What Is Kraken? Overview for UK Traders
Kraken is one of the oldest and most respected cryptocurrency exchanges in the world. Founded in 2011 by Jesse Powell in San Francisco, it launched publicly in 2013 and has since grown into a global powerhouse serving millions of traders across more than 190 countries, including the United Kingdom.
What sets Kraken apart from many competitors is its unblemished security record. In an industry where exchange hacks have become almost routine, Kraken has never suffered a security breach. This is not luck — it reflects a deep commitment to security engineering that has been central to the company's ethos since day one. The exchange employs a dedicated team of security researchers, maintains a generous bug bounty programme, and stores the vast majority of customer funds in air-gapped cold storage.
For London-based traders, Kraken offers full GBP support with deposits and withdrawals via Faster Payments, making it easy to move money between your UK bank account and the exchange. It is registered with the Financial Conduct Authority (FCA) as an Authorized Virtual Asset Service Provider (VASP), giving UK users the regulatory assurance that the platform meets local anti-money laundering and financial crime prevention standards.
Kraken lists over 250 cryptocurrencies for trading, including all major assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Cardano (ADA), and Polkadot (DOT), alongside a broad selection of altcoins and DeFi tokens. It supports spot trading, margin trading, futures, and staking — making it a comprehensive platform for traders who want to do more than simply buy and hold.
Who Is Kraken Best For?
Kraken is ideal for intermediate to advanced traders in London who value security, low fees, and access to professional-grade trading tools. If you already know the difference between a limit order and a market order and want tight spreads, deep liquidity, and margin or futures access, Kraken should be on your shortlist. Complete beginners may find the interface initially daunting — though Kraken has made significant strides in simplifying its user experience with the introduction of its streamlined buy/sell interface alongside the full Pro trading view.
Security: Kraken's Biggest Strength
Security is where Kraken truly excels, and it is the single most important reason many experienced traders choose this platform over alternatives. Let's look at the specifics.
Never Been Hacked
Since its launch in 2013, Kraken has maintained a perfect security record. While exchanges like Mt. Gox, Bitfinex, KuCoin, and even industry giants like Binance have suffered breaches over the years, Kraken has never lost customer funds to a hack. For London traders entrusting their capital to an exchange, this track record provides meaningful reassurance. Of course, past security does not guarantee future security, but a decade-plus record of zero breaches speaks to a deeply embedded security culture.
Proof of Reserves
Kraken was one of the first major exchanges to implement Proof of Reserves (PoR) audits. These cryptographic audits allow users to independently verify that Kraken holds sufficient assets to cover all client balances. Following the collapse of FTX in 2022, Proof of Reserves became an industry standard — but Kraken was doing it years before it was fashionable. The exchange publishes regular PoR reports, and users can verify their individual account balances are included in the audit using Kraken's verification tool.
Cold Storage and Physical Security
Kraken stores the vast majority of client funds in air-gapped cold storage — meaning the private keys are held on devices that have never been connected to the internet. Withdrawals from cold storage require multiple manual approvals from geographically distributed staff. The exchange also uses full-disk encryption, strict physical access controls, and armed guards at its data centres. These are not marketing claims — Kraken has published detailed documentation of its security practices and regularly invites third-party auditors to assess them.
Account Security Features
At the individual account level, Kraken offers robust security tools that every UK user should take advantage of:
- Two-Factor Authentication (2FA) — Available via authenticator apps (Google Authenticator, Authy) for login, trading, and withdrawals. Kraken also supports hardware security keys (YubiKey, FIDO2).
- Master Key — A unique backup key that lets you recover your account if you lose access to your 2FA device, without contacting customer support.
- Global Settings Lock (GSL) — Freezes critical account settings for a user-defined period, preventing changes even if your account is compromised. This is an advanced feature rarely seen on other exchanges.
- PGP-Signed Emails — Kraken signs all automated emails with PGP, allowing you to verify that emails genuinely come from Kraken rather than a phishing attempt.
- Withdrawal Address Whitelisting — Restrict withdrawals to pre-approved wallet addresses only.
