Oanda vs Saxo Bank: Comparison and Analysis

Oanda vs Saxo Bank: A Comprehensive Comparison

When it comes to selecting a broker, traders are always on the lookout for the best value proposition, including security, fees, markets, platforms, education, and customer care. In this article, we will compare two well-established and popular brokers, Oanda and Saxo Bank, on various parameters.

Security

Both Oanda and Saxo Bank are highly regulated brokers. Oanda is regulated by ASIC, MAS, FSA, FCA, NFA, IIROC, BVI, and the NFA in the USA, making it a suitable choice for US traders. On the other hand, Saxo Bank is regulated by FCA, ASIC, MAS, FINMA, JFSA, HKSFC. In terms of security rating, Saxo Bank slightly edges out Oanda, with a security rating of 95 compared to Oanda’s rating of 94.

Demo Accounts

Oanda offers unlimited demo accounts with $100,000 in virtual funds. The virtual funds can be restored by contacting customer support. Saxo Bank’s demo account has a 20-day duration, and traders can open multiple demo accounts with the same email. However, the virtual funds cannot be restored.

Account Opening

Oanda requires no minimum deposit, and traders can choose from seven account currencies. Payment methods include wire transfers, credit/debit cards, and eWallets. Oanda offers various account types, including Standard, Premium, Core, Spread Betting, and Professional for advanced traders. Saxo Bank, on the other hand, requires a minimum deposit of $500, with over 20 account currencies available. Payment methods include bank transfers, credit/debit cards, and e-wallets. Saxo Bank offers a range of accounts, including Classic, Platinum, VIP, and Corporate accounts.

Social-Copy Trading

Oanda offers social-copy trading, allowing traders to engage in social trading through third-party platforms like TradingView. Additionally, traders can use the EAs on the MT4 and MT5 platforms to engage in copy trading. Saxo Bank does not offer social-copy trading.

Markets

Oanda offers a decent range of markets, including Forex, Commodities, Indices, Crypto assets, Stocks, ETFs, and Bonds. In contrast, Saxo Bank offers a much broader range of markets, including Forex, Commodities, Indices, Bonds, Stocks, ETFs, and Futures. However, Saxo Bank offers only CFD assets, making it more suitable for short-term investing rather than long-term.

Trading Fees

Oanda’s spreads are variable, starting from 1.2 pips on Forex, which is above the market average. However, there are no commissions on stock trades for EUR accounts. Saxo Bank’s spreads are variable, starting from 0.3 pips on Forex, making it more competitive than Oanda.

Platforms

Oanda offers the Oanda Trade Platform, which is available via desktop, web, and mobile. It also offers MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. Saxo Bank offers SaxoTraderGO, which is its standard proprietary trading platform, and SaxoTraderPRO, an advanced proprietary trading platform that can be connected with APIs and algo trading. Saxo Bank’s platforms are more advanced and cater to multi-screen trading.

Education and Customer Care

Oanda offers a range of educational materials, including technical and fundamental analysis tutorials, webinars, and events. Customer care is available via phone, email, and live chat.

Saxo Bank also provides clients access to webinars, articles, videos, trading guides, and a trading academy. Customer care is easy to contact via email, phone, and live chat, with dedicated account managers available for high-net-worth clients.

Conclusion

Overall, both Oanda and Saxo Bank are reputable brokers with a high level of regulation and security. Oanda is a suitable choice for beginner to intermediate traders with no minimum deposit requirement, unlimited demo accounts, and a decent range of markets. On the other hand, Saxo Bank caters more to advanced traders, with more sophisticated platforms, a broader range of markets, and a lower cost structure.