Forex Broker Summary: Saxo Bank - Commission Structure
  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. Spread Indicator

    An indicator that shows the difference between the bid and ask ...
  2. Forex Broker

    Firms that provide currency traders with access to a trading ...
  3. Forex Market

    The market in which participants are able to buy, sell, exchange ...
  4. Forex Spot Rate

    The current exchange rate at which a currency pair can be bought ...
  5. Ask

    The price a seller is willing to accept for a security, also ...
  6. Liquidation Level

    In forex trading, the specific value of a trader's account below ...
RELATED FAQS
  1. What methods can be used to fund a forex account?

    The forex market is where currencies from around the world are traded. In the past, currency trading was limited to certain ... Read Answer >>
  2. How do day traders capture profits from the difference between bid and ask prices?

    Discover how day traders capture profits from the difference between bid and ask spreads. These spreads blow out during volatile ... Read Answer >>
  3. What types of stocks have a large difference between bid and ask prices?

    Find out which factors influence bid-ask spread width. Learn why some stocks have large spreads between bid and ask prices, ... Read Answer >>
  4. How is spread calculated when trading in the forex market?

    First, remember that in the forex markets investors trade one currency for another. Therefore, currencies are quoted in terms ... Read Answer >>
  5. What am I buying and selling in the forex market?

    The forex market is the largest market in the world. According to the Triennial Central Bank Survey conducted by the Bank ... Read Answer >>
  6. In the forex market, how is the closing price of a currency pair determined?

    The foreign exchange market, or forex, is the market in which the currencies of the world are traded by governments, banks, ... Read Answer >>
Hot Definitions
  1. Physical Capital

    Physical capital is one of the three main factors of production in economic theory. It consists of manmade goods that assist ...
  2. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  4. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  5. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  6. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
Trading Center