Founded in 2011, the San Francisco-based Kraken exchange is the leading Bitcoin exchange for professional traders who demand fast execution, innovative features, exceptional support, and high security. Kraken is trusted by hundreds of thousands of traders, the Tokyo government and court-appointed trustee, and BaFin regulated Fidor Bank, with an exclusive partnership and full regulatory compliance.
The company is the leading Bitcoin exchange for Euros while also supporting several other currencies like the US dollar, Canadian dollar, and the Yen. Kraken is consistently rated the top Bitcoin exchange by independent news media and was the first Bitcoin exchange listed on Bloomberg terminals.
Today, the San Francisco-based exchange announced it was reducing all market fees. Kraken will be reducing the platform trading fees and moving to a maker-taker model. In the press release, the Kraken team explains that in a maker-taker model, reduced fees are given to the market makers who provide liquidity to the market takers.
How does it work?
The maker fee applies when the trader adds liquidity to the order book by placing a limit buy below market price or a limit sell above market price. The maker fee is paid only when such orders are taken by new incoming orders. The taker fee applies when the trader removes liquidity from the book by placing a market or limit order that executes immediately against a limit order already on the book.
All advanced orders trigger either market or limit orders and the triggered market or to limit order will be maker or taker as described above.
Since the company has reduced the fees overall, most traders removing liquidity from the book will also benefit from reduced fees compared to the exchange previous fee schedule. Although takers pay a little more than makers (only 0.10% more), this is generally offset by the deeper liquidity and tighter spreads found in the maker-taker model.
For the bitcoin-fiat pairs, the maker fee goes as low as 0% and up to 0.16% depending on the amount that is being traded. The taker fee goes as low as 0.10% and up to 0.26% depending on the traded amount.
Kraken is consistently rated as one of the top exchanges in the Industry and people all around the world have been choosing the San Francisco-based exchange to buy and sell bitcoins.
The company aims to be the most competitive exchange in the industry and the new fee structure will certainly attract a lot of new traders to the exchange.
What’s your opinion on the Kraken exchange? Let us know in the comments bellow!
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Nuno Menezes is a Portuguese Bitcoin Entrepreneur and a crypto currency’s enthusiast supporting the Bitcoin Portuguese Community. He is an Anthropologist and a Writer and his current field of work is virtual currencies. Complementing his Social Sciences Master degree with a Professional background in telecommunications along some experience in Computer Science, he intends to bring knowledge and understanding about the impact of crypto currencies in society.