u/Legitimate-Key-3044

After using binance for futures for the last couple of years I said I’d give kraken a chance and to say it’s disappointing is an understatement. The funding fees (0.5% per hour) are insane. Especially when you put it in comparison to binance 0.01% every 8 hours.

I opened a small position to familiarise myself with the layout. €50 X7 long. The fees were ~€1.70 every hour. The same fee on binance would have been a few cents every 8’hours.

To put that into perspective:

If I open a €500 (X5) long position at the same time on both kraken and binance.

After 1 hour; €12.50 on kraken. Nothing on binance.

After 8 hours: €100 on kraken. €0.25 on binance.

After 1 day: €300 on kraken, €0.75 on binance.

And that’s without the market even moving against you. 60% of your original capital paid in funding fees in just 1 day? Obviously for the example I’m simplifying it as if the €500 balance remained for the entire 24hrs.

Am I missing something here? I attached a screenshot to show the funding fees deducted each hour on a small position (€50X7 long).

As the title says, anyone using kraken funded? Trying to gauge if it’s worth it or are you better off just doing futures? Same thing applies: lose 5% and you lose your buy in, once you pass the “test” phase you’re amplifying your profits while limiting your potential loss to whatever your buy in was.

Currently doing the 5k one for 2 weeks. Still on the test phase with 8.9% gain. Need 12% gain to go into real money. One thing iv learned: Im definitely not great at day trading. 2% up, 2% up, 3% down, 2% up, 2% down etc…

The pros with it:

-you’re limited on how much you can lose with your buy in.

-If you play your hands carefully you can potentially make a decent profit.

-if you have a tendency to gamble or trade for fun, it’s ideal for entertainment purposes. A small sum of money can keep you trading for a long time.

The cons:

-Once you lose 5% you’re out whereas you need to gain 12% to be in.

-if you’re already decent at day/swing trading, you may be better off just doing futures and not having to give 20% to kraken.

-once you are in the “real” money, it starts over again you’re back to 0% PNL. Basically removing anything you had built up and giving you another opportunity to lose the 5%!

-With the sum involved(5/10k), one bad trade could easily knock you out!

Anyway, just interested in hearing opinions/strategies or wondering if I missed something… I like the concept of it but it’s one of those things”if it sounds too good to be true…”.

Insane funding fees on kraken?

Anyone here using kraken funded?