Kraken vs Bybit for futures trading

Kraken offers a user-friendly interface, lower fees for high-volume traders, and robust risk tools with up to 50x leverage, while Bybit provides speed, 100x leverage, and copy trading—but lacks Kraken’s regulatory clarity and deeper liquidity.

Jul 25, 2025 at 02:28 pm

Platform Overview and User Interface

When comparing Kraken vs Bybit for futures trading, the first point of consideration is the platform design. Kraken offers a clean, professional interface tailored for both beginners and advanced traders. Its dashboard provides real-time data, customizable charts, and a straightforward order placement system. Bybit, on the other hand, emphasizes speed and simplicity with a minimalistic layout focused on derivatives. Traders who prioritize clarity and data depth may find Kraken’s interface more intuitive, while those who trade frequently may appreciate Bybit’s streamlined execution flow.

Fees and Funding Structures

Fees are a critical differentiator in futures trading. Kraken uses a tiered maker-taker model, where fees range from -0.02% (maker rebate) to 0.05% (taker fee), based on 30-day trading volume. Bybit charges a flat taker fee of 0.06% and a maker fee of 0.01%, with no volume tiers. This means Kraken can be more cost-effective for high-volume traders, while Bybit’s consistency benefits those who trade sporadically. Both platforms offer funding rates for perpetual contracts, but Kraken’s rates are often lower due to deeper liquidity. Bybit recalculates funding every 8 hours, while Kraken does so hourly—traders must monitor this closely to manage costs.

Leverage and Contract Types

Leverage availability differs significantly. Bybit allows up to 100x leverage on select pairs like BTC/USDT, making it attractive for aggressive strategies. Kraken caps leverage at 50x for most pairs, promoting a more conservative approach. Contract types also vary: Bybit offers USDT-margined and inverse perpetuals, while Kraken supports both perpetual and quarterly futures with both USDT and coin-margined options. For traders seeking flexibility, Kraken’s broader contract selection is advantageous, especially for institutional users needing varied expiration dates.

Risk Management Tools

Both exchanges provide robust risk controls, but implementation varies. Kraken includes advanced features like:

• Auto-deleveraging protection
• Liquidation price calculators
• Post-only and reduce-only order types
  Bybit also offers similar tools but emphasizes visual aids such as real-time P&L tracking and margin ratio warnings. Notably, Kraken’s liquidation engine uses a partial liquidation model, which preserves remaining positions rather than closing all at once—a critical advantage during volatile markets. Bybit’s full-position liquidation can be riskier for over-leveraged accounts.
  

  Operational Steps to Start Futures Trading

  
  To begin trading futures on either platform, follow these steps precisely:
  
  • Create an account and complete KYC verification (Kraken requires more documentation than Bybit)
  • Deposit funds—transfer USDT or BTC to your futures wallet (not spot wallet)
  • Switch to the futures trading interface—this is a separate section from spot trading
  • Select a contract—choose between perpetual or quarterly, and specify margin type (cross or isolated)
  • Place an order—use limit, market, or conditional orders with precise leverage settings
  • Monitor open positions—check margin ratio, unrealized P&L, and liquidation price continuously

  Skipping any of these steps or misconfiguring margin type can lead to unexpected losses. Always test with small positions first.

  Liquidity and Slippage Performance

  
  Liquidity directly impacts trade execution. Kraken, being a long-standing exchange, has deep order books for major pairs like BTC and ETH, resulting in lower slippage even during high volatility. Bybit, while growing rapidly, sometimes shows wider spreads on altcoin pairs due to thinner liquidity. For traders executing large orders, Kraken’s market depth minimizes price impact, whereas Bybit’s speed compensates for slight slippage in fast-moving markets. Use the “depth chart” on both platforms to assess real-time liquidity before placing orders.
  

  Security and Regulatory Compliance

  
  Security protocols differ in philosophy. Kraken is registered with the U.S. Treasury’s FinCEN and complies with strict regulatory standards, including cold storage for 95% of assets. Bybit, based in Seychelles, operates under less stringent oversight but uses multi-signature wallets and regular audits. Kraken’s compliance reduces legal risks for U.S. residents, while Bybit’s offshore status appeals to global traders seeking anonymity. Neither platform has suffered a major breach, but Kraken’s transparency in security reports gives it an edge for risk-averse users.
  

  Frequently Asked Questions

  Q: Can I trade Kraken futures from the U.S.?
  
  A: No. Kraken restricts U.S. residents from accessing futures trading due to regulatory constraints. Bybit also blocks U.S. IP addresses, so neither platform supports U.S.-based futures traders.

  Q: How do I switch from cross to isolated margin on Bybit?
  
  A: Go to your open position, click the “Margin Mode” button, and select “Isolated.” Enter the desired margin amount manually. This change only affects the selected position—not all futures holdings.

  Q: Does Kraken offer copy trading for futures?
  
  A: No. Kraken does not support social or copy trading features. Bybit offers a “Copy Trade” section where users can mirror experienced traders’ futures positions automatically.

  Q: What happens if my Bybit position gets liquidated?
  
  A: Bybit closes the entire position at the bankruptcy price. You lose the initial margin, and if the price moves further, insurance fund coverage may prevent clawbacks—but this is not guaranteed.