Klarna Brokers 2024
Klarna Bank AB, or Klarna, is a payment solution from Sweden. Its famous tagline ‘shop now pay later’ helped it handle around $80 billion in online sales in 2021. The brand is also receiving support from a growing list of trading brokers. This review explains how Klarna works, typical payment limits, and late fees.
We also list the top brokers that accept Klarna deposits in 2024.
Best Klarna Brokers
These are the best 1 brokers that offer fast and secure Klarna payments based on our tests:
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1
RedMars
Ratings/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5/ 5
€2500.01 Lots1:30 (Retail), 1:500 (Pro)CySECCFDs, Forex, Stocks, Indices, Commodities, CryptosMT5Credit Card, Wire Transfer, Debit Card, Sticpay, FasaPay, Bitcoin Payments, Trustly, PayPal, Skrill, Neteller, Klarna, Mastercard, VisaUSD, EUR
Here is a summary of why we recommend these brokers:
- RedMars - Launched in 2020, Cyprus-based RedMars offers competitive spreads on more than 300 instruments and leverage up to 1:500. Three accounts are available - Standard, Pro and VIP - serving a range of budgets and experience levels, with a fast and fully digital account opening process.
Klarna Brokers Comparison
| Broker | Minimum Deposit | Instruments | Platforms | Leverage |
|---|---|---|---|---|
|
|
€250 | CFDs, Forex, Stocks, Indices, Commodities, Cryptos | MT5 | 1:30 (Retail), 1:500 (Pro) |
RedMars
"RedMars is the best fit for experienced day traders familiar with the MetaTrader 5 platform and based in the EU, where the broker is authorized by the CySEC. However, the threadbare education and research tools make it unsuitable for beginners."
Christian Harris, Reviewer
RedMars Quick Facts
| Demo Account | Yes |
|---|---|
| Instruments | CFDs, Forex, Stocks, Indices, Commodities, Cryptos |
| Regulator | CySEC |
| Platforms | MT5 |
| Minimum Deposit | €250 |
| Minimum Trade | 0.01 Lots |
| Leverage | 1:30 (Retail), 1:500 (Pro) |
| Account Currencies | USD, EUR |
Pros
- Clients in the EU, in particular, can trade with peace of mind knowing RedMars is authorized by the CySEC with up to €20K compensation available through the ICF in the event of bankruptcy
- RedMars offers one of the best platforms for day trading, MT5, hosting 21 timeframes, dozens of analytical tools, flexible templates and algo trading
- The broker is one of a limited number of firms to offer an account specially designed for VIPs with premium support and invites to exclusive events
Cons
- With just 300 instruments, RedMars offers a narrow trading environment, particularly compared to category leaders like BlackBull Markets which offers 26,000 assets
- While RedMars' spreads are within industry averages, they don't offer a significant edge over the cheapest day trading brokers we've personally used, notably IC Markets
- RedMars falls short for newer traders, with little in the way of education, no beginner-friendly platform, a steep minimum deposit, and inadequate support during testing
How Did We Choose The Best Klarna Brokers?
To identify the top Klarna brokers, we:
- Referred to our library of over 500 online brokers and platforms, focusing on all those that accept Klarna payments
- Verified that they support Klarna deposits and withdrawals for day trading
- Ranked them by their total rating, blending over 100 data entries with first-hand insights from our testers
What Is Klarna?
Klarna Inc is a Swedish fintech company with headquarters in Stockholm alongside a HQ in Columbus, Ohio for its US branch. The firm was founded in 2005 and quickly went on to become one of the most popular online payment methods, rivalling alternatives like Afterpay and Affirm.
Importantly, the brand is known as a ‘buy now pay later’ service provider. It offers credit to customers who must then either pay in 4 steps, pay in 30 days, or receive a longer-term loan. Clients may also be offered a 10-day extension if required, which has helped improve its investor and customer relations.
The payment solution is simple to use and it’s easy to learn how to apply for an account. Customers can sign in through the mobile app (available on iPhone and Android) or via the official website. All that is required to register and login online is a valid email address.
Uses
You can use Klarna to pay in-store at a business for anything like a mattress, flights and hotels. Amazon also accepts payments on its site, as do other popular merchants and stores like Game, Nike and Ikea. For a comprehensive list of stores that accept Klarna, visit their official website or look for the logo on retailers’ websites.
Klarna is also becoming a popular payment option for traders. It is a quick, easy and secure method of making deposits at a range of brokers in the UK and around the world, including FXCM and IC Markets. It also has the benefit of providing credit, meaning traders do not have to wait for wages to come in.
