Table of Contents
Saxo bank forex broker is one of the most recognizable and reliable brokers in the Forex industry. It is a Danish company that has been in business since 1992 and has customer service in various languages. This is a great convenience especially for those who are not fluent in English.
Saxo bank forex broker – short description
Saxo Bank forex broker is one of the first brokers to start operating in the international online market, offering its services to retail investors. It offers various platforms, financial instruments, as well as different types of accounts. With its help you can invest in such financial instruments as:
- Contracts for difference,
- Futures contracts,
- CFDs contracts,
Saxo bank forex broker offer
At Saxo Bank you can find 3 types of accounts that give you access to tens of thousands of financial instruments. The basic investment account with this broker, which is called Classic, can be held in one of 18 currencies. This is very good news from the point of view of the investor, as it allows for a significant reduction in the cost of investing, among other things due to the lack of need for currency conversion and getting rid of exchange rate risk.
However, a significant limitation with the Classic account is the relatively high minimum amount required for its full activation. To start trading on Saxo bank, you need to deposit at least $10,000 – it is Saxo Bank forex minimum deposit. For professional forex traders this will probably not be an exorbitant sum, but for novice traders it may prove to be an insurmountable obstacle.
Products offered by Saxo bank forex broker
This broker offers two main groups of financial products. You can find 14 positions in them, which allows you to diversify your investment portfolio. This means that investors can put their money in different places, so they can avoid a large loss in the event of a crisis in the stock market.
Within the products that use leverage, Saxo bank broker has crypto forex, CFDs, forex, futures, commodities, currency options, exchange-traded options, and the other part of the offer is typical investment products, namely bonds, stocks, ETFs, cryptocurrency ETFs, managed portfolios and mutual funds.
Security of funds at Saxo bank forex broker
Saxo bank broker provides a very high level of security for funds deposited by clients. As an investment bank, it is covered by the protection of the Danish guarantee fund, so customer money is protected up to the equivalent of 100,000 euros. Saxo broker has a European banking license and is registered in as many as a dozen countries around the world.
Is Saxo Bank regulated? Yes, this broker is regulated by the Danish Financial Supervisory Authority and provides financial services in accordance with the legal provisions that are contained in the MiFID directive. The client’s capital is kept in segregated accounts. It is worth knowing that deposits and withdrawals are instant, and orders are protected by strong strict procedures.
Types of accounts at Saxo Bank forex broker
Saxo bank forex broker offers 3 types of investment accounts:
- Classic Package – offers attractive entry prices, as well as comprehensive service and digital support,
- Platinum Package – under this package, investors receive prices lower by up to 30%, as well as priority customer service,
- VIP Package – when choosing this type of account, the customer receives a personal tutor, as well as 1:1 sessions with Saxo Strats experts. Moreover, he can count on participation in exclusive events, which are organized by the broker.
Trading conditions at Saxo bank broker
Assuming that the trader has the required initial deposit, the Classic account at Saxo bank forex will provide him with great conditions for making investments. After making the deposit, which can be made either by credit card or traditional bank transfer, the trader will be able to invest in a wide range of financial instruments, including contracts on currencies, commodities, indices or precious metals. Saxo bank broker also allows you to make money on price changes of domestic assets, such as currency pairs.
Saxo bank forex broker – Classic account
This type of account, like others at Saxo Bank, guarantees protection against negative balance. This is a useful feature, especially in times of high volatility. Thanks to it, an investor will never be exposed to a loss higher than the amount of his deposit.
The Classic account allows the use of leverage at the level of 1:30. Thanks to this, with a small outlay of funds it is possible to open positions with a large nominal value. This, in turn, allows investors to make profits much higher than those they would make if they traded traditional financial instruments, such as stocks.
However, it is important to realize that Saxo Bank forex leverage is associated with very high risk. If the market situation takes an unfavorable turn, there is a high probability that the investor will lose the money deposited into the Saxo Bank account.
Support of advisors
Saxo Bank is one of the best intermediaries when it comes to customer service. Consultants are available to investors 24 hours a day, 5 days a week. The intermediary can be contacted by email, phone or through the support center.
It is also worth mentioning that traders who have a VIP account can contact the broker through their personal manager if any problems arise.
Training and education section
Saxo Bank is also distinguished by its extensive training offerings (read also: Forex training courses). Analysts regularly conduct webinars, from which you can learn how the forex market is affected by traders’ behavior, as well as macroeconomic data. The courses are conducted live. However, the broker makes them available later on its website so that those traders who could not attend can also watch them.
