Saxo Bank is a multi-asset broker that offers online trading and investment services. It was founded as an investment bank in 1992 in Denmark and it is subject to regulations by various financial authorities in the world such as the Financial Services Agency (FSA) in Denmark and the Financial Conduct Authority (FCA) in the United Kingdom.
Saxo Bank is a provider of global brokerage services with subsidiaries that exist as separate legal entities across various regions of the world. As a result, there may be slight differences in the services offered by the different entities, especially when it comes to fees and product portfolios.
Saxo Bank has an excellent trading platform with a collection of more than 40,000 financial instruments available for trading. While the account balance requirements are on the high side, traders registered with this broker enjoy an immersive and rich trading experience with a superior collection of tools, premium features, and research.
This broker is not publicly listed but it operates three regulated banks and it is licensed for operation in six tier-1 regions of the world which makes it a low-risk (safe) broker for trading CFDs and forex.
It has a proprietary platform known as SaxoTraderPRO which consists of everything that might be needed by traders to navigate the market effectively.
Furthermore, it provides complex order types along with account protection features that enhance the possibility of traders managing risk impeccably.
With that being said, let us now take an in-depth look at Saxo Bank and its mode of operation.
Key Facts About Saxo Bank
|🖥️ Platforms||SaxoTraderGO, SaxoTraderPRO, TradingView|
|💳 Min. deposit||Varies|
|💰 Base currencies||26|
|🔑 Type of broker||Bank|
|☎️ Support||Email, Phone|
|💸 Leverage||Up to 1:30|
Saxo Bank Pros and Cons
- Multiple tier-1 regulators
- 40,000+ instruments
- 26 account currencies
- Numerous asset classes
- TradingView integration
- Platforms for beginners and professionals
- APIs and third-party tools
- High fees, commissions, and spreads
- Slow customer support
- Inactivity fee
- High minimum deposit
- Limited deposit methods
The process of account opening at Saxo Bank is completely digital, user-friendly, and available in many countries around the world but the verification process can be quite slow while in some countries, the minimum deposit is quite steep.
With this broker, clients are welcome from all around the globe but certain countries are restricted from opening an account with the most notable being the United States.
To open an account with this broker, the online registration does not take long as it can be completed within 10-15 minutes. There are three major steps involved namely:
- Online application
- Approval phase
The online application involves verification of identity and residency and it requires uploading the following documents:
- A national ID card or passport to verify identity
- A Bank or tax statement to verify residency
Once the verification process is completed, approval is done and the only thing left is to fund the account for it to be activated. And funding can take anything from one to five days depending on the deposit method.
Deposit and Withdrawal
There are different deposit and withdrawal options without any charges but there are no electronic wallets to make deposits or withdrawals.
The minimum deposit varies depending on the country of residency and the type of account selected by the client.
For example, the minimum deposit for the Classic account is about $2,000 in some countries while it is lesser than that in some other countries.
The Platinum account has a minimum deposit requirement of about $200,000 which is quite steep compared to the classic account.
Below is a table showing the minimum deposit requirement for Saxo Bank classic accounts in different countries.
|Denmark & Norway||None|
|France & Netherlands||€2,000|
|China & Hong Kong||$2,000|
Account base currencies
Saxo Bank has 26 base currencies that clients can choose from while clients can also open multiple sub-accounts in various currencies which is an excellent option to have if a trader is interested in trading financial instruments in multiple currencies.
Some of the base currencies include CAD, CHF, AUD, NZD, EUR, SGD, NOK, USD, JPY, GBP, etc.
Clients can also add various base currencies to their main account which can be done by initiating the creation of a sub-account automatically in the currency of interest.
This is important because this allows clients to fund accounts with Saxo Bank in the same currency as their bank accounts.
Also, clients can trade financial instruments in the same currency as their account base currency and it means clients will not have to pay a conversion fee.
Deposit fees and options
This broker does not charge any fees on deposits and funds can be deposited into trading accounts through bank transfers or using debit/credit cards but depositing via electronic wallets is not an available option.
Depositing via debit/credit cards is not available in certain countries and it is advisable to check the broker’s website for a complete list.
Bank transfers can take a couple of business days while payment via credit/debit cards is usually instant. And as expected, deposits can only be made from accounts registered in the client’s name.
