CMC Markets vs Saxo Bank: Comparison and Analysis

CMC Markets vs Saxo Bank: A Comparison Summary

When it comes to online trading, there are many brokers to choose from. In this comparison, we will take a look at CMC Markets and Saxo Bank, two well-known brokers in the industry. Both brokers offer a variety of trading instruments, platforms, and educational resources, but there are some differences that may be important to consider. Let’s take a closer look.

Security

Both CMC Markets and Saxo Bank are highly regulated by multiple authorities around the world, providing a high level of security for traders. CMC Markets has a security rating of 95, as does Saxo Bank.

Demo Accounts

CMC Markets offers unlimited demo accounts with virtual funds of $10,000, which is a great opportunity for traders to practise their strategies without risking any real money. In contrast, Saxo Bank offers a 20-day demo account with virtual funds of $100,000. While Saxo Bank’s demo account provides more virtual funds, the time limit may be a drawback for some traders.

Account Opening

CMC Markets does not require a minimum deposit for account opening, and offers multiple account types including CFD accounts, stockbroking accounts, spread betting accounts, FX active accounts, corporate accounts, and professional accounts for advanced traders. On the other hand, Saxo Bank requires a minimum deposit of $500, which may be a hurdle for some traders. However, Saxo Bank offers a wider range of account types including Classic, Platinum, VIP, and Corporate accounts.

Social-Copy Trading

CMC Markets offers copy-social trading directly on their proprietary CFD platform called Next Generation, which can be a useful tool for traders looking to follow the strategies of successful traders. Saxo Bank, however, does not offer copy-social trading.

Markets

CMC Markets offers a wider range of trading instruments than Saxo Bank, including 338 forex pairs, 110+ commodities, 82 indices, 124 crypto assets, 55 bonds, and over 12,500 CFD shares and ETFs. Additionally, CMC Markets offers both CFD and real stocks, making it a good choice for both short-term and long-term investments. Saxo Bank, on the other hand, offers only CFD assets and provides access to 180 forex pairs, 70 commodities, 37 indices, 5,000+ bonds, 19,000+ stocks, 3,000+ ETFs, and 10 futures.

Trading Fees

Both CMC Markets and Saxo Bank offer variable spreads, but CMC Markets generally offers lower spreads, with a minimum of 0.7 pips on forex and 0.3 pips on indices. CMC Markets also offers $0 brokerage commission on US, UK, Canada, and Japan markets, as well as on Aussie shares up to $1,000 per stock per trading day. Saxo Bank’s spreads start from 0.3 pips on forex.

Platforms

Both CMC Markets and Saxo Bank offer proprietary trading platforms, with CMC Markets’ platform available for both CFD and real stocks trading via web and mobile, and Saxo Bank’s platform available as SaxoTraderGO and SaxoTraderPRO. However, SaxoTraderPRO is an advanced proprietary trading platform that can be connected with APIs and algo trading, making it a better choice for professional traders who require advanced functionality.

Education/Customer Care

Both CMC Markets and Saxo Bank offer a wide range of educational resources including webinars, articles, videos, and trading guides. Additionally, both brokers provide easy access to customer care via email, phone, and live chat. Saxo Bank also provides dedicated account managers for high-net-worth clients.

Conclusion

Overall, both CMC Markets and Saxo Bank have their own unique strengths and weaknesses, making them suitable for different types of traders. CMC Markets offers more trading instruments, lower spreads, and no minimum deposit requirement, making it a great choice for beginner traders or those looking to diversify their portfolio. Additionally, the availability of both CFD and real stocks makes it a good choice for both short-term and long-term investments.