Bake is fine then.
You need to experiment a bit more with subdivisions and edge creasing, though.
Set it to 'Catmull-Clark' and try applying ~1 crease to all the edges that you want to keep sharp: blade edges, crossguard edges, borders of the handle, etc.
If the surface is meant to be round, it should be round in the highpoly, it doesn't matter if it doesn't match the lowpoly perfectly - part of the reason why baking them is good, it will actually imprint that surface roundness to the lowpoly through the normalmap.
Obviously it can't differentiate too wildly or the program will have issues knowing what surface is to imprint where, but it'll be fine in that case - if it doesn't, just mess around with the 'Bias' value, here a quick link on the matter, you may want to research further:
link too long
Now, if you want the pommel to look faceted, apply ~1 of creasing to all its edges to see what happens, go mess around with that and you'll probably get it right, it's simpler than you think.
Here's an example with the edges I'd apply crease on:
With almost all of them I'd probably go with 1.00, only with the edge loop in the middle of the handle I'd go with around 0.5.
If you want to remove the crease from an edge, just select the desired edge and set Crease (as shown by the arrow) to 0.
Important 1: Turn 'Edge split' off until you grasp the basics, it can make subdivision go all wonky in places if not done right.
Important 2: It's preferable that the subdivided mesh to be not triangulated, go with quads and you'll have less problems too.