Is Saxo Bank Regulated? Saxo Bank Licensing and Regulation
Back in 1992, Saxo Bank launched its Forex brokerage operations under a different brand name, but it has come a long way since then. Now, Saxo Bank has become one of the leading global brokerage houses that have a substantial presence in the Middle East, Europe and Asia-Pacific. Group offices of Saxo Bank can be found in all notable financial locations all over the world, which include Paris, London, Tokyo, Sydney, Singapore, Dubai and Zurich. Saxo Bank is a licensed bank with license number 1149 and has its headquarters in Copenhagen, Denmark. It is regulated as a full-fledged Danish bank by the Danish Financial Supervisory Authority (FSA).
Moreover, it also holds the distinction of being the first Forex broker to be regulated by the Danish FSA in Denmark under the new guidelines outlined by the ECB and European MiFID derivatives. Saxo Bank can provide traders with the most reliable regulatory protections in the whole of the Forex trading community because this institution is also regulated by the FCA of the UK, the FSC of Hong Kong, the ASIC of Australia, the Banque de France and the DFSA of Dubai. Saxo Bank has to deal with stringent financial reporting requirements under the directives of the European Union and also have to comply with specific regulations pertaining to client handling.
Saxo Bank Review
When it comes to Forex trading, Saxo Bank is one of the largest retail brokers that you can find in the market. As mentioned above, it is a heavily regulated broker, not just in its own home country, but also in other countries and it is also one of the oldest ECNs available to institutional traders and retail clients. The number of different markets that can be accessed through Saxo Bank for the purpose of trading is simply staggering.
Any potential trader has the aim of finding a trading broker or website it can rely on and there are a number of factors that need to be considered when making this decision. Some people put more emphasis on the quality use of software whereas others are simply looking for a higher return on investment. However, most of the traders out there have one primary concern; the broker or website they are going to use can be trusted and is safe to use in the long term. There is a lot of fear in the market about websites that are scams and frauds so it is a great bonus for any trader to say that a website is not a scam.
There are a number of ways in which a trustworthy broker can flourish and building a strong reputation in the market is one of them. This is exactly what Saxo Bank has accomplished. Even though it received its license in 2001, the company had been trading since 1996 under a different name (Midas). This is incredibly useful because it is an assurance that Saxo Bank has a wealth of experience under its belt, which can benefit all traders in the modern era. This doesn’t mean only brokers that are experienced can be used because there are plenty of new and innovative options available.
However, when you combine Saxo Bank’s experience with the level of security it has to offer, it can become an irresistible option. Whether you are indulging in trade for the purpose of testing your skills, taking a bit of risk or for the purpose of return, you obviously consider money important. Thus, it is a good starting point to start your trading with a firm like Saxo Bank that has a strong reputation in the market. In 2010, the company did undergo an investigation when allegations were made by some former employees. But, it received a clean bill of health and it was proved that the site is not a scam, which is all you can ask for in today’s day and age.
One of the best features of Saxo Bank is that it provides traders with the option of a free trial period for a specific duration. This enables traders to get firsthand experience of how the software and platforms work and if it is in accordance with their needs. The fact that Saxo Bank has the confidence of giving people a free trial option is an indicator that they believe in the system they are offering. Again, this is a further indication of the website’s strength, reputation and reliability because it gives people the option of trying it without investing any money.
As Saxo Bank is a Direct Market Access/ECN broker, it provides traders with access to a global liquidity pool and the largest liquidity providers. Secure ECN channels are used for transmitting all orders in order to provide the best trading experience. One of the most important aspects of trading is Direct Market Access because it gives traders the opportunity of avoiding a conflict with their brokers. Not only can broker-related problems be avoided, but with direct market access traders can also get tight spreads, best pricing and instant order executions that are free of any interference from dealing desks.
One of the key aspects of opening an account with Saxo Bank is that it gives you the opportunity of investing in a sheer number of financial products across a wide spectrum of capital markets. Traders are connected to 36 different financial markets all over the world by Saxo Bank as it works with stock exchanges, liquidity providers and global partners for this purpose. Thus, when you decide to trade via Saxo Bank, you have the option of choosing from 19,000 stocks, 7,000 bonds, 200 futures, 182 FX currency pairs, 3,100 ETFs, 29 indices, 9,000 CFDs and 75 contract options. This is perhaps one of the largest collection of financial assets that are offered by a single service provider.