The Saxo Bank forex broker has its own YouTube channel, where a lot of valuable video material can be found. Despite the fact that they are published in English, many people from Poland and other EU countries successfully use them.
Demo account at Saxo Bank
An investor who is just about to embark on the adventure of investing in the foreign exchange market should learn how it works. Thinking of novice traders, the broker Saxo Bank offers the possibility to open a demo account. Trading on the demo account is carried out with the help of virtual money, so the trader does not have to worry about losing his capital if he makes a wrong investment decision.
The Saxo bank demo account allows investors to familiarize themselves with the functioning of the investment platform and, moreover, to get to know the market from the practical side. In addition, having an account, the investor has the opportunity to make various transactions without any fear of losing money, and this gives him a lot of freedom.
Trading platforms at Saxo Bank
Stock market indices can be tracked at this broker in 4 different ways:
- SaxoTraderGO – this is a platform that offers enhanced trade orders. In this case, you can, of course, use the products that are offered by the trader, and what’s more, you are given access to managed portfolios, as well as investment strategies. It can be run on both traditional and mobile devices. Moreover, it guarantees the necessary tools for technical and fundamental analysis, an extensive charting package, an options chain, chart analysis, comprehensive account information,
- SaxoTraderPRO – this is a tool for experienced traders. It offers thorough chart analysis, as well as a redesigned account section. The trader gets access to advanced charts, in turn, the platform can operate on 6 monitors. It is tailored to an advanced work environment,
- Third-party tools – a number of partner platforms are available to investors. You can operate an account on third-party platforms and at the same time use the service with Saxo prices,
- Connectivity and APIs – FIX API gives you access to electronic infrastructure through a customizable interface.
Saxo Bank broker – prices and fees
This broker has a wide variety of investment products on offer, so it is worth carefully analyzing the fees it charges.
At this broker, financial instruments can be stored for free by investors from different countries. The interest rate on the main account depends on the net free capital. The exact rules of its settlement can be found on the official website of the broker.
When it comes to trading in foreign currency, you have to reckon with currency conversion commissions. They are covered only by real payments, such as the sale of shares. Depending on the package, they can be about 1%, 0.75% or 0.5%.
The cost of individual products, the amount of commissions and spreads are shown below:
- FX – from 0.6 pips,
- CFDs – from 0.4 on the US500,
- Stocks – from $1 on US stocks,
- Commodities – from $1.25,
- Futures – from $1.25,
- Currency options – 3 pips,
- Exchange-traded options – from $1.25 per option,
- ETFs – from $1 per ETF, which are listed in the United States,
- Bonds – from 0.5% per Treasury bond,
- Mutual funds – 0.
As of 2022, there are several changes in fees for Polish clients:
- Stocks and ETFs for the Warsaw Stock Exchange – 0.15% on the Classic account, 0.12% on the Platinum account, 0.10% on the VIP account,
- Minimum CFD rates for the WSE – from 0.18% to 0.20% – moreover, the minimum fee threshold has been eliminated,
- Forex discount – spot order from $3 to $1, and FX option from $10 to $1,
- Interest rate for free funds – 2.92% on Classic account, 2.92 on Platinum and 4.92 on VIP account.
Saxo Bank forex broker – how to open an account?
To open an account with this broker, on the broker’s home page you need to click the button – open account (read also: Forex account). Then the user will be redirected to the registration form. In it you need to provide key data, as well as confirm your identity. For this, it is enough to take a photo of an ID card. The next step is to pay the minimum deposit. After it is credited, the trader’s account will be fully functional.
Logging in at Saxo Bank
If the trader has an activated account, he only needs to press the button – login – on the home page. In the next step, the system will ask for a user ID, as well as a password. After providing these details, the investor will immediately gain access to the user panel.
Saxo Bank forex broker – Saxo Bank proc and cons
Is Saxo Bank reliable? Just like any broker, this one also has its advantages as well as disadvantages. The pros of this broker include:
- a wide range of products,
- various platforms at the disposal of customers, and different types of investment accounts,
- for active investors a very attractive offer,
- functional website and adapted for use on various devices,
- high reliability,
- extensive educational section,
- technical support available in different languages,
- professional analysis and efficient customer service.
Saxo Bank’s disadvantages include only:
- relatively high minimum deposits,
- a large part of training and training materials available only in English,
- the hotline is not available 24 hours a day.
Is it worth using the services of the broker Saxo Bank? Is Saxo Bank safe?
Broker Saxo Bank is one of the best-rated international brokers. Over the years of its operation, it has won various prestigious awards, such as the title of Best Retail Forex Platform. The broker oversees hundreds of thousands of transactions per day, which are made by more than 850,000 clients from all over the world.
