Tiger Brokers vs Saxo – Which Broker Is Better?

Last updated on June 14th, 2021

When you want to buy stocks or ETFs, you’ll need to choose a broker.

2 options that you may come across include Tiger Brokers and Saxo.

Which one is the better option for you?

Here’s what you need to know:

The difference between Tiger Brokers and Saxo

Tiger Brokers charges cheaper commissions compared to Saxo for each trade that you make. Saxo has a more complex fee structure, which can be more costly. However, Saxo provides access to more markets and has more investing options too.

Here is an in-depth comparison between both platforms:

Type of Products Available

Both brokerages offer different kinds of products:

Tiger Brokers offers basic products for your trading needs

You are able to buy the standard products from the different exchanges using Tiger Broker’s platform. This includes:

1. Stocks
2. ETFs
3. Mutual funds
4. Futures
5. Options

You are able to trade futures and options on Tiger Broker’s platform too.

Saxo has a wider variety of products

Saxo provides many different products on their platform. This includes:

1. Stocks
2. Bonds
3. ETFs
4. Mutual funds
5. Forex
6. Futures
7. Commodities
8. Options (Forex and Listed)
9. Managed portfolios
10. Regular Savings Plan

Saxo’s managed portfolio is something similar to a robo-advisor.

It chooses to invest your money into different funds from:

1. LionGlobal
2. BlackRock
3. Morningstar
4. Brown Advisory
5. Nasdaq

You can also choose to invest in some of these portfolios via a regular savings plan too.

If you are looking for a platform that provides more investing options, Saxo will be better for you.

However if you are just looking at buying stocks and ETFs, then it will not really which platform you choose!

Types of Exchanges Available

Tiger Brokers allows you to trade in 5 exchanges.

Meanwhile, Saxo offers you 23 different exchanges to trade in!

Here are some of the exchanges that you are able to trade on using both platforms:

	Tiger Brokers	Saxo
SGX	✓	✓
HKEX	✓	✓
US	✓	✓
ASX (Australia)	✓	✓
SZSE and SSE (China)	✓	✓
LSE (UK)	✕	✓
Bursa Malaysia	✕	✓
SWX (Switzerland)	✕	✓
TSE (Japan)	✕	✓

In terms of the availability of exchanges, Saxo provides a far wider variety!

The one that most Singaporeans may be interested in is the London Stock Exchange (LSE). You are able to buy Irish-domiciled ETFs that help to reduce your taxes in 2 ways:

1. Reduce your dividend withholding tax (30% to 15%)
2. Reduce the estate taxes that you incur

Tiger Brokers has the LSE listed on their platform. However, you can’t trade equities that are listed on the LSE.

However, Tiger Brokers still has many of the popular exchanges, such as US and HKEX.

Fees

Here are the fees that each broker charges for the similar exchanges:

Market	Tiger Brokers	Saxo
SGX	0.08% * trade value  No minimum   (until 31 Dec 2021)  Min $2.88 SGD/trade   (after 31 Dec 2021)	0.08% * trade value  Min 5 SGD
HKEX	0.06% * trade value  Min 15 HKD/trade	0.15% * trade value  Min 90 HKD
US	0.01 USD/share  Min 1.99 USD/trade	0.06% * trade value Min $4 USD
ASX	0.10% * trade value  Min $8 AUD	0.10% * trade value  Min $8 AUD
SZSE and SSE	0.06% * trade value Min CNH 15	0.15% * trade value Min CNH 40

The trading commissions are the same if you trade in the ASX.

However, Tiger Brokers is much cheaper if you wish to trade in:

1. SGX
2. US markets
3. HKEX
4. SZSE and SSE

Fees incurred for trading in respective exchanges

On top of the fees that you pay for each platform, you will be charged exchange-specific fees as well. These fees are the same across both brokerages.

Custodian fees

Saxo charges a 0.12% custodian fee for any stocks that you own that are not from the SGX.

This fee is calculated daily, based on the total amount of assets that you hold with Saxo. The fee will then be charged to you on a monthly basis.

This custody fee can really eat into your returns!

Meanwhile, Tiger Brokers does not charge any custody fees for holding your stocks with them.

Currency conversion fee

Saxo also charges a currency conversion fee, if you exchange your SGD to a foreign currency.

The fees that you pay depend on how you exchange your currency:

Type of Exchange	Fees
Cash Products	0.75%
Account Transfer	0.30%

If you make a trade in a foreign currency with your SGD, you will be charged 0.75%.

However if you make the same trade from your sub-account, you are only charged 0.3%.

These additional fees will eat into your returns as well!

Tiger Brokers does not charge any fees for converting your currencies.

Neither broker charges an inactivity fee

Both Tiger Brokers and Saxo do not have any inactivity fees. As such, you do not need to pressure yourself to make a trade to avoid these fees!

Tiger Brokers has a more affordable pricing structure

When comparing both pricing structures, Tiger Brokers does offer you cheaper fees. Both brokerages allow you to invest in the same products across these 5 exchanges.

