Kraken expands prop trading options with Kraken Funded

Crypto exchange operator Kraken has rolled out Kraken Funded, a new addition to its retail proprietary trading offerings. The product, now available inside the Kraken mobile app, lets eligible customers unlock access to funded trading capital by passing a skill-based challenge in a simulated environment, with no real money at risk during the assessment.

The launch follows Kraken's introduction of Kraken Prop earlier this year, a proprietary trading program embedded in Kraken Pro. Both initiatives come on the heels of Kraken's acquisition of Breakout, a retail crypto prop trading firm, in late 2024.

How the challenge works

Kraken Funded operates on a simple premise: eligible users pay a one-time entry fee to take part in a simulated trading challenge and, if successful, receive a funded account backed by Kraken's capital. There are three pricing tiers: $20 to qualify for $1,000 in capital, $50 for $5,000, and $90 for $10,000.

To pass the assessment, traders must reach a profit target of 12% without losing more than 5% of their starting capital. The program applies one overall drawdown limit of 5% but no daily drawdown restriction. There is also no time limit on the challenge or on the funded account, allowing traders to operate at their own pace.

Successful challengers gain access to a funded account that can trade across more than 50 cryptoassets and a selection of stocks, depending on regional availability. Supported assets include Bitcoin, Ethereum, and a wide range of altcoins, all tradeable directly from the Kraken app.

Payouts and terms

Funded accounts carry no trading fees, and traders keep 100% of their performance edge up to the profit target. After passing, traders retain 80% of the profits they generate. Payouts are made in US dollars directly to the trader's Kraken account, typically within 24 hours.

Kraken notes the program avoids large upfront capital requirements, lengthy application processes, and separate platforms. It is designed as a low-barrier entry point for eligible customers, with no need to learn an external system.

Kraken Funded is live in more than 150 countries, including the United States and the European Economic Area, with additional markets expected in the coming weeks.

Kraken customer support says Kraken Funded and Kraken Prop are separate funded-trader programs. Kraken Funded is described as a performance-based payout program where the challenge fee is non-refundable and not considered an investment or deposit. Funded accounts are provided by Payward Oceanic Ltd (BVI), and the agreement is only with that entity under a Funded Trader Agreement. It is explicitly not a regulated investment product. Kraken Prop, by contrast, is a proprietary trading program inside Kraken Pro where users purchase an evaluation, meet risk and profit targets, and can keep up to 90% of profits according to program terms.