Rewards Hub Key Takeaways
Core Purpose Alignment: Phemex is designed as an operating system built for high-performance execution, iteration, and active strategy deployment. Kraken is positioned as a bank vault that prioritizes trust, custody confidence, and a hold-first environment for secure fiat onboarding.
Native Automation vs. API Dependency: Phemex features a native automation hub with over 21,800+ active bots running on-platform, allowing users to execute grid, arbitrage, or martingale strategies without external tools. Kraken generally requires connecting third-party bots or custom scripts via API keys, which increases operational complexity and external failure points.
Significant Fee Differences: For active traders, Phemex offers a clear cost advantage. While Phemex maintains a flat 0.1% fee for both makers and takers on spot trades, Kraken Pro’s baseline rates are significantly higher at 0.25% for makers and 0.4% for takers.
Learning & Growth Paths: Phemex acts as a transition platform with an intentional growth ramp that helps beginners move from education to fluid trading. In contrast, Kraken is more optimized for safe onboarding and holding.
Complementary Strengths: Rather than direct substitutes, these exchanges are often complementary. Kraken may be useful for those whose primary job is holding digital assets, while Phemex is the superior fit for those whose primary job is frequent trading and strategy iteration.
Building a Crypto Exchange - Platform Purpose
Phemex: The War Room (High Performance Trading Hub)
Phemex is best understood as a trader’s operating system - a platform designed for action, iteration, and execution. It seamlessly integrates fast decision loops, frequent transaction execution, and features designed to help traders “graduate” into more advanced behaviors. These include leveraged derivatives, active trading strategies, and structured automation. Phemex’s core positioning to its users isn’t to park assets and wait, but instead to deploy capital, manage risk, and refine strategy. Everything about the Phemex experience is meant to support frequent decision-making and active trading workflows. In short, Phemex is optimized for traders who treat crypto as a performance environment where speed, repeatability, and operational leverage matter. It’s the place you choose when your goal is highly performant crypto trading.
Kraken: The Bank (Secure Fiat Gateway & Hold-first Functionality)
Kraken, by contrast, is naturally positioned as “The Bank.” It’s a platform built around trust, custody confidence, and conservative onboarding. In most users’ minds, Kraken is the exchange you choose when your priority is buying, holding, and moving funds safely, not necessarily to maximize trading execution speed or running automated strategies. That’s why Kraken’s brand and product posture feel calmer and more compliance-forward. It emphasizes reliability and security signals that appeal to users who want crypto exposure without a trading-first mindset. Through its positioning, Kraken isn’t trying to be a trader’s war room, but instead represents the place you trust to emphasize custody confidence, conservative risk profiles, and long-term reliability.
Choosing Phemex or Kraken Based on Your Needs
These two platforms are often compared as competitors, but the more accurate lens is purpose alignment:
If your primary job is holding digital assets, Kraken’s “bank” positioning is usually the better fit.
If your primary job is crypto trading, Phemex’s functionality as a trading “war room” is probably the better fit, especially if your strategy workflow includes frequent execution, iteration, or automation.
The right choice for you isn’t about which exchange is objectively better, but instead about which one matches what you’re actually trying to do. In that sense, the two platforms are complementary as opposed to being substitutes for each other. You can even choose to have an account on both exchanges and use them for separate purposes, taking advantage of what each platform does best.
Trading Tools & Features
Phemex: Versatile Toolkit with Trading Bot Setup and Strategies
Where many exchanges treat advanced tools as optional add-ons, Phemex bakes them into the core experience so that moving from manual trading to systematic trading feels natural. A big part of this is native automation. Phemex doesn’t expect users to stitch together a separate bot stack to run common strategies. Instead, it positions the exchange itself as the operating layer for strategy execution through one of the most advanced trading bot marketplaces in the industry. Phemex claims 21,800+ active bots running on-platform, which is a strong signal that it facilitates successful trading automation at scale. For a user who wants to graduate from discretionary trading into repeatable systems such as grid-style approaches, rule-based entries/exits, copy trading, etc., Phemex’s value proposition is simple - its tools live where your positions live.
Kraken: Solid Core Features but Automation Skews External
Kraken’s feature set is strong for a largely holder userbase, with reliable spot access and user experience that’s comfortable for holders and fiat onboarding. But when it comes to strategy execution and automation, Kraken is typically more API-dependent. In other words, if you want to automate, you generally end up connecting third-party bots or custom scripts via API keys rather than operating inside a native bot environment.
