Saxo Bank reports lackluster volumes for November; FX up 40% YoY

abdelaziz Fathi

FX trading volumes through Saxo Bank’s platforms improved slightly in November, extending its volatile curve as investors continued to weigh central banks’ policy against concerns over a global economic slowdown.

Saxo Bank’s clients traded worth $6.3 billion daily in November, up 3.3 percent month-over-month compared to $6.1 billion in October 2022. Saxo’s FX ADV for the last month was also higher year-over-year, correlating to a rise of 40 percent relative to $4.5 billion in November 2021.

Saxo Bank’s total monthly FX volume also rose to $138 billion in November. This figure was up 8 percent from October’s totals, and also corresponds to a yearly rise of 39 percent when compared to $99.2 billion a year earlier.

Despite the increased volatility, volumes in the commodities segment were less impressive. The total monthly volume hit $32.1 billion, down 12 percent month-over-month from $36.4 billion in October. The figure was however higher by 6.6 percent from its 2021 equivalent.

Overall, Saxo Bank’s average daily volume across all asset classes was marginally higher during November 2022, reported at $20.8 billion per day, up 1 percent month-over-month relative to $20.6 billion the month prior. Moreover, the figure was higher by 56 percent from $13.3 billion a year ago.

We last reported on Saxo Bank in October when its deployed Baffle’s Data Protection Services to protect sensitive customer data, ensure compliance with stringent regulations, and support the bank’s migration to a highly scalable cloud and microservices architecture. The bank and trading platform provider will also be integrating Baffle into its customer-facing products.

Earlier, its Japanese arm was in the news after it lowered the minimum order size for stock indices CFDs to give their traders more flexibility when it comes to small trades.

Saxo Japan’s investors can now open trades from 0.1 or 0.01 lot per order depending on the tradable instrument. This new trading structure lowers the barrier for indices trading and features enhanced benefits for CFDs traders.

The move, geared toward attracting more young clients, eliminates the barriers that many investors face when trying to invest in a diversified portfolio of listed securities. Fractional trading allows investors to diversify their investment portfolios by spreading their relatively small capital over a broader range of stocks.

US brokers were the first to let investors buy and sell fractions of stocks. As they looked beyond the no-fee trading war, the move set off a new rush among global brokers to do the same amid increased competition in the industry to attract the next generation of investors.

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