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Sofort Brokers 2021 - Which Brokers Accept Sofort?
Sofort (part of the Klarna Group) is an online direct payment service, where traders can fund their broker accounts using just their online banking details. You may find the Sofort/Klarna logo at some brokers and e-commerce websites, but how does it compare to e-wallets such as PayPal?
If you’re wondering how it works, we’ll review all the key points in this article, including pricing, test accounts and the login process. Find out if trading with Sofort could work for you.
In 2014, German payment company, Sofort GmbH, was acquired by Klarna to form the Klarna Group company. Klarna itself was founded in Sweden in 2005. Now one of Europe’s largest banks, Klarna provides payment solutions to 90 million consumers across 200,000 merchants in 17 countries.
Sofort, also known as ‘Pay now with Klarna’ in the UK, is an online payment and leasing service provider which allows consumers to makes purchases quickly and easily using their online banking details. Consumers enjoy direct payments, meaning there is no need to enter any card details or to create an account.
Pros Of Trading With Sofort
Klarna offers a live practice account which gives you 10 Euros in test money to simulate a quick transfer to a fake account. This is a great way of seeing how easily a transfer can be made and what the process involves.
No Download Required
There’s no download required to make a payment, however, Klarna does have a mobile app that you can download if you want to keep track of your purchases or deposits. This can be accessed quickly with an email address.
No Need To Register
Traders can deposit directly from their bank account to their trading platform without any hassle. This is much more convenient than other payments such as PayPal, for example, which requires you to sign up and then credit your account when you make a purchase.
The definition and meaning of ‘Sofort’ in German translates to ‘immediately’ or ‘instantly’ in English. Indeed, payments with Sofort/Klarna are instantaneous, which is ideal for those who want to trade quickly after depositing. Bear in mind, though, that some Sofort trading brokers may have their own time frames to process deposits and withdrawals.
Trusted & Established
Klarna has been around for over 15 years and is used by millions of consumers globally. Klarna is also backed by investors including Visa and Atomico. Furthermore, the company is partnered with other well-known payment services including Worldpay and is trusted by many merchants and banking providers, such as Transferwise and Western Union.
Multiple Currencies Accepted
Currencies accepted at the Klarna Checkout include AUD, CAD, CHF, DKK, EUR, GBP, NOK, SEK and USD. This is more than those offered by other methods such as Trustly and are also currencies widely used by traders.
Cons Of Trading With Sofort
Mostly European Supported Countries
Klarna supports bank accounts mainly within Europe, including France, Sweden, Finland, Norway, Denmark, German, Austria, Netherlands, Switzerland, Belgium, UK, Italy, Spain, Poland, Australia and the USA. This is rather limited compared to other payment methods, so traders from Russia or Asia, for example, may have to consider other payment providers.
Payment Cancellation Not Possible
Traders should ensure they are entering the correct amount to avoid any delays. Note that you also cannot request a chargeback with Sofort, as recurring payments or direct debits are not possible. Klarna does allow you to refund payments but you will need to contact your broker for details.
Not Offered By Many Brokers
Despite its convenience and speed, Sofort is not as commonly offered as e-wallets such as Skrill or Neteller. In addition, brokers based outside of Europe, the USA or Australia tend not to offer Sofort.
Making a payment with Sofort is instant, but you may need to check with your broker for their own processing times, which can range from a few minutes to days. Sofort also does not require account opening and registration beforehand.
Sofort was designed with security in mind. The online banking login process requires a one-time PIN and TAN (confirmation code). This takes place exclusively within the Sofort GmbH software and not on the trader’s website, meaning that no sensitive information can be accessed by the broker. These details are also not stored by Klarna or Sofort, so traders can rest assured that their details are safe. The Stripe API is also secure.
Deposits & Withdrawals
You can make a Sofort deposit or withdrawal easily at your chosen broker – just look out for the Klarna or Sofort logo and ensure you already use online banking with your current bank account.
Once you’ve logged in to your trading platform, select Sofort in the funding section and follow the instructions. The service essentially works like an online bank transfer, where you enter your bank account number and sort code into the payment gateway.
You should also check with your broker to see if there is a maximum money transfer limit in your account. ArgusFX, for example, accepts a maximum transaction amount of $5,000, whilst ActivTrades allows a deposit limit of €800 for UK customers.
Sofort also has a useful YouTube video explaining how to make a direct payment via your mobile device.
Fees & Costs
Sofort does not charge any fees for using their service, however, your broker may have their own pricing or commission structure. For example, Sofort payments at EasyMarkets, BDSwiss and ActivTrades are fee-free, whilst ArgusFX charges a 2% fee on deposits, and InstaForex charges a minimum of 5 Euros on withdrawals.
Is Sofort A Good Choice For Traders?
Overall, Sofort is an ideal payment choice for traders who value speed, convenience and security. Although it’s not the most popular of methods offered by brokers, those that do have access to it can enjoy commission-free deposits and withdrawals. Traders also don’t need to register an account but they do have the option to download the app if they wish to view their transactions and online transfers.
What is a Sofort payment method?
Sofort (Pay now with Klarna) is an online direct payment service that allows customers to make purchases using their own banking details and fund retail day trading.
How does Sofort banking work?
Once you’ve logged in to your trading account, select Sofort and the amount you wish to deposit. Sofort will ask for your current account details and your bank will send you a unique PIN/TAN code as verification for the purchase.
How long does Sofort take?
Sofort payments are instant but processing times for deposits or withdrawals vary from broker to broker. You can find these in your trading platform or by contacting your broker’s customer support team.
Is Sofort safe to use?
Yes, Sofort by Klarna is secure and safe to use. PIN and TAN codes are never shared with the merchant, nor are your account details. The payment form is also secured with AES 256-bit encryption technology.
Is Sofort trustworthy?
The Klarna Group company is a trustworthy brand with over 15 years of experience providing online payment services to millions of clients worldwide. Klarna is also backed by well-known investors and is partnered with reputable payment service providers.
What do I do if Sofort is not working?
If you have any problems with your payment, it might be worth checking with your broker that the issue isn’t on their end. If not, you can contact the Sofort buyer hotline numbers on the website, or open a live chat.