Saxo Markets has cut the fees it charges clients when they trade. A move that Saxo says is designed to empower investors, allowing them to make more of their returns.
Commission reductions
The broker has introduced what it called “substantial price reductions” cutting commission charges on
- UK shares
- US stocks
- ETPs
- ETFs
- Futures
- Options
Saxo has made cuts across the board, but how much less you pay, to trade through the broker, will depend on which of Saxo’s three account tiers you are in.
For US equity trades the new commission rate for Classic Account holders will be 0.08%, with minimum ticket charges cut to $1.00 from the prior level of $5.00.
Platinum and VIP clients will now pay 0.05% and 0.03% in commission respectively.
UK stock trades for Classic Account holders will be charged at 0.08% and have a minimum ticket of £3.00, down from £8.00.
Platinum and VIP traders will once again pay commissions of 0.05% and 0.03% respectively.
Customer asset milestones
Saxo reached the 1.0 million client mark and notched up $100.00 billion of customer assets, during 2023.
It was also designated as a systematically important financial institution by regulators and received an investment grade/BBB rating from S&P Global Ratings.
Saxo’s founder and CEO Kim Fournais said of the fee reductions:
“Investors have increasing demands to the overall investment experience and the ability to trade across markets and products on award-winning multi-asset platforms has always been Saxo’s core pedigree.”
He added
With the lower prices and fees, it’s becoming even easier and more attractive to diversify across asset classes, which is critical to any healthy and profitable portfolio. Diversification is really the ‘only free lunch’ in investing”
Competitive price = better returns
Lower fees can help improve investment returns though those benefits mostly apply to long-term investment returns rather than short-term trading.
That said lower fees do reduce breakeven points and may help traders to move into profit sooner. And of course, scratching or cancelling a trade also becomes more cost-effective.
Typically when brokerages cut their commission charges they are hoping to make up for the shortfall in income, through an increase in trading volumes.
And Saxo is keen to emphasize that it’s now cheaper to deal in equities through its platform, than those of rivals Hargreaves Lansdown, AJ Bell and IG Group.
A recent update from CMC Markets, in which it raised full-year operating income forecasts by more than +10.00%, on heightened volatility and improving client demand. Suggests that we may have seen the bottom in retail trading activity.
Saxo no doubt hopes that its new, leaner rate card allows it to benefit from this new wave of retail trading enthusiasm.
With over 35 years of finance experience, Darren is a highly respected and knowledgeable industry expert. With an extensive career covering trading, sales, analytics and research, he has a vast knowledge covering every aspect of the financial markets.
During his career, Darren has acted for and advised major hedge funds and investment banks such as GLG, Thames River, Ruby Capital and CQS, Dresdner Kleinwort and HSBC.
In addition to the financial analysis and commentary he provides as an editor at GoodMoneyGuide.com, his work has been featured in publications including Fool.co.uk.
As well as extensive experience of writing financial commentary, he previously worked as a Market Research & Client Relationships Manager at Admiral Markets UK Ltd, before providing expert insights as a market analyst at Pepperstone.
Darren is an expert in areas like currency, CFDs, equities and derivatives and has authored over 260 guides on GoodMoneyGuide.com.
He has an aptitude for explaining trading concepts in a way that newcomers can understand, such as this guide to day trading Forex at Pepperstone.com
Darren has done interviews and analysis for companies like Queso, including an interview on technical trading levels.
A well known authority in the industry, he has provided interviews on Bloomberg (UK), CNBC (UK) Reuters (UK), Tiptv (UK), BNN (Canada) and Asharq Bloomberg Arabia.