Note, if traders encounter issues while using the service or need help, they should contact the customer support number.
Transaction Times
It typically takes one to two days for a payment to be processed, however, in some situations it could take up to seven business days for the payment to show on your account statement. If it takes longer, it could mean the transaction service is down, and you should check recent news or contact the telephone number for support.
Importantly, Klarna is a ‘buy now pay later’ service. This means that you will not pay for the entire product or deposit in one go. There are multiple options with different time frames. Firstly, you can choose ‘pay in 4’ which requires you to pay 25% upfront and then three more payments of equal amounts every two weeks. Another option is ‘pay in 30’, which requires the full sum to be paid within 30 days. Finally, you can apply for a loan which must be repaid within six months to three years.
If you are using Klarna to make a deposit at a broker, it should be processed within one to two days like a standard transaction. There may be a delay on the broker’s end, so check their website for standard processing times. You should be able to choose from the three options when making the deposit and the amount will then have to be paid back accordingly. Klarna cannot be used to make withdrawals, however, another service by the company (Sofort) is suitable.
Pricing Review
Different payment options feature varying fees. The ‘pay in 4’ and ‘pay in 30’ choices both have a 0% interest rate. But if you are late making payments, there is a $7 surcharge.
The other option is to apply for a loan that must be repaid within six months or up to three years. This will be subject to interest of varying rates, which will be outlined when you make the payment. Loans must be repaid according to the monthly financing plan and any late payments will be subject to a $35 fee.
The company may offer deals or promo codes to help you out when you first sign up. It is also worth noting that the payment provider has no pre-defined spending limit.
Importantly, most online brokers will not charge additional fees when making a deposit using Klarna. But remember, if you are late making payments, fees may be charged. Moreover, if you choose the loan option to pay for your deposit, interest will be charged.
Security
Klarna is a secure deposit method that is trusted by millions of users, including traders and investors. Even though you must enter your online bank details to make payments to Klarna, this is done via their secure payment form. This ensures merchants, brokers or third parties cannot gain access to and view sensitive information. The company also employs high security standards to ensure personal data and information is protected.
From the accounts section, the brand makes it easy for users to track and view payments, meaning traders can quickly see if someone else has accessed their account. For further reviews of the firm’s security protocols, visit sites like Reddit.
Pros For Traders
The main advantages of trading with Klarna include:
- Acts like a credit card, allowing you to pay later when wages come in
- No interest on ‘pay in 4’ or ‘pay in 30’ options
- Multiple financing options to choose between
- Price alerts in the app
- 24/7 customer service
Cons For Traders
Our research did flag some potential drawbacks:
- Not as quick as instant payment methods
- Not suitable for withdrawals
- Borrowing risks
- Late fees
How To Deposit Using Klarna
It is simple to make a deposit at your broker. At eToro, for example, you will need to follow these steps:
- Head to the ‘Deposit Funds’ page after logging in to your account
- From the list of options, choose Klarna
- Enter the amount you wish to deposit and the currency
- You will then be directed to the payment portal where you can enter your account details
- Select your preferred payment plan from the list of options
- Hit confirm and then make payments to Klarna when required
Is Klarna Good For Day Trading?
Klarna is a popular ‘buy now pay later’ payment method originating in Sweden, but servicing clients in many countries around the world. Customers can choose between three different options to pay back the sum of their deposit or purchase. The two short-term options are interest-free, but late fees will be incurred if payments are missed. If you want to start using Klarna to make a deposit on your trading platform, check out our list of supporting brokers and follow our step-by-step guide.
Note, borrowing funds to pay for trading activities is risky. Make sure that you can and will be able to pay back funds.
FAQ
What Are The Best Brokers That Accept Klarna?
Several leading brokers offer payments using Klarna, including eToro, which offers secure and free deposits. We recommend using our list of top Klarna brokers to find the best option in your location.
Is Klarna Legit And Safe For Day Trading?
Yes, Klarna is a legitimate company. It has been operating since 2005 and accounts for 40% of all e-commerce in Sweden. Even though customers must enter online bank details, it is all conducted via the brand’s safe and secure form ensuring third parties cannot access personal information.
How Long Do Deposits To Klarna Brokers Take?
Klarna deposits are usually processed in one to two days, though processing times at the broker may differ depending on your location. This is slow compared to other payment solutions with instant processing. That said, you can benefit from Klarna’s flexible payment options.