Saxo Markets is one of the most popular platforms used by experienced traders.
With its impressive catalogue of products, advanced tools, and extensive educational content, there’s no denying its appeal.
On the other hand, some have deemed it to be unsuitable for beginner traders.
But is this true? Read on to get to know all about Saxo Markets’ products and services!
Table of Contents
Introduction to Saxo Markets
A trusted brokerage with access to global trade, Saxo Markets is a part of Saxo Group which was founded in Denmark.
The platform has over 1,000,000 clients worldwide and 260,000 daily executed trades.
When you go to their website, you’ll be welcomed with a professional and user-friendly interface that’s easy to navigate. The company has been focusing on being a leading fintech specialist since their launch of online trading platforms in 1998.
They opened a subsidiary for the UK Market in 2006 and offer investor, trader, and tax-efficient investment accounts for UK residents.
As mentioned, Saxo Markets has an extensive product catalogue including forex, indices, options, commodities, shares, bonds, and futures. These products can be bought via CFDs, forward contracts, or direct ownership.
How to Open & Close an Account at Saxo Markets
To create an account at Saxo Markets, prepare your personal ID and National Insurance number first. Your account can be funded by using bank transfers or a debit card.
For the SIPP account, there will be a paper application that you will need to send via snail mail to Saxo Markets. It’s available online and about 10 pages long.
I recommend you get an expert involved in reading through all the content to ensure the program is suitable for you.
When you open an account in Saxo Markets, you’ll be presented with three different tiers. You can choose the Classic account for minimum funding of £500, the Platinum account for minimum funding of £200,000, and the VIP account with a minimum funding of £1,000,000.
From these tiers, you can choose several types of accounts on Saxo Markets:
- ISA or Individual Savings Account, free of tax on dividends.
- SIPP or Self-Invested Personal Pension, a pension where you can choose your investment options.
- General investment/trading account
- Corporate account
- Joint account
- Professional account
- Trust account
To close your account at Saxo Markets, you can raise a Support Ticket and request closure.
You can utilise your Saxo Markets accounts to access 40,000 instruments available on their platform from different asset classes. Their products include futures, ETFs, bonds, forex options, mutual funds, and listed options.
Saxo also offers the SaxoSelect portfolios, which are ready-made portfolios made by asset managers. Saxo partners with Morningstar and BlackRock to create these portfolios.
For a BlackRock-managed portfolio, you can choose from low risk (defensive), moderate risk (medium risk), to high risk (aggressive). But to access this, you need to have at least £10,000 in your account.
For a Morningstar-managed portfolio, you can choose between Saxo Morningstar MOAT or Saco Morningstar High Dividend. Both of these portfolios are considered high risks. You need at least 30,000 EUR in your account to access this service.
Then there’s also the high-risk Brown Advisory Ethical Selection portfolio which requires at least a 30,000 USD balance in your account.
Lastly, the high-risk Nasdaq DW Global Momentum portfolio requires at least a 30,000 USD balance in your account.
Research Services & Tools on Saxo Markets
The research sources and market analysis tools are some of the areas where Saxo Markets shines. These features provide all levels of traders with great insights.
Their research page provides clear data and recommendations for trading with an impressive charting tool. The chart function has 50 technical indicators that can be edited according to your needs.
Unfortunately, most of the data provided isn’t free. So if you want to access the full feature, you will need to pay a subscription fee.
Aside from their excellent research, Saxo also provides great educational content on their platform. You can access their materials on trading, and financial markets in general, as well as guides to navigate their platform.
There’s also a tab called Trading Inspiration where you can gather ideas by reading articles, listening to podcasts, or joining webinars.
Is Saxo Markets Expensive?
Before you dive in and trade, you need to pay closer attention to the platform’s charges.
This will highly affect your investment strategy, such as deciding to be an active or passive trader.
Saxo Market costs:
- Account custody fee: 0.12% per annum for platinum accounts or 0.08% per annum for VIP accounts if you’re holding bond, stock, ETF/ETC positions with a minimum fee of EUR 10.
- Commissions for Saxo Bank: 5 GBP for UK exchanges, 10 USD for US exchanges, 10 EUR for EU exchanges, and 8 AUD for AU exchanges.