Of course, investing is associated with the risk of losing the capital held. However, this applies to all platforms. At Saxo Bank there are many tutorials and professional materials at the disposal of investors, which support the reduction of the risk of possible losses.
The downside of such a broker is a relatively high initial deposit. Some may also be offended by additional fees and commissions, which are calculated in euros. However, the recently introduced changes, should somewhat relieve traders.
How to invest in the stock market? Some important tips
Many beginners think that investing is a heavily complicated activity. However, it turns out that it is easy to enter the stock market, it is enough to have capital at the right level. However, before you start investing, you need to gain knowledge, or at least the basics and concepts you may encounter when investing. What else to keep in mind so as not to lose all your capital right away?
Diversify your investment portfolio
This is one of the most important rules to stick to. Diversification involves placing your funds in different financial instruments or different industries, such as investing in stocks. What is the purpose of this? First of all, to protect at least part of the funds in case specific financial instruments start to fall in price. If a trader has money placed in other assets as well, he will not lose all his capital. This principle also applies if you have a small amount of capital (read also: How to invest small amounts).
Learning to invest
To be a successful investor, it is not enough to acquire basic knowledge of investments. Knowledge should be constantly expanded, using various sources of knowledge. You can also opt for a course on investing, which are conducted both online and in a land-based manner (read also: Online forex). Moreover, not only paid training courses are available, but also free ones. You should also pay attention to articles on the web, audio books, e-books and webinars. Continuous learning is inherent in investing if a trader takes this occupation seriously.
Acceptance of investment risk
Risks are inherent in investments. It is worth accepting them at the outset so that you will not be severely disappointed if you lose your funds. You always have to reckon with the fact that you can lose the money you invested. Moreover, in most cases the first capital is lost. Therefore, at the very beginning of your investment adventure, it is best to focus specifically on protecting your capital.
Investing as much money as you can lose
For investing, you should allocate those funds, the loss of which will not damage the household budget. It should be free funds that are not needed for daily expenses. Under no circumstances should you go into debt with relatives or loan companies in order to have money to invest.
Having a plan is very important. It is not worth starting to play the stock market, without a predetermined investment strategy, because sooner or later it will lead to disaster. There are various ready-made investment strategies available online, which you can either use or create your own based on selected elements from the ready-made strategies.
Practice on a demo account
Practice is as important as theoretical knowledge. Before investing in a real investment account, it is worth practicing on a forex demo account, which is provided for free by the vast majority of brokers. It is worth using it and spending some time to check the functioning of the investment platform, as well as the chosen investment strategy. You can also gain valuable experience, which is very valuable.
In a demo account or on a stock market simulator, traders trade virtual funds, so there is no risk of losing money.
How to choose a good broker? Is Saxo Bank best forex broker?
A good forex broker should have certain characteristics. His choice is very important in particular because the success of the investments made largely depends on his services. If the broker does not offer quality services, the investor may generate a loss. What to pay attention to when choosing a broker?
Credibility is largely related to licensing. Brokers are subject to numerous regulations. However, this does not mean that every entity that identifies itself in this way is honest. It is still possible to find such companies on the market that do not act with integrity. There are, of course, fewer and fewer of them, but it is worth exercising extreme caution.
Read also: Plus500 trading platform
Before opening an account with the broker of your choice, it is necessary to check by which entity and whether it is regulated at all. It is also worth making sure that it appears on the list of entities that can operate in the country. It can be found on the website of the Financial Supervision Commission.
Security of funds
Here it is also worth mentioning regulations, but this time strictly in terms of the safety of money. When opening an account with the broker of your choice, it’s worth making sure how quickly it processes withdrawals and whether there have been any problems with this so far. It’s also best to choose a broker that belongs to an investor compensation fund. This way, in case of any financial troubles, the investor does not lose all his money.
The amount of spreads
When it comes to choosing a forex broker, a very important issue is the amount of trading costs. In fact, the lower the spreads, the better. However, keep in mind that in addition to spreads, a forex broker may also charge additional fees, so you should take a broader look at its offer.
Commissions and additional fees
In addition to spreads, the broker may charge users commissions for opening and closing orders, as well as for depositing funds. As for the first fee, it is acute especially for traders who use scalping. This is a strategy that involves making many trades in a short period of time.
Some brokers also charge fees for maintaining an investment account. Of course, this happens more and more rarely, but before opening an account it is worth checking how this issue is presented by the chosen broker. It may be that account maintenance is free only after meeting specific conditions.