Expert Insight
I've been using Kraken since 2018 for the bulk of my trading activity, and the Global Settings Lock is the feature that keeps me loyal. Once enabled, nobody — including a hacker who somehow gets into your account — can change your password, email, 2FA settings, or withdrawal addresses until the lock expires. It introduces a deliberate delay that turns a potential hack into a non-event. I set mine to 72 hours and sleep soundly. No other major exchange offers anything quite like it.
Kraken Fees: What UK Traders Actually Pay
Kraken operates a maker-taker fee model, which is standard for professional-grade exchanges. Fees depend on your 30-day trading volume, with costs decreasing as your volume increases. Here is the fee schedule relevant to most London retail traders.
| 30-Day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $10,000 | 0.25% | 0.40% |
| $10,001 – $50,000 | 0.20% | 0.35% |
| $50,001 – $100,000 | 0.14% | 0.24% |
| $100,001 – $250,000 | 0.12% | 0.22% |
| $250,001 – $500,000 | 0.10% | 0.18% |
| $500,001 – $1,000,000 | 0.08% | 0.16% |
| $1,000,001+ | 0.04% | 0.12% |
For the typical London retail trader with moderate volume, the effective fees are 0.16% maker and 0.26% taker, which positions Kraken as one of the most affordable exchanges available in the UK. For context, Coinbase Advanced charges 0.40%/0.60% at the entry tier, and Bitstamp charges 0.30%/0.40%. Only Crypto.com's tiered fees compete directly with Kraken at the entry level.
Deposit and Withdrawal Fees
One of Kraken's strengths for UK users is its free GBP deposits via Faster Payments. Here is the full breakdown:
| Method | Deposit Fee | Withdrawal Fee | Speed |
|---|---|---|---|
| Faster Payments (GBP) | Free | Free | Minutes |
| Debit / Credit Card | 3.75% | N/A | Instant |
| CHAPS (GBP) | Free | £20 | Same day |
| Crypto | Free (network fee applies) | Varies by coin | Network dependent |
Key takeaway: Always use Faster Payments for GBP deposits and withdrawals on Kraken. It is free in both directions and typically settles within 1-10 minutes. Avoid card purchases unless you need immediate access — the 3.75% fee is steep and eats significantly into your investment, especially on smaller amounts.
Trading Features and Tools
Kraken caters primarily to serious traders, and its feature set reflects this. Here is what London traders can expect.
Spot Trading
Kraken's spot trading platform — known as Kraken Pro — offers a full-featured order book with real-time charts (powered by TradingView), multiple order types (market, limit, stop-loss, take-profit, trailing stop), and deep liquidity across all major pairs. The BTC/GBP and ETH/GBP pairs are among the most liquid on any UK-serving exchange, meaning tighter spreads and less slippage on your orders.
Futures Trading
Kraken Futures provides access to perpetual and fixed-maturity contracts on Bitcoin, Ethereum, and other major assets. UK retail traders can access futures with leverage up to 5x (the FCA restricts leverage for retail crypto investors). Futures trading on Kraken offers competitive funding rates and a separate margin pool, protecting your spot holdings from liquidation. However, futures trading carries significant risk and is suitable only for experienced traders who fully understand margin, leverage, and liquidation mechanics.
Margin Trading
Kraken offers margin trading on dozens of pairs, allowing you to borrow funds and increase your position size. For UK retail clients, margin is capped at 5x leverage in line with FCA regulations. Margin fees (rollover fees) are charged every 4 hours and vary by pair. Kraken's margin system is isolated by default, meaning each position has its own collateral — reducing the risk of a cascading liquidation across your portfolio.
Staking
Kraken offers on-chain staking for a range of proof-of-stake assets directly from your account. Popular staking options for UK users include Ethereum (ETH), Solana (SOL), Polkadot (DOT), Cosmos (ATOM), Tezos (XTZ), and Cardano (ADA). Rewards are distributed regularly and can be viewed in your staking dashboard. Note that staking rewards are treated as Income Tax under HMRC guidelines, not Capital Gains, so keep records of all staking income for your Self Assessment.
Kraken Wallet
In 2024, Kraken launched its self-custody wallet — Kraken Wallet — a mobile app that lets you store your crypto outside the exchange while still interacting with Kraken's services. It supports multiple chains including Ethereum, Solana, Polygon, Bitcoin, and Optimism. For London users concerned about exchange custody risk, this is a welcome addition that lets you maintain a relationship with Kraken while holding your own keys.
