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The Truth About Saxo Bank's Trading Fees in Singapore

 The Truth About Saxo Bank's Trading Fees in Singapore

AMY TRADER - Saxo Bank has been around since 1992 and is one of the largest online banks in the world, both in terms of customer numbers and capital asset under management. The company has established itself as one of the go-to trading platforms for active traders, but how does it compare to other major players in the industry? 

In this article, we take a look at some features that will help you decide if Saxo Bank’s service is right for you. We also provide an example of what can happen when you trade too actively on your account without paying attention to fees.


How Does Saxo Charge Trades?

Saxo Bank is a Denmark-based investment bank that offers online trading and investment services. The company was founded in 1992 and has since grown to become one of the largest online brokers in the world. It operates across the globe, with over 400,000 accounts and more than $120 billion worth of assets under management.

In terms of fees, it charges 0.4% for stock trades and 5% for forex trades on the trader’s margin account balance as at January 2019. Saxo Bank also charges a maximum financing rate on margin loans which may vary depending on currency pairs.


Are the commission charges high?

If you're looking to trade forex with Saxo Bank in Singapore, you might be wondering about the commission charges. The truth is, they're not as high as you might think. In fact, they're quite reasonable compared to other brokers. 

So, if you're looking for a good broker in Singapore, don't let the commission fees deter you from considering Saxo Bank. They may seem high at first glance, but when it comes down to it, their rates are competitive. 

In addition, Saxo Bank doesn't charge any account management or custodian fees. What this means is that you can trade your account with them and only have to worry about paying commissions on your trades instead of being charged monthly rates like some other brokers do. It also saves you time because there are no hidden fees that will accumulate over time. 

In conclusion, Saxo Bank has proven itself as a leading broker by offering competitive trading conditions while keeping things simple by avoiding all these extra surprises that other companies use to pad their profits.

Read also : Saxotrader go becomes trade award

Do customers lose out when trading with another bank?

No, customers don't lose out when trading with another bank. In fact, they may even save on fees. They just need to make sure the platform they're using is fully licensed and regulated by the Monetary Authority of Singapore (MAS). 

It's also worth remembering that the new MAS legislation will come into effect from 2020, which means any brokerage or investment adviser that offers its services in Singapore will have to comply with it. 

A list of questions you should ask: 

How much are your spreads? What are your commission rates? How do you charge for commissions? Are there any additional charges for executing trades? Does the broker offer demo accounts? Do I get a discount if I sign up for a long-term contract? Is there a minimum deposit requirement?


How do other banks compare?

If you're thinking about signing up for a Saxo Bank account in Singapore, you might be wondering about the fees. Here's a breakdown of what you can expect to pay. - There are no monthly charges 

- The commission fee is 0.1% (SGD) on trades that have less than SGD 50,000 (USD 38,700) worth of volume per month 

- The commission fee is 0.25% (SGD) on trades that have more than SGD 50,000 (USD 38,700) worth of volume per month - Commissions and volumes are calculated in USD so it makes sense to buy and sell USD here instead of SGD if you're interested in reducing your cost 

- Withdrawing funds will incur a charge too. It costs 3% (SGD) to withdraw funds from your Saxo Bank trading account or your linked bank account 

- You'll also need an annual subscription if you want full access to all the features, such as streaming quotes , price alerts, and execution-only trade functionality 

- What does this mean? - For example, if you trade at least USD 20 million worth of shares each year but don't subscribe to the service, then you would only get access to historical data because streamed quotes require an annual subscription 

- Your fee structure depends on how much trading volume you do per month. If you trade less than $38,700 worth of shares per month, the commission fee is 0.1%. However, if you trade more than $38,700 worth of shares per month then the commission fee jumps to 0.25%. 

- A withdrawal will also incur a 3% charge which means it pays to invest in U.S dollars instead of Singapore dollars when possible. Not only will it save money on commissions but withdrawals are cheaper too! As long as you keep at least USD 20 million in trades annually and don't subscribe to the full service, then you'll only get access to historic data. 

Are there any other requirements?: In order to sign up for a Saxo Bank account, you need to have been issued with a Social Security Number by another country and one of these documents: Passport; driver's license; military ID card; citizenship certificate; resident card/documentation; national identity card; birth certificate. 

