Saxo Bank reports solid FX volumes as Ukraine crisis keeping volatility high

abdelaziz Fathi

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have surged to the highest level since April 2021.

Saxo Bank’s clients traded worth $5.6 billion daily in February, up 8 percent month-over-month compared to $5.2 billion in January 2022. Saxo’s FX ADV for last month was, however, lower year-over-year, correlating to a drop of 6.7 percent relative to $6.0 billion in February 2021.

Saxo Bank’s total monthly FX volume also reportedly soared to the highest level in almost five months, coming in at $112.7 billion in February. However, this figure corresponds to a yearly drop of 6 percent when compared to $119.8 billion a year earlier.

Furthermore, the increased volatility has given Saxo extraordinary volumes in the commodities segment. The total monthly volume hit its best reading since August 2020 at $44 billion, up 36 month-over-month from $32 billion in January. The figure was also higher by nearly 19 percent from its 2021 equivalent.

Despite the bullish performance in FX and commodities turnover, Saxo Bank’s average daily volume across all asset classes was virtually unchanged during February 2022. The Danish multi-asset brokerage reported the ADV figure at $21 billion per day relative to $20.9 billion the month prior. Moreover, the figure was higher by 40 percent from $15.1 billion a year ago.

Saxo Bank reports growth in revenue

Saxo Bank reported surging revenues for 2021 as Covid-19 remains a key trigger for customers’ trading activity, but its earnings were almost the same compared to a year earlier. Copenhagen-based broker marked mild growth in revenues, which came in at DKK 4.5 billion ($685 million), up 4 percent from DKK 4.3 billion for the same period last year.

As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 755 million ($114 million), slightly higher from DKK 750 million in the Jan-Dec period of 2020.

Furthermore, Saxo Bank won more clients with total active accounts crossing 820,000 for the first time in the company’s 30-year history. Having onboarded more than 263,000 new accounts last year, total clients’ assets under custody grew to DKK 640 billion as of December 2021.

On the operations front, Saxo Bank  completed integration with BinckBank, which it acquired in 2019, but the last segment of the Dutch lender’s clients is yet to be migrated later this year. The transaction added more than 400,000 direct clients across four jurisdictions in the Netherlands, Belgium, France, and Italy.

Read this next

Digital Assets

GK8 now allows clients to control their digital assets as they would their fiat

“As the institutional market is increasingly turning to self custody, our policy engine empowers them to automate transactions, approvals, and even crucial workflows, while providing the highest degree of security, consistency, governance and control.”

Digital Assets

Retail CBDCs in the UK: “Welcomed” by CryptoUK and R3, but “Dystopian” for ETC Group

“At this stage, we judge it likely that the digital pound will be needed in the future. It is too early to decide whether to introduce the digital pound, but we are convinced preparatory work is justified”, said the BoE and HM Treasury.

Institutional FX

Centroid taps Iress API to provide retail brokers with real-time market data

“It has always been a challenge to have an efficient, elegant solution for market data and order execution for retail brokers, but with Iress we have found absolutely the right partner to add to our client offering.”

Digital Assets

Ramp launches FCA-approved off-ramp product, onboards Brave, Trust Wallet, Ledger

“To obtain and maintain our FCA registration, we must meet and operate within their strict anti-money laundering and counter-terrorist financing standards. This is a huge achievement for us, as compliance is a cornerstone of our business and what we stand for.”

Institutional FX

State Street launches FIX API for Fund Connect ETF platform

“Expanding from proprietary APIs to the FIX industry standard will bring us closer to our goal of 100% digital interactions. This is another example of innovations we’ve brought to our operating model as we celebrate 30 years of servicing ETFs since the launch of SPY.”

Industry News

HollyWally opens office in Portugal to bring B2B2C wallet-as-a-service platform to Europe

“We looked at a number of centers for startups throughout Europe and were attracted straight away to Lisbon. There is great Government support and enthusiasm for startups, it’s well positioned between our Asian and US offices, it’s a cost-effective city in which to base a fintech and it’s a beautiful place.”

Retail FX

Eightcap integrates Acuity’s economic calendar for trade ideas on MT4 or MT5

“By incorporating Acuity’s cutting-edge AI technology into our platform, we are able to offer our clients a powerful new tool that will help them stay ahead of the markets. We are committed to providing an extensive range of tools and educational resources that will enhance our clients’ trading experience and allow them to trade smarter.”

Digital Assets

Fuse Network powers Web3 economy, payments with ‘Fuse 2.0’

Web3 payments revolution startup Fuse Network announced the release of ‘Fuse 2.0.’ alongside a new roadmap, whitepaper, and fresh branding aimed at bringing crypto payments to the mainstream global economy.

Inside View

Private Equity Renaissance

Recent years have seen a resurgence in the concept of trading physical equities, with a slew of new arrivals joining the market for what is arguably one of the oldest forms of investing. But what has been the driving force behind this change in momentum?

<