NFT Marketplace
Kraken operates an integrated NFT marketplace supporting collections on Ethereum, Solana, and Polygon. While the NFT market has cooled significantly from its 2021-2022 peak, Kraken's marketplace offers zero gas fees on trades within the platform and allows you to buy NFTs directly with your exchange balance — no need to bridge funds or manage separate wallets.
GBP Support and UK Banking
Kraken's GBP support is one of the strongest among international exchanges operating in the UK. Here is how it works in practice for London-based traders.
Faster Payments is the primary deposit and withdrawal method. Once you verify your Kraken account, you will receive unique bank details (sort code and account number) for GBP transfers. Your UK bank sends a Faster Payment to these details, and the funds typically land in your Kraken account within 1 to 10 minutes. Withdrawals follow the same path in reverse and are equally fast.
From our testing with multiple UK bank accounts, Faster Payments to Kraken were processed without issues by Monzo, Starling, Barclays, HSBC, and NatWest. Lloyds flagged the first transfer with a confirmation prompt but processed it after we confirmed. Overall, Kraken has excellent banking relationships in the UK, and you are unlikely to encounter blocks from any major UK bank.
Kraken supports a wide range of GBP trading pairs, including BTC/GBP, ETH/GBP, SOL/GBP, ADA/GBP, DOT/GBP, and many more. This means you can trade directly in pounds without needing to convert to USD or EUR first — saving you the cost and friction of currency conversion.
Minimum Deposit
Kraken's minimum GBP deposit via Faster Payments is £10. This is lower than many competitors (Bitstamp requires £25, for example) and makes Kraken accessible for beginners who want to start small. That said, the minimum trade size varies by pair — for BTC/GBP, you'll need around £5 worth of Bitcoin.
FCA Registration and UK Regulation
Kraken is registered with the Financial Conduct Authority (FCA) as an Authorized Virtual Asset Service Provider (VASP) for anti-money laundering compliance in the UK. This means the exchange has passed the FCA's rigorous assessment of its AML/KYC policies, governance structures, and management fitness.
FCA registration is currently the primary regulatory requirement for crypto exchanges operating in the UK. Under the forthcoming Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which takes full effect in October 2027, exchanges will need to obtain broader FCA authorisation covering areas such as custody, market abuse prevention, and consumer protection. Kraken has publicly stated its intention to apply for full authorisation under the new regime — a sign of its long-term commitment to the UK market.
For London traders, FCA registration provides several practical protections. The exchange must comply with UK anti-money laundering standards, conduct proper KYC checks, and respond to complaints through the FCA's established channels. While crypto deposits are not covered by the Financial Services Compensation Scheme (FSCS) — meaning your funds are not protected up to £85,000 as they would be with a traditional bank — FCA registration still represents the highest standard of regulatory oversight available for crypto exchanges in the UK today.
Pros and Cons of Kraken for UK Users
Pros
- Never been hacked — the strongest security track record in the industry
- Proof of Reserves audits provide transparent verification of client funds
- Low trading fees: 0.16% maker / 0.26% taker at moderate volumes
- Free GBP deposits and withdrawals via Faster Payments
- 250+ cryptocurrencies available for UK traders
- Advanced trading tools: futures, margin, TradingView charts
- FCA registered as Authorized VASP
- Global Settings Lock — unique security feature for account protection
- Staking available directly on-platform
- Excellent GBP liquidity on major pairs
Cons
- Steeper learning curve than beginner-focused platforms like CEX.IO or Coinbase
- Card deposit fees are high at 3.75%
- Customer support can be slow during peak demand periods
- Not UK-founded — headquartered in San Francisco
- No built-in tax reporting tool for UK users (relies on third-party integrations)
- The Instant Buy interface has a wider spread than using the Pro order book
Kraken vs the Competition: How It Compares for London Traders
How does Kraken stack up against the other major exchanges available to London and UK users? Here is a head-to-head comparison of the factors that matter most.