Matching the number of financial products that are offered by Saxo Bank is immensely difficult for any competing broker. Traders who are using Saxo Bank have the chance of investing in a wide range of financial products as per their risk tolerance and preference. Saxo Bank also has competitive spreads on offer, which can be enjoyed by traders; 0.2 to 2 pips are quoted across the array of currency pairs. On the other hand, there is also a commission per trade in ECN accounts and it is charged according to the volume of transactions conducted by a trader in a month and their account balance.
Accounts that have transactions falling under $600 per month will have standard commission of about $60 for every million traded. However, if transactions are at least a minimum of $600 per month, the commission will be reduced to $30 per million traded, which is incredibly competitive. Larger traders who conduct transactions of about $2,000 per month can enjoy an even lower commission of $20 for every million traded.
Deposits and Withdrawals
A minimum deposit requirement of $5,000 is applicable when you are using Saxo Bank and a leverage of 1:100 for the Forex market and a maximum of 1:20 for indices, stocks and other products applies. While there is no denying that Saxo Bank is an excellent broker to trade with, some traders might consider the deposit requirements high as other competing brokers don’t have such high requirements for ECN accounts. Nonetheless, when you do deposit $5,000, you get the opportunity of opening one of the top brokerages account in the entire market, which can be immensely handy for diversification of your investment portfolio.
Saxo Bank, as compared to others, is a relatively large Forex broker, which means that it has access to numerous resources. As far as methods for funding and withdrawal are concerned, Saxo Banks allows its users to opt for bank transfer, which can take anywhere between 1 to 5 days to complete. If you want to go for something faster, you can use credit and debit cards for this purpose as it accepts both Visa and MasterCard. However, a fee ranging between 0.5 percent and 2.5 percent is applicable in this case.
A significant portion of Saxo Bank’s operating capital and trading resources have been used in the development of its proprietary trading platform. This can provide direct market access to all traders through their own security protocols. Two different Saxo Bank platform options are at your disposal; first, there is the SaxoTrader installable platform and the second option is the SaxoTraderGo browser-based interface. The former is regarded as the ideal and recommended option for professional traders because it can provide them with access to all the features and functionalities that you would expect from a dedicated trading terminal. In this way, these traders are able to enjoy greater control over their trading strategies and don’t have to cut any corners.
One thing that traders using SaxoTrader should note is that it is only available as a standalone desktop terminal and would not be suitable for mobile traders. If you are a mobile trader, you can go with the Saxo Bank mobile apps that can be used on both Android and iOS devices. Furthermore, mobile traders can also use their phone’s browsers for accessing their accounts, but this might have a few limitations as opposed to the conventional desktop trading platform. As mentioned above, a demo account is also provided by the broker for a period of one month, which can be used for learning about the trading platform and Saxo Bank’s product offerings.
This feature can be quite useful for new traders as it allows them to familiarize themselves with the platform and the market before they invest any real money.
For accessing research, you can use the desktop or web Saxo trading platforms or it also operates a separate page, tradingfloor.com, which can also be used for this purpose. You will be able to access equity research through the web platform and can also read opinions and news from strategists on Saxo. In addition, you can search for trade signals and go over the macro events calendar. Keeping in mind that Saxo Bank is a retail brokerage service, the equity research panel it has to offer is downright brilliant. On the front page of equity research, you will be able to take a look at the losers and winners of the larger stock exchanges, see calendar events, view related trade signals and read the latest trading news.
The trading panel or the search panel can also be used for obtaining detailed fundamental data on individual stocks. You can also filter the results according to valuation, industry and country.
Saxo Bank is aware that it is important for traders to have an in-depth knowledge about the trading world if they wish to succeed. Therefore, it has introduced a Saxo Bank Academy where a host of educational programs are available to the traders to help them in enhancing their knowledge and skills. There are a variety of courses available and you can go over them to see what appeals to you. Moreover, there are also basic lessons on the different assets that Saxo Bank has to offer such as forex, stocks, indices, bonds, CFDs and even futures. These lessons comprise of an explainer video, a guide for getting started and a quiz for testing your understanding.
Additionally, Saxo Bank offers pdf videos on a plethora of topics, which include some key aspects that every trader should be familiar with.
As far as custsomer support is concerned, you can reach Saxo Bank’s representatives via phone or through email. They also have a live chat option that can be access 24 hours a day. The agents are responsive and helpful and you can get support in your required language.
Saxo Bank is an excellent broker that offers reliable and trustworthy service. It boasts one of the best trading platforms backed by great customer service and research. Also, its product portfolio also contributes to its popularity because Saxo Bank covers all important international markets as well as the notable asset classes that most traders are interested in.