Saxo Markets Review: What Makes This Online Brokerage Stand Out?

Saxo Markets Review: What Makes This Online Brokerage Stand Out?

An excellent, low-cost platform that offers great market access

Good for

  • Individuals seeking a low-fee brokerage with a great user interface
  • Investors seeking access to international markets

Bad for

  • Investors seeking to invest exclusively in international markets
  • Individuals particularly interested in CFD trading

Editor's Rating

5.0/5.0

Saxo Markets provides individual investors and traders with an excellent platform for investing in a variety of markets at a relatively low cost. This online broker charges commissions that are generally much lower than its competitors and offers a great user experience due to its intuitive interface.

Summary of Saxo Markets' Online Brokerage
Lower commission fees than most other online brokers
Great market access: trading in 36 global markets
Lower FX spreads than many competitors
Promotions: New customers will not have to pay a minimum commission to trade SGX equities until April 30th, 2021. Additionally, new and exising customers get free access to real-time level 1 prices for Singapore stocks and CFDs.

Table of Contents

What Makes Saxo Stand Out to Investors

Saxo Markets (formerly Saxo Capital Markets) offers investors an excellent combination of low fees, wide ranging market access and intuitive user experience. For example, the platform charges just 0.08% for trades of Singapore stocks (min S$0), while others typically charge about 0.22%. Similarly, Saxo charges less than the market average for international trades, while offering access to 36 international markets. Furthermore, it charges approximately 15-33% less to investors that qualify for its platinum (minimum funding S$300,000) and VIP (S$1,500,000) account tiers, which can be attractive to more active traders. Not only that, Saxo doesn't charge a monthly minimum commission unlike some other low cost offerings in the market like Interactive Brokers, making it effective for long term investors and even for frequent traders who invest S$100,000 or less.

Saxo also offers its customers free live prices on SG, US and other exchanges available by refund, with a minimum of four trades placed each month (or six for trading on the Australian Stock Exchange). This is especially useful for customers who want to trade frequently at the international level, since not only is it relatively inexpensive for users to do so, but they also will have up-to-date information.

Until April 30th, 2021, Saxo is holding a promotion where new customers will not have to pay a minimum commission on SGX equities, and existing customers will have to pay only S$5 (from S$10). Additionally, all customers (new and existing) will receive free access to real-time level 1 prices for Singapore stocks and CFDs until June 30th, 2020. As the data and insights cost and additional S$15 per month, you could save up to S$90. This is currently one of the best promotions in the market.


Market
ClassicPlatinumVIPIndustry Average
Singapore0.08%0.08%0.08%0.22%
US0.06%0.05%0.04%0.27%
Japan0.15%0.12%0.10%0.32%
HK0.15%0.12%0.10%0.21%
EU0.10%0.07-0.09%0.05-0.08%0.31%
* Saxo min. SG: S$0; US:$3-$4; JPY1,000-1,500; HKD60-90; EUR6-12

Account Type
SingaporeUSJapanHong KongEURUK
ClassicN/A$3N/AHKD30EUR3GBP2.50
PlatinumN/A$2N/AHKD20EUR2GBP1.50
VIPN/A$1.25N/AHKD10EUR1GBP1.00

Account Type
Commission FeeMin. Fee
Classic0.20%EUR 80
Platinum0.20%EUR 60
VIP0.20%EUR 50
Available bonds include Euro, US, Emerging Markets and Corporate

Despite Saxo's low fees and wide ranging offerings, investors that are interested in trading CFDs or exclusively trading international or U.S. stocks may occasionally find better commission rates from one of the other leading online brokerages. However, these are very specific preferences, and Saxo's fees still tend to beat the market averages, which makes it the best option for most investors.


Instrument
Saxo ClassicSaxo VIPIndustry Average
US 301.41.42.1
Japan 225778.3
HK 50556.5

Currency
ClassicVIPIndustry Average
EUR USD0.60.40.7
USD JPY0.60.40.8
GBP USD0.70.41.0
AUD USD0.50.30.7
EUR JPY0.70.41.2
* figures based on min. advertised spreads

Investment Opportunities at Saxo

Not only does Saxo offer access to domestic and international equities markets, the brokerage allows investors access to bonds, ETFs, CFDs, futures and forex, equity and contract options. This makes it a great option for investors and traders that may want to use their online brokerage to purchase a variety of financial instruments.

Moreover, Saxo is holding an online promotion where new customers will not have to pay any minimum commission on SGX equities from now until April 30th. 2021. The promotion also entails a price reduction for existing customers, who will only have to pay S$5 in minimum commission for trading Singaporean stocks. Furthermore, Saxo Markets offer free sub accounts and charge a currency conversion fee of only 0.30%. Those looking to know the price of trading up front will be pleased as well, since Saxo Markets does not charge any hidden fees (inactivity, platform, maintanence, etc.) that other major brokerages charge.

Saxo Markets Investor Eligibility Requirements

Consider this if you want to trade any securities while minimising trading costs

In order to start trading with Saxo, individuals are required to fill out a form online and fund their account with either their credit card or via bank transfer. Investors can join either the Classic, Platinum or VIP account tier based on the amount they fund to their account. The classic tier requires S$3,000, while the minimum for the Platinum and VIP tiers require S$300,000 and S$1,500,000, respectively.

Saxo Rewards Account TierMinimum Funding
ClassicS$3,000
PlatinumS$300,000
VIPS$1,500,000

In addition to account funding thresholds, investors can increase their account standing with the broker through the Saxo Rewards loyalty programme. For example, investors earn rewards points for various trades and investments. For more information about Saxo Rewards, please refer to the tables below. Please note that existing customers were will remain in their respective tier, prior to the launch of Saxo Rewards. Additionally, it is important to know that loyalty points are calculated on a three-month rolling basis.

Saxo Rewards Account TierRequired Loyalty Points
Classic0 points
Platinum120,000 points
VIP500,000 points
TradeVolumePoints
FX spot tradeEUR 10,00030
Stock tradeEUR 10,000160
CFD single stock tradeEUR 10,000180
Bond investmentEUR 10,000320

Saxo charges lower commission fees to its Platinum and VIP members, by about 15% and 30%, respectively. Platinum and VIP users also have access to a personal relationship manager, while VIP investors are offered a dedicated sales trader and one-on-one check-ins with the SaxoStats, the brokerages team of in-house strategists. Finally, Saxo charges a annual custody fee of 0.12% on accounts holding positions in stocks, ETFs and Bonds. This fee does not apply to instruments listed on the Singapore exchange. For reference, Saxo's custodian fee is significantly cheaper than those of other online brokers, which tend to charge about 0.25%.

William Hofmann

William is a Product Manager at ValueChampion Singapore, helping consumers and SMEs find the best banking products through comprehensive analysis of data. He previously was an Economic Consultant at Industrial Economics Inc, where he conducted a variety of research and economic analyses. He graduated from University of Vermont with degrees in Economics and Psychology. His work has been featured on a variety of major media such as the Straits Times, the Business Times, the Edge, DailySocial, the Entrepreneur and more.

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