| Feature | Kraken | CEX.IO | Coinbase | Bitstamp |
|---|---|---|---|---|
| Founded | 2011 | 2013 | 2012 | 2011 |
| Maker / Taker Fees | 0.16% / 0.26% | 0.25% / 0.16% | 0.40% / 0.60% | 0.30% / 0.40% |
| Cryptocurrencies | 250+ | 200+ | 240+ | 80+ |
| GBP Faster Payments | Yes (Free) | Yes (Free) | Yes (Free) | Yes (Free) |
| FCA Registered | Yes | Yes | Yes | Yes |
| Futures Trading | Yes | No | No | No |
| Margin Trading | Yes (5x) | Yes | No | No |
| Staking | Yes | Yes | Yes | Yes |
| Proof of Reserves | Yes | No | Public Company (Audited) | Yes |
| Best For | Advanced traders | All-round / beginners | Beginners | Buy-and-hold |
Kraken's fee structure is among the most competitive for active London traders. Its combination of futures, margin, and deep liquidity makes it the go-to platform for anyone who takes trading seriously. However, if you are a beginner or prefer a simpler, UK-founded platform, CEX.IO remains our top recommendation for most London users — it offers a more intuitive interface, lower minimum deposits (£20), and was founded right here in London in 2013.
How to Get Started with Kraken in the UK
Setting up a Kraken account from London is straightforward. Follow these steps to go from zero to your first trade.
Create Your Kraken Account
Visit kraken.com and click "Create Account." Enter your email address, choose a username, and set a strong, unique password. Enable two-factor authentication immediately — this is critical for protecting your funds. Kraken supports authenticator apps and hardware security keys.
Verify Your Identity (KYC)
To deposit GBP and trade, you need to complete identity verification. Kraken requires a valid UK passport or driving licence and a selfie for biometric verification. The process is handled through the app or website and typically takes 5 to 15 minutes for approval. Since 2025, UK exchanges also require a short knowledge assessment to confirm you understand the risks of crypto trading.
Deposit GBP via Faster Payments
Once verified, navigate to "Funding" and select GBP. Kraken will provide you with sort code and account number details. Set up a Faster Payment from your UK bank to these details, including the unique reference code. Your deposit should arrive within 1 to 10 minutes. There is no fee for GBP deposits via Faster Payments. Remember: the FCA requires a 24-hour cooling-off period after your first signup before you can place your first trade.
Buy Your First Crypto
For a simple purchase, use Kraken's "Buy Crypto" button — select the asset (e.g., Bitcoin), enter the GBP amount, review the price, and confirm. For better pricing, switch to "Kraken Pro" and place a limit order on the BTC/GBP order book. Limit orders use the lower maker fee (0.16% at moderate volumes) rather than the higher taker fee.
Secure Your Account and Holdings
After your first purchase, take five minutes to lock down your account. Enable the Global Settings Lock (under Settings > Security), set up withdrawal address whitelisting, and consider activating the Master Key. For larger holdings, move your crypto to a hardware wallet or Kraken's self-custody wallet app. See our Best Crypto Wallets guide for recommendations.
Customer Support
Kraken offers customer support through several channels. The primary support channel is a ticket system accessible through the Kraken website and app. Response times vary — during normal periods, expect a reply within a few hours; during market volatility or high-demand events, wait times can extend to 24-48 hours.
Kraken also provides 24/7 live chat for general enquiries and a comprehensive knowledge base covering everything from account setup to advanced trading strategies. For urgent account security issues, Kraken offers an emergency line that routes you to a specialist team.
One area where Kraken has improved significantly is its phone callback service. UK users can request a callback from a support agent, which is useful for complex issues that are difficult to resolve via text-based support. This is a feature that many competitors, including Coinbase, do not offer consistently.
Overall, Kraken's customer support is competent but not best-in-class. If excellent customer service is your top priority, CEX.IO tends to offer faster and more responsive support for UK users, particularly through its live chat function.
Mobile App Experience
Kraken's mobile app is available for both iOS and Android and provides a solid trading experience on the go. The app includes the simplified buy/sell interface for quick purchases, as well as the full Kraken Pro trading view with TradingView charts, order book depth, and advanced order types.
The app also supports biometric login (Face ID, Touch ID), portfolio tracking with real-time price alerts, staking management, and Faster Payments deposits directly from your phone. Push notifications keep you informed of order fills, price movements, and security alerts.
In our testing, the Kraken app performed well on both platforms. The Pro trading interface is responsive and feature-rich, though the amount of information on screen can feel cluttered on smaller phones. For a cleaner, simpler mobile experience tailored to occasional buying, CEX.IO's app is slightly more polished — but for active trading on mobile, Kraken holds its own against any competitor.
