Saxo Bank vs Trading 212: Comparison and Analysis

Saxo Bank vs Trading 212: A Comparison Summary

When it comes to choosing a broker, it’s essential to consider various factors such as security, account opening, markets, fees, platforms, education, and customer care. In this comparison, we’ll examine two popular brokers, Saxo Bank and Trading 212, based on these factors.

Security

Both Saxo Bank and Trading 212 are regulated by reputable financial authorities such as FCA, ASIC, MAS, FINMA, JFSA, HKSFC, FSC, and CySEC. Saxo Bank has a slightly higher security rating of 95 compared to Trading 212’s 94.

Demo Accounts

Saxo Bank offers a 20-day demo account with virtual funds of $100,000, while Trading 212 provides an unlimited demo account with virtual funds of $50,000. However, Trading 212’s demo account funds can be restored by contacting customer support, while Saxo Bank’s funds cannot be restored.

Account Opening

Saxo Bank has a higher minimum deposit of $500, while Trading 212 has a lower minimum deposit of $1 for the Invest account and $10 for the CFD account. Saxo Bank offers over 20 account currencies, including EUR, USD, GBP, AUD, while Trading 212 offers only GBP and EUR. Payment methods for both brokers include bank transfers, credit/debit cards, and e-wallets. Saxo Bank offers more account types, including Classic, Platinum, VIP, and Corporate accounts, while Trading 212 offers CFD, Invest, ISA, and Professional accounts.

Social-Copy Trading

Trading 212 offers the Autoinvest feature, which allows traders to copy each other’s stock investing strategies. Saxo Bank does not offer social-copy trading.

Markets

Saxo Bank offers a wider range of assets, including Forex (180), Commodities (70), Indices (37), Bonds (5000+), Stocks (19000+), ETFs (3000+), and Futures (10). However, Saxo Bank only offers CFD assets, which are more suitable for short-term investing rather than long-term. On the other hand, Trading 212 offers fewer assets, including Forex (200), Commodities (23), Indices (1500+), Stocks (3000+), ETFs (400+), and Futures and Options (80+). Trading 212 offers both CFDs and real assets for stocks and ETFs, making it a good option for long-term investing.

Trading fees

Both Saxo Bank and Trading 212 offer variable spread types, with Saxo Bank’s spreads starting from 0.3 pips on Forex and Trading 212’s spreads starting from 1 pip. Saxo Bank charges commissions on some assets, while Trading 212 has no commissions for Invest account holders.

Platforms

Saxo Bank offers two proprietary platforms, SaxoTraderGO and SaxoTraderPRO, which are suitable for multi-screen trading and can be connected with APIs and algo trading. On the other hand, Trading 212 offers a proprietary platform that is available via web and mobile devices.

Education/Customer

Saxo Bank provides clients access to webinars, articles, videos, trading guides, and a trading academy. Saxo Bank also offers easy-to-contact customer care via email, phone, and live chat, as well as dedicated account managers for high-net-worth clients. Trading 212 offers basic educational material useful mainly for less experienced traders and easy-to-contact customer care via email and live chat, with an automated translator that can be used to contact Trading 212 in any language.

Conclusion

Both Saxo Bank and Trading 212 have their strengths and weaknesses. Saxo Bank offers a wider range of assets and account types, but Trading 212 has a lower minimum deposit, unlimited demo account, and offers both CFDs and real assets for stocks and ETFs, making it more suitable for long-term investing. Saxo Bank’s proprietary platforms are more advanced, while Trading 212’s platform is more accessible via web and mobile devices. Both brokers have reputable regulatory bodies and easy-to-contact customer care, with Saxo Bank offering more extensive educational resources.