What Is Kraken Prop Trading? Evaluation, Fees and Profit Splits

Kraken Prop may appeal to people who want to test a trading strategy under defined risk limits and understand trading rules. The evaluation uses a simulated account, the plan costs money, and reaching the target does not guarantee a payout.

A Kraken Prop evaluation is the first stage before a funded account. In Kraken Pro on the web or app, users select an account size and plan, then review the price, profit target, drawdown limits and agreements before deciding whether to buy. The evaluation account appears in the account switcher after purchase.

Evaluation trades are simulated and are not sent to the open market. The displayed starting balance is not a personal deposit that can be withdrawn. The objective is to reach the plan's profit target without breaching the daily loss or maximum drawdown rules. Kraken's FAQ says evaluations have no time limit, but that does not remove the risk limits.

When the target is reached, open evaluation positions are automatically closed and the account is marked as passed. Full Kraken identity verification, a signed Funded Trader Agreement and a manual review are still required before the funded account is enabled. A rule violation can result in rejection.

Kraken lists six starting account sizes: $5,000, $10,000, $25,000, $50,000, $100,000 and $200,000. This is the plan's trading account size, not cash that can be withdrawn after purchase.

The purchase price, profit target and maximum drawdown may vary by plan; check the Kraken Pro purchase screen for the exact terms. Kraken limits the combined size of a user's active evaluation and funded accounts to $200,000. Read the evaluation agreement, program rules and refund policy before paying; do not assume the fee is refundable.

Profit target. This is the target needed to pass, determined by the chosen plan. Open evaluation positions close automatically when the target is reached. Simulated evaluation profits are not eligible for payouts.

Maximum daily loss (MDL). Kraken says the daily limit is 3% of the balance at 00:30 UTC and is recalculated daily. For example, a $10,000 balance at that time gives a $300 daily limit; equity falling below the corresponding threshold can trigger a breach. The line is recalculated under the rules, so it should not be treated as a fixed 3% of the initial balance every day.

Maximum drawdown (MDD). This is the account's total loss limit measured from the starting balance; it does not reset daily. Kraken's evaluation guide lists 6%, 5% and 3% for Starter, Intermediate and Advanced plans respectively. Plans and parameters can change, so confirm the selected plan's purchase screen.

Unrealized profit and loss affects equity and risk limits in real time. Commissions and margin funding fees also affect the calculation. Breaching either loss limit can close positions and pending orders and disable trading. Kraken says funded accounts use the same daily loss and maximum drawdown rules, and a breach has the same result.

Kraken Prop is available through Kraken Pro on the web and mobile. Its FAQ lists market, limit, stop-loss, stop-loss limit, take-profit and take-profit limit orders. Check the trading terminal for available crypto contracts and pairs.

The current official plan page states a 0.04% commission per side, charged when opening and closing a position. Open margin positions also incur a 0.033% daily funding fee, charged every four hours, on both long and short positions. Fees affect the balance and risk limits; check the trading screen and current fee rules for actual charges and settlement.

Evaluation purchase fees, trading commissions and margin funding are separate costs. Frequent trading, holding positions for longer or purchasing another evaluation can increase the total, even if you eventually pass.

Funded accounts use an 80/20 split by default: the user receives 80% of eligible profits. Kraken says an optional 90/10 split costs an additional 20% of the base plan price at evaluation purchase and cannot be added later. Whether it is worthwhile depends on actual costs, future performance and the terms; it does not guarantee earnings.

Kraken says evaluation execution is simulated, while funded accounts may use external execution or internal booking depending on plan size. Do not treat the displayed account size as freely withdrawable money or assume every order reaches the open market. Read the agreement for the account's nature, execution, payout terms and operator.

Eligible users can request a payout from the funded account's Portfolio page. The FAQ requires no open positions or orders and the balance to equal equity. Payouts are transferred in USD or USDG to a Kraken wallet; conversion or withdrawal is subject to applicable rules and fees. Passing an evaluation does not guarantee a payable profit.

Kraken's FAQ says basic verification, including email and country of residence, is the minimum for purchasing an evaluation; credit-card payment is available with basic verification under its rules. Full identity verification is required to pay with a Kraken USD balance, activate a funded account and request payouts. Check the account screen for available payment methods and eligibility.

The FAQ currently says Kraken Prop is unavailable to users in Canada, India and the UK. Other restrictions may apply based on local rules, account status or the operating entity. Check the official page and account prompts for your own jurisdiction.

The names are similar, but they are separate products. Kraken Prop is in Kraken Pro and has its own evaluation, daily loss, drawdown and trading fee rules. Kraken Funded is in the regular Kraken app and has separate challenge and funded-account terms. Sizes, limits, costs and eligibility may differ; do not apply one product's rules to the other.

Review the evaluation fee and refund policy, how targets and risk limits are calculated, how unrealized P&L and fees affect equity, and what happens after a breach. Then read the funded agreement, trading restrictions, profit split and payout conditions, and confirm eligibility in your region.

You can fail the evaluation, and repeated attempts increase costs. Leverage and market volatility can quickly push an account past a risk limit. Passing does not guarantee earnings or payouts. Rules, fees and availability can change; check Kraken's current pages and your agreement before participating.