Note that you'll need to provide proof of residence and use the same document for both requirements. Keep in mind that if you're outside Singapore, you can only open a fixed-term trading account which has lower limits on deposits, investments, and financial instruments.


Read also : Saxo financial institution

Why is the cost lower at Saxo Bank?

If you're looking for a lower cost option when it comes to online trading, Saxo Bank may be the answer. The fees charged by the bank are some of the lowest in the industry, making it a great choice for budget-conscious investors. 

You'll also enjoy all the benefits of dealing with a regulated broker and service provider. That means they've been vetted by the Monetary Authority of Singapore (MAS) which ensures that their systems are secure and up to date.

There is no shortage of research tools, high quality customer support, or competitive spreads on offer at Saxo Bank either. What about leverage? The maximum leverage available to traders here is 1:500, so if you want more power behind your trades this isn't the place for you. 

But if your account balance doesn't exceed S$2 million then it will be more than enough to get your foot in the door and start investing! It's easy to open an account with Saxo Bank too. Simply visit their website and download an application form, fill it out and submit it electronically along with copies of your passport photo page and proof of address - done!


Is there any discount available for frequent traders?

Yes, there is a discount available for frequent traders. If you trade more than three times per month, you will receive a rebate of $5 per trade. This discount is available for both online and offline trades. You can choose to have your rebates credited to your account as cash or credited to your trading balance on the website. You can also request that they be transferred directly to your bank account (bank charges apply). 

For example, if you are using POSB e-mandate, these charges would amount to $0.88 per transfer. The commission rates are much lower with an active account balance ($1-2 flat fee), so we recommend this option if possible. One way to maintain an active account balance is by switching between markets such as EUR/USD and GBP/USD when one market becomes less volatile. By doing this, it ensures that commissions are only paid when there is a trade.


Is there any way to pay zero commission on trades?

If you're looking to trade without paying any commission, you might be disappointed to learn that there is no such thing as free trading. All brokers need to make money somehow, and they do this by charging commissions on trades. Some platforms charge a flat fee per trade while others charge a percentage of the value of the assets traded. 

In addition, some platforms offer competitive prices on certain assets (like stocks) but charge higher rates for currencies or other instruments. Fortunately, you can typically find a broker with fees based on what works best for your investment strategy and financial goals. 

For example, if you're primarily interested in trading stocks, then Interactive Brokers may be worth checking out. If you'd like to avoid currency conversions when making transactions, CMC Markets could be the right choice. And if you have a large portfolio with multiple accounts spread across different regions, we recommend checking out XTB - it offers unlimited trading at just EUR9.99 per month*. 

What should I consider before choosing my online broker? There are three main factors that investors should consider before choosing an online brokerage: commission costs, access to markets and products offered, and platform functionality. A good rule of thumb is to choose the cheapest option for where you'll be investing most of your money. 

That way, you won't be penalized every time you buy or sell securities. For example, if your main focus is U.S. equities and ETFs, Interactive Brokers will likely offer better commission rates than TD Ameritrade because its pricing structure doesn't include hidden charges for certain asset classes.


Read also : Platform overview saxotradergo

Are there any hidden costs at Saxo Bank?

When it comes to trading fees, Saxo Bank is pretty transparent. However, there are a few other costs that you should be aware of before deciding to open an account with them. These include withdrawal charges for both cash and shares, which can be as high as $50 per transaction. 

The good news is that all the bank’s deposit and withdrawal charges are free of charge! Other than trading fees, the only fee incurred by customers who use their debit card is a 3% surcharge. As long as your trade value exceeds SGD 10,000 (around USD 7,200), you won't incur any trading fee either! What if I want to buy some investments? You'll need to pay two types of fees when investing: an investment commission, usually around 1%, and a brokerage fee (brokerage spreads) when buying securities such as stocks or bonds. 

If you sell your investments within one year from the date of purchase, then you'll also have to pay a capital gains tax on the profits made during this period. Saxo Bank doesn't have its own online brokerage service so its clients will need to look elsewhere for these services. 

An alternative is Questrade Wealth Management where traders enjoy no-cost commissions and low broker spreads. For those looking for more flexibility, Interactive Brokers' execution fees range from just $0.005 to 0.3%. And lastly, TD Ameritrade offers flat commissions at $6.95 for stock trades but does not offer ETF trades which are expensive to execute outside of the U.S., Canada, Hong Kong or Taiwan markets.

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