Swedish bank Klarna established itself as a dominant payment processor for e-commerce. Still, the number of Forex brokers accepting Klarna remains limited.
We will explain what Klarna is, cover its pros and cons, detail why it lacks popularity among traders and brokers despite being one of the best payment processors globally, and provide a quick guide to selecting Forex brokers accepting Klarna with a cutting-edge trading environment for various trading strategies.
- AvaTrade, Highly regulated, choice of fixed or floating spreads.
- FP Markets, ECN trading with leverage up to 1:500.
- Plus500, multi-asset and CFD broker.
- FXTM, Best all-around broker with high floating leverage and fast execution.
Best Klarna Brokers Comparison
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Regulators | ASIC, BVI, Central Bank of Ireland, FFAJ, FSCA, KNF, MiFID | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, FMA, FSCA, MAS | CMA, CySEC, FCA, FSC Mauritius, FSCA |
Year Established | 2006 | 2005 | 2008 | 2011 |
Execution Type(s) | Market Maker | ECN/STP | Market Maker | ECN/STP, Market Maker |
Minimum Deposit | ||||
Average Trading Cost EUR/USD | 0.9 pips | 1.2 pips | 1.3 pips | 0.1 pips |
Average Trading Cost GBP/USD | 1.5 pips | 1.4 pips | 1.7 pips | 0.2 pips |
Average Trading Cost Gold | $0.29 | $0.16 | $0.34 | $0.18 |
Trading Platform(s) | Other, MetaTrader 4, MetaTrader 5, Proprietary platform, Web-based+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Proprietary platform |
Islamic Account | ||||
Negative Balance Protection | N/A | |||
| Visit Website | Visit Website | Get Started Visit Website80% of retail CFD accounts lose money | Visit Website |
AvaTrade
In Summary Highly regulated, choice of fixed or floating spreadsAvaTrade landed on our best Forex brokers accepting Klarna list due to its choice of trading platforms and services for beginners. Ava Options and Ava Social cater to their respective strategies. WebTrader and AvaTradeGO have embedded Trading Central services ideal for manual and mobile traders. AvaTrade offers MT4/MT5 trading platforms for algorithmic traders, supported via VPS hosting for low-latency 24/5 market access.
Beginner traders get the Guardian Angel MT4/MT5 plugin and the fee-based Ava Protect insurance policy against losing trades. Ava Trade also supports them with high-quality educational content on its website and via its spun-out Ava Academy.
Pros & Cons
- High quality educational offering via AvaAcademy
- Excellent choice of trading platforms catering to various trading needs
- Broad asset selection and cross-asset diversification opportunities
- Well-regulated and trusted broker with oversight from a central bank
- Trading costs competitive but nothing special
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets upgrades the MT4/MT5 trading platforms with Autochartist, Trading Central, and 12 plugins. It also offers cTrader and the geographically restricted Iress trading platform. MT5, MT5, and cTrader support algorithmic trading and have embedded copy trading services. FP Markets also presents its proprietary solution, Myfxbook Autotrade, and fee-based Signal Start. It places FP Markets among the leading Forex brokers accepting Klarna for copy traders.
The asset selection supports all strategies except for options trading, but it includes 70+ currency pairs, cryptocurrencies, ETFs, and bonds. The educational section features video trading courses, webcasts, podcasts, eBooks, and one newsletter.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Plus500
In Summary multi-asset and CFD brokerPlus500 presents its user-friendly web-based trading platform and mobile supporting manual trading. A sentiment indicator exists, and the +Insights service grants a quality trading tool. Traders can create real-time email, SMS, and push notifications based on price alerts, hourly and daily percentage-based changes, and sentiment changes. Plus500 also introduced an ESG score for traders who prefer to invest in CFDs that honour the ESG pledge.
The competitive commission-free pricing environment places Plus500 among the cheapest Forex brokers accepting Klarna. The Plus500 Trading Academy is a well-structured educational portal for beginners, and Plus500 features a high-paying affiliate program.
Pros & Cons
- Broad asset selection in equities and options
- Free and unlimited demo account
- Advanced free-of-charge analytical trading tools
- Global and regulated fintech platform
- Sub-standard trading platform without support for automated or social trading
FXTM
In Summary Best all-around broker with high floating leverage and fast executionWe have made FXTM one of our top-rated brokers because in addition to its lengthy track record, it enjoys a very high level of regulation and reputation, and it offers a highly competitive fee structure which tends to keep down the cost of trading.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
What is Klarna?
