Interactive Brokers vs. Saxo

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Trading has been around for centuries, but online brokers came along a few decades ago. Before then, people had to call their stockbrokers and trade on the available assets. End users did not have any real-time means of tracking the market but depended on the press and brokers for accurate information.

Today, markets, trends, events, sentiments, analysis, and indicators are at our fingertips. Whether you employ a broker or make trades, real-time information is available. Fast forward to the era of smartphones, and you can monitor your open and closed positions anywhere.

Online brokers give regular people and newbies a place to trade stocks, forex, ETFs, CFDs, and other financial instruments. They also support trading in cryptocurrencies, commodities, treasuries, and indices. There is no need for telephone calls, except if you need customer support for peculiar challenges.

Reports show that the global online trading industry has a compound annual growth rate (CAGR) of 6.7%. You can use any of the following types of online brokers:

• Those that offer trading services with tax, investment, and strategy advice
• Those that provide trading services at a discount but lack any advice
• Those that use algorithms with little to no human interference

Overview of Saxo and Interactive Brokers

Features	Interactive Brokers	Saxo Bank
💰 Account Minimum	$0 for IBKR Lite, $100,000 for IBKR Pro	$10,000
💸 Commission Fees	IBKR Lite: $0 for US-listed stocks and ETFs, IBKR Pro: $0.005 per share with a $1 minimum	Stocks: 0.05% to 0.1%, minimum $6. ETFs: 0.1% to 0.2%, minimum $6.
💼 Investment Options	Stocks, options, futures, forex, bonds, mutual funds, ETFs, CFDs	Stocks, options, futures, forex, bonds, mutual funds, ETFs, CFDs
🤖 Robo-Advisor	Yes (Interactive Advisors)	No
📊 Research and Analysis	Extensive research and analysis tools, including news, market data, and analysis from over 100 providers	SaxoSelect provides model portfolios and trading strategies from third-party experts
📱 Mobile App	Yes, with advanced trading tools	Yes, with advanced trading tools
🏦 Retirement Accounts	Yes	Yes
🎓 IRA Accounts	Yes	Yes
📈 Trading Platform	Advanced Trader Workstation (TWS), WebTrader, mobile app	SaxoTraderGO, SaxoTraderPRO, mobile app
📞 Customer Service	24/7 customer service via phone, chat, and email	24/5 customer service via phone, chat, and email
📚 Educational Resources	Extensive educational resources, including webinars, courses, and trading tools	Educational resources available, including webinars and courses
🌕 Fractional Shares	Yes	Yes
🌱 Socially Responsible	Yes, through mutual funds and ETFs	Yes, through model portfolios
🌎 International Investing	Yes, in over 135 markets worldwide	Yes, in over 30,000 markets worldwide
💳 Cash Management	Yes, with IBKR Debit Mastercard and Bill Pay	Yes, with Saxo Bank Account and Visa Debit card
🔍 Margin Trading	Yes	Yes
⚙️ Options Trading	Yes	Yes
₿ Cryptocurrency Trading	Yes, through IBKR Crypto	Yes, through SaxoTraderGO and SaxoTraderPRO
🛡️ Account Security	SIPC protection up to $500,000 and excess SIPC protection up to $30 million for IBKR Pro accounts	Deposit protection up to €100,000 and investor compensation up to €20,000 for eligible clients
💹 Leverage	Up to 4:1 for stocks, up to 200:1 for forex, up to 50:1 for futures	Up to 20:1 for forex, up to 10:1 for stocks, up to 25:1 for futures
⚖ Regulation	Regulated by the SEC, FINRA, and CFTC in the US, the FCA in the UK, and other regulatory bodies worldwide	Regulated by the FSA in Denmark, the FCA in the UK, and other regulatory bodies worldwide

Interactive Brokers vs. Saxo

Selecting the right online broker is a critical decision for individual investors looking to navigate the world of investment opportunities. In this comparison, we will examine two well-established online brokerage firms, Interactive Brokers and Saxo Bank. Both companies offer a wide range of investment products and services, but they also have notable differences in terms of fees, platform usability, research tools, and additional services. By comparing the pros and cons of each broker, we aim to provide a comprehensive analysis that will help investors make an informed decision based on their unique needs and preferences.

Benefits and Drawbacks

Interactive Brokers moves ahead with its advisory service in the US. However, Saxo is an equally competitive online broker. Their respective benefits and drawbacks are shown below.

Saxo

The Benefits and Drawbacks of Saxo

Saxo Bank is an excellent choice for investors who value a wide range of investment options, competitive trading fees, and a user-friendly platform. However, for those prioritizing low account minimums or comprehensive research tools, Interactive Brokers might be a better option. When deciding between the two brokers, individual investors should consider their specific needs and preferences to make the best choice.

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Interactive Brokers

The Benefits and Drawbacks of Interactive Brokers

Interactive Brokers is an excellent choice for investors who value low trading fees, comprehensive investment products, and a powerful trading platform. However, for those prioritizing a simpler platform or lower account minimums, Saxo Bank may be a better fit.

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Service, Fees, and Customer Support

Saxo

Service

Saxo offers trading services in two tiers, which are as follows:

• Investment products like stocks, ETFs, bonds, mutual funds, crypto ETPs, etc.
• Leveraged products, including options, futures, forex, crypto FX, CFDs, and commodities.

With commodities, you can trade spot metals, CFDs, futures, options, and ETCs. However, the pricing has three tiers: classic, platinum, and VIP. The VIP level supports trades with lower amounts.

