemex follows a flat-fee model. It offers a 0.025% market maker rebate and charges a 0.075% fee from market takers.
On the other hand, Kraken has a tiered fee structure. Traders are categorized into eight tiers based on their 30-day trading volume. For instance, traders with a monthly trading volume of less than USD 100,000 fall into the first tier.
For Tier-1 traders, the market maker and taker fees are 0.20% and 0.050%, respectively.
Similarly, traders with a 30-day trading volume of more than USD 100 million fall into the eighth tier. For Tier-8 traders, the maker fee is 0.0%, while the taker fee is 0.010%.
Verdict: Phemex is the winner as it has a lower and simpler fee structure.
Phemex vs. Kraken Deposit & Withdrawal Fees
Phemex doesn’t charge any deposit fee, and you can deposit funds for free. However, Phemex charges a small withdrawal fee of 0.005 BTC for each Bitcoin withdrawal. Please note there is a specific withdrawal fee associated with each trading pair.
Coming to deposit methods, Phemex supports both crypto and fiat deposits. Traders can make bank wire and debit/credit card deposits via the Banxa third-party gateway. A KYC is required to access this feature, and fiat gateway fees may apply.
Kraken charges a deposit fee on certain cryptocurrencies and fiat currencies. For example, the deposit fee for USD is 3 USD.
There’s a small withdrawal fee associated with each withdrawal method. For Bitcoin, the minimum withdrawal amount is 0.005 BTC, and the withdrawal fee is 0.00015 BTC. Click here for Kraken’s withdrawal fee information.
Verdict: It’s a tie, as both the exchanges charge a nominal withdrawal fee.
Phemex vs. Kraken Trading Platform Comparison
Here’s a head-to-head comparison of the trading platforms of Phemex and Kraken.
Phemex has one of the simplest and easiest-to-use trading platforms in the crypto space. The platform is secure, intuitive, and feature-rich, making it ideal for beginners and professional traders.
Furthermore, the Phemex platform has no history of performance issues such as crashing, lagging, or downtimes, like other prominent exchanges like BitMEX.
Coming to the desktop platform, Phemex uses the TradingView charting system for chart visualization. It comes with basic and advanced analysis tools and features, such as multiple time frames, chart types, and indicators.
The trading panel also comprises the order book and trading dashboard where you can seamlessly place orders. Phemex supports various order types, including limit orders, market orders, and conditional orders.
Another key functionality of Phemex is the sub-accounts – a feature preferred by institutional and professional traders.
The sub-accounts feature allows you to create and manage multiple individual accounts under a single main account. You can set permissions, margin levels, balances, etc., for each account separately.
Phemex also has a mobile app that is available for both Android and iOS device users. The app is fast and secure and provides an amazing mobile trading experience. Make sure to read our guide on How to margin trade crypto with Phemex to understand other features in detail.
Kraken has one of the most robust and trusted trading platforms in the crypto space. Like Phemex, it uses the TradingView charting system, and therefore, all the features you see on Phemex are also available on Kraken.
In addition, Kraken also acquired Cryptowatch – a market visualization platform – to give better analysis options to traders.
Kraken has a one-of-its-kind platform that runs on the latest technologies used by the leading financial institutions in the world. Also, Kraken is one of the very few crypto exchanges which offers leverage trading in the USA.
Overall, the trading platform is advanced and comes with a comprehensive range of features. It’s ideal for both beginners and crypto traders, though most Kraken users are seasoned crypto investors.
Kraken has two mobile apps – Kraken and Kraken Pro – to meet the needs of all types of traders and investors. Make sure to read our detailed Kraken guide to find out which app is best for you.
Verdict: It’s a tie, as both Phemex and Kraken have industry-leading trading platforms.
Phemex vs. Kraken Account Opening Process
Both Phemex and Kraken have effortless account opening processes. Let’s look at how you can open an account on the two exchanges.
Phemex used to be a fully anonymous crypto derivatives exchange till May 2021, when it launched its KYC services. KYC is not mandatory, and users can open an account using the optional invitation code, deposit funds, and start trading anonymously.
The only limitation for non-verified users is a daily withdrawal limit of 2 BTC, which also applies to non-premium users.
Phemex also has a premium version that allows you to take conditional orders and enjoy unlimited hourly withdrawals and zero-fee spot trading.
Since Kraken is a regulated and one of the most trusted cryptocurrency exchanges globally, it requires its users to complete the KYC process. However, the KYC process is seamless and only takes a few steps to complete.
Verdict: Phemex is the winner, as it doesn’t have mandatory KYC requirements.
Phemex vs. Kraken Customer Support
Phemex and Kraken have skilled and responsive customer support teams.
Phemex offers customer support primarily through email and can reach them through their health center. Apart from that, Phemex has a vast knowledge base comprising FAQs and blogs. You can also connect with Phemex on social media platforms like Twitter and Telegram.
Kraken offers support via its live chat feature (accessible on the website) and email. However, the response time is slightly so. Kraken also has a comprehensive knowledge base where you’ll get answers to almost all of your questions.
Verdict: It’s a tie. While Kraken provides customer support via live chat as well, the response time is faster for Phemex.
Phemex vs. Kraken Security Features
Phemex implements industry-standard security features to provide a secure trading experience to all its users. Phemex security features include:
- Hierarchical deterministic cold wallet system
- Authorization of withdrawal requests
- Use of AWS cloud and endpoint firewalls
- Leading-edge trading platform
Kraken is one of the safest crypto exchanges out there. It has a mandatory KYC requirement to ensure all users are verified. Additionally, it is regulated by FinCEN in the US and FINTRAC in Canada.
It also implements an offline crypto wallet, firewalls, authorization, encryption, and other security features to provide a safe trading experience to its users.
Verdict: Kraken is the winner, as it’s regulated and has mandatory KYC requirements.
Phemex and Kraken are both amazing platforms with best-in-class trading platforms, security, and customer support.
However, Phemex has a slight edge, especially when it comes to futures and derivatives trading. Kraken offers a maximum leverage up to 5x only, whereas Phemex offers up to 100x.
With leveraged trading being the most popular segment in the crypto space, it can be a dealbreaker for many users.
Phemex also has a lower trading fee and simpler account opening process, making it a better choice over Kraken for both beginners and professional traders.
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