The breadth of the offer
For any trader, the width of the broker’s offer should also be important. The greater the number of financial instruments available, the greater the chance that the trader will find one that suits him. When it comes to currency pairs, it is worth looking for a broker that offers not only the main currency pairs, but also exotic ones, which are based i.e. on the Polish zloty or the Hungarian forint. Besides, it would be good for the broker’s offer to be enriched with CFDs on stock indices, as well as other instruments.
Read also: The best CFD broker
Which broker to choose – domestic or foreign?
This question is asked by many investors. Usually foreign brokers boast a more favorable offer, and some brokers seem more reliable and are highly trusted among domestic investors, but there is no one-size-fits-all answer to this question. Much depends on the skill of the trader and his expectations from the broker. If a trader has a low propensity for risk and does not know foreign languages well, a better choice for him will be to use a native broker. There are a number of reputable brokers in operation who provide quality services.
Which Forex platform to choose?
It is also important to choose the right investment platform. This is a tool that is used by the trader to make investments, but most are also equipped with many additional functions, as well as having an educational section. Therefore, choosing the right forex platform is of considerable importance. What to pay attention to when choosing a tool for trading?
- The functions that the forex platform offers – tools of this type are equipped with various functionalities, indicators for technical and fundamental analysis, a macroeconomic calendar,
- Mobility of the platform – this is about its accessibility to various devices, not just a computer. Nowadays, many people are constantly on the move and use mobile devices. A good forex platform should also be available for smartphones, so that a trader can have his investments under control anywhere in the world,
- The usability of the platform, i.e. how well the user uses the solutions that the platform offers. Beginners do not need a lot of extensive features, as they will not use them for some time, and some possibly not at all (read also: Forex for beginners). Therefore, they should pay more attention to its simple operation and accessible interface. Experienced investors, on the other hand, will certainly appreciate the many additional functionalities they can use within the platform. This will allow them to make better investments,
- Security – in addition to the mere security of money with the broker, it is also worth paying attention to whether the chosen platform is fail-safe. If it is, one can easily imagine a situation when the user needs to make a transaction and the platform is out of order. It is best to opt for a platform that has good reviews and has been tested by many traders.
Which Forex platform for beginners?
The Meta Trader 4 has been very popular among traders for many years. However, proprietary trading platforms, such as xStation from the Pilsen broker XTB, are gaining in popularity every year. The advantage of such solutions is the possibility of continuous improvement of the platform by a specific broker, so that it can be adapted to the needs of users.
When making a final decision on which Forex platform to use, it is also important to take into account what financial instruments the trader intends to use. For beginners, the best option will be a platform that, on the one hand, has a lot of educational background and, on the other hand, is relatively easy to use.
What is the cost of using an investment platform and investment account?
An important issue for any investor is the cost of investing. You should check how much it costs to open an actual account for making investments, as well as what spreads and the amount of commissions it applies. It’s also worth checking whether you have to pay a fixed fee for using the platform and investment account, and whether there are any ways to avoid this. It is also important whether access to training and educational materials, as well as real-time quotes, is paid extra.
Read also: How to invest in currencies online
It will not always be the case that a free investment account will be better than a paid one. It may happen that the lack of account fees will be compensated by the broker with high commissions for each order or execution of money withdrawal from the investment account.
Demo account for testing
A great way to make a choice and find the right Forex platform, is to test it. Almost all reputable brokers provide forex demo accounts for free. In practice, it looks like a trader who wants to test an investment tool, offered by a broker, gets access to an investment account. Then you need to register on the platform, and after logging in, you can use all the functionalities, offered by the platform.
It should be noted that in the demo account you do not trade real money, but a pool of virtual funds. It can be used freely to check the platform’s functions and trading strategies. Some brokers, as part of the demo account, allow traders to use all the functions of the platform and the account, while others provide it in a truncated part. However, this is enough to find out how to use the platform, how to place buy and sell orders for individual currencies, use leverage, or set stop loss and take profit levels.
Beforehand, it is also worth checking whether the chosen brokerage company does not oblige the user to open a real account after the test period, as well as how long such a period lasts.
Saxo Bank broker is certainly one of the best brokers, operating on the financial market. The company offers great investment conditions, and what’s more, it gives users access to an extensive educational section. Those who use the services of this Danish broker can also count on the support of experts who have vast experience.
The main downside, however, is the need to decide a high sum of money as part of the initial capital. Beginner investors who do not have such an amount will not be able to take advantage of the features offered by the broker, but those with the ability to make such a deposit will certainly be satisfied with the services of this broker.