Saxo Bank Review 2020

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Overview

Saxo Bank (Saxo Capital Markets) was established in 1992, and it is an investment bank based in Denmark. It offers several online trading services to retail and institutional investors as per their requirements. Saxo Bank is completely regulated, and it adheres to strict regulatory compliances across several jurisdictions, which includes Denmark, the UK, Australia, and Singapore. Further, we can say that Saxo capital markets are a global service provider having customers in more than 170 countries; it offers more than 35,000 tradable assets. It offers services like traditional share broking services, along with Forex, CFDs, futures, and mutual funds.

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What is Saxo Bank?

  • Saxo Bank is one of the leading and most popular investment banks. It specializes in online trading services and investment by offering more than 35,000 trading instruments provided on the platform. It includes several thousands of traditional equities over various stock exchanges.
  • This broker also offers its services to short-term traders; the traders can buy and sell several thousands of Forex and CFDs by using the platform. Moreover, Saxo bank offers several trading assets like futures and options, stocks, commodities, and several more. This shows that the platform caters to all types of clients with different experience levels.
  • Concerning safety, Saxo Bank is regulated by top-tier licensing bodies. FCA regulates Saxo markets UK, and it also includes other regulators from Switzerland, France, Singapore, Italy, Australia, and Japan.

Features

Let us discuss some of the features offered by Saxo Bank –

  • Saxo Bank is a web-based trading platform that offers features with high security. Some of the important documents the clients needed when they opened an account with this broker include a copy of a passport, driver’s license, or government ID. The login process to some of the different account types is enhanced for protecting the user data.
  • Saxo trading works just like any other online trading brokers, and it offers several trading instruments for its customers. It also offers several services and managed portfolios for them. Managed portfolios imply that an experienced team of professionals from Saxo Bank will purchase and sell assets on the customer’s behalf. By offering no lock-in period on these managed accounts, the trader can withdraw their funds anytime.
  • As per our Saxo Bank review, we can say that this broker provides a vast choice of educational materials and also offers trading courses that focus on futures, bonds, CFDs, equities, forex and options, and several more. The course is easy to understand, and it is useful for both new and experienced traders.
  • Saxo Bank offers its clients a guarantee that they will not lose their money more than they have in their accounts by offering the negative balance protection rules mandated under ESMA, which came into effect in 2018. However, Saxo Bank does not offer guaranteed stop-loss protection, which exposes potential losses in extremely volatile market conditions.
  • Saxo Bank accepts several major currencies, and there are no conversion fees if the trader’s deposit currency matches their account location. If the trader resides in the UK and they deposit their money in GBP, there are no conversion charges.

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Pros and Cons of Saxo Bank

Let us discuss a few pros and cons of this broker –

Pros

  • Saxo Bank offers over 35,000 tradable instruments, and the trader can invest in asset classes as per their choice.
  • The trader can also connect their Saxo accounts to a third-party platform for accessing custom tools to suit the trader’s requirements. Saxo does not charge when the trader connects to third party platforms.
  • Saxo Bank offers its services to short-term clients, and they can use Forex, futures & options, and CFDs for trading. 
  • It also offers mutual funds; the clients can use these even though they need not have any previous trading experience in investing in mutual funds.
  • Saxo Bank is regulated by various licensing bodies globally.
  • One of this broker’s major advantageous features is that it does not ask for deposit or withdrawal fees.
  • As per our review, we can say that Saxo Bank offers a mobile app with several features for its traders.

Cons

  • One of the major drawbacks is, this broker requires a minimum deposit of £500 
  • These brokers do not offer a live chat facility

Risk Warning  – CFDs are complex instruments and come with a high risk of losing money rapidly because of leverage. 73% of the retail investor accounts lose money when they are trading CFDs with this provider. You should consider whether you understand how CFDs, forex work and whether you can afford to take the high risk of losing your money.

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Who can trade with Saxo Capital Markets?

