Saxo vs eToro Comparison – 2024

Top Reasons to Choose Saxo vs eToro

My thorough analysis of Saxo indicates that the bank is the better option for seasoned traders and investors. Saxo is a heavyweight in financial markets, offering an impressive selection of more than 72,000 derivative and non-derivative instruments. These can be used to speculate on price action changes or to practice value investing. Saxo is also one of the safest trading entities in Europe and provides a professional-grade platform.

eToro is another major player in the online trading industry. Founded in 2007 and headquartered in Israel, eToro has built a strong reputation for its professional-grade services. The broker has developed a global community of more than 20 million traders and offers multiple services to those interested in social and copy trading. eToro also has an excellent proprietary platform and provides its clients access to over 5,800 tradable instruments.

Saxo: Snapshot

Saxo is a well-established Danish investment bank that was founded in the distant 1992. It is tightly regulated in 15 different jurisdictions and is generally considered one of the safest derivatives brokers in Europe. Saxo impresses with its massive instruments offering of more than 72,000 derivatives and investing products. Traders can choose from over 8,200 CFDs, futures, European-style options contracts, and more.

Saxo: Who is it For?

I consider Saxo an excellent choice for highly experienced retail traders and trading professionals. The bank features a highly customizable platform with hundreds of analytical tools, configuration possibilities, and order types. In particular, the platform stands out with its sophisticated algorithmic trading capabilities, including VWAP and TWAP orders. Saxo also offers several APIs for trade automation and Direct Market Access (DMA). Besides, Saxo provides access to thousands of investing instruments so that professionals can diversify their market exposure and earn dividends.

What Makes Saxo Stand Out?

In addition to all the benefits of Saxo listed above, the bank impresses with its high transparency and safety. Saxo is licensed and regulated in 15 different jurisdictions and has a positive A- rating from S&P Global Ratings. Essentially, the risk of price manipulation or bankruptcy with Saxo is almost nonexistent.

eToro: Snapshot

eToro is one of the most recognizable brands in the online trading industry. The broker offers a professional-grade platform with an easy learning curve, along with many supporting tools. It was also one of the first brokers to introduce commission-free trading.

eToro: Who is it For?

eToro primarily caters to traders interested in copy and social trading. It has built a comprehensive environment where strategy providers and followers can interact easily, exchange trading ideas and experiences, and generally make the most out of each other’s goals and needs.

What Makes eToro Stand Out?

Unlike most other brokers that offer copy and social trading, eToro does not charge a service (commission) fee for this particular type of trading. This makes it more cost-effective for strategy providers to market their systems and for strategy followers to capitalize on their success.

Trust

Saxo vs eToro Trust and Regulation Comparison

Saxo is authorized by nine top-tier financial regulators, ensuring compliance with the industry’s strictest safety standards. The bank guarantees the segregation of client funds, offers negative balance protection, and provides client compensation schemes. Additionally, Saxo maintains a positive A- rating according to Global S&P Ratings, further demonstrating its high stability and transparency.

eToro operates through five entities, four of which are licensed and regulated by Tier-1 bodies (the FCA in the UK, CySEC in Cyprus, ASIC in Australia, and FINRA in the US). One entity is authorized offshore by the FSA of the Seychelles. The broker adheres to all essential safety requirements by ensuring the segregation of client funds, negative balance protection, a cap on the maximum retail leverage, and, in some cases, participating in compensation schemes. Its legal documents are transparent and exhaustive.

Fees

Saxo vs eToro Spreads, Fees, and Commissions Comparison

Saxo’s Classic account features floating spreads starting from 0.9 pips and a $6 round-turn commission per traded lot. This combination exceeds the industry average. On the other hand, there is interest payable on all unused account balances starting from €10,000. Professionals earn higher interest on larger account balances.

eToro offers commission-free trading and floating spreads from 1.0 pips on its Standard account. Broken down by asset class and compared to the industry average, I discovered that eToro charges low-to-high spreads on currency pairs, average spreads on share CFDs, and average-to-high spreads on commodities and indices. The broker has no service fee for copy trading. Deposits with eToro are cost-free (conversion fees may apply), but there is a handling fee for withdrawals.

Platforms and Tools

Saxo vs eToro Trading Platforms Comparison

Saxo shines in the platforms category with its SaxoTraderGo and SaxoTraderPro proprietary platforms, which I consider among the best in the industry due to their intuitive and highly customizable designs. These platforms feature more than 100 analytical tools and chart configurations. Additionally, the broker integrates seamlessly with TradingView and Dynamic Trend, providing traders with a comprehensive overview of price action behavior. The platforms also feature advanced algorithmic order types, such as OCO, VWAP, and TWAP.

eToro has developed an excellent proprietary platform with an easy learning curve, specifically designed to accommodate copy and social trading. The platform’s charts are fluid and easily scalable, powered by the seamless TradingView, and feature a broad range of analytical tools. Furthermore, I appreciated eToro’s ‘Delta Tool,’ which simplifies the performance tracking of multiple accounts, helping traders diversify their opportunities in the market with eToro.

