How can I reduce my trading fees on Kraken contracts?

Understanding Kraken Futures Fee Structure

To effectively reduce trading fees on Kraken Futures, it's essential to first understand how the exchange structures its fee model. Kraken applies a maker-taker fee schedule that varies based on your 30-day trading volume and whether you are placing (maker) or removing (taker) liquidity from the order book. Makers typically receive lower fees or even rebates, while takers pay higher fees. The exact rates are published in Kraken’s fee schedule and are updated monthly based on your trading volume.

Your fee tier is determined by your cumulative trading volume in USD across all futures markets over the past 30 days. Higher volume leads to lower fees. For example, users with over $10 million in volume may qualify for negative taker fees, meaning they are paid to trade. This tiered system incentivizes consistent trading activity. Understanding where you currently stand in this structure is the first step toward optimizing fees.

Leveraging the Maker-Taker Model

One of the most effective ways to reduce fees is to consistently act as a maker rather than a taker. When you place a limit order that does not immediately execute—thus adding liquidity to the market—you are classified as a maker. Kraken often offers fee rebates for makers, meaning you might receive a small payment instead of paying a fee.

To maximize maker status:

• Always use limit orders instead of market orders.
• Set your price slightly away from the current market to avoid immediate execution.
• Monitor the order book depth to place orders where they are likely to rest but still attract takers.
• Avoid placing orders at the top of the order book if the market is highly volatile and likely to hit your price instantly.

By adjusting your order placement strategy, you can significantly reduce or even eliminate fees on a large portion of your trades.

Increasing Trading Volume for Better Tiers

Kraken’s fee tiers are volume-based, so increasing your 30-day trading volume can lead to lower fees across all trades. The tiers are cumulative and reset every 30 days, meaning consistent trading is key. If you're close to the next tier, consider consolidating your trading activity on Kraken rather than spreading it across multiple platforms.

To boost volume efficiently:

• Use Kraken Pro for spot trading to contribute to your overall volume, as spot and futures volumes are combined.
• Participate in high-liquidity markets where you can trade larger volumes with minimal slippage.
• Avoid wash trading or manipulative practices, which are prohibited and can result in account suspension.

Higher volume not only reduces fees but also unlocks access to institutional-grade tools and support, further improving your trading efficiency.

Utilizing Kraken’s Staking and Rewards Programs

Kraken offers a staking program that can indirectly reduce your effective trading fees. By staking certain cryptocurrencies like DOT, SOL, ADA, or ETH, you earn rewards in the form of additional tokens. These rewards can be used to offset trading costs or reinvested to increase your trading capital.

Additionally, Kraken occasionally runs promotional campaigns where users who stake or trade specific assets receive fee discounts or rebates. Subscribing to Kraken’s newsletter and checking the 'Rewards' section of your account regularly ensures you don’t miss these opportunities.

To participate:

• Navigate to the 'Earn' section in your Kraken account.
• Select a stakable asset you already hold.
• Choose the amount to stake and confirm the transaction.
• Monitor your rewards dashboard for accrued earnings.

While staking doesn’t directly lower fees, the passive income it generates can effectively reduce your net trading costs over time.

Optimizing Order Types and Execution Strategy

Beyond basic limit orders, Kraken supports advanced order types that can help minimize fees and slippage. Using post-only limit orders ensures your order is placed only as a maker. If the order would immediately execute, it is canceled instead of becoming a taker order.

Other strategies include:

• Using reduce-only orders to close positions without adding new exposure, helping avoid unnecessary taker fees.
• Setting time-in-force options like GTC (Good Till Cancelled) to keep your order active without constant manual intervention.
• Employing TWAP (Time-Weighted Average Price) or iceberg orders for large trades to avoid market impact and remain within maker status.

These tools are accessible through Kraken’s advanced trading interface and API, allowing for automated strategies that prioritize fee efficiency.

Managing Account and Sub-Account Structures

For high-volume traders or institutions, Kraken allows the use of sub-accounts. While each sub-account operates independently, Kraken may aggregate volume across linked sub-accounts under certain conditions to determine fee tiers. This can be especially beneficial for teams or funds managing multiple strategies.

To set up sub-accounts:

• Go to Settings > Sub-Accounts in your Kraken dashboard.
• Create a new sub-account and assign permissions.
• Transfer funds or initiate trades from each sub-account.
• Contact Kraken support to inquire about volume aggregation eligibility.

Proper configuration ensures that your total activity qualifies for the best possible fee tier, even if trading occurs across different strategies or team members.

Frequently Asked Questions

Can I get lower fees by using KSM or other tokens on Kraken?Kraken does not currently offer fee discounts based on holding or using specific cryptocurrencies like KSM. Fees are determined solely by trading volume and order type (maker/taker). Staking certain tokens can earn rewards, but this does not directly reduce trading fees.

Do spot trading fees count toward futures fee tiers?Yes, Kraken combines spot and futures trading volume over the past 30 days to determine your fee tier. Trading on Kraken Pro and Kraken Futures both contribute to your total volume, helping you reach higher tiers faster.

What happens if my volume drops in the next 30 days?Fee tiers are recalculated daily based on your trailing 30-day volume. If your volume decreases, your tier may drop, resulting in higher fees. However, Kraken applies the best tier achieved during the month, so a temporary drop won’t immediately raise your fees if you previously qualified for a higher tier.

Are there hidden fees on Kraken Futures I should be aware of?Kraken is transparent about its fee structure. The only fees are the maker and taker fees listed in the fee schedule. Funding rates for perpetual contracts are separate and not classified as trading fees. These are paid or received every 8 hours based on the contract’s funding mechanism and are clearly displayed before entering a trade.