Broker Comparison

Interactive Brokers vs Saxo Bank (2026):
Fees, FX costs, and who wins for EU investors

Both brokers target experienced European investors — but they’re built differently. IBKR wins on raw cost. Saxo wins on platform polish and banking infrastructure. The right choice depends on how much FX drag you’re willing to absorb and how much you value a better interface.

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TL;DR

✅ Choose IBKR if
  • Minimising total cost is your priority.
  • You invest regularly in USD-denominated assets — the FX gap compounds fast.
  • You want multi-currency accounts and institutional FX rates.
  • You’re comfortable with a more complex platform setup.
✅ Choose Saxo if
  • You want a polished, intuitive platform (SaxoTraderGO is genuinely good).
  • You prefer a fully licensed bank with €100k deposit protection.
  • You have €200k+ and can access Platinum pricing.
  • You invest primarily in EUR-denominated UCITS ETFs.

Quick comparison

Category Interactive Brokers Saxo Bank
EU ETF commission ~0.05% (min ~€1–€1.25, tiered) 0.08% Classic (min ~€3); lower at Platinum/VIP
FX conversion ~0.03% all-in ($2 min per conversion) 0.25% flat — all tiers, no exceptions
Custody fee None 0.15% Classic / 0.12% Platinum / 0.09% VIP (min €5/mo; avoidable via stock lending)
Inactivity fee None None (removed 2024)
Account tiers Fixed / Tiered pricing plans (all clients, from day 1) Classic / Platinum ($200k) / VIP ($1M)
Instruments 2M+ across 150 markets, 33 countries 70,000+ across 60+ exchanges (7,000+ ETFs)
Fractional shares Yes (IBKR GlobalTrader) Limited (savings plans only)
Platform TWS (complex) / Client Portal / GlobalTrader (mobile) SaxoTraderGO (excellent) / SaxoTraderPRO (VIP)
Banking licence No (brokerage firm) Yes (Danish bank, DFSA regulated)
Investor protection €20,000 (Irish ICS) €100,000 cash (Danish DGS) + securities segregated
Cash interest Yes (eligible balances above threshold) VIP accounts only

FX conversion: where the real gap is

For European investors buying USD-denominated assets, FX conversion cost is often a larger drag than commissions. This is where IBKR and Saxo diverge most significantly.

IBKR FX conversion
  • Manual via IDEALPRO: $2 flat (or 0.002% on trades over $100k)
  • Automated conversion: ~0.03% all-in
  • Hold EUR and USD simultaneously — no forced conversion
  • Convert in large, infrequent batches to minimise cost
Saxo FX conversion
  • Flat 0.25% on all conversions — every tier, no exceptions
  • Applies on every EUR→USD trade involving a non-EUR asset
  • Multi-currency sub-accounts help reduce conversion frequency
  • Fair by traditional bank standards; expensive vs IBKR
Scenario IBKR cost Saxo Classic cost
€10,000 EUR→USD conversion ~€3 ~€25
€1,000/month × 12 months (annual FX) ~€36 ($2 × 12 if manual, or ~€3.60 automated) ~€30 (0.25% × €12,000)
€500/month × 10 years (total FX drag) ~€120 (manual, batch-converted) ~€1,500 (0.25% × €60,000 contributions)
The FX gap is not a rounding error — it’s one of the most significant cost differences between any two EU brokers. For more on how this compounds over time, see the FX Drag study and the IBKR currency conversion guide.

Fees: commissions and custody

Both brokers have become more competitive on trading commissions over the last two years. The structure is still meaningfully different for EU investors building a long-term portfolio.

Interactive Brokers
  • EU ETF trades: ~0.05% (min ~€1–€1.25) on tiered pricing
  • No custody fee — ever
  • No inactivity fee
  • Two plans: Fixed (simple) or Tiered (cheaper for most EU investors)
  • Cash interest paid on eligible uninvested balances
Saxo Bank
  • US ETF commission: 0.08% Classic (min $1); 0.05% Platinum; 0.03% VIP
  • Custody fee: 0.15% Classic / 0.12% Platinum / 0.09% VIP (min €5/mo)
  • Custody fee is fully avoidable via the stock lending programme
  • No inactivity fee (removed 2024)
  • Cash interest for VIP clients only
On the custody fee: Saxo’s stock lending programme lets them lend your securities to institutions and splits the income 50/50. Most passive investors who are comfortable with securities lending will opt in and pay zero custody fee in practice. If you don’t opt in, the €5/month minimum means small portfolios pay proportionally more.

How pricing tiers work at each broker

Both brokers use tiered structures — but they work very differently. Saxo’s tiers are deposit-linked and unlock meaningfully lower fees. IBKR’s tiered pricing is volume-based and available to every client from day one.

