TL;DR:
- Every API trader on Kraken routes to the same spot and derivatives trading engines. What differs is the path and the latency.
- Cloud connectivity is available to both individual and institutional traders. Hosted colocation, also available to both, is offered via a provider subscription. Direct colocation, a cross-connect to Kraken’s infrastructure, is available to institutional VIP clients only and requires specific qualifications.
- For institutional traders, dedicated private network routes are also available between major global hubs.
New to Kraken API Unlocked? Read blogs 1-4 here.
Every API trader reaches a point where they ask the same question: is my connection fast enough, or is latency costing me an edge?
For individual traders running systematic strategies, cloud connectivity is mostly sufficient, and understanding why is as useful as knowing when that stops being true. For institutional traders, high-frequency trading firms, market makers, and algorithmic desks, the answer is often that the gap between where they are and where they could be is meaningful, and the difference has a direct cost.
Does latency actually affect your trading strategy on Kraken?
Faster execution means less market impact, fewer adverse fills, and more control over when and how your orders land. The question is not whether latency matters. It does for every trader. The real question is how much it matters for your specific strategy, and whether reducing it would meaningfully change your outcomes.
For some strategies, the answer is yes, decisively. Institutional traders running latency-sensitive execution, high-frequency trading firms and market makers (in particular), need to update and cancel orders faster than other participants can trade against stale prices. The window between a market move and a stale order being hit is narrow at competitive venues.
For strategies like trend following, rebalancing, and systematic macro, the quality of your data, signal, and risk management will determine outcomes more than incremental gains in execution speed.
The same principle applies to individual API traders. If your strategy relies on reacting to market events quickly, even at moderate frequency, then it is worth measuring your current latency and establishing a latency baseline.
What connectivity options does Kraken offer for low-latency trading?
Cloud connectivity — individual and institutional traders
Connect via public endpoints from an AWS cloud environment in London. IP whitelisting is available for additional security. For most individual API traders running strategies that aren’t latency-critical, this is adequate.
Hosted colocation — individual and institutional traders
Kraken works with colocation providers whose infrastructure is on the same campus as Kraken’s trading infrastructure. Available to both individual and institutional traders, including market makers and high-frequency trading firms, via a subscription with a colocation provider.
Dedicated global network routes — institutional traders
For institutional traders, hedge funds, trading firms, and high-frequency trading operations, dedicated private network routes are available between major global hubs. These are private, dedicated connections rather than shared internet routes. Contact your Kraken Relationship Manager for details.
Direct colocation — institutional VIP clients only
Direct colocation provides a physical cross-connect to Kraken’s trading infrastructure. It is designed for institutional traders, high-frequency trading firms and market makers in particular, who want to retain control of their infrastructure and already have a presence in the facility.
Access requires institutional VIP client status, a signed NDA, and existing or planned infrastructure in Equinix London. To begin the onboarding process, contact your Kraken Relationship Manager.
Which API protocol should you use for low-latency trading on Kraken?
Connectivity tier and API protocol choice are related, but they’re separate decisions. Kraken offers three API protocols: REST, WebSocket, and FIX 4.4.
REST API covers market data, account data, trading, funding, and related functions across both Spot and Futures. It suits portfolio queries, periodic order placement, and account workflows. For real-time streaming or session-based execution, use WebSocket or FIX
WebSocket v2 is the general recommended protocol for most API traders. It provides real-time order entry, market data streaming, L3 book access, and account updates over a single persistent connection.
FIX 4.4 is built for institutional traders, high-frequency trading firms, market makers, and algorithmic trading desks that require deterministic message sequencing and session-based risk controls.
FIX uses a sticky routing model where each session is bound to a specific FIX Gateway instance, and every message follows the same path to the trading engine, preserving message order. This is distinct from WebSocket, where connections are load-balanced and two sequential messages may follow different paths to the trading engine’s inbound queue. The API Unlocked episode on FIX 4.4 covers this in detail.
How do you get colocation access on Kraken?
- For cloud connectivity, individual and institutional traders can connect to Kraken’s public endpoints.
- For hosted colocation, available to both individual and institutional traders, visit the connectivity guide to see available providers and get started.
- For dedicated global network routes, institutional traders should contact their Kraken Relationship Manager.
- For direct colocation, institutional traders should contact their Kraken Relationship Manager to begin the onboarding process. Access requires institutional VIP client status, a signed NDA, and infrastructure in Equinix London.
FAQ
Does latency matter for API trading on Kraken?
Faster execution means less market impact and more control over how your orders land. How much it matters depends on your strategy. Institutional traders running latency-sensitive execution, high-frequency trading firms, market makers and arbitrage desks are most affected. For most individual API traders running strategies that aren’t latency-critical, cloud connectivity is generally sufficient.
What connectivity options does Kraken offer?
Cloud connectivity via public endpoints , hosted colocation through colocation providers, dedicated global network routes for institutional traders and direct colocation for institutional VIP clients with specific requirements.
Do all API traders connect to the same trading engines on Kraken?
Yes, individual and institutional traders alike route to the same spot and derivatives trading engines. What differs is the path to those engines, the resulting latency, and the access requirements for each tier.
Who can access colocation on Kraken?
Hosted colocation is available to both individual and institutional traders, including market makers and high-frequency trading firms, via a subscription with a colocation provider. Visit the connectivity guide to see available options. Direct colocation requires institutional VIP client status, a signed NDA, and existing or planned infrastructure in Equinix London, contact your Kraken Relationship Manager to begin the process.
What API protocol should I use for low-latency trading on Kraken?
WebSocket v2 is the general recommended protocol for most API traders. For institutional traders, high-frequency trading firms and market makers requiring deterministic message sequencing and session-based risk controls at colocation latency, FIX 4.4 is available. Read The API Unlocked episode on FIX 4.4 for more information.
What connectivity options are available for institutional traders connecting from other regions?
Dedicated private network routes are available for institutional traders connecting between major global hubs. Contact your Kraken Relationship Manager for details.
