Saxo Bank Review: A Comprehensive Look at the Bank's Services

Saxo Bank is a well-established online trading platform that has been around since 1992. It's headquartered in Copenhagen, Denmark, and has a strong presence in the global market.

Saxo Bank offers a wide range of trading services, including CFDs, FX, stocks, options, futures, and funds. With over 180,000 clients worldwide, it's clear that Saxo Bank has built a reputation for trust and reliability.

Saxo Bank has won numerous awards for its services, including "Best Online Trading Platform" and "Best FX Provider". This is a testament to its commitment to innovation and customer satisfaction.

Its trading platform, SaxoTrader, is user-friendly and offers advanced features such as real-time market data, technical analysis tools, and risk management options.

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Saxo Bank's fee structure is quite competitive, especially for frequent traders. They offer a free account creation, and in many countries, you'll only pay a transaction fee when buying or selling securities.

In 2024, Saxo introduced a cheaper pricing for many types of securities, with US-listed ETFs costing only $1 in commission. Their pricing is tiered, with different profiles (Bronze, Silver, and Gold) that vary per country, making it a bit confusing but ultimately beneficial for traders who frequent the platform.

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Here's a breakdown of the fees for the Bronze category in Belgium:

It's worth noting that the custody fee is 0.15% per year, with a monthly minimum fee of €5, although this fee is waived in some countries like Belgium. Additionally, Saxo Bank charges a currency conversion fee, which varies per country, ranging from 0.25% in Belgium to an unspecified amount in other countries.

Saxo Bank offers a competitive fee structure, with a free account creation and transaction fees only applicable in many countries.

The fee structure varies per country, with Saxo introducing cheaper pricing for many types of securities in 2024. For instance, US-listed ETFs can be purchased for only a $1 commission.

There are three different profiles: Bronze, Silver, and Gold, although the names may vary per country. The pricing is competitive, with lower fees for more frequent trading.

Let's take a look at an example of the Bronze category in Belgium:

If you don't have an account in the currency of transaction, Saxo Bank charges a fee for currency conversion. For example, in Belgium, the currency conversion fee is set at 0.25%.

Another point to note is the €50 fee for outgoing transfers of financial instruments, which can be quite steep if you have multiple assets to transfer.

Saxo Bank doesn't offer fractional shares, so you'll have to buy whole units of shares.

This makes it impractical to invest on a monthly basis, especially with high fees. You'll need to consolidate your monthly investments into larger, less frequent contributions.

For example, you might have to invest every quarter or six months. However, if you're an advanced trader, you can do fractional trading on all Crypto FX pairs and CFD indices.

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Saxo Bank offers joint accounts, which can be helpful for investing alongside a partner.

If you're considering investing with Saxo Bank, you'll want to know that they're regulated by the DFSA in Denmark. This is a reputable regulatory body that oversees financial institutions.

You may be wondering if Saxo Bank has had any issues with the regulator in the past. Unfortunately, the answer is yes, but this doesn't necessarily mean you should be concerned.

Here's a summary of Saxo Bank's safety features:

When dealing with taxes, Saxo Bank has got you covered. They administer or declare taxes for you, making it a hassle-free experience.

Saxo Bank also handles TOB, dividend tax, and Reynders tax for you, so you don't have to worry about these complex tasks.

You won't need to declare your account to the NBB, as Saxo Bank takes care of this for you.

Here's a quick rundown of Saxo Bank's tax handling services:

If you're resident in Belgium, you can create an account with Saxo Bank using itsme. This process is quite smooth.

Saxo Bank uses itsme, making it convenient for Belgian residents to set up an account.

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Account approval times can vary significantly depending on the market you're in. In Belgium, it's relatively fast if you use itsme.

If you're in other European markets, be prepared for a wait. It can take a few days to be approved as a Saxo Bank user.

The approval process may seem slow, but it's a necessary step to ensure your account is secure.

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Saxo Bank does not offer children accounts, so the investments will have to be in your name.

This means you won't be able to open an account in your child's name, which might be a consideration for parents or guardians looking to invest on behalf of their kids.

