Saxo Markets Review: What Makes This Online Brokerage Stand Out?
Saxo Markets Review: What Makes This Online Brokerage Stand Out?
ValueChampion Rating 
Pros
- Low-fee brokerage with great user interface
- Access to international markets
- Fees for higher-tier monthly plans can be waived with points
Cons
- Not be the best option for investors exclusively seeking to invest in international markets
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 online brokers |
| Great market access: trading in 60 exchanges worldwide |
| New account plans that give users a bundle of rewards in exchange for a monthly fee that can be waived with trading activities |
| Lower FX spreads than many competitors |
| Promotions:
|
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$5), while others typically charge about 0.22%. Similarly, Saxo charges less than the market average for international trades, while offering access to 60 exchanges worldwide. 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.
For new clients, Saxo Markets is offering up new account plans-Bronze, Silver, Gold, Platinum and Diamond. The Bronze plan is free-of-charge while higher tier plans bundle up packages of benefits in exchange for a monthly fee.
Benefits include lower commission rates, no custody fees (if opted into Securities Lending), free commission credits and free live prices on SG, US and other exchanges. 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.
Active traders would benefit from the higher tier plans as they can earn Saxo points from conducting trade activity on their accounts and use it to waive off the monthly fee.
Market | Bronze | Silver | Gold | Platinum | Diamond | Industry Average |
|---|---|---|---|---|---|---|
| Singapore | 0.08% | 0.06% | 0.05% | 0.04% | 0.03% | 0.22% |
| US | 0.06% | 0.04% | 0.03% | 0.025% | 0.02% | 0.27% |
| Japan | 0.15% | 0.15% | 0.15% | 0.10% | 0.08% | 0.32% |
| HK | 0.15% | 0.15% | 0.15% | 0.12% | 0.10% | 0.21% |
| EU | 0.10%-0.30% | 0.10%-0.30% | 0.10%-0.30% | 0.07-0.25% | 0.05-0.20% | 0.31% |
| * Saxo min. SG: S$5; US:$3-$4; JPY1,000-1,500; HKD60-90; EUR6-12 | ||||||
Account Type | Bronze | Silver | Gold | Platinum | Diamond |
|---|---|---|---|---|---|
| USD (Stock Options) | USD 3 | USD 2 | USD 1 | USD 0.80 | USD 0.65 |
| USD (Cash Index Options) | USD 6 | USD 6 | USD 6 | USD 3 | USD 1.25 |
| USD (Futures Options) | USD 6 | USD 6 | USD 6 | USD 3 | USD 1.25 |
| HKD (Stock Options) | HKD 30 | HKD 30 | HKD 30 | HKD 20 | HKD 10 |
| HKD (Cash Index & Futures Options) | HKD 45 | HKD 45 | HKD 45 | HKD 30 | HKD 20 |
| EUR (Stock Options) | EUR 3 | EUR 3 | EUR 3 | EUR 2 | EUR 1 |
| AUD (Stock Options) | AUD 5 | AUD 5 | AUD 5 | AUD 3 | AUD 1 |
| Note: All equities, bonds, futures and options commissions will be charged with the prevailing Goods and Services Tax (GST) of Singapore. This is applicable to SG residents only. | |||||
Account Type | Commission Fee | Min. Fee | ||
|---|---|---|---|---|
| Bronze | 0.20% | EUR 20 | ||
| Silver | 0.20% | EUR 20 | ||
| Gold | 0.20% | EUR 20 | ||
| Platinum | 0.10% | EUR 20 | ||
| Diamond | 0.05% | EUR 20 | ||
| Available bonds include Euro, US, Emerging Markets and Corporate | ||||
Despite Saxo's low fees and wide ranging offerings, investors that are 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.
