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|
|No monthly minimum commission|
|Great market access: trading in 36 global markets|
|Lower FX spreads than many competitors|
Table of Contents
- What Makes Saxo Stand Out to Investors
- Investment Opportunities at Saxo
- Saxo Markets Investor Eligibility Requirements
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$10), 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 min. SG: S$10; US:$3-$4; JPY1,000-1,500; HKD60-90; EUR6-12|
|Commission Fee||Min. Fee|
|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.
|Saxo Classic||Saxo VIP||Industry Average|
|* 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.
Saxo Markets Investor Eligibility Requirements
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 Tier||Minimum Funding|
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 Tier||Required Loyalty Points|
|FX spot trade||EUR 10,000||30|
|Stock trade||EUR 10,000||160|
|CFD single stock trade||EUR 10,000||180|
|Bond investment||EUR 10,000||320|
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%.