Unfortunately, Saxo Bank doesn't provide this option, so you'll need to explore other financial institutions that offer children's accounts.

Saxo Bank is regulated by the DFSA (Denmark), which is a reputable financial authority.

The bank has had past issues with the regulator, but it's worth noting that this doesn't necessarily mean it's not safe.

Your financial assets are protected up to €20,000, which is a standard level of protection in the EU.

If you have a larger amount of cash in your account, it's safeguarded by a deposit guarantee of up to €100,000.

However, be aware that securities lending is an opt-in service, which means you need to explicitly choose to participate.

Fortunately, Saxo Bank doesn't engage in payment for order flow, which is a practice that can favor certain brokerages over others.

Saxo Bank's corporate headquarters is located in Tuborg Havn, a northern suburb of Copenhagen.

The building was designed by Danish architects 3XN and received an RIBA International Award.

It took 4 years to complete the building after winning an international competition in 2004.

The façade of the building features a unique design with diagonal white aluminium and blue glass patterns.

In June 2010, the Danish business newspaper Borsen named the Saxo headquarters the "Kingdom's finest domicile".

Saxo Bank has had issues with various regulators since they started. One significant case was following the Swiss National Bank's decision to unpeg the Swiss Franc from the euro in 2015.

The Danish regulator (DFSA) issued two reprimands to Saxo Bank for failing to provide adequate information to clients about limitations and difficulties in executing orders. This shows that Saxo Bank has had to deal with the consequences of not being transparent with their clients.

Saxo Bank has had issues with regulators in the past, particularly after the Swiss National Bank's decision to unpeg the Swiss Franc from the euro in 2015.

The Danish regulator, DFSA, issued two reprimands to Saxo Bank for failing to provide adequate information to clients about limitations and difficulties in executing orders.

In January 2015, Saxo Bank retroactively adjusted the execution prices of orders placed on CHF currency pairs during a period of low liquidity, leading to additional losses for some clients.

This decision led to a loss of up to DKK 700 million (around US$107 million) for Saxo Bank due to negative client balances they may not be able to collect.

The Danish Financial Supervisory Authority (FSA) requested a comprehensive report on Saxo Bank's actions before and after the incident in January 2015.

The FSA issued two reprimands to Saxo Bank in July 2015, criticizing the bank's insufficient disclosure of liquidity conditions and inadequate communication about the difficulties in executing orders.

However, the regulator did not find that Saxo Bank's approach to setting revised settlement prices or handling stop-loss orders breached best execution rules or unfairly favored the bank's interests.

Saxo Bank faced multiple lawsuits in various jurisdictions, including a case in the UK where the Financial Ombudsman Service found against the bank, mandating compensation for a client.

In another case, the High Court of Eastern Denmark ruled that Saxo Bank owed a former client US$320,000, having determined that the bank applied wrongful price adjustments and debited the client's account improperly.

Saxo Bank was fined €1.6 million for violations by BinckBank, its now-merged entity.

The violations included failing to comply with asset segregation rules, risk management standards, and fair treatment of customers.

Saxo Bank, as the legal successor of BinckBank, was held responsible for these infractions.

BinckBank's failures were a result of its own actions, not a reflection of Saxo Bank's current practices.

In fact, Saxo Bank has taken steps to address these issues and ensure compliance with regulatory requirements.

A key takeaway from this case is the importance of asset segregation and risk management in the financial industry.

These practices are crucial for protecting customer interests and maintaining a safe and secure trading environment.

Here are some key facts about the fine:

In 2011, the Dubai Financial Services Authority (DFSA) issued a formal censure against Saxo Bank Dubai Limited (SBDL) for multiple failings in its client onboarding processes.

The DFSA's findings highlighted significant lapses in compliance with regulatory standards. This is a serious issue, as it can lead to a lack of trust between the bank and its clients.

Saxo Bank Dubai Limited was specifically criticized for its inadequate client onboarding processes. This means that they didn't do enough to verify the identity and background of their clients.

The censure was a formal warning from the regulator, which is a serious consequence for any financial institution. It's a reminder that compliance with regulatory standards is crucial for maintaining a good reputation and avoiding fines.