As per our review, we can say that Saxo capital markets are the preferred choice of advanced traders. It provides a wide variety of services geared towards experienced, active traders, professionals investors, and financial institutions. If you are a small trader, you might encounter a few problems, which include a high account minimum and fewer customer support options. For UK based accounts, the minimum amount is 200,000 pound for platinum accounts and 1,000,000 pounds for VIP accounts.

Regulation

Saxo Bank is regulated and licensed brokers in multiple jurisdictions across the world. Some of them are given below-

  • In the UK, Saxo capital markets are regulated and authorized by the UK Financial Conduct Authority – FCA
  • In Singapore, Saxo capital markets Pte Ltd is regulated by the Monetary Authority of Singapore – MAS
  • In Switzerland, Saxo Bank is a licensed bank and it is regulated by the Swiss Financial Market Supervisory Authority  – FINMA
  • Saxo Bank Securities Ltd is regulated and licensed by the Japanese Financial Service Agency -FSA
  • In Australia, Saxo capital markets limited is regulated and licensed by the Australian Securities and Investment Commission –  ASIC
  • Besides, Saxo Bank also holds several licenses in other jurisdictions; and it is currently one of the most regulated brokers in the trading industry.

Deposit and Withdrawals

Saxo Bank is one of the leading brokers that provides three options for depositing funds, such as bank transfer, stock transfer, credit, and debit cards. Transaction fees can be determined by the currency of the transaction rather than the account’s currency. The charges are free if the transfer is done in cash. Compared to other brokers, it does not charge any fees for withdrawal if they are submitted through an online cash withdrawal module. If the traders are using a manual fund withdrawal form, Saxo Bank charges a processing fee of $40. Besides, withdrawals can be made through a bank account in the same name that is listed on the trading accounts.

Minimum Deposit

As per our Saxo Bank review, we can say that the minimum deposit required by this broker is 500 pounds in the UK if they are choosing a classic type. Besides, the minimum amount to deposit varies depending on the account type the trader chooses and the residing country. For example,  for Middle Eastern or Central European clients, the minimum deposit is $10,000, and for Australian and Swiss clients, they need to deposit $2000. Considering the account minimum, the classic type needs a deposit of 500 pounds, and we can say that these brokers do not charge any fees for deposits and withdrawals.

Payment Methods

  • As per our Saxo Bank review, this broker accepts payment options with major credit and debit cards, like Visa, MasterCard, visa, electron, and Maestro. Moreover, limits are very high when the trader uses the debit or credit card, as this broker accepts deposits of $100,000 a transaction.
  • If the trader is using a debit or credit card which was issued in the EEA, they are not required to pay trading fees; if the trader is using the non-EEA card, they should pay a deposit fee starting from 0.51% to 2.86%, which depends upon the country of issue.
  • The trader should know that the credit card and debit card payments are instantly credited to the account. When compared to other brokers, Saxo does not offer support for some of the e-wallets like Skrill and PayPal; hence the only option for the trader is to deposit through a bank account. It usually takes 2 to 5 working days for the funds to be credited to the trader’s accounts.

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Spreads, Fees, and Commissions

Saxo Bank trading fees depend upon the tier and the asset classes chosen by the trader. It offers a mix of spreads, commissions, and overnight charges on the leveraged products. Besides, their Forex spreads are low when compared to other online brokers. The fees paid by the trader can vary, and it depends on the asset class they are buying or selling. It also depends on the type of accounts. The traders can choose the classic with a minimum deposit of 500 pounds, which is low when compared to other accounts offered by this broker. 

Inactivity Fee

Saxo capital markets offer strict inactivity fees if the trader does not trade the previous quarter. An inactivity fees of 25 pounds will be detected from the trading account. This fee is not applied in case if the trader has long-term holdings for stocks or a managed portfolio. However, the trader should check with the platform’s inactivity fee policy before proceeding.

Margin and Leveraged Trading

As per our review, Saxo capital markets is one of the best brokers that provides margin accounts for the traders who can take higher risk. Even though it offers 200:1 leverage,  this is offered only to the professional traders and not to retail clients. This leverage does not apply to UK clients as other regulations are applied.

