Interactive Brokers vs Saxo Comparison – 2024

Top Reasons to Choose Interactive Brokers or Saxo

Based on our findings, both Interactive Brokers and Saxo target professional traders and portfolio managers seeking diversity across asset classes, trading and investing accounts, sophisticated trading platforms, and reliability. Regarding trading styles, Interactive Brokers caters more to short-term traders, while Saxo caters to longer-term traders with larger trading accounts due to differences in their fee structure.

Interactive Brokers: Snapshot

Established in 1978, Interactive Brokers is publicly traded on the Nasdaq Stock Exchange (IBKR). With headquarters in Connecticut and regulation by ten top-tier authorities, the broker prioritizes security and transparency. Access over 2 million tradable instruments, including 8,000+ CFDs. Benefit from highly competitive fees, various account types, and specialized platforms customized for all types of trading strategies.

Interactive Brokers: Who is it For?

Interactive Brokers caters to the requirements of professional traders, portfolio managers, and investors who are searching for an extensive array of asset classes, trading and investment accounts, sophisticated trading platforms, competitive fees, and strong trading liquidity.

What Makes Interactive Brokers Stand Out?

Interactive Brokers stands out as one of the few publicly traded brokers listed on the Nasdaq Stock Exchange. It also distinguishes itself by offering access to one of the industry’s largest ranges of markets, asset classes, and account types.

Saxo: Snapshot

Established in 1992, Saxo holds licenses from 9 top-tier financial authorities. Its feature-rich SaxoTrader platforms offer over 40,000 tradable instruments, a wide selection of market research tools, and high-volume trading account options.

Saxo: Who is it For?

Saxo is well-suited to wealthy investors seeking an extensive range of asset classes to build diversified portfolios. It also caters to active traders, offering lower fees for high-volume trading and advanced trading platforms and tools.

What Makes Saxo Stand Out?

Saxo stands out as a broker with a BBB rating and positive outlook by S&P Global Ratings. The broker offers one of the largest selections of tradable instruments and distinguishes itself by prioritizing client account safety and security.

Trust

Interactive Brokers vs Saxo Trust and Regulation Comparison

Headquartered in Connecticut, USA, Interactive Brokers has been operational since 1978. It is regulated by Tier-1 authorities like SEC/CFTC (USA), IIROC (Canada), FCA (UK), CBI (Ireland), JFSA (Japan), MAS (Singapore), and ASIC (Australia), ensuring adherence to stringent standards across these seven entities. Another two entities are regulated by Tier-2 authorities, the SFC (Hong Kong) and SEBI (India). As a publicly traded broker listed on the Nasdaq Exchange, Interactive Brokers upholds transparent fee structures, regulatory compliance, and financial stability, boasting equity capital exceeding $11 billion.

Founded in 1992, Saxo is headquartered in Denmark. It has nine entities, all licensed by Tier-1 regulators such as FSA (Denmark), FCA (UK), MAS (Singapore), FINMA (Switzerland), CONSOB (Italy), JFSA (Japan), SFC (Shanghai), ASIC (Australia) and AFM (Netherlands). These entities offer the highest level of client safety and security regarding funds and trading conditions.

If you want to learn more about brokers’ regulations, be sure to check out our article on the top regulated forex brokers.

Fees

Interactive Brokers vs Saxo Spreads, Fees and Commissions Comparison

From the Interactive Brokers Individual Account, we found the spread for trading EUR/USD CFDs averaged 0.25 pips, better than the 1.08 pip industry average. The commission of 2 USD per lot is notably more competitive than the industry average of 3.50 USD. There is also no inactivity fee. As Interactive Brokers states, “IBKR is committed to minimizing costs to maximize returns.” Our research found this to be true. The fee structure makes Interactive Brokers ideal for short-term, high-frequency traders.

From the Saxo Classic Account, we found the spread for EUR/USD CFDs averaged 0.85 pips, better than the industry average of 1.08 pips. There is a fixed commission of 3.00 USD for trades less than 50,000 USD, which is high for small account holders. As the commission is waived if you execute large trades, the commission structure suits large account holders. There is a $100 monthly fee if no activity has taken place for 6 consecutive months.

Platforms and Tools

Interactive Brokers vs Saxo Trading Platforms Comparison

Interactive Brokers offers a variety of proprietary trading platforms, catering to different needs and experience levels. The IBKR Trader Workstation (TWS), IBKR Mobile app, and IBKR Client Portal provide access to over 2 million tradable instruments, including 8,000 CFDs. Specialized platforms such as IBKR Desktop, IBKR Impact, and IBKR Global Trader focus on stocks, options, and mutual funds. The flagship TWS platform is tailored for advanced, professional traders, offering customizable layouts, market scanners, integrated economic news, and various order types. The IBKR Mobile app is perfect for beginners, featuring an intuitive and easy-to-navigate layout.

Saxo provides a feature-rich, sophisticated range of proprietary trading platforms catering to all types of traders. SaxoTraderGo is a web platform that offers complex charting solutions, one-click trading, and account stop-out levels, which is ideal for short-term traders. It also offers trading signals from Autochartist and built-in market research and education, catering to beginners. The SaxoTraderGo mobile app offers the same functionality as the web platform. The SaxoTraderPRO platform is a fully customizable desktop platform tailored to professional multi-asset class traders featuring, options chains and multi-channel linking.

