Kraken vs Coinbase: Trading Fees & Features Unravelled
A new surge of interest in cryptocurrencies has seen many UK traders take an interest in platforms like Kraken, Coinbase, Cornix, and 3Commas. In this article, we compare the trading fees and features of Kraken and Coinbase, two leading cryptocurrency exchanges popular among UK traders.
Kraken vs Coinbase – Overview
Kraken, founded in 2011, and Coinbase, established in 2012, are among the oldest and most reputable cryptocurrency exchanges in the world. Both offer a wide range of features and cater to a broad audience, from beginners to experienced traders. However, their trading structures and fees differ significantly, which can impact a trader’s profits and overall user experience.
Kraken Trading Fees
Kraken operates on a maker-taker fee schedule. This means that the fees are differentiated based on whether you are adding liquidity to the market (maker) or removing it (taker). The fees range from 0.00% to 0.26%. VIP users get the privilege of lower fees. The platform also has margin trading with fees from 0.01% to 0.02% and opening and rollover fees.
Coinbase Trading Fees
Coinbase charges a spread of about 0.50% for cryptocurrency trades. Additionally, the platform levies a Coinbase fee, which is the greater of a flat fee or a variable percentage that depends on the region and the type of payment used. It’s worth noting that fee structures may be different depending on whether you’re using Coinbase or Coinbase Pro.
Trading Fees Comparison
- Kraken generally has lower fees than Coinbase.
- With Kraken, a user can trade with as low as 0.00% in fees, while the least possible rate on Coinbase is 0.50%.
- Traders planning to execute high-volume transactions might find Kraken more cost-effective.
Kraken and Coinbase Features Compared
Both platforms excel in offering an array of features that cater to different types of traders.
- User-Friendly Interface: Coinbase is known for its beginner-friendly interface, making it a preferred choice among new traders. Kraken, on the other hand, offers an expert-level trading dashboard, suited for more experienced traders.
- Security: Both Kraken and Coinbase have robust security measures in place. Kraken offers multiple security features like PGP/GPG encryption, while Coinbase has insurance coverage for digital currencies stored on the platform.
- Cryptocurrency Selection: Both offer a wide range of cryptocurrencies. As of now, Kraken supports more cryptocurrencies than Coinbase, including some smaller altcoins.
- Payment Options: Coinbase supports various payment methods, including debit cards, bank transfers, and PayPal (for withdrawals), while Kraken predominantly supports bank transfers only.
Automated Trading Tools
Neither Kraken nor Coinbase natively supports automated trading, a feature growing increasingly popular in the UK. However, both platforms can be integrated with third-party applications like Cornix and 3Commas to enable such functionality. Cornix, a Telegram-based tool, and 3Commas, a web-based platform, offer users extensive automation features, including copy trading and portfolio rebalancing.
Both Kraken and Coinbase have distinct advantages, depending on a trader’s requirements and experience levels. While Kraken’s low fees and extensive crypto selection make it ideal for experienced traders, Coinbase‘s user-friendly interface and multiple payment options may be more suitable for newcomers. Determining which platform is best will largely depend on individual preferences and trading practices.
