Forex Broker Summary: Saxo Bank - Commission Structure
AAA
  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

Forex Broker Summary: Saxo Bank - Commission Structure

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

  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
RELATED TERMS
  1. Paper Trade

    Using simulated trading to practice buying and selling securities ...
  2. Prime Of Prime - PoP

    A brokerage that provides service to traders (especially Forex ...
  3. Digital Currency Exchanger - DCE

    A market maker who exchanges legal tender for electronic currency, ...
  4. Bid And Asked

    A two-way price quotation that indicates the best price at which ...
  5. No Dealing Desk

    A way of forex trading that provides immediate access to the ...
  6. Micro Account

    A forex trade made up of contracts for 1,000 units of currency. ...
  1. How do I close a long position in forex?

    Learn the different ways that traders close out existing long positions in the forex market, depending on whether their brokers ...
  2. What is the difference between business intelligence and competitive intelligence?

    Understand the difference between business intelligence and competitive intelligence. Learn why both are important for the ...
  3. Should I attempt to trade futures myself using software, or is this better left in ...

    Discover the factors to consider when deciding whether to trade futures on your own or to commit your trading decisions to ...
  4. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ...

You May Also Like

Related Tutorials
  1. Trading Systems & Software

    Beginner's Guide To J-Trader

  2. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

  3. Trading Systems & Software

    Guide To Smartphone Forex Apps

  4. Trading Systems & Software

    Automated Trading with MultiCharts

  5. Trading Systems & Software

    Forex Broker Summary: Easy Forex

Trading Center