Located in Gentofte, just north of Copenhagen (in Denmark), Saxo Bank is one of the pioneering firms in the use of the Internet and web technologies for online trading in the capital markets with clients in more than 115 countries.
I found Saxobank to be really impressive. Saxobank offers online cfd trading with live prices (yes!) and instant dealing. Limit and stop orders are also available including guaranteed stops. 'Day Orders' are available for intra-day trading and 'Good until Cancelled' orders can be used for longer-term strategies. To place a guaranteed stop, 0.75% of the underlying stock value is charged when the stop is placed. Guaranteed stops (which must be placed at least 5% away from the current spot price) are guaranteed to execute when the stop price is breached.
After hours contracts for difference trading is not currently offered. The minimum deposit is USD10,000 with no minimum or maximum stake sizes. At Saxobank you can leverage your deposit up to ten times; an investment of $10,000 can be used to command a CFD position of up to $100,000. If you want to test trade Saxobank's dealing platform simply signup at their site - you're get a trial account with no charges or obligations.
Saxobank's dealing system (called SaxoTrader) is excellent - its my preferred demo platform at the moment and I've tested 8 others for a combination of execution speed, charting, accounts and ease of use and Saxo is one of the best I've seen. It offers live tradable prices, charts, streaming news, market analysis and market data analysis tools.
There are two ways CFD providers make their money, commisions or in the spread and Saxobank charges you via the spread. They usually charge about 3-5 pips on majors and about 50 points on CFDs. Saxo Bank are the "market maker" - they buy and resell the stock to you. Additionally with Saxo Bank there is a small fee of GBP 8 for trade sizes under the minimum threshold. [USD 10,000/USD 10 for US residents, EUR 10,000/EUR 12 for EURO countries].
The financing rates are slightly worse with Saxo Bank - long add 3%; short subtract 2.5%. And to be honest saxobank's technical analysis sucks. Also, sometimes the orders aren't executed due to "misfeeds," but these on the whole were a minor problem although still something to keep in mind
Saxo bank's CFDs are offered from 17 major exchanges. Now you can even trade Google live ;) I thought their liquidity on the indices was a bit thin in comparison to the index itself - no surprise there. The charts/ execution are all the same so its all rather seamless. The range of stocks available for non-major index markets such as just 40 Aussie (Australian) stock CFDs are a bit limited but the rep at Saxo Bank has hinted that the offering could expand if the customer base was large enough and there was sufficient demand.
What you see is what you get with Saxo Bank if you enter at the market up to certain limits indicated in their policies and procedures. They do not guarantee that orders will be filled at the price you indicated, but to be honest I have never had slippage worst than 1 pip on orders. At least you know that by not guaranteeing fills on orders they will be here for a long time to come.
Saxobank is regulated by the Danish Financial Servies Authority (FSA). In addition, because they are a bank, up to 40,000 EUR of you cash with them is insured!
Additionally, Saxobank will never overdraw your CFD account - they will close you down first. But they also warn you in due time to give you a possibility to transfer additional funds or reduce the position.
Their free charting tools are superb and the data can be obtained free without installing anything. I would cut and paste onto this site but they seem protected. . .
Funding your Saxobank CFD account requires a swift transfer from an account in your name and they will need a signature from you when you wish to withdraw (fax, letter or scan by e-mail). No charges are applicable for withdrawing funds.
No wonder that Saxobank has grown to what it is today having started out as a brokerage company in Denmark with the name of Midas Fondsmaeglerselskab (branded as forextrading.com) and turned into a global customer driven bank with more than 250,000 members worldwide.
So, overall, I'm just happy that a serious competitor to UK CFD firms may be emerging and, hopefully, it won't be long before other traditional brokers, Investment banks and even discount brokers realise that the CFD market is worth entering.
