Saxo Capital Markets vs IG

Saxo Capital Markets vs IG Comparison

Forex Spreads and Accounts Comparison

Saxo offers 3 different types of trading account. The classic account has a minimum deposit requirement of AUD$3000. This account will be the focus of our comparison review. Saxo offers two other accounts, are Platinum and VIP. These accounts have a minimum deposit requirement of at least $50,000 which we consider being too high for the average trader.

IG also offers several accounts however we will only focus on the Standard Account. The professional account, like the Saxo Markets Platinum and VIP, has minimum entry requirements to be eligible. To be qualified as a professional, you need net assets of $2.5 million or gross income of at least AUD$250,000. The IG Standard account does not have a minimum deposit requirement. You will still need to have minimum available funds to cover margin requirements.

Spreads Comparison

Above is a comparison of Saxo Markets, IG and commission-free accounts that other brokers offer. As one can see, Saxo Markets offer the tightest spreads in this collection of online brokers. So if you are after a ‘market maker’ style broker with the tightest possible spreads, then Saxo Markets might be for you.

Both brokers can offer low volumes because they use a combination of order-driven and quote driven market. In the order-driven market, you can place the amount you are willing to buy or sell your currency pairs at. These orders will be on the books until another trader places an order to sell or buy at the same rate. This is different from a quote driven where the market maker provides their quote for a short period and you are free to accept or reject the quote.

The main benefit of the order-driven market is the transparency it offers from traders are visible to you however sometimes it can be difficult to complete your order if there is not enough liquidity in the order-driven market. Quote driven will likely mean there is a dealing desk in the process, while the order-driven market has no dealing desk.

Key Account details

Saxo Markets Classic Account

Saxo Capital Markets Classic Account

• $3000 minimum deposit
• Choice of 182 currency pairs / 140 forex forwards / 40 forex options
• Market Maker
• No commissions
• In-house analyst
• Integrated online support
• 24/5 hour customer support
• The option of limited-risk account
• Automatic upgrade to Platinum and VIP when you meet trade volumes (which can mean tighter spreads).
• Scalping (no hedging)

IG Personal Account

• No minimum deposit/balance to open an account
• Market maker (except with DMA)
• Over 90 currency pairs / weekly fx options / currency futures
• No commissions
• 24/7 hour customer support
• The option of limited-risk account
• The option of Direct Market Access (DMA) trading execution via Forex Direct Account. (available to Australians only).
• Hedging
• Scalping
• Risk management tools
• Cash rebate program

Conclusions

Saxo Markets offers slightly tighter spreads so might be the best option if you’re looking for the tightest spreads. Saxo Markets, however, do have a high minimum deposit if you wish to open an account with them. IG, on the other hand, offer very similar spreads to Saxo but don’t have the same minimum deposit and also offer a greater choice of risk management tools.

Leverage – Saxo Capital Markets vs IG Markets

Saxo Markets and IG are both multi-regulated, meaning the leverage you’ll be able to trade with is dependent on the subsidiary you are trading with.

For example, if you are trading forex with either brokers Australian (ASIC) or European regulated entities such as the UK (FCA) or Switzerland (FINMA), the maximum leverage available will be capped at 30:1.

Elsewhere, both these brokers offer very low leverage levels by online broking industry standards. The highest leverage available is available via IG’s Dubai subsidiary, where the leverage of 50:1 is permitted by the DFSA.

To be more accurate, both Saxo Capital Markets and IG offer margin rate rather than leverage. These are essentially the same thing, but the margin is expressed as %. This % essentially defines the minimum capital you require to have in your account in order to open your position.

Saxo Capital Market Margins

IG Margins

Low leverage can both good and bad. Low ability to take on debt can help protect you against excessive loss however it can mean you will miss opportunities to make worthwhile gains for your investments. Forex movements tend to be only marginal, so larger leverage can be valuable in achieving significant profits.