Order Types

If the customer trades either with the main desktop platform or through their mobile app, they can access a wide choice of order types. It includes a limit, stop-limit, and trailing orders. For more sophisticated traders, Saxo capital markets support the following – 

  • One-cancels-the-other (OCO)
  • Immediate or cancel(IOC)
  • Good-till-cancelled (GTC)
  • Good-till-date (GTD)

Asset offering

As per our Saxo Bank review, Saxo Bank offers more than 35,000 trading instruments for the traders. Some of the offered instruments are forex options, stocks, futures, bonds, ETFs, Mutual funds, and several more. 

Saxo capital markets pride itself that it offers a wide choice of products for its traders. Some of the assets that are offered by Saxo Bank are discussed below-

  • In forex, Saxo capital offers a good collection of Forex pairs like minors, majors, exotics, and spot metals.
  • In stocks, it offers an exhaustive selection of more than 19,000 stocks traded in several international exchanges, which also includes emerging markets.
  • In ETFs, it offers more than 3,000 exchange-traded funds that are offered from several exchanges.
  • In bonds, the traders can access a wide range of corporate and government bonds in more than 5000 assets from the US, Europe, Latin America, Middle East, and Asia.
  • Mutual funds, it offers more than 250 top funds from the biggest investors around the world.
  • In CFDs, the trader can access more than 9,000 instruments, many Forex pairs, ETFs, individual stocks, government bonds, commodities, and several more.
  • It offers a wide variety of ETFs, CFD, futures, options, exchange-traded commodities, and several more in commodities.
  • In futures, it offers a wide selection of more than 200 futures traded on several global exchanges, which include Forex, agriculture, metals, equity indices, energy, and many more.
  • This bank offers a wide assortment of more than 1200 options that can be traded on several international exchanges, which comprises energy, equities, metals, and several more.
  • In the cryptocurrencies segment, the traders can trade with Bitcoin and Ethereum through ETN instruments.

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Demo Account

As per our Saxo Bank review, this broker offers a demo account. This mode is very useful for the trader, and the traders are offered paper money. The traders can use this demo mode to familiarise themselves with the platform with the trading features and functionalities. If you are a new trader, using a demo mode will immensely help to practice trading. When you are confident enough with a demo mode, you can proceed with live trading.

Account Types

As per our Saxo Bank review, we can say that Saxo capital markets provide three types of accounts that are categorized as per the amount deposited by the trader. Given below are the types of accounts offered by Saxo capital markets –

  1. Classic account
  2. Platinum account
  3. VIP account

Classic account

  • The minimum funding for this type is $10,000, and the traders can benefit from some of the industry-leading assets offered by the account
  • It offers first-class digital service and customer support
  • The classic account offers a 24×5 technical support

Platinum account

  • The minimum funding for a platinum type is $200,000
  • The traders can receive tighter commissions.and  spreads
  • In this type, the trader get lower prices up to 30%
  • It offers the best digital service and customer support
  • It provides 24×5 technical support

VIP account

  • The minimum funding for a VIP account is $1000,000
  • It offers VIP treatment for these account holders and offers the best prices
  • It provides world-class digital service and customer support
  • Also, it offers local language personal relationship advisor, and the traders can directly access the trading experts 24×5
  • These account holders are offered exclusive event invitations from this broker.

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How to get started?

Just like any other online trading platform to trade with, the trader needs to go through the account opening process to open a new account with Saxo Bank. This requires adding personal information from the trader, and they also need to verify their identity.

Below given are the step by step process the trader needs to undertake to get started with Saxo Bank.

Opening an account

The first step is to visit the broker’s website and select to open an account. The trader needs to supply details like their first and last name, email address, country of residence, and strong password. The next step is, the bank will collect some of the important information about the trader’s financial status. This is to make sure that they are suitable for investing in their platform. Moreover, the trader should keep in mind that they should not trade more than they can afford to lose.

Selecting an account type

Saxo Bank provides three account types, and if the trader is willing to deposit £200,000, they can opt for Platinum and VIP accounts; otherwise, they need to go for classic accounts. These broker’s accounts come with a minimum deposit amount of 500 pounds, and the platinum and VIP accounts come with a minimum deposit of 1 million and 200,000 pounds, respectively. 

