FX volume at Saxo Bank hits weakest level this year

As many traders were away on annual summer leave, currency markets saw a relatively quiet period in August. Within that context, Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.

The latest figures saw a sizable consolidation in key volume segments, failing to overtake a number of recent highs seen over the last three months.

The Danish multi-asset brokerage saw its FX average daily volumes drop to a nine-month low at $5.5 billion, which was also down -13 percent month-over-month from $5.5 billion in July. Across a yearly timeframe, however, this figure managed to best its 2021 equivalent, scoring a 9.1 percent rise year-over-year from $4.4 billion in August 2021.

In terms of Saxo Bank’s total monthly FX volume for August 2022, it was reported at $109.8 billion, which is down 5.2 percent from $115.9 billion a month ago. Further, this figure corresponds to a yearly rise of 13 percent compared to $96.8 billion in 2021.

In terms of its equities business, Saxo Bank also disappointed in this segment after yielding a figure of $7.1 billion in August 2022, down by 10 percent from the $7.9 billion reported in July.

We last reported on Saxo Bank in August when its Japanese arm 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.