Here's a summary of the key points related to the 2011 DFSA censure:

Saxo Bank's FX volume saw a significant recovery in April, increasing by 16.6 percent month-over-month. However, this still represents a relatively low level compared to other months.

The bank's equities volume, on the other hand, reached a record high of $303.7 billion in April. This is a notable achievement, especially considering the current market trends.

In terms of ownership, Lars Seier Christensen's investment arm played a role in the bank's operations, although it's worth noting that Christensen himself divested his stakes in Saxo in 2017.

Saxo Bank charges a custody fee of 0.15% per year, with a monthly minimum fee of €5.

This fee applies to stocks, ETFs, or bonds held in your account, and it's essential to check if you're exempt from this fee in your country of residence.

In some countries, like Belgium, there is no custody fee, so it's crucial to verify the information directly on Saxo's website.

The custody fee is just one of the costs associated with trading, and it's essential to factor it into your investment strategy.

Saxo Bank's fees and commissions for Polish investors can help reduce investment costs, which can lead to higher potential returns.

The bank offers attractive commissions for foreign transactions and a custody-free account for Polish clients, with fees ranging from 0.12% to 0.08% depending on the exchange.

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The Saxo team used to release new features to their customers once every 3 weeks, but after adopting LaunchDarkly, they were able to speed up their release process to twice per week.

Their homegrown feature management system was cumbersome and had limitations, causing developers to submit requests to have features turned on/off by a separate department, disrupting their ability to practice CI/CD efficiently.

Saxo prioritizes reliability and security, as unsuccessful transactions can put millions of dollars of client money at risk, making it crucial to adopt modern DevOps best practices.

The company's goal was to maintain their market leadership, which required addressing feature management and adopting LaunchDarkly to speed up their release process and minimize technical debt accumulation.

Using LaunchDarkly, Saxo was able to turn features on/off immediately through a kill switch, whenever necessary, and target specific users by segment for gradual rollouts.

The engineering team was empowered in their roles and felt more confident in their ability to release new features rapidly, thanks to the adoption of LaunchDarkly.

The team now completes their code, runs automated tests, and can quickly roll out features to Saxo users through LaunchDarkly, increasing their release frequency and making feature flags a standard development practice across the team.

Automated savings plans are not a standard offering from Saxo Bank, but they do have an AutoInvest feature for customers in the Netherlands. This feature automatically invests for you, but you'll need to send a periodic transfer from your own bank account to your cash account at Saxo.

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You'll have to choose the specific ETFs to buy, and Saxo limits you to two dates for executing the "AutoInvest": the 4th or 28th of the month. There's no transaction fee for this service, but you'll need to choose a plan (Bronze, Silver, or Gold) and pay a percentage of the transaction.

Saxo Bank offers solutions for both retail and institutional clients, providing access to a range of financial instruments through its online platforms.

Approximately half of Saxo Bank's business comes from partnerships with institutional trading partners, with over 120 financial institutions worldwide using Saxo Bank's platforms under white-label agreements.

These partnerships include institutions such as Standard Bank, Old Mutual Wealth, and regional entities like Sparekassen Vendsyssel and Jutlander Bank.

Saxo Bank has a strong presence globally, with offices located in multiple countries including Australia, China, the Czech Republic, Dubai, France, Greece, India, Italy, Japan, Netherlands, Singapore, Switzerland, Turkey, the United Kingdom, and the United States.

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The bank's business model allows for a diverse range of financial instruments to be traded, including Forex, stocks, CFDs, futures, funds, bonds, and futures spreads.

Saxo Bank has a significant client base, with over 1.2 million clients and €109 billion in assets under management.

Here are some key statistics about Saxo Bank's business model:

In June, Saxo Bank's FX trading volume hit a low, with a monthly total of $78.1 billion.

The daily average trading volume recovered slightly, reaching $3.9 billion.

The overall monthly trading volume on the platform declined by 4.2 percent compared to the previous period.

This decline in trading volume is a notable trend in the financial industry, highlighting the need for businesses to adapt and innovate in response to market fluctuations.

