Kraken vs Robinhood — Head-to-Head Custody Comparison

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

Verdict

Quick Verdict

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

Kraken is better suited for Active traders, Security-conscious exchange users, International users. Robinhood is better suited for Stock traders adding crypto, Fee-conscious traders, Beginners.

7.6

GoodCustody Score

Kraken

6.9

FairCustody Score

Robinhood

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Kraken	Robinhood	Winner
Security	20%	8.5	7.0	Kraken
Insurance	15%	5.5	6.0	Robinhood
Regulatory	15%	8.0	8.5	Robinhood
Fee Transparency	10%	8.0	6.0	Kraken
Track Record	15%	9.0	7.0	Kraken
Withdrawal Flexibility	10%	8.5	7.5	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 Robinhood across all categories.

KrakenRobinhood

Deep Dive

Category-by-Category Analysis

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

Security (8.5 vs 7.0)

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.

Robinhood uses Exchange-managed custody key management with Majority cold in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 data breach (customer info, not funds). Crypto wallets added later..

Insurance (5.5 vs 6.0)

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

Robinhood offers SIPC for securities (NOT crypto). Crime insurance for crypto. via SIPC (securities) + crime insurance. SIPC coverage for stocks. Crypto has separate crime insurance.

Regulatory (8.0 vs 8.5)

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.

Robinhood holds NASDAQ listed (HOOD), SEC/FINRA registered (securities), State money transmitter licenses (crypto) and is a qualified custodian operating in United States. Publicly traded. SEC registered for securities. State-licensed for crypto.

Fee Transparency (8.0 vs 6.0)

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.

Robinhood charges None in annual custody fees with 0% commission (spread-based ~0.4%) per transaction. Commission-free trading. Revenue from spread and payment for order flow.

Track Record (9.0 vs 7.0)

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.

Robinhood was founded in 2013 and is headquartered in Menlo Park, CA. AUM: $130B+ in assets under custody (all assets). Incident history: 2021 data breach (customer info, not funds). Crypto wallets added later..

Withdrawal Flexibility (8.5 vs 7.5)

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

Robinhood withdrawal fees: Network fees. Minimum account: $1 minimum. Supported assets: Bitcoin, Ethereum, 20+ cryptocurrencies.

Reporting & Audit (8.0 vs 8.0)

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

Robinhood: 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..

Robinhood is a exchange custody provider. Key management: Exchange-managed custody with option to withdraw crypto to external wallets..

Fees

Fee Comparison

Side-by-side fee breakdown for Kraken and Robinhood.

Fee Type	Kraken	Robinhood
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	0.16-0.26% maker/taker	0% commission (spread-based ~0.4%)
Withdrawal	Network fees + small flat fee	Network fees

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

Robinhood: Commission-free trading. Revenue from spread and payment for order flow.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Kraken	Robinhood
13+ year track record	✓	✗
23M+ funded accounts	✗	✓
24/7 customer support	✓	✗
95%+ cold storage	✓	✗
Bitstamp acquisition	✗	✓
Clean mobile interface	✗	✓
Commission-free trading	✗	✓
Crypto alongside stocks	✗	✓
Crypto wallets with withdrawals	✗	✓
Futures and margin trading	✓	✗
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

Robinhood is better if you…

✓Are a stock traders adding crypto
✓Are a fee-conscious traders
✓Are a beginners
✓Are a us retail investors
✓Want: Commission-free crypto trading
✓Want: Crypto alongside stock portfolio
✓Want: Publicly traded — transparent

FAQ

Frequently Asked Questions

Is Kraken or Robinhood 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 Robinhood suits Stock traders adding crypto and Fee-conscious traders.

What is the difference between Kraken and Robinhood?

Kraken is a exchange custody provider, while Robinhood is a exchange custody provider. Kraken excels in Track Record, whereas Robinhood is strongest in Regulatory.

How do Kraken and Robinhood fees compare?

Kraken charges None annual custody fees with 0.16-0.26% maker/taker transaction fees. Robinhood charges None annual custody fees with 0% commission (spread-based ~0.4%) transaction fees.

Which is more secure, Kraken or Robinhood?

Kraken scores 8.5/10 for security while Robinhood scores 7.0/10. Kraken uses Exchange hot/cold wallet system key management, and Robinhood uses Exchange-managed custody.