FX trading rebounds 405pct at Saxo Bank in October

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have rebounded strongly in September to the highest level in three months.

Saxo Bank’s clients traded worth $6.7 billion daily in September, the highest figure since June 2022 and was up 40 percent month-over-month compared to $5.5 billion in August. Saxo’s FX ADV for last month was also higher year-over-year, correlating to a rise of 24 percent relative to $5.4 billion in September 2021.

Saxo Bank’s total monthly FX volume also reportedly soared to $146.7 billion in September. This figure was up 34 percent from August’s totals, and also corresponds to a yearly rise of 19 percent when compared to $123 billion a year earlier.

Furthermore, the increased volatility had given Saxo extraordinary volumes in the commodities segment. The total monthly volume hit $39.5 billion, up 35 percent month-over-month from $29.2 billion in August. The figure was also higher by nearly 25 percent from its 2021 equivalent.

Overall, Saxo Bank’s average daily volume across all asset classes was higher during September 2022, reported at $20.2 billion per day, up 23 percent month-over-month relative to $13.6 billion the month prior. Moreover, the figure was higher by 52 percent from $13.3 billion a year ago.

Saxo Bank reports lower revenue

Copenhagen-based broker reported last month lower revenues and net income for the first half of 2022 as customer trading activity dropped as compared with the previous year.

The FX bank marked a fall in H1 revenues, which came in at DKK 2.14 billion ($288 million), down 12 percent from DKK 2.43 billion for the same period last year.

As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 302 million ($40.6 million), down 41 percent from DKK 512 million in the January-June period of 2022.

Meanwhile, Saxo Bank won more clients with total active accounts crossing 874,000 for the first time in the company’s 30-year history. Despite onboarding more than 84,000 new accounts in the first semester, total clients’ assets under custody decreased to DKK 591 billion compared to DKK 595 billion last year.

That drop was mainly driven by the decline in the equity market but partly offset by positive net funding from clients. However, the figure remains a record-breaking milestone for the Danish broker, which took 25 years to reach the DKK 100 billion mark and then only 4 years to add an additional DKK 490 billion in client assets.