Kraken vs Robinhood: crypto exchange comparison

Centralized exchanges are the bridges into the crypto universe for millions of users worldwide.

Whether you’re trading on spot, margin or derivatives markets, staking crypto to earn rewards, or venturing into the world of DEXs, DeFi and DAOs, it all starts with your first cash deposit on an exchange.

Naturally, different venues have different features, workflows and assets that are available to trade. When making any decision related to your financial freedom, it’s critical to weigh all the facts so you can make the most informed decision possible.

In this article, we’ll dive into two of the most popular crypto exchanges on the market today, Kraken and Robinhood.

Established in 2011, Kraken is one of the oldest and most trusted exchanges in the crypto space. The company has spent over a decade perfecting its intuitive product lineup and setting the standard for exchange security through features like Proof of Reserves, which it pioneered in 2014.

Millions choose Kraken for its heavy focus on compliance, transparency and security—which complements world-class trading functionality that caters to newcomers as it does to advanced traders. From first-time Bitcoin buyers using the dead-simple interface on the core platform to established firms leveraging Kraken Pro’s advanced tooling, Kraken’s vibrant ecosystem is a one-stop shop for clients of any skill level.

Robinhood was founded in 2013, with the goal of delivering a mobile-first platform for trading stocks and ETFs. Its first version (made public in 2015) offered relatively simple functionality, with zero commissions.

The platform expanded into the crypto space in 2018, and now offers trading, staking and even a self-custody wallet. Robinhood is know for its slick user interface, accessibility and gamification of the investing experience. 

Clients often choose Kraken over Robinhood due to its proven track record in the crypto space. The exchange is in a league of its own when it comes to security, and its trading tools, asset selection and country coverage appeal to a truly global audience.

Kraken has developed a reputation for combining sleek, accessible and intuitive user interfaces with powerful trading tools for those that need them. Users enjoy seamless access to spot, margin and derivatives markets via mobile and desktop applications, ensuring they can remain plugged in at home or on the go.

The platform prides itself on beginner-friendliness, but make no mistake—it packs a punch when it comes to advanced functionality for institutions and experienced traders. Kraken Pro’s comprehensive charting features, customizable workspaces and extensive order types make it ideal for executing even the most sophisticated of trading strategies. Additionally, services like Kraken Prime and the OTC desk offer tailored solutions to meet the needs of professional investors.

Beyond trading, Kraken offers staking on 21+ crypto assets, with passive rewards of up to 17% APY. Add in its non-custodial wallet, its global payment solution (Krak), and features like recurring buys, and it’s the perfect partner for any and all crypto users.

When compared to ‘traditional’ crypto exchanges, Robinhood is relatively limited in its crypto offering. While it has the tools for more advanced traders, it does not allow margin trading, and futures leverage appears to be limited to EU users (with a maximum 3:1 leverage ratio, compared to Kraken’s 50:1).

It offers staking on SOL and ETH, and has its own payment solution—however, this can only be used to transfer fiat currencies.

Kraken has been fine-tuning its beginner and expert flows for 14+ years. It delivers a world-class experience for beginners and veterans alike with a rich arsenal of trading tools, deep liquidity and a wide variety of stakeable assets.

On the trading front, users tend to prefer Kraken’s higher leverage, additional order types, and margin trading functionality—plus a much bigger selection of available cryptocurrencies.

Kraken boasts an impressive collection of 450+ cryptocurrencies (and counting). Industry favorites like Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) are available, as are an ever-growing selection of memecoins, utility/governance tokens and more.

Fiat-wise, major currencies like USD, EUR, GBP and CAD are supported, and a strong lineup of 15 stablecoins effortlessly bridges the gap between fiat and crypto.

Kraken users in the US enjoy commission-free* trading of over 11,000 stocks and ETFs—with tokenized alternatives available in certain other countries. 

Robinhood supports a modest selection of 50+ cryptocurrencies, including market leaders and some of the more prominent memecoins. It also offers a wide variety of 10,000+ stocks and ETFs, which can be traded commission-free.

With regards to fiat currencies, it appears that Robinhood only supports those of the regions it operates in—namely, EUR, GBP and USD. Users can trade using two stablecoins, EURC and USD.

