eToro vs Saxo Bank: Comparison and Analysis

eToro vs Saxo Bank: A Comparison Summary

When it comes to online brokers, two well-known names that often come up are eToro and Saxo Bank. While both have their own unique strengths and weaknesses, a comparison of the two can help investors decide which platform may be better suited to their needs. Here is a comparison summary of eToro vs Saxo Bank.

Security and Regulations

Saxo Bank is regulated by multiple top-tier financial authorities, including the FCA, ASIC, MAS, FINMA, JFSA, and HKSFC, and has a security rating of 95. Similarly, eToro is regulated by CySEC, ASIC, and FCA and has a security rating of 95. Both brokers adhere to strict security protocols to protect their clients’ funds.

Demo Account

Saxo Bank offers a demo account with a duration of 20 days and virtual funds of $100,000. However, the virtual funds cannot be restored once they are lost. On the other hand, eToro’s demo account is unlimited, and virtual funds of $100,000 can be restored by contacting customer support.

Account Opening

Saxo Bank requires a minimum deposit of $500, which may vary depending on the country and account type selected. They offer over 20 account currencies, and clients can deposit via bank transfer, credit/debit cards, and e-wallets. Similarly, eToro requires a minimum deposit of $200, and they accept wire transfers, credit/debit cards, and eWallets as payment methods. However, eToro only accepts USD as the account currency, which may not be ideal for clients depositing in other currencies.

Social-Copy Trading

eToro is renowned for its social-copy trading feature, which allows traders to copy the trades of successful investors. They provide this service via their proprietary platform, which is highly user-friendly and specialised in copy and social trading. Saxo Bank does not offer a copy-social trading feature.

Markets

Saxo Bank offers a broad range of CFD assets, including forex, commodities, indices, stocks, ETFs, futures, and bonds. However, they do not offer any crypto assets, which may be a disadvantage for traders interested in trading cryptocurrencies. In contrast, eToro offers a range of CFD assets and real assets, including forex, commodities, indices, stocks, ETFs, futures, options, and about 80 cryptocurrencies. This makes eToro an excellent option for both short-term and long-term investments.

Trading Fees

Saxo Bank’s spreads are variable, and their forex spreads start from 0.3 pips, which is relatively low compared to the market average. Similarly, eToro’s spreads are variable, and their forex spreads start from 1 pip, which is slightly above the market average. However, eToro offers zero-commission real stocks and ETFs for traders regulated by CySEC, FCA, and ASIC, with a minimum investment of just $10 (other commissions may apply on trading though).

Platforms

Saxo Bank offers two proprietary trading platforms: SaxoTraderGO and SaxoTraderPRO. SaxoTraderPRO is an advanced trading platform that can be connected with APIs and algo trading, and is suitable for multi-screen trading. eToro, on the other hand, offers a user-friendly proprietary platform that is specialised in copy and social trading.

Education/Customer Care

Both eToro and Saxo Bank offer high-quality educational resources, including webinars, articles, videos, trading guides, and trading academies. They also have dedicated account managers for high-net-worth clients. However, eToro’s customer care is easy to contact via email and live chat, while Saxo Bank offers customer care options via email, phone, and live chat.

Conclusion

In summary, both eToro and Saxo Bank are reputable online brokers with their own unique strengths and weaknesses. Saxo Bank may be a better option for traders interested in CFD assets, while eToro offers a wider range of assets, including real stocks, ETFs, and over 174 cryptocurrencies. eToro’s social-copy trading feature is also a standout feature, making it an excellent choice for those interested in following the trades of successful investors. Additionally, eToro’s unlimited demo account and lower minimum deposit requirement may be more attractive to beginner traders. Ultimately, the choice between the two platforms will depend on the individual needs and preferences of the investor.