In case you’re looking for brokers that offer third-party platforms, check out our guides on the best MT4, MT5, and cTrader forex brokers.

Tradable Instruments

Saxo vs eToro Instruments Selection Comparison

Saxo offers over 72,000 trading and investing instruments. The broker strikes a fine balance between higher-yield/risk assets, such as share CFDs, indices, and cryptocurrencies, and lower-risk securities, like bonds, ETFs, and mutual funds. Its clients can use this diversity to implement a wide variety of trading strategies and better manage their market exposure.

eToro provides a broad range of more than 5,800 tradable instruments across different asset classes. The bulk of the instrument offering is comprised of shares CFDs (more than 5,000). I also appreciated the fine balance between lower-risk securities, such as ETFs (671), and higher-yield/risk assets like cryptocurrencies (158). This diversity is suitable for implementing a wide range of strategies.

Customer Support

Saxo vs eToro Customer Support Comparison

Saxo’s customer support is surprisingly disappointing, given the bank’s excellent performance in other categories. There is no live chat option, phone support, or email form for general inquiries. The only source of information is the broker’s exhaustive FAQ section, which contains answers to most general types of questions.

eToro’s multilingual customer support can be reached via live chat, email, and phone. Help is available 24/5. However, live chat and phone support are only available to funded accounts with at least $5,000. The broker also has a dedicated FAQ section on the website for more general queries regarding its service.

Research

Saxo vs eToro Research Tools Comparison

Saxo offers diverse and highly practical research content. Clients have access to a wide variety of market breakdowns, trading analyses, webinars, podcasts, and seminars. Additionally, actionable trading ideas from Autochartist, one of the most trusted market analysis providers in the industry, are incorporated directly into the SaxoTraderGo platform. This integration helps intraday traders make fast and well-informed decisions.

eToro also impresses with the breadth and scope of its research content. The broker offers comprehensive analyses and forex news developed in-house. There are also daily video breakdowns for traders interested in learning about viable trading opportunities in a more flexible manner. My overall impression of eToro’s research content is predominantly positive. Its resources are varied and encompass a broad spectrum of topics.

Deposits & Withdrawals

Saxo vs eToro Deposit and Withdrawal Methods Comparison

Saxo accepts payments via credit/debit cards and bank wire. However, e-wallets and crypto wallets are not available. The broker does not impose a handling fee for deposits and withdrawals, though third-party banking fees may apply. Deposits and withdrawals are processed fairly quickly, typically within the same business day.

eToro offers deposits and withdrawals through bank wire, credit/debit cards, PayPal, Neteller, Skrill, Rapid Transfer, iDeal, Klarna, Trustly, Przelewy24, and the eToro Money Wallet. All payment transactions are instant, except for bank transfers, which may take 4 to 7 business days. While deposits are free of charge (though conversion fees may apply), withdrawals incur a $5 fee.

Account Types and Terms

Saxo vs eToro Account Types Comparison

Saxo provides three retail account types: Classic, Platinum, and VIP. The Classic account does not require a minimum deposit, while the other two have quite high barriers to entry (EUR 200,000 and EUR 1,000,000, respectively). All three feature the same pricing mechanism: a $6 round-turn commission and floating spreads starting from 0.7 pips. There is no Islamic account option for swap-free trading.

eToro offers a single retail account type with a $50 minimum deposit requirement and multiple tiers. The more money one has in the account balance, the better conditions one gets, such as discounts on exchange rate fees, interest on the balance, and more. The broker also has Islamic accounts that allow for swap-free trading.

Education

Saxo vs eToro Educational Content Comparison

Saxo’s educational materials are well-balanced and diverse. They comprise mostly educational articles and videos covering a wide range of topics – from the basics of technical and fundamental analysis to the intricacies of risk management and trading psychology. There are also multiple videos explaining how to use Saxo’s professional trading platforms.

eToro stands head and shoulders above other brokers when it comes to the range of its educational materials. The broker provides an impressive array of 21 courses, guides, and step-by-step tutorials. There is also The Digest & Invest podcast, which features lengthy conversations between market experts on multiple trading and investing topics. Traders can delve into the intricacies of technical analysis, fundamental analysis, and trading psychology.

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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