Saxo vs Interactive Brokers: Who is Better?

Investing in the modern era requires access to robust trading platforms that can handle everything from casual investments to complex trading strategies. When evaluating online brokerages, Saxo Bank and Interactive Brokers (IBKR) are two names that frequently top the list. Both platforms have established reputations and boast a wide array of features suitable for different types of traders and investors. But which of these giants truly fits your needs better?

To answer this, we must undertake a comprehensive comparison—covering everything from account types, trading fees, platform functionalities, available markets, to customer service. This deep dive will equip you with the insights needed to make an informed decision tailored to your financial goals, experience level, and trading style.

Let’s begin by understanding the core philosophies and features of each platform.

Overview of Saxo Bank and Interactive Brokers

Who is Saxo Bank?

Founded in 1992, Saxo Bank is a Danish investment bank specializing in online trading and investment. Known for its sleek platform design and strong focus on retail and professional traders alike, Saxo differentiates itself through a comprehensive suite of trading tools, research, and a user-friendly interface. They target a global audience but have a particular emphasis on offering the highest quality trading experience with a touch of luxury, often appealing to more affluent investors and those seeking a premium trading environment.

Who is Interactive Brokers?

Established in 1978, Interactive Brokers is an American-based brokerage firm widely regarded as a powerhouse for active traders, sophisticated investors, and institutions. With a reputation for low commissions, access to global markets, and an extensive range of tradable assets, IBKR has earned accolades for its cutting-edge technology and cost efficiency. Its platform suite is highly customizable, leaning more towards experienced traders who demand advanced tools, algorithmic trading capabilities, and extensive market data.

Eligibility and Account Types

Before jumping into intricate features, it’s essential to understand the fundamental account structures each platform offers and the eligibility criteria.

Saxo Bank Account Types

Saxo offers primarily two main account types: Saxo Classic and Saxo Platinum. The account type determines the tier of service, platform features, and fee structures.

Saxo Classic: Catering to casual investors and beginners. It offers access to global markets with straightforward pricing.
Saxo Platinum: Aimed at high-net-worth individuals and active traders, providing premium features such as tighter spreads, dedicated account managers, and personalized services.

In addition, Saxo provides wealth management accounts and corporate accounts tailored for institutional or business clients.

Eligibility: Minimum deposits vary depending on the country and account type but generally range from $2,000 to $200,000 for premium tiers. Evidence of identity and residency are required for account verification.

Interactive Brokers Account Types

IBKR is known for its versatility, with numerous account types to fit your trading profile:

IBKR Lite: Designed for casual investors who prefer commission-free trading on U.S. stocks and ETFs, with simplified access to global markets.
IBKR Pro: Caters to active traders and professionals, offering advanced trading tools, lower margin rates, and more extensive market access.

Other specialized accounts include institutional accounts, advisor accounts, and retirement accounts such as IRAs.

Eligibility: IBKR has a straightforward account opening process, but minimum deposits are typically low—$0 to $2,000 depending on the account type and country of residence. Regulatory identity verification is mandatory.

Trading Platforms and User Experience

The platform’s usability can make or break your trading experience. Let’s explore what each provider offers.

Saxo’s Trading Platforms

Saxo Bank provides SaxoTraderGO—a web-based platform designed for both novice and experienced traders—and SaxoTraderPRO, a downloadable desktop version aimed at active traders.

SaxoTraderGO — Clean, intuitive, and full of features. It offers:

Multi-asset trading (stocks, forex, CFDs, options, futures, ETFs, bonds)
Advanced charting with hundreds of indicators
Integrated research, news, and educational content
Risk management tools and order types suited for diverse strategies

SaxoTraderPRO — A robust desktop platform, trusted by professional traders, with customizable workspace, fast execution, and a multitude of order options. It supports algorithmic trading and direct API connections.

Mobile Platforms — Saxo’s mobile app is highly rated, providing core functionalities with real-time alerts, touch-ID login, and full trading access.