Klarna Bank AB, usually abbreviated as Klarna, is a Swedish FinTech company and bank and the leading Scandinavian payment processor. It is also available across the EU, Switzerland, China, Australia, New Zealand, Canada, Mexico, and the US. Klarna became famous with its "Buy now, pay later" service, offering users the choice to use Sofort, also known as Pay Now, to delay the payment until 30 days after the purchase and only on items consumers keep, or break down the total into four instalments payable every two weeks. Additionally, it offers monthly financing via partner banks. It also features the Klarna Visa card. Please note that its services differ based on geographic location and applicable rules and regulations. Some consumers can create a one-time card number for transactions or pay in three instalments rather than four. Klarna describes its services well after clients select their geographic location.
While Klarna established itself as a dominant e-commerce payment processor, the number of Forex brokers accepting Klarna still needs to grow. Those who have integrated Klarna support the Sofort/Pay Now option and may not allow withdrawals. Unlike many competitors, Klarna also developed a web-based extension alongside its mobile app, confirming its streamlined operations for e-commerce. It could also grant it an edge among traders, as they can swiftly deposit from the back office of their Klarna Forex broker without additional steps.
How Does Trading with Klarna Work?
Forex brokers accepting Klarna support the Sofort/Pay Now option, which uses the online banking details of clients, but in a secure and encrypted form. Neither the partner bank nor the merchant nor Klarna can access details. Before depositing, traders must open and verify their Forex trading account. Verification is mandatory for regulated brokers compliant with global AML/KYC rules, which regulators enforce. Uploading a copy of their government-issued ID and one proof of residency document issued within three to six months satisfies the verification.
Traders can use the Klarna mobile app, available on Android and Apple iOS devices, or the web-based plugin, which runs on all Chrome browsers.
After traders have verified their Forex trading account and created their Klarna account, they can fund their trading account by following the below steps:
1. Log into the dashboard of your Klarna Forex brokers using a Chrome browser.
2. Locate the funding tab.
3. Select your trading account if you have more than one and choose Klarna as your payment processor or click the Klarna web extension.
4. Enter the amount you wish to deposit and confirm the transaction. Klarna uses your online banking details with a one-time PIN.
Why Use Klarna as Your Deposit/Withdrawal Method?
Forex brokers accepting Klarna offer traders an ultra-secure payment process using online banking. Besides the mobile app, Klarna also developed a web-based extension for Chrome browsers. Depending on the geographic location, traders may use the Klarna Visa card or create a one-time card number. Forex brokers accepting Klarna do not usually allow withdrawals.
Pros & Cons of Using Klarna When Trading
Traders should consider the pros and cons of Forex brokers accepting Klarna before making Klarna their preferred payment processor.
Here are the pros of Forex brokers accepting Klarna:
- Ultra-secure deposits
- Integrated transactions for mobile users
- Web-based extension
- User-friendly interface
Here are the cons of Forex brokers accepting Klarna:
- Forex brokers accepting Klarna only allow deposits.
- No instant deposits
How to Pick a Decent Broker Offering Klarna
When evaluating the trading conditions at Forex brokers accepting Klarna, the same rules apply as any other broker analysis.
Here is a checklist of what competitive Forex brokers accepting Klarna should offer:
1. Low trading fees: Since trading fees directly impact profitability, traders should prioritize them. They can also reveal which strategies Forex brokers accepting Klarna actively support and passively discourage. Traders should ensure significant currency pairs do not exceed $8.00 per 1.0 standard round lot and evaluate swap rates on overnight positions, where positive swap rates in qualifying assets indicate a fair environment.
2. Regulation and operational history: A clean track record exceeding ten years in a competitive, business-friendly regulatory environment is paramount.
3. Algorithmic trading platform: Traders should look for MT4, MT5, cTrader, or alternative algorithmic trading platforms, as 80%+ of daily Forex volumes are algorithmic.
4. Deep liquidity pools and excellent order execution: Tight spreads are possible via deep liquidity, and superb order execution ensures that traders can transact at the prices they enter or better if price improvement technology exists.
5. Choice of assets: Traders should ensure Forex brokers accepting Klarna offer the asset they require to execute their strategy.
Bottom Line
Forex brokers accepting Klarna are rare and support only deposits, despite Klarna becoming a leading global payment processor. Besides a user-friendly mobile app, Klarna has developed a web-based extension for Chrome browsers, offering seamless financial transactions in an ultra-secure operational environment. Unlike many online payment processors, payment processing times are not instant, as Klarna works with online banking.
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