Quick Answer
For UK forex & CFDs (2024), beginners favour IG’s user-friendly platform & education. Experienced traders might prefer Saxo’s powerful platform & potentially wider product range (consider fees & account types). Both FCA-regulated for safe trading.
Page Contents
Overview
This article explores two popular investment platforms, IG and Saxo. Comparing them across key features and criteria to help you decide which might better suit your needs.
For more on investment platforms you may want to check out our Best Investment Apps, Best Day Trading Platforms or Best CFD
Please note: This guide is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions.
Saxo
Saxo is a leading online trading platform offering a wealth of investment options, from stocks and bonds to ETFs and fractional shares. They cater to both experienced traders seeking powerful tools and beginners navigating their first investments.
IG
IG Markets, a titan in the spread betting world, empowers you to trade a vast array of assets, including stocks, forex, and commodities. Their user-friendly platform caters to both beginners with educational resources and seasoned traders seeking advanced features.
Saxo History:
- Founded in 1992 in Denmark, Saxo has grown into a global online trading platform.
- Initially focused on forex trading, they’ve expanded to offer a diverse range of investments.
IG History:
- Established in 1974 in the UK, IG is a pioneer in spread betting.
- They remain a leader in spread betting, offering a wide selection of tradable assets.
Head to Head Comparison Table
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Investing Options | Stocks, ETFs, Bonds, Forex, CFDs, Mutual Funds | Spread Betting, CFDs, Stocks, ETFs, Options (limited) |
Interest on Uninvested Cash | 3.91% £ | |
FCA Regulated | ||
Founded | 2020 | 1974 |
Investor Protection | ||
 | 4.0/5 | 4.1/5 |
ISA Account | ||
Mobile App | ||
Inactivity Fee | 24 Months | |
Monthly Fee | ||
Base Fiat | £ $ € | £ $ € |
Min Deposit | £250 | |
Fractional Shares | ||
Demo Account | ||
Available in UK | ||
Reviews
Both Saxo and IG Markets ranked highly in their dedicated reviews. You may want to check out our in-depth reviews for each below:
Key Differences
History & Reputation: Saxo, founded in 1992, boasts a long-standing reputation for offering a powerful platform with a vast array of investment products. IG, established in 1974, is a UK leader known for its user-friendly approach and extensive educational resources.
Regulatory Bodies: Both Saxo and IG are regulated by the Financial Conduct Authority (FCA), the official regulator for financial services in the UK [Source: FCA website]. This ensures a safe and secure trading environment for UK investors.
Focus: Generally, Saxo caters to experienced traders with a sophisticated platform and advanced features. IG, on the other hand, prioritizes ease of use and educational tools, making it a popular choice for beginners venturing into forex and CFD trading.
Broker Pros and Cons
Saxo
- Extensive Range of Instruments: Offers over 40,000 trading options, including forex, stocks, bonds, and commodities, catering to diverse investment strategies.
- Advanced Trading Tools: Provides sophisticated charting and analysis tools suitable for experienced traders looking for in-depth market analysis.
- Global Market Access: Enables trading across global markets, appealing to investors interested in international diversification.
- Complex Fee Structure: The fee model can be complex, making it challenging for some traders to estimate trading costs accurately.
- Platform Learning Curve: The advanced features and comprehensive range of options may overwhelm beginners.
- Potentially Higher Fees for Low Volume Traders: While competitive, fees may be higher for traders with lower trading volumes compared to some competitors.
IG Markets
- User-Friendly Platform: Known for its intuitive interface and ease of use, making it ideal for beginners and experienced traders alike.
- Low Fees for Forex Trading: Offers competitive rates in forex trading, with low to no commissions on stock trading and currency pairs, making it cost-effective.
- Extensive Educational Resources: Provides a wealth of learning materials, including webinars, tutorials, and articles, supporting trader education at all levels.
- Inactivity Fees: Charges fees for accounts that are inactive for two years, which could affect casual traders.
- Limited Product Range Compared to Saxo: While offering a broad array of markets, it has fewer instruments than Saxo, which might limit options for some traders.
- Spread Costs: For certain markets and instruments, the spread costs can be higher, affecting trading profitability.
Broker Suitability
Choosing the “best” broker depends on your individual circumstances. Here’s a breakdown to help you decide:
Experience Level
Beginners: If you’re new to forex and CFD trading, IG might be a better fit. They offer a user-friendly platform, extensive educational resources, and potentially lower minimum deposit requirements to get you started. Demo accounts are a fantastic way to practice before risking real capital.
Experienced Traders: For seasoned traders, Saxo could be the ideal choice. Their platform boasts advanced features and functionalities catering to complex trading strategies.
Trading Goals: Consider what you hope to achieve. Saxo’s vast product range (potentially including stocks and ETFs) might suit those seeking diversification beyond forex and CFDs. For those focused solely on forex and CFDs, both platforms offer strong options.
Product Offerings
For spread betting and CFDs, IG leads the pack with a vast selection of assets. They also cater well to beginners with features like fractional shares and educational resources.
However, if you prioritize traditional investments and global access, Saxo shines. Their platform offers a wider range of stocks, bonds, ETFs, and global exchanges, along with advanced features for active traders. Consider your trading goals (spread betting vs. investing) and research fees before making your choice.
Platform and Features
Ease of Use: IG generally takes the lead for user-friendliness. Their platform is designed to be intuitive and easy to navigate, making it a good choice for beginners. Saxo offers a powerful trading platform, but its interface can be more complex, requiring some learning for new traders.
