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Saxo Markets is a globally recognized CFD brokerage firm that offers direct access to various financial markets, such as equities, bonds, forex, futures, and options.
The company also serves as a significant provider of liquidity and infrastructure to smaller brokers, banks, and wealth managers.
Read our Saxo review to learn more about its pros, cons, and cost. Find out if this broker can potentially meet your investment needs.
>>Sign up to start trading on Saxo today
Saxo Review: Pros and Cons
Saxo Review Pros
- Powerful exchange system.
- Easy market entry.
- Reduced payouts.
Saxo Review Cons
- Very difficult for newcomers.
Saxo Review: Why We Like It
Saxo Markets is a suitable option for traders with advanced skills since the platform, market access, and analysis can be too complex for novices. Experienced traders can benefit from its extensive coverage, research, and low commissions, which are unmatched.
Saxo Bank Group, established in 1992, is a fintech specialist that provides multi-asset trading and investment services and banking-as-a-service to wholesale clients.
It introduced one of the earliest online trading platforms in 1998 and has been operating in the UK since 2006 through its subsidiary, Saxo Capital Markets U.K. Ltd. (SCML). Nevertheless, Saxo Markets does not allow U.S. traders, a common practice among forex brokers.
Saxo offers two main platforms for traders: SaxoTraderPRO, a downloadable software for advanced traders, and SaxoTraderGO, a web-based platform with a user-friendly interface, functional trading features, and a mobile application.
As the best forex trading platform for expert traders, Saxo provides access to third-party tools that can improve the trading experience and APIs that clients can use to create customized applications.
However, Saxo Markets does not include MT4, a commonly used white-labeled interface in most forex broker platforms.
Our Saxo Review discusses how it offers an extensive product catalog, including forex, shares, commodities, indices, options, bonds, and futures, which can be bought or sold short through CFDs, forward contracts, and/or direct ownership.
Nevertheless, its spread betting offering is only available to customers who qualify as "professional clients." Saxo offers highly competitive FX spreads for all retail account tiers (Classic, Platinum, VIP).
Saxo Markets has been recognized as the Best Forex Broker for Advanced Traders by Investopedia's ranking algorithm due to its impressive product catalog, advanced user interfaces, and superior research offerings.
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Saxo Review: Who this Broker Is Best For
Saxo Markets caters to experienced traders interested in financial management. It provides a range of brokerage services for active traders, investors, professionals, and institutions. However, novice traders with smaller accounts may face challenges such as higher account minimums, various fees, and limited customer support options.
While tiered accounts offer lower trading costs and additional benefits as the equity grows, it may be difficult for most retail traders to attain the higher customer tiers, which start at £200,000 (Platinum) and £1,000,000 (VIP) for U.K.-based accounts.
Saxo Review: Costs
Saxo Markets generates revenue primarily through spreads. The trading costs are either included in the spread or added as industry-standard commissions.
The forex bid-ask spread minimums start at 0.4 pips, but for higher-tiered accounts such as "platinum" and "VIP," average spreads decrease, and potential discounts increase for active traders.
However, the £200,000 minimum to upgrade may discourage average retail clients. Commission charges are only added to the listed spread when trading other instruments.
The overnight holding costs for trading are considered average to competitive. Still, if no trades are executed within six months, there is a $100 fee or the equivalent in account currency.
Other charges are categorized as "general charges," which can be quite burdensome for the average retail trader, although account holders can benefit from free withdrawals.
The website and trading platforms lack transparency due to poorly explained fees and costs for CFDs, contracts, and direct sales of identical instruments.
Although Saxo Markets does its best to maintain transparency, the intricate costs of the broker's offerings can be challenging to understand.
While there is no intention of being misleading, documentation for other areas of Saxo Markets frequently contradicts what is found on the U.K. website, presenting inconsistent fees and trading conditions for identical products and position sizes, even after adjusting for currency conversions.
In addition, there is a possibility of overlooking the fine print that adds an additional surcharge on small trades, which could lead to confusion.
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Saxo Review: Trade Experience
Saxo has created its own user interface, which is unavailable through the industry standard MT4 or the newer cTrader. The broker's trading platforms, SaxoTraderPRO (downloadable) and SaxoTraderGO (web-based), are designed specifically with traders in mind.
The platforms offer major upgrades and seamless integration with third-party tools, providing numerous possibilities for advanced traders. Similar to the best forex desktop trading platforms, SaxoTraderPRO is a desktop interface that can be customized and downloaded on Windows and Mac operating systems.
With the option of utilizing up to six screens, traders can take advantage of the advanced workspace management that this platform offers.
Additionally, the platform includes multichannel linking between modules and a robust charting package with over 50 technical indicators, which can greatly assist traders in their analysis.