As such, it may be more cost-effective to invest using Tiger Brokers.

Exchange Rates

If you wish to trade in overseas stocks, you will have to exchange your SGD for a foreign currency.

For Tiger Brokers, this can be easily done in-app.

You can exchange your SGD to the currency that you wish.

For Saxo, it is a bit more complicated.

Similar to Tiger Brokers, you can fund your account in SGD.

Remember if you make a trade in a foreign currency directly from your SGD, you will incur a 0.70% fee!

To reduce the currency conversion fees, you will first need to create a sub-account. This sub-account is denominated in the foreign currency that you wish to trade in.

This is similar to creating different Securities Settlement Accounts with Standard Chartered.

After that, you are able to transfer your SGD into the foreign currency!

Saxo has slightly more favourable exchange rates

Here is the exchange rate between SGD and USD at around the same time for Tiger Brokers,

and that for Saxo.

Saxo seems to be providing a slightly better rate compared to Tiger Brokers. This means that you are able to get more USD for the same SGD that you transfer.

However, the difference in the exchange rate will only be significant if you are trading a large sum of money.

Pre and aftermarket trading

Both Tiger Brokers and Saxo allows you to conduct pre and aftermarket trading on its platform. Here are the timings for the 3 periods in Singapore time (GMT +8).

Trading Period	Timing (GMT +8)
Premarket	1600-2130
Regular Trading	2130-0400
Aftermarket	0400-0800

To enable pre and aftermarket trading, you will need to enable the ‘Fill Outside RTH‘ option on the trading page for Tiger Brokers.

For Saxo, you can only perform premarket trades using the SaxoGO/PRO platforms. You can’t use SaxoInvestor to make the trade.

App and Platform Experience

The user experience on the brokerage platform may help you to decide on a broker.

Tiger Brokers provides a great user experience

In general, Tiger Brokers has a great user experience. The platform is sleek, loads fast and is very easy to use.

However, some pages are still in Chinese, which could have been due to migration problems.

Some of the pages have broken English as well.

This could lead to a frustrating experience, especially if you’re trying to view the latest headlines!

Nevertheless, it is still a pretty fast and sleek app that you can use to trade.

The web platform is really comprehensive too:

Saxo has multiple platforms

There are 3 different platforms that you can use on Saxo:

1. SaxoInvestor
2. SaxoTraderGO
3. SaxoTraderPRO

Both SaxoInvestor and TraderGO are available on the web browser. However, for TraderPRO, you will need to install a desktop app.

The type of platform that you use depends on the type of investor you are:

Platform	Suitable For
SaxoInvestor	Everyday investors
TraderGO	Traders
TraderPRO	Serious traders

Here’s how SaxoInvestor looks like,

and TraderGO,

as well as TraderPRO.

Both SaxoInvestor and TraderGO have their mobile apps as well.

Both brokers’ platforms seem pretty sleek and easy to use.

Ease of Opening Account

Both Tiger Brokers and Saxo use MyInfo during the signup process.

If you wish to trade in the US markets, you are required to sign a W-8 BEN form to declare that you are a non-US citizen.

For Tiger Brokers, you can sign the W-8 BEN form digitally.

The same applies to Saxo, where you can sign an online W-8BEN form too.

Once your account has been approved, you can start trading in US stocks right away.

Deposits and Withdrawal

Both online brokerages are pre-funded accounts. This means that you will have to fund your account on either platform first before you can start trading.

No minimum sum to maintain

Both online brokerages do not have a minimum sum to maintain in your account. This is great if you only have a small sum to invest!

Tiger Brokers has direct debit for DBS / POSB customers

If you are a DBS or POSB customer, you can opt to have a direct debit from your bank account to Tiger Brokers.

Your funds will be credited into your Tiger Brokers account almost instantly.

However if you do not have a DBS or POSB account, you can still transfer your funds via FAST.

However, this process may take a few hours before your funds reach your Tiger account.

You’ll need to transfer your funds to Saxo’s bank account first

For Saxo, you can transfer your funds in a variety of ways. This includes:

1. FAST
2. PayNow
3. MEPS
4. Wire transfer

The easiest way to deposit your funds will be either via FAST or PayNow.

Don’t forget to insert the unique deposit code in the ‘reference’ box when you’re making the transfer!

The deposit will also take a few hours to be processed.

Withdrawals may take a few business days

When you want to withdraw your funds from either platform, it may take a few business days before the funds reach your bank account.

The waiting time is around the same for either platform.

Type of Custodian Account

When you trade your assets on both brokerage firms, your assets will be under a custodian account. However, the way that both brokerages hold your assets is slightly different.

Tiger Brokers has a 3rd party custodian account for you

Tiger Brokers uses 3rd party custodians to manage your assets for you.

DBS bank manages your Singapore assets. Meanwhile, Interactive Brokers most likely is handling your assets from other countries.