Withdrawal fees and options
There is no withdrawal fee but a bank transfer is the only means of withdrawal which usually takes one business day and withdrawal can only be made to accounts registered to the clients.
Regulation and Security
Saxo Bank is regulated by multiple financial bodies around the world while also having a bank license and providing its clients with negative balance protection (for CFD and forex spot trading) though that varies with the region in which the clients are based.
The table below shows the various legal entities of Saxo Bank, the respective regulatory bodies, regions, and the amount of negative protection available to the clients.
|Country of clients||Legal entity||Regulator||Negative protection amount|
|UK||Saxo Capital Markets UK||Financial Conduct Authority (FCA)||£85,000|
|Switzerland||Saxo Bank (SW) AG||Swiss Federal Banking Commission||CHF 100,000|
|Most European countries||Saxo Bank A/S||Danish FSA||€100,000 for cash, €20,000 for securities|
|Italy||BG Saxo||Commissione Nazionale per le Società e la Borsa (CONSOB)||€100,000|
|Japan||Saxo Bank FX K.K.||Japanese Financial Services Agency||No protection|
|Australia||Saxo Capital Markets (AU) Pty. Ltd||Australian Securities and Investments Commission (ASIC)||No protection|
|Hong Kong||Saxo Capital Markets HK.||Securities and Futures Commission in Hong Kong||No protection|
|France||Saxo Banque (FR) SAS||Bank of France||€100,000|
|Singapore||Saxo Capital Markets Pte Ltd||Monetary Authority of Singapore. Co.||No protection|
Generally, clients that have a professional account are not extended the offer of negative balance protection.
As a broker that is regulated by top-tier financial bodies and has a long track record along with a banking background, it shows that Saxo Bank is safe and secure.
In addition to that, there is a two-step login system that adds an extra layer of security to the accounts of clients.
Fees and Spread
The fees encompass trading and non-trading fees; the spread is a part of the trading fees because it constitutes the final cost that a trader incurs in executing a trade. Commissions are a part of trading fees as well.
The trading fees at Saxo Bank oscillate between high and low depending on the account type and the financial instrument being traded.
However, regardless of the fee structure, it is transparent which makes it easy for clients to calculate their costs.
Of the three major accounts offered by Saxo Bank, the Platinum and VIP accounts seem to have a more favorable fee structure.
- Forex fees are low and encompass spreads and commissions
- Bond fees are generally high
- Stock and ETF fees are average
- Fees charged on Mutual funds are low although in this case, the fees involved are annual maintenance fees which are a major feature of mutual funds and they are charged by the fund manager rather than the broker. Also, the mutual funds is only available for trading in certain countries such as Denmark, Poland, and Germany.
- Fees for trading Options are also generally high because clients are charged a holding fee when long positions are held overnight but this fee is not charged for the first thirty days of any particular trading position.
- Fees charged for trading Futures are also high and bear similarity to the fees charged on options except in one or two products due to the currency of the underlying product. There is also a carrying cost for holding overnight positions while trading futures which is part of the reason the trading fees for this asset are high.
- CFD fees are divided into two: stock CFD fees which are high and stock index CFD fees which are low. In this case, the trading fees of commodity, forex, bond, and stock index CFDs are calculated into the spread.
- Crypto fees: trading cryptos at Saxo Bank is done through exchange-traded products (ETPs) and Crypto FX (which involves a coin that has been crossed with a fiat currency). The ETPs are traded on various exchanges and the fees charged are similar to that of stocks and ETFs while the fees on Crypto FX are charged via spreads.
- SaxoSelect fees – these are fees charged for using SaxoSelect which is a Robo-advisory service that Saxo Bank makes available to clients where they can choose an investment theme and the broker subsequently builds portfolios for them. The average fees that the broker charges for this service range from 0.5% to 1% of the investment value depending on the strategy selected and the country of residency.
The SaxoSelect is also available in a limited number of countries just like with mutual funds.
Non-trading fees include deposit, withdrawal, and inactivity fees. Overall, the non-trading fees of Saxo Bank are average as there are no deposit or withdrawal fees but there is an inactivity fee and it is high.
The inactivity fee varies with the country of residency because for clients in the UK, it is £25 per quarter and it is referred to as a platform fee.
However, for non-UK clients, it is $150 after six months of inactivity– failing to execute at least one trade.
Saxo Bank offers ultra-competitive spreads across all asset classes and it gets better as the volume traded by the clients increases.
