Saxo Capital Markets vs. Interactive Brokers 2019

Founded in 1992 and headquartered in Denmark, Saxo Capital Markets (Saxo) offers a nearly unmatched spectrum of markets, trading instruments, and account types to investors. Well known in the Forex industry, Saxo also provides traders access to stocks, options, futures, CFDs, and ETFs. Saxo’s target client is probably a little different than Interactive brokers, but the breadth of markets and accounts is similar.

Founded by one of the original pioneers in the world of high-frequency trading, Interactive Brokers has a streamlined approach to brokerage services that focus on broad market access, low costs, and trade execution. Although Interactive Brokers usually stands out as the low-cost leader, there are other differences that may give Saxo an edge for some traders.

In our 2019 Best Online Brokers Awards, Interactive Brokers received awards for Best Overall Online Brokers, Best for Low Costs, Best for Options Trading, Best for Penny Stocks, Best for Day Trading, and Best for International Trading.

While Interactive Broker’s desktop platform is difficult to learn and lacks many expected features, it is fast which is a plus for active traders. The PIN-protected mobile platform is available on Android and iOS, and is a slimmed-down version of the desktop software. Its simplicity avoids much of the annoying menu drilling from the desktop version, and configuration is easy. Ironically, charting is better on mobile than on the desktop version, with a variety of indicators and a clean interface. Unfortunately, logging into the mobile version shuts down the desktop automatically. This can frustrate at-home traders wanting to follow the market and trade positions while temporarily away from their computers.

Saxo’s trading platform comes in two flavors; SaxoGO and SaxoPRO. The pro version is very similar to the entry-level platform but with additional multi-screen functionality, market analysis, and automation. Saxo’s charts, news feeds, and analysis tools in the platform are far superior to Interactive Brokers in our opinion. 

Saxo Group

• Highly flexible and customizable platform 
• Ability to back-test 
• Prebuilt, professionally managed trading strategies
• Mobile includes all the same functionality that the desktop has

Interactive Brokers

• Easy to navigate for both mobile and desktop
• Lightening fast trade execution
• Trade anywhere across PCs, web pages, and mobile apps
• IB Key technology for more security

The SaxoGO experience is consistent from desktop to tablet to phone, which makes mobile trading a better experience compared to Interactive Brokers as well. Traders using SaxoPRO on the desktop can only use SaxoGO on mobile devices, but the look and feel are very similar and shouldn’t present a problem for investors who don’t rely on the advanced functionality when away from a PC.

Saxo Group

• Consistent from desktop to tablet to phone
• SaxoPRO on desktop becomes SaxoGO on mobile

Interactive Brokers

• Persistent trade button
• IBot is built into the mobile app

Interactive Brokers offers a range of educational resources, including videos and tutorials, but lacks depth across subjects. There is content addressing some market topics in detail, but there are big gaps. For example, Interactive Brokers’ Traders’ Academy is intended to provide more detailed course material but has just two programs, TWS for Beginners and an Introduction to Options.

Saxo has invested heavily in education for traders in just about any market. Education includes learning how to use the trading platform and how to design portfolio or active investing strategies. The videos, lessons, quizzes, and webinars are organized very well into “Saxo Academy” where users can track their progress and focus on topics in which they are most interested.

Saxo Group

• Saxo Academy includes lessons on portfolio construction
• Educational platform is well organized and intuitive

Interactive Brokers

• Some educational resources, but no depth across topics
• Trader's University offers free webinars and courses
• Some video and interactive tutorials for users only

While both brokers allow the user to trade stocks, ETFs, mutual funds, futures, bonds, options, IPOs, government bonds, and Forex, Interactive Brokers is cheaper for the average investor on almost every front. For example, U.S. stock trades are only half a cent (or $0.005) per share while Saxo charges $.01 per share with a $9.90 minimum commission for their "classic" account holders. (Two other premium pricing structures are available.) The spread cost for EUR/USD spot at Saxo averaged 1 pip over the last month (as of August 2018) while Interactive Brokers was .8 pips, much closer to the industry average.

Saxo Group

• Stock trade fees: $6.00 per share
• Account minimum: $2,000

Interactive Brokers

• Stock trade fees: $0.005 per share
• Account minimum: $0