Tradable Instruments

Interactive Brokers vs Saxo Instruments Selection Comparison

Interactive Brokers offers the most extensive range of financial products in the industry, featuring over 2 million tradable instruments, including more than 8,000 CFDs. This comprehensive product lineup suits professional multi-asset traders and portfolio managers.

Saxo offers a robust selection of 45,000 instruments of leveraged and non-leveraged products. More than 9,000 CFDs are available, covering every tradable asset class. The diversity of products is ideal for active traders and longer-term portfolio managers.

Customer Support

Interactive Brokers vs Saxo Customer Support Comparison

Interactive Brokers offers 24/6 customer support through live chat, phone, and a contact form. The support agents are knowledgeable and capable of addressing both basic and complex inquiries. However, it can occasionally take a while to get in touch with an agent.

Saxo does not offer live chat support for demo accounts, and there is no clearly listed email, contact form, or telephone number. The website does not state the customer support opening hours. However, the FAQ section is exhaustive.

Research

Interactive Brokers vs Saxo Research Tools Comparison

Interactive Brokers offers robust market research tools. The Traders Insights page, accessible directly on their platforms, offers valuable market insights. This resource features insightful written articles and video analyses covering diverse markets and trading styles. Access trusted third-party research from Nasdaq, Investopedia, and Redwall Analytics. This curated selection caters to fundamental traders and portfolio managers.

Saxo offers a broad range of market research materials accessible from its platforms. Written content includes Daily Breakdowns and Trading Updates, which are useful for staying up to date with market developments. The live webinars cover both trading and investing topics, while the podcasts discuss broad market themes. The content is mainly tailored to experienced traders.

Deposits & Withdrawals

Interactive Brokers vs Saxo Deposit and Withdrawal Methods Comparison

Interactive Brokers primarily handles deposits and withdrawals through bank wire transfers. Deposits are free, but withdrawal fees vary by region and currency. For example, withdrawing in US dollars incurs a $10 fee, while withdrawals in euros and British pounds cost €1 or £1 via BACS/SEPA methods. Transactions are typically processed within one business day.

Saxo offers fee-free deposits via bank wire transfer (2-5 business days) and credit/debit cards (30 minutes). Withdrawals can only be made via bank wire transfer. They are fee-free and can take 3-5 business days.

Account Types and Terms

Interactive Brokers vs Saxo Account Types Comparison

Interactive Brokers provides the industry’s most extensive variety of account types, serving individual traders, professional investors, fund managers, and family offices. Options include Individual, Joint, Trust, Family Advisor, ISA, SIPP, Family Office, Small Business, Money Manager, Broker, and Proprietary Trading Group accounts. The Individual Trader account, perfect for beginners, requires no minimum deposit and supports funding in 19 different currencies.

Saxo offers three account types: Classic, Premium, and VIP. The Classic account has the lowest minimum deposit of €2,000 and the highest fees. The Platinum account has lower fees but requires a €200,000 minimum deposit, while the VIP account offers even lower fees but requires a €1 million minimum deposit. These accounts mainly cater to experienced, professional traders.

Education

Interactive Brokers vs Saxo Educational Content Comparison

Interactive Brokers offers a comprehensive educational suite through its IBKR Campus, catering to traders of all skill levels. Its Traders Academy features 65 finance courses, including articles, videos, and quizzes, covering a wide range of topics such as stocks, bonds, cryptocurrencies, platform tutorials, and fundamental analysis. Additionally, the platform provides valuable resources through weekly educational podcasts and interactive live trading webinars, benefiting traders and investors at all levels.

Saxo offers an extensive yet well-balanced suite of educational materials. Over 20 videos cover the basics of CFDs, bonds, futures, options, and forex trading. Each video is 10-20 minutes and ideal for beginners. There are over 33 platform video tutorials that novice traders will also find useful. Experienced traders may find the regular live webinars and trading psychology videos helpful.

Our Methodology

Since 2011, FX Empire has developed a detailed methodology for evaluating CFD brokers, involving over 250 variables across nine crucial categories. Our team of experts, with deep industry knowledge, conducts live testing and research by interacting with the brokers directly. We check regulations, open accounts, test spreads, account costs, platform functionality, instrument variety, customer support reliability, and the quality of research and educational content. This granular analysis helps us identify each broker’s strengths and weaknesses, keeping our comparisons current with market trends and ensuring our guides meet traders’ needs.

We strive to evaluate each broker objectively, considering how their offerings align with the diverse trading goals and preferences of our readers. Our focus is on providing a balanced overview of each broker’s strengths and weaknesses. This method ensures that our readers receive clear, insightful comparisons to aid in making well-informed trading decisions.

We employ a comprehensive rating system across nine key categories:

• Trust
• Fees
• Platforms and Tools
• Tradable Instruments
• Customer Support
• Research
• Deposits and Withdrawals
• Account Types and Terms
• Education

In each category, we conduct an in-depth analysis for both brokers, outlining features, advantages, and disadvantages and determining their suitability for different trader profiles. By blending insights from our extensive reviews with first-hand experiences and observations, we ensure each comparison is balanced, informative, and tailored to the trader’s unique needs. You can read more about our review process here.

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