Identity documents

Saxo Bank is a highly regulated investment platform. The traders must submit some of the identity documents that include a valid government-issued ID, that can be either a driver’s license, passport, or national identity card. They also need to prove their residency status; this requires documents like a bank statement, tax statement, utility bill that needs to be submitted to the broker for verification.

Funding the account

When the account verification process is completed, the trader can deposit their funds. As already mentioned, the trader can choose either a debit or a credit card for depositing their funds or a bank account. If the trader chooses a bank account, they need to wait for 3 to 5 working days for the funds to be reflected in their account.

Live trading

When the minimum deposit has been added to the trader’s account, the trader can start with the live trading. Moreover, they can choose more than 35,000 trading instruments across a wide choice of asset classes offered by the platform. When the trader finds the asset they wish to trade; they can proceed with executing the trades.

Trading Platforms

Saxo Bank offers its traders two award-winning platforms like the web-based SaxoTraderGo and SaxoTraderPRO, which is a desktop-based platform. As per our review, the platforms are highly popular among the traders and have received the highest rating. Saxo capital markets provide several trading features and functionalities that help traders execute profitable trades by offering these trading platforms.

SaxoTraderPRO

  • As per our Saxo bank review, Saxo Bank offers SaxoTraderPro, its proprietary trading platform with major improvements and upgrades, when compared with MetaTrader 4 and MetaTrader 5, which offers only access through API interface.
  • This platform can be easily customized, and it is a web version that allows the users access to some of the tools like news, charts, research, and watchlist as per the traders’ requirements.
  • Saxo capital markets also provide access to various technical indicators and charting tools where the traders can customize as per their requirements. It also offers a wide range of asset selection, and this platform can be accessed through a mobile app as well.
  • The traders can use the professional-grade SaxoTraderPro trading platform through a demo account and also for a live account. By using this, they can familiarise themselves with the several features offered by the platform.
  • The traders can trade directly from the chart, and this platform gives access to more than 50 technical indicators.
  • The traders can also use advanced algorithmic orders, and they can trade over multiple screens. They can completely customize the layouts as per their requirements.

SaxoTraderGo

  • SaxoTraderGo provides traders an easy to use interface, it is highly advanced, and the watchlist is seen clearly. One of the major highlights of this trading platform is that it is simple and fast, considered a major advantage. 
  • Traders can easily view several charting indicators, and also they can overview some of the major stocks on the platform.
  • Concerning charting, it offers 17 drawing tools and 49 technical indicators. It also offers an option for customizing time-period views. By providing this customization, it lets the traders easily identify good trading opportunities and efficiently trade.
  • The traders can access the SaxoTraderGo trading platform through their live account or by using a demo account and test the platform’s features and functionalities.
  • The traders can trade, invest, and hedge through more than 35,000 trading instruments. The platform is browser-based, and as such, there is no downloading required. 
  • The client can connect their Saxo account to a third-party platform to access custom tools offered by a third party.

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SaxoTraderGO Mobile

  • Saxo capital markets offer SaxoTraderGo mobile, where it offers every feature of the desktop platform. Further, executing and monitoring the trades are very easy; price alerts and watchlist synchronize with the desktop platform; this is considered one of the most useful features. The app can be downloaded from the broker’s website or Google play store, or Apple app store.
  • The trader can trade across 35,000 financial assets offered by the platform; they can also access several risk management and powerful trading tools through mobile.
  • The traders can execute multiple order types, and they can manage trades from their mobile phone. Also, they can identify several opportunities by the free trade signals offered by autochartist.
  • The traders are also offered expert news and market analysis to their phones, and they can sync their settings over several devices. 

Research

Saxo Bank offers several research tools over both fundamentals and technical parts of it. It offers SaxoTraderGo and SaxoTraderPro trading platforms. These platforms come with several features and functionalities such as advanced charting, trading tools that cover many technical indicators, and many more. Besides, this Bank also provides an in-depth market analysis of a wide range of asset classes. The trader should subscribe to the trading platform to access a wide range of fundamental data. Also, it publishes several trading ideas for its trader’s benefit. 