Interactive Brokers’ Trading Platforms

IBKR offers several platforms:

Trader Workstation (TWS): The flagship platform for professional and active traders. It provides:
- Advanced order types and algorithms
- Extensive research and analytical tools
- Customizable workspace with multiple screens
- Algorithmic trading API support
Client Portal: Simplified web interface suitable for more casual or less active traders — offers order placement, account management, and research.
IBKR Mobile: Full-feature mobile app that syncs with TWS and Client Portal.
IBKR API and third-party integrations: For algorithmic traders and developers.

Usability: TWS has a steep learning curve but is unmatched in its depth. The interface can be overwhelming for beginners but powerful for experienced traders. IBKR continually updates its platform, adding new features and improving responsiveness.

Asset Coverage and Market Access

An essential factor for traders wanting diverse portfolios: how many markets and instruments can each broker access?

Saxo’s Asset Offerings

Saxo is renowned for its wide array of available markets:

Equities: Access to over 30 exchanges worldwide
Forex: Over 40 currency pairs
CFDs and Spread Bets
Options and Futures
ETFs, Bonds, and Funds
Commodities: Gold, oil, agricultural products, and more
Mutual Funds: A vast selection of funds from global providers

Their global presence ensures local market access in Europe, Asia, North America, and emerging markets.

Interactive Brokers’ Asset Coverage

IBKR has arguably the most extensive asset universe among retail brokers:

Equities: Over 150 global exchanges
Forex: Over 100 currency pairs
Options, Futures, and CFDs
Bonds and Fixed-Income Securities
Mutual Funds and ETFs
Commodities and Precious Metals
Structured Products and Funds

IBKR’s extensive market access is particularly appealing to institutional users and professional traders seeking geographic diversification.

Fee Structures and Cost Comparison

Cost is often the decisive factor for traders. Both platforms charge various fees; understanding their structure helps predict trading expenses.

Saxo Bank Fee Structure

Commissions: Fixed or variable spreads depending on the asset class and account type
Spreads: Competitive on major currency pairs and equities, especially in premium tiers
Inactivity Fees: Generally, around €100 annually if no trading activity occurs
Currency Conversion Fees: Usually 0.75% for converting accounts into different currencies
Deposit/Withdrawal Fees: Free or minimal depending on method and country

Interactive Brokers Fee Structure

Commissions: Low and tiered–US stocks from $0.0005 per share (with minimums), global assets often lower than traditional brokers
Spreads: Available on forex; tight spreads owing to high liquidity
Inactivity Fees: Eliminated for most account types
Currency Conversion: Competitive forex rates, around 0.2%—lower than most traditional banks
Additional Fees: Data subscriptions, margin interest, and some exchange-specific costs may apply

Cost Efficiency and Transparency

IBKR is renowned for transparency and low costs, often becoming the preferred choice for cost-conscious traders. Saxo’s premium services come with somewhat higher fees, but they compensate with a more polished and user-friendly experience.

Trading Tools and Research Capabilities

Successful trading is built on informed decisions; both brokers excel here, but with different emphases.

Saxo’s Research and Analysis

In-house research: Market reports, daily briefing, and analysis
Third-party integrations: Access to Bloomberg and other research providers in premium tiers
Educational Resources: Webinars, courses, investing guides
Trading signals and alerts: Integrated into the platform

Interactive Brokers’ Research and Tools

Comprehensive Market Data: Real-time data, news feeds, and extensive analytics
Research: In-house, third-party provider access including Morningstar, FactSet, and S&P
Trading Algorithms & API: For advanced traders seeking automation
Portfolio Management Tools: For institutional and high-net-worth clients

IBKR’s strength lies in its depth of data and customizable analytical environment, perfect for traders who prefer an in-depth, quantitative approach.

Customer Support and Education

Customer service quality can influence your trading experience significantly.