We always prefer brokers that offer larger leverage. The most important aspect is the understand the risks when trading with leverage and use this capital responsibly. This means using leverage when you have done your research and have confidence your investments will lead to favourable returns.

Conclusion – Leverage

Both brokers offer ‘ordinary’ margin (leverage) with IG slightly superior.

Platforms – Saxo Capital Markets vs IG Markets

Saxo Markets’ major point of difference is that they have built their trading platforms from the ground up. So confident are Saxo Markets that their platforms are a quality product that they don’t offer platforms many other brokers offer such as MetaTrader 4, MetaTrader 5 or cTrader. This confidence can be demonstrated with the numerous awards it has won, including ADVFN platform award for best trading platform. Traders have a choice of two different platforms, these are SaxoTraderGO and SaxoTraderPRO. Both platforms are available to Classic account users.

SaxoMarkets Trading Platforms

SaxoTraderGO – For Trader and Investors (Web-Based)

SaxoTraderGo is a web-based platform built to HTML5 standards and is the platform most traders use. The platform allows for smooth trading across multiple devices across desktops, laptops, mobiles and tablets. With this platform, you can trade across all the asset classes Saxo Markets offer, which means over 35,000 instruments. The platform is highly customisable, which means charts, live feeds, news features, watch lists and sentiment indicators can be set to suit your needs. The user interface can also be tailored to your preferences. This means you can set the interface to show as many technical indicators, reporting metrics and charting tools that you may desire.

SaxoTraderGo offers the following

• Charts that offer 47 indicators and 17 drawings
• 12 fields for watchlists
• Social trading and copy trading
• Technical and fundamental analysis tools
• Integrated news and analysis research. Saxo Markets have their own in-house research team.
• Trade Ticket – reduces the number of clicks to implement a trade order by including information on the ticket itself.

SaxoTraderPro – For Professionals (Desktop)

This platform can be used by all traders however is designed mostly for traders who want to achieve more with the platform. SaxoTraderPro gives traders the ability to set up 6 screens at once while trading. Unlike SaxoTraderGO, this platform is not web-based but instead needs to be downloaded on to Mac and Windows or added as an App for mobile and tablet devices as it is built for desktop.

Some main features include:

• Extra order types including algorithmic orders
• Real-time netting or end of day netting
• Caters to the professional trader

IG Markets Trading Platforms

Like Saxo Markets, IG has its own platform, but they take things further. As they offer a choice of 6 different platforms.

The main platforms to note are:

• MetaTrader 4 (MT4): This is the world’s most popular trader platform, both with brokers and traders. Key features include:
  • Best for forex trading, indices and commodities, but not ideal for share trading.
  • The reputation of worlds most popular platform is built on its reputation for offering all the trading features such as charts and indicators that you will need
  • Expert Advisors (automated trading, robots, algorithmic trading)
  • Not locked into brokers trading eco-system. Many brokers offer MT4 so you can switch brokers more easily.
• IG’s Proprietary Platforms:
  • Available on web and app
  • Can integrate with Direct Market Access (DMA) for share trading as long as you have a Forex Direct account
  • Good for all CFD types
  • No Automated trading
  • Great for streaming Reuters news
• L2 Dealer:
  • Best for share trading
  • Designed for Direct Market Access (DMA) trading
  • Requires a Forex Direct Account. This is available for Australian trader however other countries may not have this option as they will need a professional/institutional account
  • Wide range of order types
  • Access to ProRealTime
  • Free as long as your account has $2000 balance
• ProRealTime:
  • Monthly fee
  • Best for those needing advanced charts and monitoring tools
  • Browser-based

IG Markets Trading Platforms summary

Conclusion – Saxo Capital Markets vs IG Markets

Saxo Capital Markets platform is actually one of the best ‘ self-made’ platforms in the industry, and we highly recommend it. IG also offers an excellent proprietary platform that is just as good as SaxoTrader. The main issue with proprietary platforms is that it limits your future ability to change providers. We, therefore, recommend a broker that offers MT4 or MT5 such as Pepperstone.