Ultimately, clients choose Kraken for its variety of listed assets: it offers more cryptos, more stocks/ETFs, more fiat currencies and more stablecoins than Robinhood, all of which can be easily accessed via its intuitive platform.

Additionally, Kraken is highly proactive in identifying and listing newer crypto assets, which clients can stay up-to-date on via its public roadmap.

Kraken fees start at a competitive 0.25% for makers and 0.4% for takers, however, these can be lowered significantly with increased trading volumes via Kraken Pro, or removed altogether with a subscription to Kraken+ for $4.99/mo.

Many crypto and fiat deposit options are free on Kraken. For activities that incur costs (such as withdrawals), fees are clearly listed prior to transaction completion—in line with Kraken’s commitment to transparency and its no-hidden-fee policy.

Robinhood doesn’t adhere to the standard fee schedule of crypto exchanges (which tend to decrease their costs based on volume or the holdings of exchange-native tokens) globally. Rather, it has a fixed 0.5% transaction fee for EU users for both buying and selling, while US users enjoy fee-free maker orders.

Its US taker orders are more akin to those seen on regular exchanges: its Smart Exchange Routing fees start at 0.85%, but are reduced with increased 30-day volume. 

Clients appreciate Kraken’s fair and transparent pricing—maker/taker fees start low, and can be substantially lowered by trading more frequently, or by purchasing a Kraken+ subscription.

In addition, clients know that Kraken’s fees are reinvested into improving on its world-class architecture and industry-recognized customer support team.

Kraken has 14+ years’ experience in delivering cutting-edge crypto products and services for individuals and institutions. In that time, no custodial wallet managed by Kraken has ever experienced a breach.

The exchange shines as a blueprint for other trading venues when it comes to its multi-layered approach to security. It was the first to implement the now widely adopted Proof of Reserves concept, which allows clients to independently verify that their assets held on the platform are sufficiently backed by assets held in reserve.

Additionally, it mandates multi-factor authentication and withdrawal address whitelisting, and implements time locks, PGP-encrypted communications and real-time threat monitoring to ensure client funds are protected to the highest degree.

Kraken remains proactive in its security, with an expert team constantly probing for vulnerabilities and a bug bounty program to incentivize external researchers to report any findings. What’s more, the exchange holds both an ISO27001:2013 certification and SOC 2 Type 2 audit compliance.

Robinhood requires 2FA on user accounts. As far as crypto security, it uses a mix of hot and cold wallets to securely hold funds, and carries insurance to protect against theft or cybersecurity attacks.

Kraken’s impeccable track record speaks for itself, and clients clearly value the peace of mind that comes with a crypto partner laser-focused on protecting their funds.

But while the exchange prioritizes security above all else, it doesn’t slack on the quality of its products and services. Kraken aids millions in confidently navigating the crypto universe, safe in the knowledge that their digital assets are secured by the best in the business.

Kraken offers a well-rounded customer support system, making its award-winning team of agents available to clients via online chat, email or phone. It has been recognized multiple times at the European Customer Centricity Awards for its exceptional service, which offers support in 13+ languages.

Robinhood, too, offers support via chat, email and phone support, albeit only in English.

It has previously been criticized for the quality of its support, with complaints citing the length of time taken for account issues to get resolved.

Kraken’s customer support is praised for its empathetic approach to assisting clients with any queries they might have, whether it’s helping newcomers in making their first BTC purchase or assisting them in navigating stressful situations.

With so many languages and support channels available around the clock, clients know they can get the help they need, whenever they need it.

Kraken and Robinhood have cemented their place as user-friendly, accessible platforms for trading both traditional and digital assets. 

Robinhood may appeal more to casual UK, US and EU investors whose primary focus is on mobile-first stocks & ETFs trading. As a more recent entrant to the crypto space, it greatly lacks the asset selection, leverage options and track record of crypto-native exchanges.

Kraken may be better suited to users first and foremost interested in crypto, with ample products and services for trading, earning and interacting with digital assets. Its trading functionality caters to all experience levels, and its additional support for stocks and ETFs make it ideal for clients seeking to build a diversified portfolio.