Summary: The Saxo Bank platform currently only offers cryptocurrency ETNs. This means that investors are not buying the underlying coins and they cannot withdraw them onto a personal wallet, which poses some serious risks for investors. For those interested in owning cryptocurrencies directly, the safest method is to use a regulated digital asset exchange.
Following a detailed examination of top platforms, we concluded eToro as a viable alternative. This exchange is distinguished by its extensive range of over 3,000 financial instruments, which includes cryptocurrencies, stocks, ETFs, commodities, and indices. It is designed for ease of use, providing a multilinagual interface that can be used in English, Danish, Swedish, Finnish, Norwegian and 30 other languages.
- Cyprus Securities and Exchange Commission (CySEC) registered broker with over 30 million users.
- Buy, sell and trade over 3,000 Cryptocurrencies, Stocks, ETFs and more.
- Instant DKK deposits from Danish banks via SEPA and bank transfer and credit card.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Can I Buy Bitcoin with Saxo Bank?
No, you cannot buy cryptocurrency on Saxo Bank. The brokerage only offers 15 crypto ETNs (exchange-traded notes), which are contracts that track the price of the underlying coin. This means that investors cannot withdraw coins bought on Saxo Bank into a personal wallet, or alternative platform. To buy and own digital currencies directly, investors must use European crypto exchanges. Selecting a platform regulated by a reputable authority, such as the Cyprus Securities and Exchange Commission (CySEC), is essential for safeguarding your investments.
How to Buy Crypto with Saxo Bank Alternative
For clients of Saxo Bank looking to directly purchase cryptocurrencies, it's advised to consider exchanges overseen by European regulators. A recommended choice is eToro, renowned for its diverse asset offerings and compliance with CySEC regulations. eToro facilitates a variety of deposit methods, including bank transfers, PayPal, Skrill, Neteller, and credit or debit cards, making it a convenient option for UK-based investors.
Saxo Bank customers who wish to explore cryptocurrency trading through eToro can follow these easy steps:
- Account Creation: Set up your eToro account and complete the necessary identity verification.
- Currency Choice: Click "Deposit Funds" and select "EUR" as your preferred currency.
- Funding the Account: Choose a convenient payment method from the available options and deposit funds into your account.
- Crypto Purchase: Utilize the search tool to find the token you want to buy, hit ‘Trade’, enter the amount you wish to invest, and finalize the transaction by clicking ‘Open Trade’.
Saxo Bank Bitcoin ETFs
If you are looking to invest in Bitcoin only with a retirement account through Saxo Bank, you can buy one of the Bitcoin ETFs listed on their platform. Saxo Bank offers top crypto and Bitcoin ETFs which include the Grayscale Bitcoin Fund (GBTC), Grayscale Ethereum Trust (ETHE) and the Purpose Bitcoin USD ETF (BTCC).
Digital Asset Investing Fees
For clients of Saxo Bank venturing into cryptocurrency investments, understanding the fee structure is crucial, as it directly influences the returns on investment. Below is an overview of typical fees associated with digital asset trading that clients might encounter:
- Trading Charges: At trading platforms like eToro, transaction fees are usually applied to digital currency trades, often hovering around 1%.
- Funding Fees: The cost of depositing funds can vary based on the chosen method. Bank and SEPA transfers usually incur lower fees, while using credit or debit cards might attract fees up to 2%.
- Withdrawal Costs: Fees for withdrawing cryptocurrencies differ across platforms. For instance, Bitcoin withdrawals could be subject to charges around 0.0005 BTC.
Saxo Bank clients looking to enter the cryptocurrency arena may appreciate the eToro’s competitive fee structure and the convenience of depositing in EUR. As an exchange regulated by multiple international financial authorities, it ensures a secure and compliant environment for digital asset trading.
What is Saxo Bank?
Saxo Bank is a Danish investment bank founded in 1992. They are headquartered in Copenhagen and have offices in 25 countries. They offer over 35,000 different instruments for trade including forex, stocks, CFDs, options, and futures via their online platform and mobile app SaxoTraderGO. Crypto assets are also available for trade but only through the form of ETFs (exchange-traded funds) and ETNs (exchange-traded notes).
With a strong focus on technology and customer service, it caters to both retail and institutional clients globally. It has earned a reputation for its robust regulatory compliance, being regulated by several financial authorities worldwide. The company has offices in 25 countries and is headquartered in Copenhagen. Saxo Bank is regulated by several financial authorities, including the Danish Financial Supervisory Authority, the Financial Conduct Authority (FCA) in the UK and the Monetary Authority of Singapore (MAS).
To wrap up, while Saxo Bank offers a robust platform for trading in various financial instruments, it currently limits its cryptocurrency offerings to Exchange-Traded Notes (ETNs), which track the price of underlying coins without providing direct ownership. This model means investors cannot withdraw cryptocurrencies into personal wallets, posing certain limitations.
For those keen on owning digital currencies directly, regulated exchanges like eToro offer a more suitable solution. eToro stands out with its expansive portfolio of over 3,000 financial instruments, user-friendly, multilingual interface, and strict adherence to CySEC regulations. It has over 30 million users in 150+ countries and provides customer support in several languages, including English, Danish, Swedish, Norwegian, Finnish and more.