Which Exchange Is the Best Alternative to Binance for US Customers?

Regulatory Compliance and Licensing

1. Kraken holds a BitLicense from the New York State Department of Financial Services, making it one of the few exchanges fully authorized to serve residents of New York.

2. Coinbase operates under multiple state money transmitter licenses and is registered with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) as a Money Services Business.

3. Gemini is a New York trust company regulated by the NYDFS and undergoes regular SOC 1 and SOC 2 audits to verify internal controls and data security practices.

4. Bitstamp USA is licensed as a money transmitter in 40+ U.S. states and maintains compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements enforced by FinCEN.

Fees and Trading Costs

1. Kraken charges tiered maker-taker fees starting at 0.16% for takers and 0.10% for makers, with discounts available for high-volume traders holding KRAKEN tokens.

2. Coinbase Pro offers fee tiers based on 30-day trading volume, ranging from 0.40% to 0.00% for makers and 0.60% to 0.05% for takers—higher than many competitors but backed by institutional-grade infrastructure.

3. Gemini ActiveTrader uses a maker-taker model with fees as low as 0.10% for makers and 0.25% for takers, plus a flat $0.99 fee for retail orders under $200.

4. Bitstamp applies a uniform 0.40% fee for both makers and takers on its U.S. platform, with no volume-based reductions currently offered for domestic users.

Asset Selection and Token Listings

1. Kraken supports over 200 digital assets, including privacy coins like Monero (XMR) and Zcash (ZEC), which are banned on most U.S.-facing platforms due to regulatory pressure.

2. Coinbase lists approximately 250 tokens across its main and advanced trading interfaces, though several high-profile assets—including BNB, MATIC, and SOL—have been delisted or restricted following SEC enforcement actions.

3. Gemini offers around 100 tradable assets, prioritizing regulatory alignment over breadth; its listings include ETH, BTC, USDC, and select DeFi tokens such as AAVE and UNI, all vetted through internal legal review.

4. Bitstamp provides access to roughly 70 cryptocurrencies, emphasizing stability and liquidity rather than novelty; major stablecoins, Bitcoin, Ethereum, and Litecoin dominate its order books.

Security Infrastructure and Custody

1. Kraken stores over 95% of client funds in cold storage and employs multi-signature wallets, air-gapped signing servers, and mandatory 2FA for all account actions.

2. Coinbase maintains an insurance policy covering up to $255 million in digital assets held in its hot wallets, while cold storage holdings remain outside the scope of that coverage.

3. Gemini uses qualified custodians approved by the NYDFS and segregates client assets from corporate funds; its custody solution, Gemini Custody, is audited annually by an independent CPA firm.

4. Bitstamp utilizes hardware security modules (HSMs) for private key management and performs daily internal penetration tests alongside quarterly third-party audits conducted by Cure53.

Customer Support and User Experience

1. Kraken offers live chat support during business hours for verified users, email assistance with average response times under 24 hours, and an extensive help center with video tutorials and API documentation.

2. Coinbase provides 24/7 live chat for customers on paid plans, limited email support for free-tier users, and a community forum moderated by staff where common technical issues are addressed publicly.

3. Gemini delivers dedicated account managers for institutional clients and phone support for verified retail users during Eastern Time business hours; its mobile app includes biometric login and real-time portfolio tracking.

4. Bitstamp features a ticket-based support system with no live chat option for U.S. customers, though response times typically fall within 48 business hours and escalation paths exist for unresolved disputes.

Frequently Asked Questions

Q: Does Kraken allow margin trading for U.S. residents?Yes, Kraken offers margin trading with up to 5x leverage on select pairs like BTC/USD and ETH/USD, subject to state-specific restrictions and KYC verification level.

Q: Can I stake crypto directly on Coinbase?Yes, Coinbase supports staking for ETH, ADA, DOT, and other proof-of-stake assets through its integrated staking dashboard, with rewards distributed automatically every 3–7 days.

Q: Is Gemini insured against hacking losses?Gemini does not offer blanket insurance for user balances; however, it maintains a crime insurance policy covering theft from hot wallets and certain custodial breaches, administered by AIG.

Q: Does Bitstamp support recurring buy orders for U.S. customers?Yes, Bitstamp allows scheduled recurring purchases in USD for BTC, ETH, LTC, and XRP via bank transfer or debit card, with customizable intervals and amounts.