Review of Saxo Bank Broker
Saxo Bank is a Danish company founded in 2012. Initially started as a brokerage firm in 1992, the company is now an investment bank after receiving a banking licence in 2001. The company has a particular focus on providing online trading services. The company is headquartered in Copenhagen and is regulated by the Danish Financial Supervisory Authority (FSA). Saxo Bank has several branches worldwide. A number of these are regulated by the FSA while others are regulated by regulators in their own jurisdiction. This includes the UK branch being regulated by the Financial Conduct Authority and the Swiss branch being regulated by the Swiss Financial Market Supervisory Authority. The company has also signed up to the Global FX Code of Conduct to promote integrity, transparency, and good practice in the forex market. The company is privately owned and has annual revenue of approximately $415 million.
Markets & Products
Saxo Bank provides access to a wide number of markets mainly through partnerships with other banks. Saxo Bank has several white label partnerships with large banks such as Standard Bank this allows Saxo to sell the products of their partner under their own name. Saxo has a specific focus on providing a wide variety of financial markets to any type of trader. The vision of the company is to democratize access to markets and break down any exclusive access which belongs to institutions and high net worth individuals.
This is reflected in the wide array of online trading options available to clients. Online markets include the following:
| Market | Number | Market | Number |
|---|---|---|---|
| FX Currency Pairs | 180+ | Stocks | 19,000 |
| FX Options | 45 | ETFs and ETCs | 2,500+ |
| NDFs | 11 | Futures | 200+ |
| Single Stock CFDs & ETFs | 8,800+ | Stock Options & Futures Options | 800+ |
| CFD Indices | 28 | Contract Options | 70+ |
| CFD Commodities | 19 | Bonds | 5000+ |
There are both corporate and individual accounts available to be opened on Saxo Bank. There are three tiers of individual account that can be opened and are based on the initial amount funded. Individuals will be automatically moved up the tiers if their account balance meets the minimum requirement for the higher level. Higher tiers avail of more attractive pricing and get greater support from Saxo Bank staff. The three accounts are Classic which requires initial funding of $2,000, Platinum which requires initial funding of $50,000, and VIP which requires initial funding of $1,000,000. Corporate accounts provide the same access to markets as individual accounts but provide access for an entire firm.
Trading Platforms & Features
There are two online trading platforms, SaxoTraderGO and SaxoTraderPRO. Both platforms enable traders to access over 35,000 markets. Traders can demo either of the platforms for 20 days for free. See Best trading Platform reviews and how to determine best trading platforms for further discussion.
According to the company, SaxoTraderGO was launched in response to an increased demand for mobile trading from users. The platform is coded in HTML5 and provides the convenience of traders being able to access and trade their account across numerous devices that integrate seamlessly. The platform is web-based enabling traders to access their account through web pages, mobile, and tablet. There are a number of features provided to facilitate a high-quality trading experience for users of the SaxoTraderGO platform. SaxoTraderGO implemented a trade ticket system that enables traders to make trades within a number of clicks. There are a number of different analysis tools also provided to users of the platform. Users can easily navigate to the latest news and research related to the markets they are trading. There are also fundamental analysis tools and technical analysis tools available to traders that delve deeper into the markets available. It is also possible for users to trade directly from the charts. In terms of making orders and managing their positions, there are a number of features implemented in the platform to assist users in their account management. Users can place stop-loss orders to manage their risk. It is also possible to cancel all open orders at once. There are also tools that allow users to manage the risk of their overall account. Traders can view the margin on each trade they have open. There is also the ability to effectively apply a stop loss across the account by closing all open trades if the account reaches a certain balance.
SaxoTraderPRO is a desktop software downloadable for Windows and MAC. SaxoTraderPRO is tailored for more professional traders. The downloadable software allows traders to tailor the system across multiple screens and has more advanced features not available on SaxoTraderGO. All of the features mentioned in relation to SaxoTraderGO are available on SaxoTraderPRO apart from being accessible through the web. The more in-depth features provide further insight into market conditions and also provide the trader with extra capabilities. An order book and depth chart allow traders to see exactly what is going on in the market in real-time. Traders can also see trades being executed in real-time. There are more technical analysis tools with over 50 indicators available to be applied to price action and there is also the ability to set up algorithmic orders. If traders cannot access SaxoTraderPRO from their desktop device, they can still access their account through the SaxoTraderGO software.
What are the fees?
The fees for the different markets provided by Saxo Bank are transparently stated on the website and vary based on the market being traded. The fees in most markets progressively decline based on the volume traded. Margin is also available but will vary from market to market mostly based on the liquidity of the market. More liquid markets will have a lower margin requirement enabling traders to take more leveraged positions. Traders can find the specific margin requirements for different markets on the Saxo Bank website. The following is a summation of the current fee range for different markets.
| Market | Spread | Commission |
|---|---|---|
| Forex | 0.1 pips+ | $17 – $50 |
| Forex Options | 3 pips+ | $10 minimum |
| CFDs | ||
| Stocks | NA | $6+ |
| Futures | NA | $1.5 per lot+, a minimum fee of $10 per futures contract trade* |
| Bonds | Spread reductions of up to 50bps | 0.05%+ |
| ETFs | NA | $6+ |
There are a number of other fees which are also applied in specific circumstances to Saxo Bank accounts. An inactivity fee of $100 will be charged if the client does not make a trade for 180 days. Clients with a Classic account are charged $50 if they wish for online reports to be delivered via email. Transfer fees apply if clients wish to transfer stocks outside of their Saxo Bank account. Orders placed over the phone, chat, or email are charged a fee of €50. Currency conversions are charged at the middle forex spot rate plus or minus 0.5%. Interest also applies to accounts. Interest is applied daily and settled monthly and the rate depends on market rates.
What else does Saxo Bank do?
Saxo Bank also offers free educational resources, news insights, and research. Educational resources are mainly webinars which involve a key analyst on the Saxo Bank team assessing a market sector. News insights and research delve into current topics and data to inform users of current market conditions and events. A team of analysts has been built to provide high-quality insights into these areas. Saxo Bank has also built a dedicated team for customer support spread across offices in sixteen different countries. The team provides customer support in a wide variety of local languages across the sixteen different countries. The Platinum and VIP accounts will also be provided with their own personal account manager. Typically Saxo is not thought of as an ideal broker if you are starting out, check out the Best Broker for Beginnersreview for further information.
How Saxo Bank compares to competitors
Saxo Bank has some of the best features and access to markets of online trading service providers. However, its fee schedule is high, especially for the smaller-scale trader. Saxo Bank may be more suitable to large clients that are trading with large amounts of capital. The main competitor to Saxo Bank for their online trading services is IG Group. Here is how they match up.
| Company | Private/Public | Operating Since | Approx Revenue (m) |
|---|---|---|---|
| Saxo Bank | Private | 1992 | $415.2 |
| IG Group | Public | 1974 | $755.2 |
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