Who Should (and Shouldn't) Use Kraken
Kraken Is a Great Fit If You:
- Are an intermediate or advanced trader looking for professional-grade tools
- Value security above all else and want the strongest track record in the industry
- Want access to futures and margin trading from a regulated UK platform
- Trade actively and want to benefit from low maker/taker fees
- Appreciate transparency through Proof of Reserves audits
- Want deep GBP liquidity and free Faster Payments
Consider an Alternative If You:
- Are a complete beginner who wants the simplest possible interface — try CEX.IO instead
- Prefer a UK-founded exchange with local roots — again, CEX.IO (London, 2013) is the better choice
- Need instant customer support with minimal wait times
- Want a built-in UK tax calculator — Kraken relies on third-party integrations like Koinly
Expert Insight
My practical approach as a London-based trader is to use both Kraken and CEX.IO. I keep Kraken for active trading — the fees are lower, the order book is deeper, and the futures access is invaluable for hedging during volatile markets. I use CEX.IO for simpler buys, recurring purchases, and when I want a straightforward experience without thinking about order types. Many experienced London traders adopt a similar multi-exchange approach, and having funds across two FCA-registered platforms also reduces concentration risk.
Frequently Asked Questions
Yes. Kraken is one of the most trusted exchanges in the industry, founded in 2011 and never hacked. It is FCA registered as an Authorized VASP in the UK, conducts regular Proof of Reserves audits, and stores the vast majority of client funds in cold storage. It is widely regarded as one of the safest exchanges available to London and UK traders.
Kraken uses a maker-taker fee model. Standard fees start at 0.25% for makers and 0.40% for takers at the lowest volume tier, but these drop to 0.16% maker and 0.26% taker at moderate trading volumes. GBP deposits and withdrawals via Faster Payments are free. Card purchases carry a 3.75% fee and are best avoided for regular buying.
Yes. Kraken supports GBP deposits via Faster Payments, which typically arrive within 1-10 minutes and are free of charge. Most major UK banks — including Monzo, Starling, Barclays, HSBC, and NatWest — process Faster Payments to Kraken without issues. You can also deposit via debit or credit card for instant funding, though card deposits carry a higher 3.75% fee.
Yes. Kraken offers staking on a range of proof-of-stake cryptocurrencies including Ethereum (ETH), Solana (SOL), Polkadot (DOT), Cosmos (ATOM), Tezos (XTZ), and others. UK users can stake directly from their Kraken account and earn rewards. Be aware that staking rewards are subject to UK Income Tax at your marginal rate — keep records for your Self Assessment.
Both are excellent FCA-registered exchanges with GBP Faster Payments support. Kraken has lower trading fees at moderate volumes and more advanced features including futures and margin trading, making it better for experienced traders. CEX.IO is UK-founded (London, 2013), has a more beginner-friendly interface, a lower minimum deposit (£20 vs £10), and faster customer support. For most London beginners, we recommend starting with CEX.IO and graduating to Kraken as your trading needs grow.
Final Verdict: Is Kraken Worth It for London Traders?
Kraken is, without question, one of the best cryptocurrency exchanges available to London and UK traders in 2026. Its combination of an unblemished security record, Proof of Reserves transparency, competitive fees, and professional-grade trading tools makes it a compelling choice for anyone serious about crypto trading.
The exchange's GBP support is excellent — free Faster Payments in both directions, strong GBP liquidity, and reliable UK banking relationships. Its FCA registration as an Authorized VASP provides the regulatory assurance that UK traders rightly demand, and Kraken's stated commitment to seeking full FCA authorisation under the new 2026 regulations signals long-term dedication to the UK market.
Where Kraken falls slightly short is in its accessibility for complete beginners. The sheer breadth of features — futures, margin, advanced order types, multiple interfaces — can overwhelm newcomers. If you are buying crypto for the first time, CEX.IO remains our top recommendation as an easier starting point. But for traders who have outgrown the basics and want an exchange they can stay on for years, Kraken delivers on every front that matters: security, fees, tools, and regulatory standing.
Our rating: 4.5 out of 5 — a top-tier exchange that every London trader should seriously consider.