Saxo Capital Markets: A Review of Its Capabilities

December 21, 2023
9:51 am
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Today, there are various trading brokers provided to beginner and experienced traders. Traders can easily access each broker by researching the forex trading broker review, which helps them make decisions more quickly.

This article will focus on the Saxo Capital Markets review, which is a platform offering several trading and investment options through its various global subsidiaries, including Saxo Capital Markets U.K. Ltd. Whether you’re a seasoned trader or a beginning trader, this forex trading broker review aims to provide you with the insights you need to decide.

Saxo Capital Markets: Overview

Established: 1992
Headquarters: Denmark
Trading Platforms: SaxotraderGO, SaxotraderPRO
Mobile Trading: Yes
Minimum Deposit: $2,000 Account Types: Classic, Platinum, VIP, Professional

Open an Account

Saxo Bank Group, established in 1992 in Denmark, has made a name for itself as a top player in the fintech industry, specializing in various types of trading and investment. It also offers specialized banking services to business clients.

The company was quick to adopt new technology, launching one of the first online trading platforms in 1998. Since 2006, it has also been active in the UK through its subsidiary, Saxo Capital Markets U.K. Ltd. Moreover, Saxo Bank doesn’t allow traders from the United States.

Regulation and Registration

Saxo Capital Markets operates globally under strict regulatory oversight. In Denmark, it’s licensed by Finanstilsynet, and in the Netherlands, by the Bank of the Netherlands. The UK branch is regulated by the Financial Conduct Authority (FCA), while in Belgium, it’s overseen by the FSMA and NBB. In Singapore, the Monetary Authority of Singapore regulates it, and in Hong Kong, it’s under the Securities & Futures Commission. In Switzerland, FINMA supervises it, and in Australia, it’s regulated by ASIC. Lastly, the French branch is controlled by ACPR and AMF.

Account Types of Saxo Capital Markets

Saxo Capital Markets offers a range of account types to suit various levels of traders and investors, each with distinct features and benefits. Here is an overview of the different account types available:

Classic Account

Minimum Initial Funding: USD 100,000*
Tight entry prices
Best-in-class digital service and support
24/5 technical and account support

*Varies by country of residence

Platinum Account

Minimum Initial Funding: USD 200,000
Up to 30% lower prices
Best-in-class digital service and support
24/5 technical and account support
Priority local-language customer support

VIP Account

Minimum Initial Funding: USD 1,000,000
Best prices offered
Best-in-class digital service and support
24/5 technical and account support
Local-language personal relationship manager
Direct access to trading experts 24/5
1:1 SaxoStrats access
Exclusive event invitations
Access to prestigious VIP network

Professional account

The Saxo Professional account is designed for experienced traders, offering enhanced trading conditions. To qualify, individuals must meet criteria like a substantial financial portfolio or relevant trading experience. This account type allows for increased leverage, but it does not provide negative balance protection, meaning losses can exceed deposits.

Deposit and Withdrawal

Depositing funds into a Saxo account can be done through bank transfer, quick payment (currently only from Danish banks), or card funding. For bank transfers, clients use provided banking details. Quick payment requires linking a Danish bank account with a Saxo account, with a deposit limit of DKK 750,000. Card funding involves selecting a card type, entering details, and confirming the payment. Note that Saxo does not accept third-party payments and has specific country restrictions for card funding.

To make withdrawals, choose a Saxo account, enter the withdrawal amount and currency, select a verified external account, and confirm with an SMS code. If you request a withdrawal before 14:00 CET, Saxo will process it the next business day.

Products in Saxo Capital Markets

Saxo Capital Markets offers various trading and investment options. It might be easier to list their lack of options. Here are available instruments that are provided to the U.K. and worldwide website:

182 currency pairs for spot trading
140 forward currency contracts
44 types of vanilla options in forex
Over 200 futures contracts
19,000+ stocks from 36 global exchanges
1,200+ listed options across 24 exchanges
9,000+ Contract for Differences (CFDs)
19 types of commodity CFDs
5,000+ government and corporate bonds
3,000+ Exchange-Traded Funds (ETFs) from 30+ exchanges
Managed portfolios
250+ mutual funds (for non-U.K. international accounts)
Cryptocurrency Exchange-Traded Notes or ETNs (for non-U.K. international accounts)

Trading Platform of Saxo Capital Markets

Saxo Capital Markets has two main trading platforms: SaxoTraderPRO and SaxoTraderGO. Both are designed with traders’ consideration and offer significant improvements over standard platforms like MT4 and cTrader. They also work well with third-party tools, giving traders more options.