Risk Management – Saxo Capital Markets vs IG Markets

Saxo Capital Markets doesn’t offer any ‘guaranteed’ style risk management tools such as guaranteed stop loss and guaranteed minimum balance protection. Instead, they focus mostly on convention risk management tools such as stop-loss order, take profit order, etc. That said, Saxo Capital Markets does have a few useful unique risk management features. These include:

• Quick Close – This allows you to close all your positions within an asset class with just 2 clicks
• Account Shield – is a type of stop loss. When account loss value is triggered, then all open positions will be closed

IG Markets in addition to the standard risk management tools also offer 2 notable risk management tools these are

• Guaranteed stop loss. For a premium, users can protect their position by purchasing a guaranteed stop-loss, which means they won’t lose more than are willing to.
• Limited Risk Account – If you are a beginner, you may see value in a limited risk account. This simply means you must use a guaranteed stop-loss order when taking a position

Conclusion – Saxo Capital Markets vs IG Markets

IG offer better risk management tools than Saxo Capital Market. Saxo Capital Markets does offer some unique risk management tools no other brokers offer. If you have experience in trading, then you may not see the need to pay premiums for the risk management tools IG offer, so Saxo Markets may offer some benefits over IG if this is the case. Inexperienced trade may prefer IG.

Contracts for Difference (CFDs) – Saxo Capital Markets vs IG Markets

Saxo Capital Markets CFDs

This broker offers an extensive range of derivatives across multiple asset classes. Here you can find some 35,000 instruments across 8 different asset classes.

When it comes to CFDs, Saxo Capital Markets offer the following:

• Stocks – 8,800 single stocks and 675 ETFs
• Index Trackers – 29 index tracking CFDs
• Bonds – 5 government bonds
• Commodities 0 19 commodities CFDs, including both hard and soft commodities.
• Index Options – 15 index options

CFDS – IG

IG, like Saxo, also offers a very extensive range of CFDs.

In addition to above, IG also offers ETFs/ETPs, IPOs Interest Rates and Bonds.

Shares Comparison

Purchasing shares with Saxo appears to be slightly cheaper. When purchasing Australia shares, issuer sponsored shares are $6.99 vs $8 for IG. IG does not offer CHESS share option. While Saxo CHESS shares are more, we believe they are worth considering, as they will help reduce administrative hassles when buying and selling shares.

Conclusion – Saxo Capital Markets vs IG Markets

Both brokers extensive CFDs and both should adequately cover all your trading needs. When it comes to shares, Saxo offers both Issuers and Chess sponsored shares, unlike IG, which only offers ‘Issuers sponsored’ shares which may present a reason to choose Saxo Capital Markets.

Bonus Offers – Saxo Capital Markets vs IG Markets

Saxo Capital Markets Offers

While Saxo Markets may occasionally have a rebate rewards program, they do not have any ongoing programs. As a trader, it may be tempting to choose a broker that rewards you for signing on with them however the reality is the expense has to be paid somewhere. This will usually be in the form of trading credits, which is a sign the broker is trying to tie you to them by forcing you to trade unused credit. Saxo already offers very decent spreads, so this can be interpreted as a sign that they offer a great product at a great price and therefore don’t need to go out of their way to further entice you to stay with them.

Saxo Capital Markets does have a refer a friend program.

Refer a friend program:

Saxo Capital Markets will reward you with $350 if you refer a friend that deposits up to AUD 100,000 when they sign up for an account and commence trading.

IG Markets

IG Markets, unlike Saxo Markets, have multiple bonus offers. These include the following:

Refer a friend:

For each friend, you refer that opens an account and places at least 5 trades you will receive 1 credit. 1 credit will give you USD $100 trading credit while 5 credits will give you USD $1000 trading credits.

Rebate program:

IG has a rebate program. The rebate program rewards you with more credits the more you trade each month.

QANTAS Frequent Flyer Points program:

If you are a member or intend to be a member of the QANTAS frequent flyer program, then IG will reward you with frequent flyer points when you trade.

