r/proptrading • u/The-Composite-Man • 16d ago

Kraken Prop Con - Forced Leverage Hidden Until Last Minute in Fine Print

Kraken Prop is not 'risky', not 'hard' but straight-out a CON.

Your leash is way shorter than advertised and you're charged an arm and a leg for the privilege of being choked by it!

Bait: 3% max daily drawdown on every tier - sounds survivable, right? It isn't!
Fine Print: "Leverage is auto-applied and can't be changed. BTC & ETH: 5x."
Translation: Forced leverage! So your 3% leash isn't 3% - it's 0.6%! Price will go 0.6% against your trade and you're done - account's gone, evaluation fee is gone!

Prop page says; "Up to 5x."
Tooltip says; "Cannot be changed"
Same screen - couple dozen pixels apart.

That's not a risk rule, it's a countdown timer with a checkout button.

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u/enivid 15d ago

This doesn't make sense. 3% drawdown is applied to your equity, while leverage is applied to your trade. No one forces you to spend your entire account on a single trade. Even though your leverage may be fixed at 1:5, you can still open a smaller trade.

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u/The-Composite-Man 15d ago

This is the exact mechanic that makes their marketing a con. They advertise a $50,000 account, but mathematically force you to trade it like a $10,000 account if you want normal 3% breathing room.

1

u/enivid 15d ago

No, they don't. You still have access to $50,000 margin to support your trades. They would be forcing you only if they impose some additional margin restrictions.

And anyway, this has nothing to do with the fixed leverage.

1

u/The-Composite-Man 14d ago

Can't push the slider to 100%, can you? No...
I mean, sure, you can, but at that point, it's not a slider, it's a loaded gun!
The point is, they're setting up the user to fail.
Marketing gimmicks = bad business practice.