eToro vs Saxo: Comparison and Analysis

eToro vs Saxo: A Comparison Summary

When it comes to online brokers, two well-known names that often come up are eToro and Saxo. 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.

Security and Regulations

Saxo 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 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 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 $50 (depending on the country), 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 does not offer a copy-social trading feature.

Markets

Saxo 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’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 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 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 offers customer care options via email, phone, and live chat.

Conclusion

In summary, both eToro and Saxo are reputable online brokers with their own unique strengths and weaknesses. Saxo 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 80 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.

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Trading history presented is less than 5 complete years and may not suffice as basis for investment decision. This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest in cryptocurrencies unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.