What is Saxo?
Saxo is an online trading platform which offers trading through Forex, stocks, Commodities, CFD’s funds, indices, bonds, and futures spreads. Saxo is operated by a Danish investment bank majored in online trading and investment. Founded as a brokerage firm in 1992 by Lars Seier Christensen, Kim Fournais, and Marc Hauschildt, Saxo was initially named as Midas Fondsmæglerselskab, and later changed its name to Saxo when the company obtained its banking license in 2001. At present, the company is functioned as an online broker which holds a bank license without offering traditional banking commodities.
Saxo bank offices are located in the United Kingdom, Switzerland, Netherlands, Australia, France, Dubai, Hong Kong, Italy, the Czech Republic, Turkey, China, Japan, Singapore, and India.
Who is Saxo market for?
Unlike some of the competitors, Saxo’s betting offers are only accessible to customers who are qualified as professional clients or advanced traders. The platform offers a wide array of brokerage services pitched towards advanced and active traders, investors, professionals, and institutions around the world.
Customers with small account balances often will face difficulties in having to maintain higher account minimums and a variety of fees as well as less customer support in comparison to customers with prominent account balance. In order to receive higher customer tiers in accounts, the customers should hold a minimum starting at £200,000 (Platinum) and £1,000,000 (VIP). Tier accounts are the ones that pay different rates of interests depending on the amount of funds held in the customer accounts.
The relatively high account minimums, bottom-line trading that are higher than average trading costs and the limited customer support options make Saxo less perfect for the smaller scale and lower- skilled, incompetent trader. Saxo Capital Markets offer the traders a wide range of contributions, advanced user interfaces, and superior research amenities.
The latest technology Saxo use helps them to connect globally with all its exchanges. As of today, banks, financial advisors, fintechs (financial technologies that deliver financial services via a software), and brokers use the Saxo market to provide trading and investment facilities to their clients.
Saxo carries some noticeable key product features that enables access to enhanced trade tickets, option chains, fundamental and technical analysis tools, wide- range of charting packages, performance analysis and a comprehensive account overview.
The app also supports on- screen set up and is accessible via both desktop and mobile.
How safe is Saxo?
Saxo has taken every step to ensure that the client assets and funds are not at any circumstance merged with other corporate funds or banks and they provide the clients with exact guarantee that their funds will not be lost/ misplaced or misused. The secured software used by Saxo 100% supports this factor. For instance, logins are supported with the two-way verification and the bio- metric authentications.
In addition, if the user has not logged out from his/ her web or mobile account for a considerable period of time, the system automatically logs out the user from the account, where they will have to provide the login details and make a fresh log-in the next time.
Pros and cons of Saxo:
- Widespread range of offerings – Saxo capital market extends access to its clients towards an array of offering including leverage and investment products, multitude of asset classes, access to Forex, ETF’s Shares and commodities, bonds, indices etc.
- Regulated by FCA (UK) – Saxo is regulated by the FCA, one of the principal regulatory agencies in the UK, which is also highly accepted for globally ensuring trustworthy market practices for both individuals and businesses.
- Superior user interface – Saxo has integrated its trading platforms in SaxoTraderPro, which is downloadable and SaxoTraderGo, which is web- based, including almost all the upgrades that are required in the industry standards. Moreover, smooth integrations with third- party tools that also support Saxo opens up numerous options for advanced traders.
- High security on client accounts – Saxo is known as one of the low-risk trading platforms as it retains customer privacy at a greater level.
- Industry’s best research – Saxo maintains a commendable service to its clients with a top-notch research standard in the online Forex brokerage arena.
- Lack of emphasis on customer service – Lack of emphasis on customer service is the greatest drawback of Saxo online brokerage offering. The website does not support any common live online chat service except for funded accounts. Although the chat-bot functionality is available, it does not provide assistance as expected.
- Does not accept US clients – Saxo market does not accept US clients due to regulatory constrains which disqualifies it from being a recognizable global broker, although it still is a leading trader regulated by the FCA.
- Confusing instrument fee structure – Saxo’s confusing range of fee structures and hidden costs make it difficult to the clients to estimate their bottom- line costs in the long run when it comes to financial decision making. The commission and the spread disclosures are often contradictory along with the different prices quoted for similar or identical instruments and venues.
Unique Features Offered
Saxo market offers its clients entry to a wide range of indexes comprised of both investment and purchasing products that extends over a multitude of asset classes. Thus, the available instruments include the following:
- 19,000+ stocks
- 9000+ CFD’s
- 19 commodity CFD’s
- 182 FX spot pairs
- 140 FX forward
- 200+ features contracts
- 5000+ bonds
- 3000+ ETF’s
- 250+ mutual funds and Cryptocurrency ETN’s
The key feature of SaxoTraderGO is that it supports one- screen set up (the tabs can be dragged to any screen connected with the primary browsing machine) access is allowed through both desktop and mobile. Other key features offered are extensive charting packages, enhanced trade tickets, option chain, technical analysis tools, and performance and comprehensive account overview.
In contrary, SaxoTraderPRO offers its financial plans in 3 major categories: Gold, Platinum, and Diamond. Other key features SaxoTraderPRO offers are the algorithmic orders, one- click trading, and analysis of individual investor’s performance in detail with an efficient and upgraded account section. The system is also fully customizable within 6 screens, enabling advanced workspace management and multi- channel linking between the modules. This is as well accessible via PC and MAC.
Specific Rules for the Platform
- When it comes to pricing formations of client orders, it will be done according to the exchange rules and routed to the customers respectively. Eventually, client orders will be routed to the electronic order book via the ‘smart order routers’ of different venues. At that point the prices will be formed according to the rules of the venue.
- Saxo market certainly requires Saxo Bank as it is wholly owned by the Saxo Bank.
- Saxo market venues are directly executed by the Saxo Bank. The Saxo bank is used as the executing broker to access the primary banks, thus, the bank offers Direct market access (DMA) to future exchanges as well.
According to current indicators, Saxo Bank powers over 200 banks and brokers worldwide and over 400 financial liaisons. Moreover, it has, 810,000 clients worldwide, over 95 billion USD client assets, and approximately 188,000 daily executed trades summed up with 25 years experience in the industry.