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In the 2020s, Saxo faced a significant challenge in 2023 when the Danish Financial Supervisory Authority instructed the company to liquidate its cryptocurrency holdings due to regulatory concerns.

The FSA's directive was issued on July 4, 2023, without specifying a timeline for Saxo to comply.

Saxo's client base saw a 43% increase in 2024, but the company's trading metrics continued to decline.

Monthly trading volumes plummeted to $371.6 billion in June 2024, a 4% drop from the previous month.

Core FX volumes reached a multi-year low of $78.1 billion, a concerning trend for the company.

In August 2024, Saxo made the difficult decision to close its offices in Hong Kong and Shanghai, citing geopolitical factors.

The company disclosed $4.3 million in losses for its Hong Kong operations in 2023, which likely contributed to the decision to off-board local clients and partners.

Saxo Bank's financial performance is impressive, with a revenue of DKK 6.7 billion in 2020.

The bank has a strong track record of growth, with a compound annual growth rate (CAGR) of 15% from 2015 to 2020.

This growth has been driven by the bank's expansion into new markets and the increasing popularity of its online trading platforms.

Saxo Bank's net profit has also been increasing steadily, reaching DKK 1.3 billion in 2020.

Saxo Bank's client assets have reached a staggering DKK 800 billion, a remarkable milestone in the company's history.

The brokerage has added DKK 650 billion in client assets over the last six years, a testament to its growing popularity among investors.

Saxo has more than 1.2 million clients globally, a number that continues to grow as the company expands its services.

Here's a breakdown of Saxo's client assets over the years:

This significant growth is a reflection of Saxo's commitment to providing its clients with the best possible trading experience.

The company's efforts to reduce fees and improve its services have clearly paid off, attracting more clients and increasing its client assets.

Saxo's success is a great example of how a company can thrive by putting its clients first and continuously improving its offerings.

Saxo Bank's FX volume hit a bottom in May, with a monthly volume of $79.6 billion, the lowest since 2016.

This decline in FX volume is a significant drop from previous months, with a 4.2 percent decrease in overall trading volume on the platform.

Client assets on Saxo Bank have reached a new high, with DKK 800 billion (about $116.1 billion) in assets under management.

Here's a summary of Saxo Bank's FX volume and client assets:

The daily average FX volume in June recovered slightly, reaching $3.9 billion, but still a far cry from previous highs.

Saxo Bank is actively seeking partnerships for its operations in Australia, Japan, and Hong Kong.

The company is open to exploring new partners, allowing them to use their own brands while leveraging Saxo's technology.

This strategic move suggests that Saxo Bank values collaboration and is willing to adapt its business model to achieve its goals.

Here are the regions where Saxo Bank is currently seeking partnerships:

Adam Reynolds, the former APAC and Singapore CEO at Saxo Bank, has stepped down from his role.

Damian Hitchen has been appointed as the new Regional Head of APAC and MENA.

Mahesh Sethuraman has taken over as the Singapore CEO, succeeding Reynolds in this position.

These changes are a result of Reynolds' recent exit from Saxo Bank.

Andrew Bresler has taken on the role of CEO at Saxo UK, succeeding Simon Camilleri on June 3.

He brings a wealth of experience from his previous roles at Saxo, Citibank, and InvestCloud.

Bresler's appointment is a significant move for Saxo UK, and we can expect him to bring a fresh perspective to the company.

His experience at Saxo will undoubtedly be beneficial in his new role.

Here are some key facts about Andrew Bresler's background:

We can expect Bresler to make a positive impact at Saxo UK, given his extensive experience in the industry.

Casper Solbakken has been named the Global Head of Commercial Offering and Experience at Saxo Bank. He has spent over 18 years working for the bank.

Saxo Bank has recognized the importance of having a cohesive and efficient service for clients. This is evident in their recent decision to merge sales and SXO units.

Solbakken has previously held the role of Global Head of Products, Pricing, and Platforms since July last year. This experience will likely be valuable in his new position.

Stig Christensen, the current Chief Sales Officer, has been named Chief Commercial Officer as part of the merger.

