Kraken Prop cuts non-crypto fees to 2 basis points

Kraken Prop expanded its simulated trading service on October 29 to include six commodity markets and reduced non-crypto commissions from four basis points to two basis points per side on most plans. The company stated that participants submit trade signals within a simulated environment and do not hold real positions in the underlying assets.

Six New Commodity Markets

The announcement lists gold, silver, WTI oil, Brent oil, copper, and natural gas as the newly available markets. These additions are integrated into the existing evaluation and performance-based payout structure of the Kraken Prop service.

According to the company, the commodity offering is available in all regions where Kraken Prop operates, with the exception of the United Arab Emirates. Plan-specific leverage and notional caps vary by tier, meaning the maximum limits quoted for one plan do not apply to all participants.

The service is identified as unregulated in the announcement. Evaluation fees become non-refundable once trading begins, a condition the company noted is material to the terms of the program.

Commission Reduction and Cost Arithmetic

For plans other than Lite, the non-crypto commission has been reduced from four basis points to two basis points per side. Commissions for crypto markets remain unchanged. Two basis points is equivalent to 0.02% of the notional value.

Using a hypothetical notional signal of $50,000, the new fee structure results in a cost of $10 on entry and $10 on exit, for a total of $20. Under the previous four-basis-point structure, the same trade would have cost $40 in total. The company clarified that this calculation illustrates the fee change rather than an expected profit, noting that strategies must still account for price movement, spreads, and evaluation rules.

Simulated Exposure vs. Asset Ownership

Kraken’s product documentation describes the commodity offering as part of its Prop service, where participants do not buy physical commodities, take delivery of oil, or acquire conventional futures positions. The interface displays these markets for signal submission, but the relevant claim is against the program under its specific terms, including evaluation conditions, drawdown limits, and payout rules.

A large simulated account number does not represent a withdrawable cash balance; it represents the environment in which performance is assessed. Payout amounts, if any, follow the program’s rules rather than the headline account size. The company noted that while the service can quote reference markets when conventional venues are closed, a visible price does not guarantee deep executable liquidity in the underlying physical or futures market.