Sofort

Sofort, also known as Klarna Pay Now, is a payment method used by swing trading clients to transfer funds between their online broker and bank account. In this review, we weigh up the pros and cons of trading with Sofort, covering how it works, how to get a refund, deposit fees, and supported brokers.

How Sofort Works

Sofort (which means “immediately” in German) is a way of transferring money directly from your bank account to a merchant – such as a broker – using only your online banking details. By avoiding major card networks, customers can execute transactions quickly and safely. Although the solution was designed primarily for one-off payments, clients can make recurring transactions using SEPA direct debit.

In 2014, Sofort GmBH was bought by Klarna, another leading payments brand. The firm is particularly popular in Germany, Switzerland, and Austria, with over 3 million transactions made each month. Over 35,000 e-commerce merchants are also registered with the digital transfer network. In English-speaking countries like the UK, the firm is known as ‘Pay Now’ or ‘Klarna Pay Now’.

Several online brokers offer Sofort as an alternative to PayPal. Leading swing trading platforms and apps that accept Sofort deposits include FXCC, Capital.com and Degiro.

Transaction Times

Traders can make transactions instantly: the system connects your broker account directly to your bank. This is significantly quicker than traditional methods such as wire transfers, which may take several days to complete.

Large payments can take longer to process due to the transfer limit, set at 10,000 EUR per single transaction or 25,000 EUR over 24 hours. Some banks also impose additional caps, so check terms and conditions before depositing funds. In addition, a platform’s internal verification procedures may cause delays, though most reputable firms process payments within one or two working days.

Security

Sofort is a relatively safe way to send and receive money. The firm combines the standard banking login process (your PIN) with a unique confirmation code, known as a TAN, that can only be used once. This process takes place on Sofort’s system, meaning that brokers (or other third parties) cannot access your details.

Personal information is never stored by Sofort or Klarna. In addition, data can only be transferred through connections that use up to AES 256 bits. The Stripe API is also secure.

Klarna is a reputable firm serving millions of customers across the globe. Additionally, the company works alongside several leading payment services, such as Worldpay, and is used by many merchants and banks including Western Union and TransferWise.

Pricing Review

The payment gateway is generally free to use for traders: the company makes money by charging merchants, rather than customers. With that said, some banks require a small fee to use Klarna Pay Now or Sofort, so check the terms and conditions beforehand.

It’s also worth pointing out that while deposits are normally free at top trading brokers, withdrawals may incur a charge. Again, check payment fees before registering for a live trading account.

Pros of Sofort for Traders

Convenience

The payment gateway lets you make deposits instantly without having to supply card details. On top of this, traders do not need to create a Sofort account – you can deposit money using only your online banking details. This makes the transfer solution easier to use than e-wallets like PayPal, which have a lengthy registration process.

Flexibility

Klarna and Sofort accept a wide range of currencies, including AUD, CAD, CHF, DKK, EUR, GBP, NOK, SEK and USD. This means less chance of currency conversion fees when making deposits on your trading software. The transfer solution is also accepted by many of the best brokers and major banks globally.

Reliability

The gateway is a secure and reliable way to deposit trading capital. Encouragingly, Sofort GmBH is so confident in its safety measures that it guarantees to reimburse any financial loss that occurs due to information stolen from its systems.

Sofort and Klarna’s customer support team are also available from 9 am to 5 pm on weekdays and 10 am to 5 pm on weekends. To get in contact, fill out the customer service query form on their website or call directly (numbers vary depending on territory). Your broker’s customer support team should also be able to help with withdrawal problems.

Test Account

Sofort and Klarna offer a free trial, which provides you with 10 EUR of virtual currency to send to a practice account. This helps customers familiarise themselves with the transfer process before signing up and trading, for example. Simply sign up using your contact credentials on the brand’s website to get started.

Cons of Sofort for Traders

Disadvantages of trading with Sofort include:

• The deposit option is not accepted by as many brokers as some of its rivals, such as PayPal, Skrill, or Neteller
• Traders cannot request a chargeback with Sofort. On the other hand, Klarna does refund payments – contact your broker for more information
• Transactions are mostly accepted in Western Europe and North America, with Asian customers often having to use alternative payment solutions

How to Trade with Sofort

It is easy to incorporate Sofort into your swing trading activities. On your brokerage account, look out for the Klarna or Sofort logo in the funding section and select it as your preferred payment method.

When making a deposit, you will be redirected to the login page. All you need to do is log in with your online banking details, which are sent to your bank in an encrypted message. After the payment is complete, you should receive a confirmation message.

For those still confused about the process, there is a handy video on Sofort’s YouTube channel.

Verdict

Sofort is a safe and reliable payment method that can be used to deposit money into swing trading accounts instantly. Instead of using debit or credit cards, traders can transfer funds using only their online banking credentials, speeding up the process considerably. Fees are also low and customer support is available.

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