Saxo’s Customer Support

Support Channels: Phone, email, live chat
Availability: Extensive support during European and North American hours
Educational Platform: Seminars, tutorials, and dedicated account managers for premium clients

Interactive Brokers’ Customer Support

Support Channels: Phone, email, chat, and extensive online help center
Availability: 24/6 support, especially advantageous for international clients
Educational Resources: Webinars, trading courses, and detailed FAQs

While both platforms provide extensive support, IBKR’s support is more geared toward professional traders and institutions, whereas Saxo aims to offer a more personalized and concierge-like experience.

Regulatory and Security Aspects

Both brokers are regulated by reputable authorities, a vital aspect of choosing a trustworthy platform.

Saxo’s Regulation

Regulated by Danish FSA, FCA (UK), and other European authorities. It adheres to high standards of client money protection and data security.

Interactive Brokers’ Regulation

Regulated by the SEC (U.S.), FINRA, FCA (UK), and various other national agencies. Its robust compliance ensures safety and transparency for investors.

Who is Better for Different Trader Profiles?

Beginners and Casual Investors

Recommended: Saxo Bank

Why: Easy-to-use platform, comprehensive research, educational content, and premium support.

Active and Professional Traders

Recommended: Interactive Brokers

Why: Low fees, advanced tools, extensive market access, and automation capabilities.

Global Diversification and Institutional Needs

Recommended: Interactive Brokers

Why: Unmatched global coverage, sophisticated trading features, and customization options.

Investors Seeking Premium Experience

Recommended: Saxo Bank

Why: Elegant interface, dedicated account managers, and high-quality research.

Final Verdict: Which One Reigns Supreme?

The choice between Saxo Bank and Interactive Brokers hinges on your trading style, budget, and experience level.

If you are a beginner or prefer a smoother, more aesthetically pleasing trading experience with strong support, Saxo Bank likely suits you better.
If you are a seasoned trader who demands low costs, extensive market access, and depth in analytical tools, Interactive Brokers is generally the better option.

Both platforms are excellent in their own right. The decision boils down to aligning your trading needs with the platform’s strengths.

Frequently Asked Questions (FAQ)

1. Which platform offers better commission rates?

Interactive Brokers typically offers lower commissions, especially for active traders, thanks to its tiered pricing structure. Saxo’s commissions are higher but come with a more polished user experience and support services.

2. Are both platforms suitable for US-based traders?

Yes. Both platforms support US clients, but IBKR has a more significant presence within the US market, with US-based operations regulated by SEC and FINRA.

3. Can I trade international markets on both platforms?

Absolutely. Saxo provides access to over 30 global exchanges, while IBKR covers over 150 markets worldwide.

4. Which platform is better for beginners?

Saxo Bank is generally more beginner-friendly, with a simplified interface, educational resources, and dedicated support.

5. Do both platforms support mobile trading?

Yes. Both SaxoTraderGO and IBKR Mobile are fully functional and highly rated for their respective platforms.

6. Which platform has better research and analysis tools?

Interactive Brokers has a broader and more advanced suite, suitable for professional traders. Saxo offers solid research but tends to focus on ease of use.

7. Can I automate trading on both platforms?

Interactive Brokers supports extensive algorithmic trading, APIs, and automation tools. Saxo offers some automation capabilities but is more limited.

8. Is there a minimum deposit requirement?

Both platforms have low or no minimum deposit requirements for most accounts, though Saxo’s premium tiers may require higher deposits.

Conclusion

Determining who is better—Saxo Bank or Interactive Brokers—ultimately depends on your personal trading profile. Saxo offers a premium, user-friendly environment ideal for beginners and those seeking a full-service platform. Conversely, IBKR excels in providing low-cost, highly customizable trading opportunities for experienced and active traders.

Both platforms uphold high standards of regulation and security, making them reliable choices. Carefully consider your goals, trading frequency, asset preferences, and budget before making your final decision. Whichever you choose, investing in your education and understanding the platform’s nuances will maximize your potential for success.

Happy trading.