New IG Members

Existing IG Members

Conclusion – Saxo Capital Markets vs IG Markets

IG offers more options when it comes to bonus offer so we recommend IG for this category.

Customer Service – Saxo Capital Markets vs IG Markets

Customer Support – Saxo Capital Markets

Saxo Markets customer support is somewhat unusual in that they do not offer a live chat service. Live chat is a standard offering from nearly all online brokers. Saxo Capital Markets however do offer phone and email support throughout the standard trading week (i.e. Monday to Friday).

Saxo Capital Markets provides an extensive customer support section where you can find just about all the answers you may be looking for. This includes answers to frequently asked questions and the ability to browse by topic.

Customer Service – Saxo Capital Markets

Saxo Markets provide extensive research and education for its clients. Many of these features are integrated into their platform. Saxo Capital Markets a specialist in-house team of experts providing good research and education content.

The following research is available and can be in the form of article, videos or chart analysis.

• Morning Call
• Market analysis and news
• Predictions
• Quarterly Outlook
• Expert strategies

Research:

Trading education includes video courses and webinars.

• Video series – This covers topics for each type of trading mediums such as stocks, CFDs or commodities. These videos will generally go for 10 to 15 minutes.
• Webinar series – This looks in depth at the SaxoTrading platform and various trading topics and opportunities rather than actual education on how to trade.
• Events – Sometimes Saxo Markets might host conferences where traders can get together and learn from experts about various topics.

Demo Account:

Saxo Capital Markets provides a free 20-day demo account which comes with $100,000 of virtual money. You can practice with either SaxoTraderGo or SaxoTraderPro platforms.

Customer Support – IG

IG customer support is more extensive than Saxo Markets. Support is available every day of the week, though hours are limited on Saturdays. You can reach out to IG support via Live chat, phone, email and even Twitter. They also have a forum where you can ask questions to the IG community.

Customer Service – IG

Education

• Online Trading Courses / IG Academy. IG has 8 training courses for all levels of users. That covers a wide range of trading areas, including trading psychology, understanding risk, and how to trade. This series can also be downloaded to your mobile via the IG Academy app. These courses are interactive and include infographics and quizzes.
• Live sessions – IG host trading webinars and in-person seminars where you have the opportunity to engage with experts and ask questions you may have.

Other education tools:

• News and Analysis – here you can receive insights into different strategies based on the latest trading news.
• Financial Events – Advice of upcoming financial events which may influence your trading decisions.

Demo Account:

IG offers a demo account, which gives you access to $20,000 of virtual funds. It is important to be aware that IG demo accounts do not include slippage and do not reject your positions if size or price is insufficient, which are important considerations when trading in the real world.

Conclusion – Saxo Capital Markets vs IG Markets

Both brokers offer great customer support and service tools. IG customer support not only are available more hours but provide more mediums to contact them so we recommend IG. We also believe the IG education and research tools are superior.

Deposits and Withdrawals – Saxo Capital Markets vs IG Markets

Saxo Capital Markets Funding

Saxo Markets only offer 3 ways to find your account. These are Visa and MasterCard for debit and credit transfer, bank transfer and personal cheque. Saxo Capital Markets does not charge to deposit or withdraw however there is a USD 100,000 daily limit and 30 day USD 160,000 limit. It is interesting to note that Saxo Markets do not offer any eWallet options such as PayPal, BPay and the like.

IG Markets Funding

IG allows the following deposit methods. Visa, MasterCard, PayPal and BPay in addition to the usual Bank Transfer. There is a 1% fee for Visa credit card and PayPal transactions and 0.5% MasterCard credit card transactions. The fee is 1.5% for non-AUD transactions. There is a minimum $450 deposit for card transactions.

There is a limit of AUD 35,000 you can withdraw to your card.

Conclusion

Saxo Capital Markets provides limited funding options however do not have fees or minimum deposits. So it comes down to if you prefer to use cards or e-wallets for funding.