Saxo Bank has a long history of strategic sponsorships that have helped the company achieve its goals and expand its reach. The bank's partnership with Riis Cycling A/S in 2008 marked a significant milestone, as it became the title sponsor of the team.

The team went on to achieve great success, with Carlos Sastre winning the Tour de France in 2008 and Andy Schleck finishing in second place in 2009 and 2010. Saxo Bank's sponsorship of the team allowed the bank to tap into the international reach and name recognition of the team.

In 2010, Saxo Bank extended its sponsorship of Riis Cycling for another year and signed Tour winner Alberto Contador to the team, with the aim of winning all Grand Tours in one year. This move showcased the bank's commitment to innovation and ambition.

Saxo Bank's sponsorship of the Lotus F1 team in 2014 marked a new chapter in the bank's partnership history, as it moved into the world of motor racing. The bank's involvement with the team allowed it to host clients at Formula One races and use the team's name in its marketing efforts.

The bank has also used its sponsorship dollars to support the distribution of books, including Ayn Rand's novel Atlas Shrugged, which was retranslated into Danish and distributed to new employees.

Saxo Bank is a fully licensed and regulated bank based in Denmark. It was founded in 1992 by Lars Seier Christensen, Kim Fournais, and Marc Hauschildt.

The bank offers a range of financial products and services, including online trading, investment, and banking. Saxo Bank has a strong presence in the global financial markets.

Saxo Bank is headquartered in Copenhagen, Denmark, with offices in over 20 countries worldwide.

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In Portugal, digital investment solutions are gaining popularity among investors. Novobanco's collaboration with Saxo aims to improve their services with advanced trading and analytical tools.

Portuguese investors are looking for digital solutions that offer diverse investment options. This is driving the demand for innovative investment platforms.

The collaboration between Saxo and novobanco is expected to enhance the investor experience in Portugal. By providing advanced tools, novobanco can better cater to the needs of its customers.

Investors in Portugal are seeking digital solutions that are easy to use and offer a range of investment options. This is a key factor driving the growth of the digital investment market in the country.

Here are some key benefits of the Saxo and novobanco collaboration:

Saxo's predictions are worth paying attention to, as they have a history of accuracy. They predicted the rise of Bitcoin and Brexit, which turned out to be true.

Saxo's "Outrageous Predictions" are not to be taken lightly, but sometimes they come true. This shows that even the most unlikely predictions can have a basis in reality.

Saxo accurately predicted the rise of Bitcoin and Brexit, among other events. This gives us a reason to take their predictions seriously.

It's worth noting that Saxo's predictions are not always easy to understand or agree with. However, their track record of accuracy is a good reason to pay attention to what they have to say.

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Dywersyfikacja geograficzna jest istotnym elementem strategii inwestycyjnej, pozwalającym minimalizować ryzyko i zwiększyć poziom zabezpieczenia środków przed niekorzystnymi zdarzeniami gospodarczymi lub finansowymi.

Posiadanie rachunku w innym kraju może zwiększyć bezpieczeństwo posiadanego majątku.

W przypadku kryzysu finansowego lub geopolitycznego, inwestycje lub przetrzymywanie środków w innym kraju może działać jako "ubezpieczenie".

Ta część naszych środków jest w innym systemie bankowym i jest chroniona do 100 000 EUR przez inny fundusz gwarancyjny.

Duński Fundusz Gwarancyjny chroni depozyty gotówkowe do 100 000 EUR.

Dywersyfikacja geograficzna daje nam możliwość przeniesienia części pieniędzy/inwestycji do Danii, gdzie depozyty są chronione przez fundusz gwarancyjny.

Saxo Bank A/S is a privately owned company.

The majority shareholder is Geely Financials Denmark A/S, a subsidiary of Chinese Zhejiang Geely Holding Group Co., Ltd. Geely holds 49.88% of the shares.

Saxo Bank founder and CEO Kim Fournais holds 28.41% of the shares.

Mandatum, a nordic financial services group formerly part of Sampo Group, holds 19.83% of the shares.

The remaining shares are held by minority shareholders including a number of current and former employees.

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