Generally, the spreads are determined by the volume of trading which means the higher the volume of trading, the tighter the spread and vice-versa.
On financial instruments like forex, spreads can range between 0.7 and 1.6 while it also starts from 0.7 on CFDs.
On some other financial instruments, a major component of the fees charged is commissions, and on asset classes like stocks and ETFs, commissions charged start from 0.08% of the investment value while for Bonds, it is 0.05%, and for commodities and options, it starts from $2 per lot.
Trading forex is usually done on margins with brokerage firms having a range of leverage that they can choose from and at Saxo Bank, the method used for determining leverage terms is known as tiered margin.
This encompasses a management mechanism that offers protection against political and economic circumstances that may bring about additional volatility to the market thus leading to sudden changes.
Just like other regulated brokers within the European Union, the maximum leverage at Saxo Bank is 1:30.
Some asset classes such as Index-CFDs and Commodity-CFDs have lower leverage up to 1:20.
While there is standard maximum leverage, the leverage available for each asset still varies depending on the asset class.
There are three major types of accounts offered by Saxo Bank and all will be discussed.
This is one of the live accounts offered by Saxo Bank that has the lowest minimum deposit requirement and it is available on the two trading platforms (more to come on the trading platforms) namely SaxoTraderGo and SaxoTraderPro.
There is a collection of more than 40,000 financial instruments for clients to choose from along with competitive entry prices that enable traders to maximize every trading opportunity.
The standard minimum deposit requirement is $2,000 although clients in the United Kingdom only need to fund their accounts with a minimum of £500, while one or two countries have no minimum deposit requirement.
The account features adequate digital service and support along with technical and account support which is available 24 hours a day for 5 days a week.
As expected, this account can also be operated on the broker’s trading platforms and gives clients access to over 40,000 assets which indicates that there is a wide array of financial instruments that can be selected for trading.
The minimum deposit requirement is quite significant at $200,000 but then clients will enjoy 30% lower prices in the form of tighter spreads and lower commissions.
On this account, there is a priority on providing clients with customer support in their local languages. As such a client in Denmark will not be attended to in German or Spanish but in Danish.
This account has the largest minimum deposit requirement of all three accounts at one million dollars.
As a result, it features the very best prices from this broker, a personal relationship manager who speaks the local language of the client, direct access to the broker’s trading experts 24 hours for 5 days a week, and invitations to exclusive events.
It also has the features of the other two accounts with top-notch digital service and support along with technical and account support 24/5 while also being available on the broker’s two platforms.
Saxo Bank offers two proprietary trading platforms known as SaxoTraderGO (available as a web trading platform) and SaxoTraderPRO (available as a desktop trading platform).
There is also a mobile version of the trading platforms.
Web trading platform
As earlier mentioned, this is also known as the SaxoTraderGO platform and it is user-friendly while also featuring tools that are suited for professional traders, such as an advanced order panel.
The platform is available in several languages including Danish, Dutch, Estonian, Japanese, and Swedish just to mention a few.
The design of the platform is state-of-the-art and it is easy to customize thus allowing it to cater to the trading needs of both novice and advanced traders.
However, the level of customization is limited; for instance, it is possible to adjust the size of different tabs but not their relative positions.
There is a two-step login system which makes it safer even though it is optional for clients to adopt.
The search functions are excellent as the search results are usually relevant and categorized based on the asset class. The right side of the search feature has a drop-down button that can be used to filter results.
The platform also contains an order panel where clients will be shown a ‘Trade Ticket’ that displays a lot of important information such as margin requirements and costs.
There are also alerts and notifications that clients can use to monitor their trades. some of the alerts include:
- Margin call
- Price alert
- Portfolio change
- Opening or closing positions
There are also platform notifications that can be accessed through email or pop-up messages.
Mobile trading platform
This is available for both Android and iOS devices. It also has a top-notch design like the web trading platform and is available in similar languages as well while also providing a two-step login system.
Overall, it is quite similar to the web trading platform except that it does not have the same level of user-friendliness as the structure of the menu is a bit complicated which makes it confusing and difficult to navigate.
Desktop trading platform
This is also known as SaxoTraderPRO and it is widely regarded as one of the best trading platforms in the market. It also has a modern design and it is easy to use along with a seamless customization feature which is especially ideal for charts and workspace.
