Interactive Brokers vs Saxo
Interactive Brokers vs Saxo: which is the better broker for global investors?
Same portfolio at both providers: USD 50,000 to start, USD 500 a month, 5% a year, held for 30 years. Interactive Brokers costs USD 614 in total fees. Saxo Bank costs USD 3,200, which is USD 2,586 more, roughly 5 times as much.
Referral link: ibkr.com/referral/marco1592. The bonus is paid by Interactive Brokers. Using it costs you nothing extra.
Cost comparison, side by side
| What you pay for | Interactive Brokers | Saxo |
|---|---|---|
| Total fees over 30 years | USD 614 | USD 3,200 |
| Custody / platform fee | None on a standard account | 0.12% to 0.25% a year depending on tier |
| Cost per trade | From USD 0.35 on US listings, from EUR 1.25 on European listings | From around USD 1 on US listings |
| Currency conversion | Around 0.002% of the amount, minimum USD 2, at the interbank rate | Around 0.25% to 0.5% per conversion |
| Other charges | No inactivity fee, no withdrawal fee for the first withdrawal each month | No inactivity fee on most tiers |
Figures are indicative, based on published tariffs for the portfolio described above and converted to US dollars. Pricing differs by country of residence and changes often, so check both providers before you decide.
Where Saxo is genuinely good
- The closest global competitor on price and product range
- Excellent platform and research
- Bank-licensed entities in several jurisdictions
Where it costs you
- Custody fee applies where IBKR charges none
- Currency conversion costs multiples of IBKR
- Around five times the total cost over 30 years
My take
If you want a bank-licensed account with low fees, Saxo is the serious alternative. Interactive Brokers is still the cheaper of the two.
Both accounts are legitimate and both are regulated. The question is what you are paying for. If you want a hand-held experience in your own language and time zone, Saxo does that. If you want to keep as much of your return as possible, Interactive Brokers is the cheaper account and the extra paperwork takes about half an hour a year.