Just a small note for our US readers: Saxobank offers only forex currency trading to US residents but not CFDs due to regulatory restrictions [ask uncle Sam ;)]
Headquarters: Smakkedalen 2, 2820 Gentofte, Denmark
Phone: +45 39 77 40 00
Fax: +45 39 77 42 00
Our foundation is always the individual service and personal advice that forms the basis of all client relationships in Saxo Bank. The main purpose of the advantages we have sought to achieve from our technology development has never been cost savings for the bank, but the ability to provide a unique personal service level for our customers, while remaining fully competitive in terms of trading costs
one of the two joint managing directors at Saxo Bank.
Saxo Bank/Index CFD spreads
Index CFDs are traded on the index level with the following bid/ask spreads:
- 1 index point for the S&P 500 Index
- 4 index points for the NASDAQ 100 Stock Index
- 10 index points for the Dow Jones Industrial Average
- 7 index points for the FTSE 100 Index
- 6 index points for the CAC 40 Index
- 7 index points for the DAX 30 Performance Index
- 7 index points for the Swiss Market Index
- 5 index points for the ASX S&P 200 Index
- 1 index point for the OMX Stockholm
There are no additional commissions for trade sizes above the CFD Ticket Fee Threshold.
Saxo Bank/Stock Exchanges for CFDs
Saxo Bank currently offers CFDs on the following exchanges:
- American Stock Exchange (AMEX) - United States of America
- Australian Stock Exchange Ltd. (ASX) - Australia
- Copenhagen Stock Exchange (CSE) - Denmark
- Euronext Amsterdam (AMS) - Netherlands
- Euronext Brussels (BRU) - Belgium
- Euronext Lisbon (LISB) - Portugal
- Euronext Paris (PAR) - France
- Frankfurt Stock Exchange (FSE) - Germany
- Helsinki Stock Exchange (HSE) - Finland
- London Stock Exchange (LSE) - United Kingdom
- Milano Stock Exchange (MIL) - Italy
- NASDAQ - United States of America
- New York Stock Exchange (NYSE) - United States of America
- New Zealand Stock Exchange (NZX) - New Zealand
- Oslo Stock Exchange (OSE) - Norway
- Sistema De Interconexion Bursatil Espanol (SIBE) - Spain
- Stockholm Stock Exchange (SSE) - Sweden
- Swiss Exchange (SWX) - Switzerland
- virt-x (VX) - Switzerland
Saxobank UK Contracts for Difference Highlights:|
Company Name: Saxo Bank A/S
Website Address: http://www.saxobank.com
Year of company foundation: Founded in 1992
Telephone number: 00 45 3977 4000 (Denmark)
Margin: 10% for stock CFDs, 5% for index CFDs
Commission: 0.1% (for trades of at least $10,000)
Minimum initial account size: $10,000
Customers: Corporate, financial institutions, fund managers, introducing brokers and private investors.
Interest charged on long positions: LIBOR + 3%
Interest paid on short positions: LIBID - 2.5%
CFDs available: US, UK, European, Australian blue chips, major indices
Services: Direct online Forex trading on live streaming prices with liquidity up to $10,000,000 through own multi-product trading system with direct access to Backoffice account and order processing, strategic advice and analysis from in-house analysts, realtime quotes, news, charts, FX Fund Management also: stocks, CFDs, futures, and options
English, Spanish, German, French, Italian, Portuguese, Dutch/Flemish, Chinese, Japanese, Korean, Arabic, Russian, Hebrew, Danish, Polish, Greek
Other Derivatives offered: Futures, Options, FX
Free demo account Yes
Automatic trading facilities: Stop losses, limit orders, Guaranteed stops, If-Dones, OCOs, If-Done-OCO order
Online/telephone trading: Online only
Advisory service: Yes
Prices: Best execution
Research available: Twice daily market comments, weekly in-house research, live webcam update at
9.00am, ad hoc broadcasts online reacting to major market-moving events.
Trading platform features: Charting tools, live streaming news and prices from 34 countries
Saxo Bank - "An investment bank specialising in online trading of a wide range of products to a global client base including corporations, financial institutions, and private investors."
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