It appears similar to the web-based counterpart but offers a more advanced level of customization. Clients can simultaneously operate up to six windows and create a personalized trading environment.
Furthermore, each of the windows can be customized in position and size.
Overall, the financial instruments portfolio of Saxo Bank encompasses all asset classes and many global markets. However, mutual funds still represent an area where improvements can be made.
The financial instruments range from stocks to CFDs with the broker having a wider range of products selection in more complex assets like options, futures, forex, FX swaps, and CFDs.
In more traditional asset classes like stocks, bonds, and ETFs, its array of products are also quite competitive but in terms of mutual funds and cryptos, its product selection is quite limited.
One unique financial instrument of this broker is SaxoSelect which is essentially a cross between mutual funds and a Robo-advisory service.
It is recommended for clients who are looking to acquire some confidence in making investments or simply cannot manage their investment by themselves.
There are various portfolios and trading strategies that clients can select depending on their risk tolerance.
However, the minimum deposit required for investment is $20,000 and the fees charged range between 0.5% and 1% of the amount invested.
The customer support of this broker is available in several languages just like its web trading platform and there are two means for contacting customer support namely: phone and email. However, there is no live chat, and customer support cannot be reached 24/7.
There is also a chatbot that functions as an intelligent FAQ providing pertinent answers to basic questions like “Is there an inactivity fee?”, but is unable to answer specific inquiries and this is where the lack of a live chat feature becomes prominent.
The phone customer service can only be reached from Mondays to Fridays between 9 am and 5:30 pm local time across the broker’s 16 global offices.
Education and Research
For clients that are looking to enhance their financial knowledge, Saxo Bank has a lot of educational tools that cater to that need. Some of the tools made available for education include:
- General educational videos
- Demo account
- Platform tutorial videos
The demo account is good for getting to know how the platform works while the webinars are hosted by experts of this broker where clients can gain real-life experience.
Clients may also decide to join the Saxo Academy where there is access to a myriad of online educational videos that will enlighten clients and contribute to their success as a trader.
The research services of Saxo Bank are well-developed as there are tools that clients can use to carry out fundamental and technical analyses.
Some of the tools include a charting function that features about fifty technical indicators with the option of adding several editing tools such as Fibonacci tools or trendlines.
There is also a trading signal tool that provides clients with buy and sell signals based on technical indicators.
There is a stock screener that is ideal for filtering stocks based on industry, financials, and countries.
Another research tool is quarterly outlooks which give clients a comprehensive analysis of possible market movements while there are also daily podcasts that provide clients with insights into prevailing trends in the market.
This is available on Saxo Bank’s proprietary trading platforms but unfortunately, it is not possible to filter the news based on assets.
Furthermore, the broker’s website features an ‘Inspiration’ menu where clients have access to daily commentaries, long-term outlook pieces, opinions of experts, and even additional news.
Saxo Bank focuses on providing its clients with tight spreads and low commissions across the various types of accounts. There is also a special type of investment where the broker helps clients to manage investments and also charges a certain percentage of commission.
There is also an inactivity fee charged on live accounts that have not been used for six months while there is a fee charged for holding long positions overnight.
We discovered that the customer support of Saxo Bank was available in minor languages such as Hungarian which was beneficial for us because we had a Hungarian colleague when we tested some features of this broker.
Connecting to the customer service on phone took some time but pertinent answers were provided to our questions. We also received responses to our emails within a day but the answers were not entirely accurate.
Furthermore, the withdrawal of funds was smooth as it only took one day to get our funds.
Saxo Bank was founded in 1992 in Denmark. It was initially registered with a different name until it was given a banking license in 2001.
It is privately owned and has been operating for 30 years with a solid track record. Saxo Bank has its headquarters in Copenhagen and also has branch offices in major financial centers across the world such as London, Singapore, Zurich, Tokyo, Dubai, and Paris.
The broker currently has clients in about 180 countries in the world and it has grown to be one of the best online forex brokers in the world.
Saxo Bank is a highly trusted global broker/bank that endeavors to deliver everything traders need while also ensuring to provide them with a smooth experience along with advanced tools and top-notch market research.
However, the prices for accessing these services can be quite steep.
So, if you are a trader looking for top-notch brokerage service and are not worried about paying slightly higher fees when compared to some other brokers, then Saxo Bank is for you.