This is part of the requirements of the Capital Markets License that Tiger Brokers has.

In the unfortunate event that Tiger Brokers closes down, your assets are still kept safe under these custodian accounts.

This 3rd party custodian account arrangement is similar to what robo-advisors use as well.

Saxo also has the Capital Markets License

Saxo is also regulated by the MAS under the Capital Markets License.

In the event that Saxo goes bankrupt, your assets will be kept separately from Saxo’s.

Saxo has also been operating in Singapore since 2006. This should give you the reassurance that Saxo is here to stay for the long term.

Both accounts do not allow CDP linkage

Since both Tiger Brokers and Saxo are custodian accounts, they are unable to be linked to your CDP account.

If you wish to transfer your shares from a CDP-linked broker to either broker, you would have to do a manual share transfer by contacting support.

Verdict

Here is a head-to-head comparison of Tiger Brokers and Saxo:

	Tiger Brokers	Saxo
Type of   Products Available	Stocks  ETFs  Mutual funds Futures Options	Stocks  ETFs Mutual Funds Options Managed Portfolio Regular Savings Plan
Number of   Exchanges Available	5 countries	23 countries
Trading Commissions	Lower	Higher
Custody Fee	None	0.12% p.a.
Currency Conversion Fee	None	0.3-0.7%
Exchange Rate	Comparable	Comparable
Pre and Aftermarket Funding	Present	Present
App and Platform   Experience	Similar	Similar
Ease of   Opening Account	Similar	Similar
Funding Account Speed	A few hours	A few hours
Custodian Account	3rd party (e.g. DBS)	Under Saxo

Which broker should you choose?

Choose Tiger Brokers if you are looking for cheaper fees

Tiger Brokers has cheaper trading commissions compared to Saxo.

Moreover, it does not have any extra fees, such as:

1. Custody fees
2. Currency exchange fees

One of the ways to receive higher returns on your investments is by keeping your costs low. If you are investing with a smaller sum, Tiger Brokers may be the better choice for you.

Choose Saxo if you want a wider variety of investment options

Investing with Saxo seems to be more costly compared to Tiger Brokers. However, it does provide you with more methods of investing.

You have greater access to exchanges that come from more countries compared to Tiger Brokers.

Particularly, you are given access to the London Stock Exchange. However, Saxo may not be the most cost-effective option to trade in that market!

Moreover, you have other things to invest in, like regular savings plans or forex.

Saxo also seems to be the more reputable brand. They are a Danish firm that was started all the way back in 1992!

If you are worried about Tiger Brokers being slightly less trustworthy, then Saxo will be able to give you more security.

Conclusion

Both brokerages do have their advantages. Ultimately, it depends on what you are looking for in a broker, such as:

1. The fees that you’ll have to pay
2. The exchanges you can trade in
3. The types of products you can purchase

If you decide to use both brokers, you can track your portfolios from these 2 brokerages using StocksCafe.

👉🏻 Referral Deals

If you are interested in signing up for any of the products mentioned above, you can check them out below!

Tiger Brokers Referral (Free AAPL Share and 60 Commission-Free Trades)

If you sign up for a Tiger Brokers account using my referral link, you will be eligible for some rewards. You can view and claim your rewards by going to ‘Me → Promotions & Rewards‘.

Here are 3 bonuses that you can receive:

#1 Registration Reward

When you register for a Tiger Brokers Account, you will receive 500 Tiger Coins.

These Tiger Coins can be used to redeem a variety of rewards, such as:

1. Stock vouchers
2. Commission-free trades
3. Reuters videos

#2 Account Opening Reward

After successfully opening your account, you will receive 60 commission-free trades that you need to use within 180 days.

These commission free trades can be used for:

1. US stocks
2. HK stocks
3. Singapore stocks
4. Australia stocks

On top of that, you will receive 5 commission-free trades for futures within 30 days.

You will still need to pay the commission first. The commission should be refunded to you on the next working day.

#3 Funding Reward

If you fund at least $2,000 SGD into your Tiger Brokers account for your very first deposit, you will receive a free Apple (AAPL) share.

The shares will be added into your account within 10 working days.

On top of that, you will receive a stock voucher (SGD5) for SGX stocks only.

You can view the terms and conditions of this promotion on Tiger Brokers’ website.

Saxo Referral (Earn $100-$250 in cash)

If you are interested in creating a Saxo trading account, you can take part in the referral program.

Here’s are the rewards that you can receive from this program:

Action	Reward
Fund ≥ SGD $3,000 and make ≥ 3 qualifying trades	SGD $100
Fund ≥ SGD $100,000 and make ≥ 3 qualifying trades	SGD $250

The 3 qualifying trades that you need to make have to be on margin products, such as:

1. CFDs
2. FX
3. Futures / Forwards
4. Options

The process is quite different from other referral programmes, so you can contact me for the next steps for the referral!

You can find out more about the referral program on Saxo’s website.

Are you passionate about personal finance and want to earn some flexible income?