SaxoTraderPRO is a downloadable platform for Windows and Mac. It allows for up to six screens and offers advanced charting features with over 50 technical indicators. The platform is designed for efficiency, with detailed order tickets and support for algorithmic trading. Some premium tools are available through subscriptions.

SaxoTraderGO is the web-based alternative. It’s easier to use than SaxoTraderPRO but still offers a lot of functionality. You can organize charts, news, and research, and it supports a wide range of market and pending orders. This makes it a good choice for advanced traders who want a more accessible platform.

Fees of Saxo Capital Markets

Saxo Capital Markets has two ways of charging for trades, which include the spread, or separate fees. For a classic account, the minimum spread starts at 0.6 pips. If you have a platinum or VIP account, the spreads are lower. However, you’ll need at least £200,000 to move up to these premium levels. For other financial products, expect to pay commissions on top of the spread.

Overnight fees range from average to competitive. If you’re not trading, expect a £25 fee every quarter. Other standard fees can get pricey for the average trader, but withdrawals are free.

The website and trading platforms could be clearer about CFDs, contracts, and similar products. Although the structure of Saxo Capital Markets is complex, they are transparent.

Saxo Capital Markets Promotions

Saxo Rewards is a loyalty program offering benefits based on trading activities and account funding. It features three tiers: Classic, Platinum, and VIP, with no initial funding required. Benefits improve with higher tiers, offering better prices and services.

New clients can earn points in the first 30 days through net funding, and ongoing points are accumulated through securities transfers and asset management. The program includes a 12-month grace period for maintaining tier status. For further details, please visit the Saxo Rewards website.

Customer Support

Email: [email protected]
Live Chat: Available
Phone: +65 6303 7888

Pros & Cons

Saxo Capital Markets have different pros and cons. It would be best if you considered both of them before making decisions.

Pros

Wide range of trading options
Regulated by the FCA in the U.K.
The top research offerings
Outstanding user interface
Secure customer accounts

Cons

Lacks focus on customer service
Complex fee structures
U.S. customers not accepted
No support for MT4

Pros Explained

Saxo offers an extensive array of financial products, from stocks and bonds to complex derivatives, making it a comprehensive platform for traders with diverse interests.
Being under the jurisdiction of the Financial Conduct Authority in the United Kingdom ensures that Saxo adheres to stringent financial regulations, offering an added layer of trust and security for its clients.
The platform provides high-quality research materials, including market analyses and forecasts, which can be invaluable resources for traders looking to make well-informed decisions.
The custom-designed trading platforms, SaxoTraderPRO and SaxoTraderGO, offer a seamless and intuitive user experience, making trading more efficient and enjoyable.
Saxo takes client security seriously, employing measures like segregated accounts and two-factor authentication to protect client funds and personal information.

Cons Explained

The platform of Saxo Capital Markets offers limited options like no live chat for general account holders, which can be a significant drawback for those who require immediate assistance.
Saxo’s fee schedule can be difficult to navigate, with various charges for different types of trades and account tiers, requiring traders to spend extra time understanding the cost implications.
The platform does not allow for U.S traders, and its users are limited to global reach.
Saxo does not offer compatibility with the widely-used MetaTrader 4 platform, which could be a deal-breaker for traders who prefer or are accustomed to that interface.

Is Saxo Capital Markets Worth Considering?

Saxo Capital Markets is best suited for advanced traders, offering strong research tools and customizable setups. However, it lacks educational resources and customer service. The fee structure is complex, with varying costs for similar trades, making it hard to predict expenses.

Thus, you might need to do more research on their insight or get advice from an expert, considering if this broker suits your trading style.