1. Forex Broker Summary: Saxo Bank - Introduction
  2. Forex Broker Summary: Saxo Bank - Account Types And Requirements
  3. Forex Broker Summary: Saxo Bank - Commission Structure
  4. Forex Broker Summary: Saxo Bank - Trading Platforms And Customer Support
  5. Forex Broker Summary: Saxo Bank - Additional Information

Saxo Bank, like most forex brokers, generates revenue through the spread paid by forex traders on each transaction. The spread is the difference between the bid and ask prices, since traders buy at the ask price and sell at the bid price. While the actual amount paid varies based on liquidity at the time of the trade, Saxo Bank offers estimated target spreads seen below.

Figure 1 - Target Spreads

Saxo Bank may also charge a $10 USD ticket fee for low-value forex trades that don't meet a listed threshold, in order to cover its administrative expenses. On the other side, the bank offers preferred rates for certain customers, depending on their volume. For instance, Platinum Account members have access to competitive flexible pricing for their high volume trades. Rollover is not a commission but may influence the profitability of a trade. Saxo Bank provides the current rollover rates in its trading platform, enabling traders to see how much they will gain or lose from a currency pair's interest rate debit or credit. These rates are standard among all forex brokers.

Finally, margin rates are another important consideration when choosing a forex broker. Saxo Bank has very low margin requirements that enable traders to leverage FX majors and the first EUR 50,000 of collateral up to 200 times and additional collateral up to 100 times. These rates may differ for exotic currency pairs that have less liquidity. However, forex traders should keep in mind that higher leverage entails greater risk, and spreads are applied to the full amount of the transaction and not just the margin put up by the trader.

Forex Broker Summary: Saxo Bank - Trading Platforms And Customer Support

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