- Stock execution prices: NASDAQ and NYSE – 0.02 USD/share, LSE, Australian Securities Exchange, and NYSE Euronext Brussels – 0.1%, Hong Kong Exchange – 0.15%
- Cost of bonds: European and US government bonds – 0.2%, European and US corporate bonds – 0.2%, emerging market bonds – 0.2%
- Other instruments: Forex spreads – 0.4 pips, forex options spreads – 3 pips, CFD spreads – 0.85, stocks commissions – £5 for UK stocks, commodities commissions – starting from $1/lot, futures commissions – starting from $1/lot, listed options – starting from $0.85/lot
- Transfer out fee: 50 EUR per ISIN with a 160 EUR cap.
How to Withdraw From Saxo Markets Account
To withdraw from your Saxo Markets account, you can go directly to their Deposit and Transfers tab and select Withdraw Funds.
Then choose the bank account your money is going to and click Transfer. The good news is, Saxo charges no fees on withdrawals.
Safety & Security
The platform has a solid background with decades of experience.
In the UK, it is authorised and regulated by the Financial Conduct Authority (FCA). This means that if you’re a client of Saxo Markets, you’ll be eligible for the Financial Services Compensation Scheme for up to £85,000 should the company go under.
Client funds are kept in separate corporate funds in segregated accounts as per FCA’s regulation.
Saxo Markets also has negative balance protection rules, which means their clients are guaranteed to never lose more than what they have in their accounts.
Customer Support Review
To get a better idea of their customer support performance, I checked Saxo’s Trustpilot reviews. Interestingly, their global Saxo Group review is lower than the UK subsidiary.
The global Saxo Group has a 3.6 score out of 5, while their UK subsidiary has a 4.4 score out of 5.
Most of their UK customers claimed the support team was helpful and responsive, while clients from other countries complained about late replies and system errors.
You can contact Saxo Markets via live chat, phone, or email.
Who Should Use Saxo Markets?
This platform is suitable for experienced traders. That’s because beginner traders often go for managed portfolios, and Saxo Markets portfolio services have a high starting point with a minimum deposit of £10,000.
You can still use the Saxo Markets platform as a beginner by utilising their educational content first. They have extensive materials on trading navigation, and you should take advantage of them.
After you’re familiar with the process, then you can open a trading account and start investing.
Alternatives to Saxo Markets
Saxo Markets provide a sophisticated trading platform with extensive products.
But if you’re interested in other options, here are some alternatives:
- IG Markets: A UK-based online trading platform with over 313,000 active traders. Its products include equities, indices, commodities, forex and cryptocurrencies.
- eToro: An Israeli-based trading platform that emphasises social trading. This means it acts somewhat like social media trading where you can check out how others are handling their investment accounts.
- Interactive Brokers: A UK-based online investment company that highlights its flat fee as a unique selling point. The platform is low-cost, with easy-to-understand investment programs.
- Pepperstone: An Australian-based trading platform that offers access to CFDs across forex, crypto, commodities, indices, and shares. Their main focus is on forex; they’re one of the largest forex brokers in the world and have one of the best forex trading apps.
Saxo Markets Pros & Cons
- Extensive product line
- Great educational content is available
- Advanced tools for experienced traders
- User-friendly interface
- High minimum account balance for portfolio options
Saxo Markets Review UK – Final Thoughts
Saxo Markets is a trusted brokerage that offers a variety of products that can be appealing to traders.
Their research services and tools are also helpful in aiding advanced traders to make informed decisions.
On the other hand, they have a high starting point for portfolio options, which can be a hindrance for beginners looking for a simpler way to invest.
Overall, the platform is an excellent choice for people that have a well-funded account or experience in trading. But I recommend that you look elsewhere if you don’t fall into these categories.
Is my money safe with Saxo Markets?
As Saxo Markets is regulated by the Financial Conduct Authority (FCA) in the UK, your money is generally considered safe. The FCA sets standards to protect consumers and ensures that Saxo Markets operates within regulatory guidelines. In the unlikely event of insolvency, eligible clients may also be able to claim compensation through the Financial Services Compensation Scheme (FSCS).
Is Saxo Markets good for beginners?
No, Saxo Markets is not typically recommended for beginners due to its more advanced features and tools.