Saxo Bank: Classic / Platinum / VIP
Tier Min. deposit US ETF commission Custody fee
Classic No minimum 0.08% (min $1) 0.15%/yr (min €5/mo)
Platinum ~$200,000 0.05% (min $1) 0.12%/yr (min €5/mo)
VIP ~$1,000,000 0.03% (min $1) 0.09%/yr (min €5/mo)

FX conversion stays at 0.25% regardless of tier. Platinum and VIP also unlock dedicated account managers, SaxoTraderPRO (VIP), and priority support. Tiers can also be reached via Saxo Rewards points from trading activity, though passive investors are unlikely to earn enough this way.

Interactive Brokers: Fixed vs Tiered

IBKR’s two pricing plans are available to all clients from day one — no minimum deposit, no tier unlock required. The Tiered plan uses exchange rebates and volume discounts, making it cheaper for most EU investors. The Fixed plan is simpler and more predictable. For long-term ETF investors, Tiered is almost always the better choice.

The key point: every IBKR client — whether they have €5,000 or €5,000,000 — gets the same low FX conversion costs. There’s no deposit gate on IBKR’s most important advantage.


Platform: where Saxo genuinely wins

This is the clearest non-cost advantage Saxo has. SaxoTraderGO is one of the most polished web platforms in the industry — cleaner, faster, and more intuitive than IBKR’s interface for investors who don’t need institutional-grade order routing.

Interactive Brokers
  • TWS (Trader Workstation): Extremely powerful desktop platform. Advanced order types, multi-leg strategies, deep data feeds. Most ETF investors use a fraction of what it offers.
  • Client Portal: Web-based, simpler than TWS. Fine for basic ETF investing and account management.
  • IBKR GlobalTrader: Modern mobile app designed for buy-and-hold investors — cleaner UI, easier to navigate.
Saxo Bank
  • SaxoTraderGO: Consistently rated one of the best retail platforms available — clean order flow, TradingView integration, strong charting, good watchlist management. Available at every tier.
  • SaxoTraderPRO: Advanced desktop platform for multi-monitor setups and algorithmic trading. Primarily for VIP clients and professionals.
  • SaxoInvestor: Simplified portal for passive buy-and-hold investors — focused and clean.
If you rely on TradingView for research, Saxo’s native TradingView integration is a genuine bonus. IBKR users typically run TradingView separately — workable, but one extra step.

Product range

Both brokers offer far more than most EU investors will ever use. The differences matter mainly if you want specific instruments beyond mainstream UCITS ETFs — or if you’re planning to scale into fixed income, forex, or niche exposures.

Interactive Brokers
  • 2M+ instruments across 150 markets, 33 countries
  • Stocks, ETFs (UCITS + US), options, futures, bonds, forex, CFDs, metals, crypto
  • Deepest fixed income / bond market access of any retail broker
  • Fractional shares via GlobalTrader
  • Interbank-level forex via IDEALPRO
  • Broadest global exchange access available to retail investors
Saxo Bank
  • 70,000+ instruments across 60+ exchanges
  • 19,000+ stocks, 7,000+ ETFs, 5,000+ bonds
  • 1,200+ listed options, 185 forex pairs, futures, crypto ETPs
  • Built-in savings plans / AutoInvest (100+ ETFs)
  • SaxoSelect robo-advisory (select markets)
  • Structured products (select clients)

IBKR’s market access is broader on raw numbers. For most EU investors building a simple UCITS ETF portfolio, Saxo’s 7,000+ ETF catalogue is more than adequate. Where Saxo adds genuine utility: the built-in savings plan / AutoInvest feature gives it a recurring investment workflow that IBKR doesn’t match natively.


Safety and regulation

Both brokers are among the most robustly regulated options available to EU investors. The key structural difference: Saxo is a licensed bank; IBKR is a brokerage firm.

Interactive Brokers
  • EU clients via IBKR Ireland Limited (regulated by Central Bank of Ireland)
  • Publicly listed on NASDAQ (ticker: IBKR) — audited, transparent financials
  • Investor compensation: €20,000 (Irish Investor Compensation Scheme)
  • Securities held in segregated accounts, separate from IBKR assets
  • Strong group-level capital reserves — one of the largest global brokerages
Saxo Bank
  • Regulated by Danish Financial Supervisory Authority (DFSA) as a fully licensed bank
  • Local EU branches (Netherlands under AFM/DNB, etc.) add additional local oversight
  • Deposit protection: €100,000 cash under Danish DGS
  • Securities legally classified as special assets — not on Saxo’s balance sheet
  • Banking licence means higher regulatory capital requirements than a standard brokerage
Both are suitable for large portfolios from a safety standpoint. Saxo’s banking licence and €100k cash protection give it a structural edge over IBKR’s €20k investor compensation cap — though securities at both brokers are legally segregated from firm assets. For a deeper look, see Investor Protection in Europe.