It will cost you more to attain the VIP level, but the benefits will be worth it. The broker will give you access to cryptocurrencies without needing an exchange or wallet. That means you cannot buy physical cryptocurrencies but can still trade their price movements.

Saxo offers three platforms to support online trading, and they are as follows:

• SaxoTraderGo
• SaxoTraderPro
• Connectivity and APIs

SaxoTraderGo is the primary trading platform, but it is packed with all the tools to execute online trades. You can view the portfolio summary, perform performance analysis, and examine returns. The software also has an in-depth research tool that uses SaxoStrats analysis and price data.

You can download SaxoTraderGo on your Android or iOS device from the App Store or Google Play. That allows you to trade on the go and manage your trades wherever you are.

Advanced traders will likely use SaxoTraderPro because of the enhanced functions. It suits people who engage in high-volume trading and require more flexibility and customization. Moreover, it is only available for PCs, requiring 650 MB of disk space.

While downloading and using SaxoTraderPro is free, some functions may require monthly subscriptions. A Saxo account allows you to trade over 65,000 instruments and has three tiers.

Fees

Let’s begin the fee structure with the accounts before we move to the trades. The Saxo account has three tiers. Their charges are as follows:

Fees
Classic	Requires initial funding of $2,000
Platinum	Requires initial funding of $200,000
VIP	Requires initial funding of $1,000,000

Opening a joint account will cost less than $50,000 on the first deposit. You can also step it up to the VIP level and pay $1,000,000. This level brings the most competitive prices, a personal manager, exclusive event invitations, etc.

The commissions from trading are as follows:

• $1 for stocks and ETFs
• $1.25 on listed options and futures
• 0.05% on government bonds
• $0 on mutual funds

Other charges come with specific features. For example, Level 2 Market Data on SaxoTraderPro requires a subscription.

Customer Support

You will get top-notch customer support when you trade with Saxo. Given its robust coverage worldwide, we did not expect anything less. The physical offices are well distributed across regions to provide hands-on support to clients.

Saxo has offices in Europe, Asia/Pacific, and the Middle East. The countries include Belgium, Denmark, France, Italy, Netherlands, Switzerland, Australia, Shangai, Singapore, etc.

If you want to avoid going to the physical offices, contact the support team through the email address or telephone number provided. Just pick the office in or close to your city and extract its email or contact information.

Saxo does not have live chat support in its software. You can only reach them via email or phone call. Nevertheless, the help center can help with your challenges.  

Interactive Brokers

Service

Interactive Brokers is a full-service online broker with more than a trading platform. The extra services will come in handy if you need more than commodities, stocks, ETFs, etc. However, you must know the platforms before learning how to get each service.

The broker offers the following trading platforms:

• IBKR Global Trader
• Client Portal
• IBKR Mobile
• Trader Workstation
• IBKR APIs
• IBKR EventTrader
• Impact

GlobalTrader is the most basic and is suitable for beginners and intermediate traders. It features stocks, cryptos, ETFs, mutual funds, and options. You can also use your mobile device to get to the platform, place orders, and make trades.

The client portal is more of a way to keep track of quotes, balances, and reports. It is available on the web and has no downloadable or installation file.

Trader Workstation suits clients that trade actively and have large volume orders. It only works on desktops but has everything you need for advanced features. Even Interactive Brokers does not recommend it for beginners.

EventTrader is easy to use and suitable for beginners and intermediate traders. The web platform allows users to trade Event Contracts with a yes-or-no outcome. Conversely, IMPACT provides a more streamlined trading experience where you invest in companies that share your values.

Interactive Brokers offers the following services:

• PortfolioAnalyst
• Mutual funds marketplace
• Bonds marketplace
• Cash management
• Third-party integration
• Interactive advisors

Interactive Advisors is available for as little as $100. You can use its advice on top-performing portfolios and other themes to shape your trading strategy. However, it is not licensed to provide advisory services in the UK.

There is asset protection of up to $500,000. Setting up an account is easy, but don’t expect as much versatility as the other platforms.  

Fees

You don’t need any money to open an account with Interactive Brokers. Its IBKR Pro and IBKR Lite accounts cost $0. Nevertheless, trading is only available if you deposit money with the online broker.

Broker accounts require an initial payment of $10,000. The platform will use the deposit as its commission for the first eight months. Then, beginning with the ninth month, you will pay $2,000 per month.

Enhanced Network Connections are not without cost, with FIX CTCI costing $1,500 per month in first-session commissions. Subsequently, you will pay $1,000.

Hooking up to the Trader Workstation and TWS API costs $500, while the REST API costs $500 in commission. Apart from these, you will pay commissions and margins on trades. You can expect competitive rates for these services.

Customer Support

Interactive Brokers has a comprehensive support center that contains answers to common queries. You can use the search bar to narrow the results or browse the entire FAQ library. Everything, from trading to funding and management, is available.

There is a live chat room where you can interact with a representative in real-time. If you need something more direct, you can use the telephone service. Otherwise, sending an email should take care of your challenges.

Use the “Send Documents” function if you have any files you would like to share with the broker. You can also send them via email.

Conclusion

Saxo is an internationally recognized online broker under Saxo Bank A/S. It has physical offices in several countries, but you can contact customer service via email or telephone. On the other hand, Interactive Brokers brings an advisory role to its online trading.

You can trade with its recommendations for as little as $100. With Saxo, you must analyze the markets yourself. That does not prevent you from analyzing with Interactive Brokers.

Recommendations to Get the Right Broker

If you want a more affordable online broker with advisory services in the US, you can go with Interactive Brokers. Saxo is more expensive, with a $2,000 minimum deposit. Also, you need to pay more to get competitive rates with Saxo.