If you are reading this article, you are likely having trouble deciding whether Plus500 or Saxo Bank is the better trading platform for you. While both platforms generally provide positive user experiences, there are some essential differences to note.
In this Plus500 or Saxo Bank broker comparison, we outline the highlights of each trading platform to help you make a more informed decision. We evaluate:
- Features and Platforms
- Available Markets
- Typical Spreads and Fees
- Security and Trust
- Plus500 vs Saxo Bank - Verdict
Israel Denmark ASIC, CySEC, FCA, FMA, FSCA, MAS N/A 2008 1996 Market Maker ECN/STP $100 $500 N/A Proprietary platform, Web-based Proprietary platform, Web-based 1.3 pips 0.7 pips ($7.00) 1.7 pips 1.1 pips ($11.00) - $0.05 - $0.55 82.00% N/A Not applicable N/A Not applicable N/A Commission-free N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Features and Platforms
N/A N/A Visit Website 82% of retail CFD accounts lose money Visit Website
Plus500 has catered to clients since 2008, but only offers its proprietary trading platform. It ignores those in need of the MT4 infrastructure, those who use automated trading solutions, which remains the fastest-growing segment of the financial system, and those who favor social trading, which has staged a comeback over the past few years. New traders do not have an adequate educational section, and Plus500 does not provide research for clients. Denmark-based Saxo Bank launched in 1992 as an online broker and became a bank in 2001. It offers traders an excellent choice of proprietary trading platforms and considers itself as a FinTech company. SaxoStrats offers in-house research provided by its global team, and a comprehensive educational section adds value for new traders. Saxo Bank remains one of the most competitive banks and brokers in operation today.
Available Markets
N/A N/A N/A N/A Visit Website 82% of retail CFD accounts lose money Visit Website
While Plus500 offers traders an excellent asset selection, it is no match for that provided by Saxo Bank. Most traders will find the 71 currency pairs at Plus500 sufficient, but the 182 pairs at Saxo Bank remain among the most offered by any broker. Plus500 delivers a broader commodity exposure with 22 versus 19 at Saxo Bank. The former has 585 options contracts and 1,737 equity CFDs, bested by the latter where more than 1,240 options contracts and over 9,000 equity CFDs await traders. While Plus500 added 95 ETFs, Saxo Bank features 3,000+ and more than 500 mutual funds and managed portfolios, together with 19,000+ regular stocks and bonds. Overall, Plus500 grants clients access to 2,400+ assets versus 40,000+ at Saxo Bank, which maintains one of the most comprehensive asset choices among all brokers.
Typical Spreads and Fees
1.3 pips 0.7 pips ($7.00) 1.7 pips 1.1 pips ($11.00) - $0.05 - $0.55 - $90.65 Not applicable N/A Not applicable N/A Commission-free N/A N/A N/A $10 monthly after 3 months N/A Visit Website 82% of retail CFD accounts lose money Visit Website
The commission-free trading environment at Plus500 offers most retail traders an advantage, but Forex CFD costs remain moderately higher. Plus500 features dynamic, market-dependent spreads versus just 0.4 pips at Saxo Bank, which implements a competitive equity commission structure as low as 0.06%, with most markets at 0.10%. Plus500 does not add additional costs in exchange for a higher spread. Swap rates on leveraged overnight positions apply. Portfolio adjustments related to corporate actions exist together with third-party payment processor costs. The currency conversion fee at Plus500 is up to 0.70% versus between 0.10% and 0.75% at Saxo Bank.
Security and Trust
United Arab Emirates, Australia, Cyprus, Estonia, Israel, New Zealand, Seychelles, Singapore, United Kingdom, South Africa Australia, Belgium, Switzerland, Denmark, France, Hong Kong (SAR), Netherlands, Singapore, United Kingdom ASIC, CySEC, FCA, FMA, FSCA, MAS N/A 509909, 250/14, 417727, 486026, 47546, SD039, 100648-1, NOT AVAILABLE, 4.1-1/18, F005651 1149, 551422, Undisclosed, 34357130, 483632501, Undisclosed, 200601141M, 1395901, 280372 N/A 1, 1, 1, 1, 1, 1, 1, 1, 1 Visit Website 82% of retail CFD accounts lose money Visit Website
Client deposits at Plus500 and Saxo Bank remain segregated from corporate capital, and the trading environment is secure at both brokers. The former, a UK publicly-listed company and constituent of the FTSE 250, had a 2012 FCA fine for misreporting transactions.Saxo Bank faced allegations of misconduct in 2010; the Danish FSA, its primary regulator, completed its internal review and ordered an independent investigation, which confirmed the absence of misconduct. Negative balance protection exists, where mandated by law. Both brokers maintain oversight from multiple regulators, and remain well-capitalized, while Saxo Bank is more trustworthy, as it has never faced a regulatory fine. All client funds deposited with Plus500’s Cyprus subsidiary are held in segregated client bank accounts in accordance with the Cyprus Security and Exchange Commission’s (CySEC) client funds rules. Plus500AU Pty Ltd holds client money in a segregated trust account, in accordance with the Australian legal requirements.
Plus500 vs Saxo Bank – Verdict
Most retail traders will find the commission-free asset selection at Plus500 more than sufficient if an execution-only broker fulfills their trading needs. Those seeking a superior trading platform, competitive trading tools, research and education, automated trading solutions, or social trading will not find them at Plus500, which neither delivers value-added services nor supports core trading elements. 82% of retail CFD accounts lose money at Plus500, which focuses more on sponsorship of sports teams than on improving the product and services portfolio for clients. Saxo Bank delivers an excellent core trading environment with a series of competitive proprietary trading platforms, with support for third-party developers. More than 420 financial institutions rely on its infrastructure, with full support for automated trading, while several third-party trading tools increase the competitiveness at Saxo Bank. An excellent in-house research team covers markets, and new traders may use any of the educational material to improve their ability to trade successfully. Saxo Bank delivers a complete package for demanding retail traders through professional ones to institutional clients and remains in a different league compared to Plus500. 70.0% of retail traders face a portfolio loss at Saxo Bank.
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