Who should pick which?

Choose IBKR if…
  • Minimising total cost is your first priority.
  • You invest regularly in USD-denominated ETFs — the FX gap compounds.
  • You want multi-currency accounts and institutional-level FX execution.
  • You want to earn interest on uninvested cash without a high AUM threshold.
  • You’re comfortable investing a couple of hours in platform setup.
  • You want the widest possible global market and instrument access.
Choose Saxo if…
  • You want the best platform experience — SaxoTraderGO is genuinely excellent.
  • You prefer a fully licensed bank with €100k cash deposit protection.
  • You have €200k+ and can access Platinum pricing (the commission gap shrinks).
  • You invest primarily in EUR-denominated UCITS ETFs — FX drag is minimal.
  • You want a built-in recurring investment / savings plan feature.
  • You value dedicated account management and a premium service tier.
The honest bottom line

For most EU investors building a long-term ETF portfolio, IBKR is the cheaper broker — and by a meaningful margin once FX conversion is factored in. The 0.03% vs 0.25% gap alone will save the average monthly investor hundreds of euros per decade.

But Saxo is not a compromise. It’s a well-built product with a genuinely better interface, a stronger regulatory structure, and — at Platinum tier — competitive commissions. If you’re a larger investor who values a premium experience and invests mostly in EUR-denominated instruments, Saxo is a serious, defensible choice.


Ready to open an account?

Both brokers are open to most EU residents with no minimum deposit required at entry level. Compare current terms on their official sites before committing.



Frequently asked questions

Is Interactive Brokers cheaper than Saxo Bank for European investors?

Yes, in most scenarios IBKR is cheaper — especially on FX conversion (~0.03% vs Saxo’s 0.25%) and there are no custody fees at IBKR. Saxo charges 0.15%/year on Classic accounts, though this is fully avoidable via the stock lending programme.

What are Saxo Bank’s account tiers?

Saxo has three tiers: Classic (no minimum), Platinum (~$200,000), and VIP (~$1,000,000). Higher tiers unlock lower commissions, tighter FX spreads, dedicated account managers, and SaxoTraderPRO access. Tiers can also be reached via Saxo Rewards points earned through trading activity — though passive investors are unlikely to earn enough this way.

Which broker has the better platform for EU investors?

Saxo’s SaxoTraderGO is more polished and intuitive, especially for multi-asset investing. IBKR’s TWS is more powerful for advanced strategies but has a steeper learning curve. For simple ETF investing, most EU users find Saxo easier to navigate day-to-day. IBKR’s Client Portal and GlobalTrader app help close the gap for non-professional users.

Does Saxo Bank charge a custody fee?

Yes. Saxo charges 0.15%/year (Classic), 0.12% (Platinum), or 0.09% (VIP), with a minimum of €5/month. The fee is fully avoidable by opting into Saxo’s stock lending programme, where Saxo lends your securities and splits lending income 50/50. Most passive investors who are comfortable with lending will pay zero custody fee in practice.

How does IBKR’s FX conversion compare to Saxo’s?

IBKR costs around 0.03% all-in (with a $2 minimum per manual conversion via IDEALPRO). Saxo charges a flat 0.25% at every tier. On a €10,000 EUR-to-USD conversion: ~€3 at IBKR vs ~€25 at Saxo. That gap compounds materially for investors making regular currency conversions over years or decades.

Can EU retail investors access US ETFs at Saxo or IBKR?

EU retail investors at both brokers are generally limited to UCITS ETFs due to PRIIPs/KID regulations. Both brokers offer a professional investor reclassification route under MiFID II for eligible clients, which unlocks access to US-listed ETFs. Most EU retail investors will invest via UCITS equivalents at both platforms.

Which broker is better for a long-term EU ETF investor?

For most long-term EU ETF investors, IBKR wins on total cost — particularly FX conversion, which compounds significantly over time. Saxo is a strong alternative if you value a better platform experience, prefer a fully licensed bank, or have a large enough portfolio to access Platinum pricing. The two brokers are closer than they look on commissions; the FX gap is where the real difference lives.

QuantRoutine provides educational content only. Nothing on this page is an offer, solicitation, or recommendation to buy or sell any security or to open an account with any specific broker. Investments can lose value, and past performance does not guarantee future results. You are responsible for your own investment, tax, and legal decisions. Always review each broker’s current terms, fees, and eligibility on their official website before opening or funding an account.

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