Security

  • Saxo Bank makes sure that its client funds are not mingled with their corporate funds. Under the UK financial conduct authority, client money rules. This makes sure that the trader’s assets are protected even if the bank goes insolvent. 
  • Having these funds segregated in accounts at regulated banks ensures that the client’s money is safe. Further, traders have also had additional asset protection through the financial service compensation scheme, where they are offered compensation of up to 85,000 pounds.
  • This broker’s software security system is the best in the industry, and it also offers biometric and two-factor authentication security, where the user can log out of both mobile and web-based applications if they have not used the account over a specific period.

Alerts

This broker allows the traders to set up several customized alerts where they can receive trade signals through their email or mobile phone. Some of them include price alerts, showing a notification when the positions are about to open and close. This feature comes in handy when the traders execute the live market orders, and they want to know when they are executed. The trader can set up alerts on portfolios and when there are changes in the margin calls. They need to install the mobile app if they want the alerts to pop up on their smartphone.

Education

  • Saxo Bank offers several educational tools that can be seen on the platform through its tutorials. It also offers several resources and extensive analysis, but this broker offers no technical or fundamental analysis.
  • Saxo Bank offers several interactive courses through Saxo Academy, by providing quizzes to check on the traders about how much they have understood about the platform. There are also some video sessions, and the traders can sign up for weekly webinars as per their convenience.
  • Saxo Bank website does not offer a glossary of terms, which might be a major drawback for new traders. It targets experienced traders, and new traders might find it a little bit overwhelming about some of the contents; there is limited educational material for the beginners.

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Customer Support

  • Saxo offers a dedicated support center, which is highly extensive, where the trader can take the help of the support team for their issues/queries to be solved. If there is an urgent issue that needs to be taken care of, they can contact customer service by phone.
  • In some of the jurisdictions, this broker offers customer service in 30 various languages such as Arabic, English, Danish, Chinese, Italian, Japanese, French, Swedish, Spanish, and several more.
  • Compared to other brokers, this broker does not offer a live chat feature; the traders can contact the customer service through email and phone. The customer service representatives are highly knowledgeable about their product offerings. It also offers an exhaustive FAQ section where the traders can do their research about any questions they have about trading.

Wrap up

To Conclude, we can say that Saxo offers easy to use trading platforms by offering more than 35,000 trading instruments where the trader can access them easily. Some of the platform’s features like research, educational offering, analysis, and great customer care are worth mentioning advantages, which are helpful to both new and experienced traders. Experienced traders, rather than beginners, widely use this platform. The minimum deposit required by the platform is a bit too high when compared to other trading platforms that need $250 as a minimum deposit. Before proceeding with Forex trading, a bit of investment advice always research and analyze the trading market and then invest your hard-earned money.

FAQ’s

1. Is Saxo Bank a good broker?

Ans. Saxo Bank offers individual investors and experienced traders an excellent trading platform to trade and to invest in various markets at a low cost. This broker charges trading fees that are relatively much lower than its rivals, and it offers an excellent trading experience because of its intuitive interface offered by the platform.

2. Is Saxo Trader good?

Ans. Saxo Bank was founded in 1992, and it is regulated and licensed by several tier 1 jurisdictions by making it a safe broker for trading CFDs and Forex.

3. Is Saxo Bank regulated?

Ans. Saxo Bank is a licensed bank regulated by the Swiss Financial Market Supervisory Authority (FINMA) and is also regulated through other supervisory authorities around the world.

4. Does Saxo charge inactivity fees?

Ans. Yes, Saxo Bank charges an inactivity fee of $100 or an equivalent amount per the account currency. This inactivity fee is charged if the trader does not execute any trades on their account for six consecutive months.

Risk Warning  – CFDs are complex instruments and come with a high risk of losing money rapidly because of leverage. 73% of the retail investor accounts lose money when they are trading CFDs with this provider. You should consider whether you understand how CFDs, forex work and whether you can afford to take the high risk of losing your money.

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