Saxo Bank’s FX volumes rise 24% in January 2022

FX trading through Danish multi-asset brokerage Saxo Bank rose to $108 billion in January 2022 compared to the previous month, as political events globally maintained investors’ interest in foreign exchange markets.

Saxo Bank’s clients traded worth $5.2 billion daily in January, up 24 percent month-over-month compared to $5.2 billion in December 2021. Saxo’s FX ADV for last month was, however, lower year-over-year, correlating to a drop of 12 percent relative to $5.9 billion in January 2021.

Saxo Bank’s total monthly FX volume last month was up 14 percent from $95 billion in December. However, this figure also corresponds to a yearly drop of 8.5 percent when compared to $118 billion a year earlier.

Furthermore, the increased volatility has given Saxo extraordinary volumes in all products, with commodities and fixed income higher month-over-month, and equity bested its 2021 equivalent.

Overall, Saxo Bank’s average daily volume across all asset classes was higher during January 2022, reported at $20.9 billion per day, up 33 percent month-over-month relative to $15.7 billion the month prior. Moreover, the figure was higher by 48 percent from $14.1 billion a year ago.

Saxo Bank extends its geographic footprint

Saxo Bank has expanded its cryptocurrency contracts-for-difference (CFDs) offering, most recently with the addition of nine new Crypto FX pairs to its TradingView product suite.

The introduction of new instruments adds to Saxo Bank’s rapidly expanding suite of cryptos, following strong demand from clients over the past few months.

The company has been quickly shoring up its offerings with more altcoins. While May 2021 marked the launch of its Crypto FX service and a gradual embrace of crypto products, the latest expansions have been fueled by consistent demand for more diverse options.

Earlier in October, the subsidiary of Saxo bank has obtained a Hong Kong asset management licence from the Securities and Futures Commission (SFC). The move comes nearly three years after China auto-maker Zhejiang Geely became Saxo’s majority shareholder, which signalled the Danish bank’s ambitions to further expand its business into Asia.

Leveraging its fintech background, Saxo Markets plans to tap into its presence in the Chinese market to provide a viable alternative to traditional asset management. Having secured a type 4 licence, which allows it to offer securities investment, the company mainly targets investors who are looking for a more personalised option at a lower fee threshold.