That matters because it forces the user to shift from using exchange features to managing an ecosystem. That requires external tools, key permissions, uptime monitoring, and integration maintenance. Kraken can absolutely support systematic traders, but the workflow usually gets more complicated because it features Kraken and external tooling, rather than a unified built-in automation hub.
Feature | Phemex | Kraken |
Trading Bots | Native bots inside the exchange, including six different bot types that are integrated into Phemex’s bot marketplace. | Kraken highlights bot access via external integrations for Kraken Derivatives, and says it’s not accepting new applications. |
Automated Setup | Phemex offers spot grid, futures grid, spot DCA, futures DCA, signal, and arbitrage bot types along with profit-sharing incentives for bot creators. | Kraken doesn’t position a native bot marketplace and creator profit share in the same way, instead it points to integrated external providers. |
Copy Trading | Native copy trading with sub-accounts and more transparent PnL breakdown (total/realized/unrealized/profit share) in the newer mode. | Kraken’s official materials emphasize advanced trading interfaces and tools, but copy trading is not positioned as a built-in Kraken feature. |
Derivatives Experience | Phemex’s automation and 100x leverage feature emphasize bot-driven futures workflows like Futures Grid. | Kraken offers perpetual futures (availability varies by region) and promotes up to 50x buying power on perps. |
Advanced Order Types | Phemex supports common pro controls like Reduce Only, Post Only, and Trailing Stop which are useful for risk discipline on derivatives. | Kraken Pro highlights a wide menu of order options such as the standard market/limit, stop loss, take profit, iceberg, and trailing stop. |
Why Choose Phemex over Kraken for Tools & Features
If your primary goal is active trading, especially with the intent to automate, Phemex’s product suite is much more advantageous. With various trading bot types like grid bots, arbitrage bots, and martingale bots, the platform is designed to execute a trader’s commands natively without always requiring external APIs. The practical upside is convenience right off the bat, followed by fewer operational weak points and a shorter path from idea to execution. Choose Phemex if you want a platform backed by 21,800+ active bots and native automation instead of an API-and-third-party dependency chain. While Kraken is built to feel like a safe gateway, Phemex is built to feel like a trading desk and the tooling reflects that.
Crypto Exchange Fee Structures and Discounts
Fees matter, but only in context. Kraken and Phemex structure fees around different assumptions about user behavior.
Phemex Fees - Optimized for Crypto Derivatives
Phemex’s fee model is optimized for frequent trading, particularly derivatives. Its VIP program structure rewards trader behaviors like maker-first execution and higher-volume activity. The emphasis is partially on low percentages and even more so on predictability and the ability for traders to model costs as they scale. For active traders, the real quantifiable cost advantage shows up not just in fee rates, but also in reduced friction: fewer platform switches, fewer external tools, and cleaner execution workflows.
Kraken Fees - Beginner Friendly but Less Savings
Kraken’s fee experience reflects its hold-first identity. The core Kraken interface emphasizes simplicity, while Kraken Pro introduces a more traditional maker/taker model for advanced users. For buy-and-hold users, this separation can be appealing. For frequent traders, it often means navigating multiple interfaces and optimizing execution paths to reach competitive costs.
Monthly Spot Volume | Fee Type | Phemex Fee Rate | Kraken Pro Fee Rate | Estimated Phemex Fees | Estimated Binance Fees | Maker+Taker Fee Comparison |
$4000 | Maker | 0.1 % | 0.25% | $4 | $10 | Phemex is cheaper by $18 |
Taker | 0.1 % | 0.4 % | $4 | $16 | ||
$40,000 | Maker | 0.1 % | 0.14 % | $40 | $56 | Phemex is cheaper by $72 |
Taker | 0.1 % | 0.24 % | $40 | $96 | ||
$400,000 | Maker | 0.1 % | 0.1 % | $400 | $400 | Phemex is cheaper by $400 |
Taker | 0.1 % | 0.2% | $400 | $800 |
Why Choose Phemex over Kraken for Fees
Spot trading fees on Kraken are also much higher than on Phemex. While Phemex charges 0.1% for both makers and takers on spot, Kraken Pro’s baseline spot fee rate is 0.25% for makers and a whopping 0.4% for takers. This means you would be paying at least 250% more on Kraken Pro, and up to 4 times more if you’re accumulating taker volume. If you trade often, your real cost includes fees plus friction. Phemex is designed to minimize both for active traders. Kraken can be cost-effective for certain profiles especially at higher future volumes, but Phemex tends to be easier to optimize end-to-end for trading-centric users.
