Kraken vs Interactive Brokers — Head-to-Head Custody Comparison

An independent, data-driven comparison of Kraken and Interactive Brokers across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Kraken scores 7.6 vs Interactive Brokers's 6.9. Kraken leads in 4 of 8 categories.

Kraken is better suited for Active traders, Security-conscious exchange users, International users. Interactive Brokers is better suited for Professional traders, Multi-asset investors, RIAs adding crypto.

7.6

GoodCustody Score

Kraken

6.9

FairCustody Score

Interactive Brokers

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Kraken	Interactive Brokers	Winner
Security	20%	8.5	6.5	Kraken
Insurance	15%	5.5	5.0	Kraken
Regulatory	15%	8.0	9.0	Interactive Brokers
Fee Transparency	10%	8.0	7.0	Kraken
Track Record	15%	9.0	9.5	Interactive Brokers
Withdrawal Flexibility	10%	8.5	5.0	Kraken
Reporting & Audit	10%	8.0	8.0	Tie
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.6	6.9	Kraken

Visual

Score Radar

Visual overlay of Kraken and Interactive Brokers across all categories.

KrakenInteractive Brokers

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.5 vs 6.5)

Kraken uses Exchange hot/cold wallet system key management with 95%+ cold storage in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major security breaches in 13+ years.

Interactive Brokers uses Paxos custody partnership key management with Via Paxos in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major incidents in 45+ year history.

Insurance (5.5 vs 5.0)

Kraken offers Not explicitly disclosed via N/A. Maintains significant cold storage reserves. Proof of reserves verified.

Interactive Brokers offers SIPC up to $500K for securities (NOT crypto) via SIPC + excess. World-class securities insurance. Crypto is NOT insured.

Regulatory (8.0 vs 9.0)

Kraken holds FinCEN MSB, State money transmitter licenses, FCA registered (UK), AUSTRAC (Australia) and is not a qualified custodian operating in United States / Global. One of the most compliant global exchanges. Bank partnership for USD.

Interactive Brokers holds SEC registered, FINRA member, SIPC member, Global regulatory licenses and is a qualified custodian operating in United States / Global. One of the most regulated brokerages globally.

Fee Transparency (8.0 vs 7.0)

Kraken charges None in annual custody fees with 0.16-0.26% maker/taker per transaction. Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Interactive Brokers charges None in annual custody fees with 0.12-0.18% tiered per transaction. Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw.

Track Record (9.0 vs 9.5)

Kraken was founded in 2011 and is headquartered in San Francisco, CA. AUM: $20B+ in quarterly trading volume. Incident history: No major security breaches in 13+ years.

Interactive Brokers was founded in 1978 and is headquartered in Greenwich, CT. AUM: $400B+ client equity. Incident history: No major incidents in 45+ year history.

Withdrawal Flexibility (8.5 vs 5.0)

Kraken withdrawal fees: Network fees + small flat fee. Minimum account: No minimum. Supported assets: Bitcoin, Ethereum, 200+ cryptocurrencies.

Interactive Brokers withdrawal fees: Not available (no crypto transfers out). Minimum account: No minimum for crypto. Supported assets: Bitcoin, Ethereum, Limited crypto selection.

Reporting & Audit (8.0 vs 8.0)

Kraken: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Interactive Brokers: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Counterparty Diversification (2.0 vs 2.0)

Kraken is a exchange custody provider. Key management: Exchange-managed hot/cold wallet system with proof of reserves..

Interactive Brokers is a exchange custody provider. Key management: Exchange-managed custody via Paxos partnership..

Fees

Fee Comparison

Side-by-side fee breakdown for Kraken and Interactive Brokers.

Fee Type	Kraken	Interactive Brokers
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.16-0.26% maker/taker	0.12-0.18% tiered
Withdrawal	Network fees + small flat fee	Not available (no crypto transfers out)

Kraken: Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Interactive Brokers: Among lowest crypto trading fees. But no crypto withdrawals — must sell to withdraw.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Kraken	Interactive Brokers
13+ year track record	✓	✗
24/7 customer support	✓	✗
45+ year track record	✗	✓
95%+ cold storage	✓	✗
Crypto alongside stocks/bonds/options	✗	✓
Futures and margin trading	✓	✗
Global presence	✗	✓
Institutional-grade execution	✗	✓
Lowest crypto trading fees	✗	✓
Professional trading tools	✗	✓
Proof of reserves	✓	✗
Staking services	✓	✗

Recommendation

Who Should Choose Which?

Kraken is better if you…

✓Are a active traders
✓Are a security-conscious exchange users
✓Are a international users
✓Are a stakers
✓Want: 13+ year track record with zero major breaches
✓Want: Proof of reserves — verified by third party
✓Want: 95%+ assets in cold storage

Interactive Brokers is better if you…

✓Are a professional traders
✓Are a multi-asset investors
✓Are a rias adding crypto
✓Are a institutional traders
✓Want: 45+ year track record — most established broker
✓Want: Lowest crypto trading fees (0.12-0.18%)
✓Want: Crypto alongside stocks/bonds/options

FAQ

Frequently Asked Questions

Is Kraken or Interactive Brokers better for Bitcoin custody?

Kraken scores 7.6 vs 6.9 in our weighted Custody Score. Kraken leads in 4 of 8 scoring categories. However, the best choice depends on your specific needs: Kraken is best for Active traders and Security-conscious exchange users, while Interactive Brokers suits Professional traders and Multi-asset investors.

What is the difference between Kraken and Interactive Brokers?

Kraken is a exchange custody provider, while Interactive Brokers is a exchange custody provider. Kraken excels in Track Record, whereas Interactive Brokers is strongest in Track Record.

How do Kraken and Interactive Brokers fees compare?

Kraken charges None annual custody fees with 0.16-0.26% maker/taker transaction fees. Interactive Brokers charges None annual custody fees with 0.12-0.18% tiered transaction fees.

Which is more secure, Kraken or Interactive Brokers?

Kraken scores 8.5/10 for security while Interactive Brokers scores 6.5/10. Kraken uses Exchange hot/cold wallet system key management, and Interactive Brokers uses Paxos custody partnership.