The purpose of order tickets is to enhance efficiency by presenting all essential details. Furthermore, upon activation, algorithmic trading orders can be fully merged. Additional features like subscription-based tools like "depth of market" and "time and sales" data can add value.
Although SaxoTraderGO lacks some of the advanced features of SaxoTraderPRO, it is still impressive. Its major benefit is its accessibility since it is more user-friendly.
Although customization options are limited, they do not impact functionality. This web-based version allows traders to organize charts, news, research, and watchlists based on their preferences.
Saxo Markets offers a comprehensive range of charting and technical indicators on its platform, which also features customizable time management and linking capabilities. The platform provides an impressive variety of market and pending orders, making it a top choice for advanced traders.
Each order ticket on the platform offers five different order types, with the option of attaching "take-profit" and/or "stop-loss" orders. Traders can choose between a trailing stop-loss or a stop-limit for their stop-loss order.
The only drawback is the absence of a guaranteed stop-loss order among the array of order types available. While a beginner trader may find it discouraging, a skilled trader would recognize that implementing a guaranteed stop-loss order goes against the nature of the market.
Brokers who provide this option essentially acknowledge that they will take on any additional losses that may arise under certain market circumstances.
- Limit: A waiting request is placed by a trader at a set point above or below the current market rate, depending on whether it's a purchase or sale. The trader can also choose when this order expires.
- Market: When a trader indicates that their trade request should be carried out at the current market rate, the most basic type of order is executed. The trading platform provides a similar option called "quick trade," enabling the trader to place a trade immediately without any stop-loss or take profit orders. This feature fulfills the trader's desire for speedy transactions.
- Stop: A trader can place a pending order to buy or sell at a fixed point above or below the current market rate. They can also choose the expiration time of this order.
- OCO: A trader can place two pending orders, an entry stop and an entry limit, where the execution of one will cancel the other. The trader can also choose the order's expiration time.
- Stop-limit: It refers to a pending order in which the trader chooses a predetermined entry point for buying or selling, above or below the current market rate. The trader can set a tolerance range for execution. If the market rate exceeds this range, the order is canceled.
As one of the best forex mobile trading platforms, the SaxoTraderGo applications for tablets, iOS, and Android offer seamless access to the features found on the desktop and web versions, with complete synchronization across all platforms.
Although the list of indicators is shorter, it is still comprehensive, and users can easily access real-time news and research with a few simple swipes. While the apps feature fingerprint ID entry, it is not included in the two-tier authentication process.
Remember that, unlike many forex brokers, Saxo Markets does not provide their clients with MT4. This ubiquitous, white-labeled interface is included in almost every platform suite.
Furthermore, Saxo empowers its clients to create personalized applications using APIs, including its own OpenAPI and third-party APIs like Excel, which can access Saxo's data feeds.
In addition, clients can utilize third-party applications, such as TradingView, Dynamic Trend, and MultiCharts, to aid them in their trading endeavors.
MultiCharts permits traders to test their strategies retrospectively, while TradingView promotes itself as a social trading platform. Nevertheless, Saxo does not offer local VPS hosting.
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Saxo Review: Range of Offerings
Our Saxo Review Markets lists the comprehensive range of leveraged and investment products covering various asset classes to its clients.
It is challenging to identify offerings that Saxo Markets does not provide to its customers. Saxo Markets offers an extensive selection of instruments, as indicated on its UK and global websites.
- 182 FX spot pairs.
- 140 FX forwards.
- 40+ FX vanilla options.
- 200+ futures contracts.
- 19,000+ stocks (36 worldwide exchanges).
- 1,200+ listed options.
- 9,000+ CFDs.
- 20 commodity CFDs.
- 5,000+ bonds (government and corporate).
- 3,000+ ETFs.
- Managed portfolios.
- 12,500+ mutual funds.
- Cryptocurrency ETNs (non-U.K. International accounts).
A wide range of instruments is available for trading through various venues and order-routing methods. However, certain venues may result in higher costs than others. Despite this, the variety of products offered is impressive and may satisfy those interested in global markets.
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Saxo Review: Educational Materials
The educational materials provided by Saxo mainly concentrate on tutorials for the platforms and products. The resources grant an overview of fundamental and technical analysis topics.
However, there are limited opportunities for skill-building resources. This approach aligns with Saxo's unspoken objective of drawing in experienced and well-resourced traders.
Saxo Review: Portfolio Analysis
Saxo provides a comprehensive portfolio analysis that covers performance data, risk assessment, and portfolio breakdowns, which is accessible through all of its platforms.
The platform reporting suite enables clients to export their historical position, trade, and performance data in both PDF and Excel formats, enabling them to consolidate their holdings in an external spreadsheet or third-party reporting software.
