Best Klarna Brokers 2024
Klarna Bank AB is a Swedish fintech solutions company that provides growing online payment services, including trading deposits and withdrawals. Founded in Stockholm, in 2005, the firm is known for its “Buy now, pay later” service, allowing customers to pay with credit on their purchases as part of the checkout process.
This guide will unpack how Klarna works, trading times and fees, which brokers accept Klarna deposits, how to make withdrawals, and more. Use our list of the best Klarna brokers in 2024 to start trading.
Klarna Brokers
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IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
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eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail CFD accounts lose money.
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FXCM is a respected forex and CFD broker, established since 1999. The British-headquartered broker has won multiple awards and operates in various jurisdictions, including the UK and Australia. With zero commissions, over 400 assets, and a range of analysis tools, FXCM remains a popular choice for traders. The broker is also regulated by top-tier authorities including the FCA and ASIC.
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Admirals is an FCA- and ASIC-regulated broker with an excellent range of leveraged instruments, including forex, stocks, indices, ETFs, commodities, cryptos and more. The broker supports the MetaTrader 4, MetaTrader 5 and TradingCentral platforms. With both spread betting and CFDs available and thousands of instruments, this broker provides more flexibility than most rivals.
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Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.
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LegacyFX is a multi-asset broker offering an MT5 download & free signals.
How Does Klarna Work?
UK residents are offered Klarna’s Pay Now and Pay in 3/Pay in 30 days payment methods. Pay Now is the brand’s direct payment method, allowing for the quick transfer of funds from your bank account to an online broker. The other two methods are unregulated credit agreements that allow traders to deposit funds without having to pay fully upfront.
However, while these credit options are available, most brokers only accept Klarna deposits via the instant payment method. To use this system, traders will need to sign up for a Klarna account and link their bank account to it. This is done by simply inputting your bank card details. This then allows traders to use the provider’s services to deposit money into online trading accounts.
Importantly, using Klarna for withdrawals is not as widely supported. As a result, traders may need to turn to alternative payment methods to receive any profits.
Trading Times
The payment solution boasts quick transfer times, with mostly same-day deposits. This means the transaction method is a good fit for users implementing intraday trading strategies and those looking to quickly capitalise on market opportunities. Admiral Markets and Skilling, for example, both offer immediate account funding with Klarna.
Withdrawal times vary between brokers. It takes one business day at Skilling, for instance, while Admiral Markets does not support withdrawals using the payment method.
Payment Fees
For traders, Klarna does not charge any interest or added fees on transactions. It is also free to set up and hold an account with the firm.
However, individual Klarna brokers may charge fees on deposits and withdrawals. Fortunately, both Admiral Markets and Skilling offer fee-free deposits using the solution.
It is also worth checking to see if there are daily/weekly/monthly transfer limits. In addition, some trading firms like FXCM only accept payments via the solution in EUR, meaning UK traders may have to pay a conversion fee.
Note, if you sign-up with a broker that supports Klarna’s credit agreements, then you will have to pay interest if you don’t repay the credit by the agreed date. The loan is interest-free until the due date. Late payments can limit your ability to use the payment provider’s services.
Security
The company is regulated by multiple highly regarded regulators, including the Financial Conduct Authority (FCA) in the United Kingdom, ensuring a safe service for online traders.
They also offer data protection measures. All payment information is processed securely, with no details being transferred to or held by Klarna brokers. Linked bank accounts or cards can be removed at any time. Transactions take place on secure connections that follow strict security protocols.
The firm also allows you to track your current and past payments, including trading deposits, ensuring you have full knowledge of how much money has been transferred in and out of your account, and when.
Pros Of Klarna For UK Traders
- There is a growing list of brokers that accept Klarna deposits
- 24/7 customer support
- No fees for transfers
- Regulated by the FCA
- Instant deposits
- Credit options
Cons Of Klarna For UK Traders
- Not as readily available as some competitors, such as PayPal or Neteller
- Withdrawal at brokers that accept Klarna deposits is limited
- Credit (Pay Later) options are not widely available
- Increased risks associated with borrowing (for Pay Later)
How To Make Klarna Trading Deposits & Withdrawals
You will need to start by signing up and logging into your Klarna account. This can be done from their website. You can then link your bank account to your Klarna account (using your bank card details).
Then you need to open a trading account with one of the brokers that accept Klarna deposits.
- Head to the payments section of your broker’s platform or client portal
- Choose ‘Klarna’ from the available deposit options
- Enter the amount you want to deposit, noting any transfer limits
- A payment portal will then open, allowing you to login to your Klarna account
- Choose how you would like to deposit (if available), whether this is through Pay Now or Pay in 3/in 30 days.
- Press confirm and Klarna will handle the transaction
Note, withdrawals using Klarna are not always available.
Customer Support
Klarna offers 24/7 customer support, ensuring traders can solve deposit or withdrawal problems. They also provide a detailed FAQ and help section on their website that covers most general queries traders may have using the payment solution.
A 24/7 chat service is available through the Klarna mobile app (available on the Apple iOS App Store and Android Google Play). Alternatively, the company can be contacted on:
- General customer service telephone call queries can be made from Monday – Saturday, 9 am – 6 pm (GMT)
- 24/7 Unauthorised Transaction Report helpline number: 0203 005 0837
- Local Rate: 0203 005 0833
- Freephone: 0808 189 3333
The top Klarna brokers can also advise on deposit or withdrawal issues. Head to the ‘Customer Service’ section of their website to get in contact.
Should Traders Use Klarna?
Klarna’s growing popularity and availability, coupled with credit options and zero fees make it an increasingly useful method for UK traders. Online investors can also be assured that their transactions are secure because of the company’s FCA regulation and reliable security processes. But arguably the biggest advantage Klarna has over its competitors is its credit, “Buy Now, Pay Later”, payment solution. On the downside, other payment methods are better suited to withdrawals and are more widely accepted by UK brokers.
To get started today, use our ranking of the top Klarna brokers.
FAQ
Is Klarna A Safe And Legit Payment Method For Trading?
Klarna provides safe payment solutions for funding brokerage accounts. The company is FCA regulated and has strict security protocols on its secured connections to ensure transactions are safe. With that said, it is also worth signing up with trusted Klarna brokers that hold a license with the UK financial watchdog.
Does Klarna Have A Spending Limit When Depositing With Brokers?
Klarna does not have pre-defined spending limits. However, they do have adjusted spending limits depending on the trader’s credit history. As such, this limit will vary between users. It is also worth noting that spending limits can also be set separately by brokers that accept Klarna deposits.
Is It Free To Deposit Money Into My Trading Account With Klarna?
Klarna does not charge any additional fees or charges when depositing to trading accounts. However, Klarna brokers may impose deposit or withdrawal fees. Fortunately, two top-rated UK brokers, Admiral Markets and Skilling, both offer fee-free funding with the payment method.
How Do You Make Deposits To A Trading Account Using Klarna?
You will first need to make an account with Klarna. Then, you will need to link the account to a bank account (or card). Next, on the deposit page of your brokerage account that supports Klarna, choose the payment method and enter the amount you would like to deposit. Sign into your Klarna account on the payment portal. You may be given the option to choose which method you would like to deposit using (e.g. Pay now, Pay in 3/in 30 days). Click confirm and the payment will begin processing.
Which UK Brokers Accept Klarna Deposits?
The number of trading brokers that accept Klarna deposits has been growing over the last few years. Currently, some of the best Klarna brokers are Admiral Markets, FXCM, and Skilling. See our guide for full expert reviews.