Social trading, where you can copy trading strategies from successful traders, is another option, especially for beginners.
Premium account tiers on trading platforms like IG offer advanced features for experienced traders. Social trading, where you can copy trading strategies from successful traders, is another option, especially for beginners.
Advanced Features: Saxo shines in this area. Their platform boasts advanced charting tools with extensive technical indicators and functionalities ideal for experienced traders who want to analyse markets in depth. IG might offer some advanced features, but the overall focus is on user-friendliness.
Research and Analysis Tools: Both Saxo and IG provide research tools and analysis features to help you make informed trading decisions. These might include market news, fundamental analysis reports, and technical analysis tools. It’s recommended to check with each broker for a detailed breakdown of their offerings.
Mobile App Comparison: Both Saxo and IG offer mobile apps for trading on the go. IG’s mobile app generally receives high praise for its user-friendly interface and core trading functionalities. Saxo’s mobile app also provides access to trading, but its interface might be less intuitive for beginners compared to IG.
Trading Options: While forex and CFDs are their primary focus, both Saxo and IG might offer limited access to options or futures trading depending on the specific account type and regulations.
Trading tools empower informed decisions. Explore market maker platforms like Saxo Capital Markets, a publicly traded company, or consider ECN accounts (Electronic Communication Networks) offered by IG.
Fees and Costs
Trading Fees: Both Saxo and IG primarily rely on spreads (the difference between the buy and sell price of an asset) to generate revenue. Spreads can vary depending on the asset class, account type, and market conditions.
Premium account tiers on Saxo do offer lower rates but to gain access your inital deposit will need to be very high.
IG generally offers tighter spreads for major forex pairs, while Saxo might have more competitive spreads for less liquid assets. Trading costs are a crucial consideration. While platforms like IG boast negative balance protection for retail CFD accounts, remember the warning: retail accounts lose money frequently.
Commissions: Commission structures can vary depending on the broker and product type. Saxo might charge commissions for stock and ETF trades depending on the account type, while IG might offer commission-free trading on specific products under certain conditions. It’s essential to check each broker’s fee schedule for details.
Account Inactivity Fees: Here’s a key difference, Saxo: Does not typically charge an account inactivity fee. IG: Charges an inactivity fee after 24 months of account dormancy. It’s recommended to check their specific fee schedule for details and potential exemptions.
Margin Trading: Both Saxo and IG might offer margin trading, allowing you to leverage your capital to potentially amplify gains (or losses). Margin rates (the interest charged on borrowed funds) can vary depending on the asset class and account type. It’s crucial to understand the risks associated with margin trading before using it.
Customer Service
How does customer Service compare?
Support Channels:
Saxo: Typically offers phone, email, and potentially live chat support depending on your account type and location.
IG: Generally provides phone, live chat, and email support channels.
Trust Pilot
Saxo: Currently holds a Trustpilot score of 3.7 based on 5465 reviews. Reviews highlight the potential for long wait times for phone support, while praising the helpfulness of agents when connected.
IG: Currently holds a Trustpilot score of 4.1 based on 6657 reviews. Some reviews mention occasional challenges reaching customer service representatives, while others commend the responsiveness of their live chat support.
Final Verdict
Saxo excels with its powerful platform, advanced features, and potentially wider product range (including stocks and ETFs for some account types). It might be ideal for experienced traders who value platform stability and in-depth analysis tools.
IG shines with its user-friendly platform, extensive educational resources, and potentially lower minimum deposits. Their commission-free offerings on specific products might also be attractive. For beginners venturing into forex and CFD trading, IG could be a good starting point.
FAQ
Saxo Bank offers a comprehensive and professional trading environment, known for its wide range of international markets and sophisticated trading tools. It’s particularly well-suited for advanced traders who need access to extensive market research and diverse investment options. IG, on the other hand, is renowned for its user-friendly interface, making it a good choice for beginners and intermediate traders. IG also provides a broad array of educational resources and trading support.
The fee structure between Saxo Bank and IG varies depending on the type of asset traded and the account type. Generally, Saxo Bank might have higher entry costs with its premium platforms but offers lower fees for high-volume traders. IG is known for competitive spreads and no commissions on U.S. stock trading, which can be appealing for casual investors. It’s important for traders to review the current fee structures on both platforms to determine which fits their trading strategy best.
Yes, both brokers provide access to international markets, but their offerings differ. Saxo Bank offers access to over 40,000 instruments across global financial markets, including Forex, CFDs, equities, commodities, and bonds, making it a robust platform for accessing non-domestic markets. IG also offers a wide range of markets, including forex, stocks, indices, and more, with a strong presence in forex trading.
Saxo Bank provides its proprietary SaxoTraderGO and SaxoTraderPRO platforms, which are highly customizable and offer advanced charting tools, comprehensive risk management features, and direct market access. IG offers its own platform and apps that are known for being intuitive and mobile-friendly, as well as access to third-party platforms like MetaTrader 4 and ProRealTime, which are favorites among technical traders.
Both brokers excel in customer support and educational resources, but their approaches differ slightly. Saxo Bank offers detailed market insights, webinars, and a dedicated account manager for premium clients, which can be valuable for serious investors looking to expand their trading skills. IG focuses extensively on trader education, with a wealth of online resources, live webinars, and trading courses available to all users, making it an excellent choice for new traders looking to learn the ropes.