Trade tickets provide traders with essential information, such as margin requirements, and offer the option to set stop-loss and take-profit orders by selecting the appropriate unit (percent, pips, price, value). All data is updated in real-time, allowing traders to make informed decisions.
Third-party portfolio tools (Eximius) and external tax reporting and reclaim services can be accessed through Saxo Markets. GlobeTax is a third-party provider that can be approached for these services. Clients can view a comprehensive reporting suite in the trading platforms.
These reports make tax reporting easier by showing data related to performance, profitability, dividend, interest income, and fees in both PDF and Excel formats.
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Saxo Review: Research Amenities
Saxo Markets is highly regarded for its commitment to offering clients a range of up-to-date and informative research. The availability of resources may persuade serious traders to open a live account with this broker.
These research materials can be accessed via the website or the platforms. Saxo employs a team of skilled in-house analysts who provide regular updates, ratings, and commentary on the market.
The broker also offers various real-time streaming news services, market reports in different time formats, idea generators such as Trade Signals by Autochartist, Sales Traders, and SaxoStrats, and access to analyst rating reports. This range of resources should satisfy even the most experienced trader.
Saxo Markets provides clients with all the necessary research to enable them to make informed trading decisions.
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Saxo Review: Security
Saxo Markets emphasizes security and holds licenses from multiple jurisdictions worldwide. Interested parties can obtain complete details of these licenses from the official website of Saxo Markets.
Additionally, Saxo Markets ensures that client funds remain separate from corporate funds, as prescribed by the client money rules of the U.K.'s Financial Conduct Authority (FCA).
This segregation of client assets enables Saxo Markets to safeguard them in segregated accounts at regulated banks, in case of the unlikely event of Saxo becoming insolvent.
Furthermore, clients can benefit from additional asset protection through the Financial Services Compensation Scheme (FSCS), which guarantees up to £85,000.7
ESMA's negative balance protection rules, which were implemented in 2018, ensure that Saxo's clients will never lose more money than what is in their accounts.
However, the platform does not offer guaranteed stop-loss protection, leaving accounts vulnerable to significant losses during extreme market conditions such as the 2015 Swiss franc currency shock.
Saxo's software security features top-of-the-line methods such as two-factor and biometric authentication, as well as automatic logout from both web-based and mobile applications if they are inactive for a certain time.
The disclosures on the website cover the steps the company takes to guarantee the most favorable outcomes, which are supported by a diverse array of liquidity providers including direct market access (DMA), aggregated, and in-house providers.
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Saxo Review: Frequently Asked Questions
Here, we answer a few frequently asked question about Saxo.
Is Saxo Markets Safe?
Yes, Saxo Markets is safe. The Financial Conduct Authority (FCA) regulates Saxo Markets, which also safeguards its customers' funds through the Financial Services Compensation Scheme (FSCS).
Does Saxo Markets Offer Spread Betting?
In 2015, Saxo decided to discontinue its spread betting service, which was previously offered through a partnership with London Capital Group, also known as Capital Spreads. The clients of Saxo Spread Betting were directed to deal with Capital Spreads directly.
London Capital Group has undergone significant changes, including a 75% staff turnover, under the leadership of Charles-Henri Sabet, who aimed to restore the profitability of the spread betting and forex broker.
Does Saxo Markets Have a Monthly Fee?
Opening an account with Saxo Markets is free. However, accessing live data on specific markets requires monthly fee payments. Additionally, if your account only holds cash, a quarterly fee of £50 is applicable.
What Is the Minimum Deposit for Saxo Markets?
A deposit of at least £500 is required to open a standard account. Platinum accounts require a minimum deposit of £200,000, while VIP accounts have a minimum deposit requirement of £1,000,000.
Is Saxo Markets Good for Beginners?
Beginners may find Saxo Markets a bit complex since it is more suited to experienced traders. However, beginners can still open an account and invest in the stock market without trading derivatives.
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Does Saxo Markets Charge a Withdrawal Fee?
Withdrawal of funds does not incur any charges. However, you must ensure that your account details are accurate and up-to-date to avoid delays in the transaction process. Saxo Markets is required to comply with AML regulations before returning the money.
Final Verdict: Saxo Review 2023
Our Saxo Review reveals it is a suitable choice for experienced traders and professionals with substantial funds in their accounts. The company provides in-depth and extensive research tools, an API interface, and reduced fees (for high-tier accounts), which may enhance account profitability.
Saxo's charges for small trades, limited support options, high account minimums, and above-average trading costs may not be favorable for inexperienced traders who can find better deals elsewhere.
Conversely, Saxo may be an attractive option for market professionals who are well-funded and sophisticated.
>>Sign up to start trading on Saxo today
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