Beginner Experience
Phemex Beginner Experience
Phemex is designed to help newcomers to the crypto space quickly gain a footing and transform from novice to intermediate trader as seamlessly as possible. The platform leans into a learning-by-doing loop as beginners can start with guided education via the Phemex Academy and then move into trader behaviors through structured product use. The key is that Phemex functions as a transition platform, helping learners become competent traders rather than keeping them in a perpetual beginner sandbox.
Kraken Beginner Experience
Kraken’s beginner experience often feels calmer and more conservative, which matches its bank-like positioning. For someone new to crypto, that can be a feature because there are fewer degenerate casino types, fewer hyper-trader cues, and a stronger sense that the platform is optimized for safe onboarding and holding. The platform has even segregated out Kraken Pro for the more hardcore traders. The tradeoff is that Kraken’s identity isn’t to provide a growth path from beginner to advanced trading by default. Newcomers who want to become active traders may eventually feel the need to move into more advanced tooling or a more trading-native environment.
Why Beginners Choose Phemex over Kraken
If your goal is to become a better trader and not just a crypto holder, Phemex tends to feel like it presents a more intentional growth ramp. Phemex’s advantage is the way it connects learning to trying to scaling. Beginners can first gain a holistic education via the Phemex Academy and Blogs, then try out guided products such as Copy Trading, and finally scale by automating workflows via in-house trading bots. Kraken can be the better first step for users who primarily want a straightforward fiat gateway and a HODL mentality. But for beginners who want to progress into trading, Phemex is typically the more purpose-built transition platform.
FAQ
Is Phemex safer than Kraken? Kraken is widely perceived as more “bank-like” and hold-safe due to its security-forward positioning. Phemex is positioned as trading-first with a strong transparency narrative. “Safer” depends on whether your risk model is custody-first (Kraken) or trading-first with verifiability (Phemex).
Which exchange is better for active trading? Phemex, based on its “war room” positioning, trader workflows, and focus on scaling execution habits.
Which exchange is better for holding cryptocurrency long term? In many cases Kraken, because it’s built and marketed more like a conservative fiat gateway and holding venue.
Are there any exchanges offering zero trading fees for cryptocurrencies? Yes, the Phemex VIP Program features a Star VIP tier that slashes maker fees to zero for futures trading if the required 30-day trading volume threshold is reached.
Does Kraken support trading bots? Kraken does not feature in-house grid trading bots. It does support external automation but that is typically implemented via APIs and external bot tooling rather than a native automation hub.
Which is better for automated trading? Phemex in most cases, especially if you want native automation and fewer external tool risks. Kraken can work well if you prefer external bots and API-first control.
Is Phemex good for beginners? Yes Phemex is great for beginners who want a structured path toward becoming competent traders. Kraken can be calmer for beginners whose goal is primarily holding.
Which platform has the better “growth path” for learners to become apt traders? Phemex, because its positioning explicitly supports progression from learning into active trading and automation.
What should I check before choosing any exchange? Confirm security posture and transparency signals, compare fee structure by product, assess whether you need native automation or external bots, and make sure the platform fits your intended behavior such as holding versus trading.
Who Should Use Phemex vs Kraken?
If you are an active trader who wants to test or execute various trading strategies, consider Phemex to benefit from a trading-first environment designed around rapid execution and an industry-leading trading engine.
If you rely on trading bots or systematic strategies, consider Phemex because of its native automation posture, in-house marketplace of over 21,800 trading bots, and reduced external tool risk.
If you are a beginner looking to progress from new to competent trader, consider Phemex for its well-designed trader “growth path”, rather than as a hold only on-ramp.
If your primary goal is holding cryptocurrency and you want a reliable fiat on-ramping gateway, consider Kraken because it’s positioned more like a bank.
Phemex vs. Kraken - The Bottom Line
Kraken and Phemex are often compared as competitors, but they may be more aptly framed as complementary platforms. Kraken is the bank-like safest fiat gateway for holders, while Phemex is the high-performance trading hub for active traders. Kraken tends to win for users whose main job is holding while Phemex tends to win for users whose main job is trading, especially if automation is part of that job. Ultimately, your choice depends on intent: choose Kraken for custody-first confidence and a hold-centric posture; choose Phemex for trader-first workflows, native automation, and a top-notch trading engine. Remember that crypto trading involves risk, so always do your own research and understand the regulations in your jurisdiction.