Market | Bronze | Silver | Gold | Platinum | Diamond |
|---|---|---|---|---|---|
| US 30 | 1.8 | 1.8 | 1.8 | 1.6 | 1.4 |
| US 500 | 0.6 | 0.6 | 0.6 | 0.5 | 0.4 |
| Japan 225 | 10 | 10 | 10 | 8 | 6 |
| HK 50 | 7 | 7 | 7 | 6 | 5 |
| GER 30 | 2.0 | 2.0 | 2.0 | 1.5 | 1.0 |
Market | Bronze | Silver | Gold | Platinum | Diamond |
|---|---|---|---|---|---|
| EUR USD | 0.6 | 0.6 | 0.6 | 0.5 | 0.4 |
| USD JPY | 0.6 | 0.6 | 0.6 | 0.5 | 0.4 |
| GBP USD | 0.7 | 0.7 | 0.7 | 0.6 | 0.4 |
| AUD USD | 0.5 | 0.5 | 0.5 | 0.4 | 0.3 |
| EUR JPY | 0.7 | 0.7 | 0.7 | 0.6 | 0.4 |
| * figures based on min. advertised spreads | |||||
Investment Opportunities at Saxo
Not only does Saxo's online brokerage offer access to an extensive range 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.
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.
Moreover, Saxo is holding a welcome promotion where new customers will start on the Bronze plan, then upgrade to Gold, Platinum or Diamond for an extra SGD 88, 188 or 388 in commission credits respectively, valid for 30 days. The promotion is valid until 30 April 2022. Terms and conditions apply.
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 on one of the five available plans-Bronze, Silver, Gold, Platinum and Diamond. The Bronze-tier plan is free-of-charge while higher tier plans bundle up packages of benefits such as lower commission rates, free market data, no custody fees (if opted into Securities Lending) and commission credits in exchange for a monthly fee.
In addition to account funding thresholds, investors can get Saxo points with the broker through the Saxo Rewards loyalty programme which can be used to waive the monthly payment for higher-tier plans. For more information about Saxo Rewards, please refer to the table below:
| Funding | Volume | Points |
|---|---|---|
| Initial net funding (first 30 days) | EUR 10,000 | 6,000 |
| Initial security transfers (first 30 days) | EUR 10,000 | 6,000 |
| Average monthly AuM | EUR 10,000 | 250 |
| Trade | Volume | Points |
|---|---|---|
| Forex | EUR 10,000 | 20 |
| Crypto FX | EUR 10,000 | 240 |
| Forex options | EUR 10,000 | 40 |
| CFD indices | EUR 10,000 | 10 |
| CFD equity | EUR 10,000 | 180 |
| Expiring CFD | EUR 10,000 | 50 |
| Stocks | EUR 10,000 | 250 |
| ETFs/ETNs | EUR 10,000 | 250 |
| Stock option | EUR 10,000 | 40 |
| Non-stock options | 1 | 70 |
| Contract options | 1 | 70 |
| Contract future | 1 | 70 |
| Mutual funds | NA | 0 |
Saxo charges lower commission fees for its customers on the higher tier plans, by about 62% on SG stocks and 66% on US stocks. Finally, Saxo charges a annual custody fee of 0.12% (0.06% on customers with the Diamond plan) on accounts holding positions in stocks, ETFs and Bonds. This fee does not apply to instruments listed on the Singapore exchange.
However, if customers are opted into Saxo's new Securities Lending proposition, the custody fee will be waived for plans above Bronze while the custody fee for customers on Bronze plan will be halved to 0.06%.
For reference, Saxo's custodian fee is significantly cheaper than those of other online brokerages in Singapore, which tend to charge about 0.25%.
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Stephen Lee is a Senior Research Analyst at ValueChampion, specializing in insurance. He holds a Bachelor of Arts degree in International Studies from the University of Washington, and his prior work experience include risk management and underwriting for professional liability and specialty insurance at Victor Insurance. Additionally, Stephen is a former US Peace Corps Volunteer in Myanmar (serving between 2018-2020), where he continues to provide business development consulting services to HR companies in Asia Pacific.