Saxo Bank’s FX volumes rise despite overall lackluster turnover

As many currency markets saw a relatively active period in November, Copenhagen-based Saxo Bank reported its monthly metrics, which showed a moderate rebound month-over-month.

The latest figures saw a sizable consolidation in key volume segments, failing to overtake a number of recent highs seen earlier this year.

The Danish multi-asset brokerage saw its FX average daily volumes rise to $5.4 billion, which was up 6 percent month-over-month from a month earlier. Across a yearly timeframe, however, this figure saw a strong drop relative to its 2022 equivalent, scoring a 14 percent fall year-over-year from $6.3 billion in November 2022.

Saxo Bank’s clients traded worth $4.9 billion daily in October, the lowest figure in twelve months and was also down nine percent month-over-month compared to $5.4 billion in July.

In terms of Saxo Bank’s total monthly FX volume, it was reported at $118 billion, which is up 5.4 percent from $112 billion a month ago. Further, this figure corresponds to a yearly decrease of 14 percent compared to $138 billion in 2022.

Saxo Bank’s equities business performed badly in November 2023, generating a daily trading volume of $9 billion. This marked a 33 percent increase from the $13.5 billion reported in October.

Overall, Saxo Bank’s average daily volume across all asset classes was lower during November, reported at $16.5 billion per day, down by 21 percent month-over-month relative to $21 billion the month prior.

Earlier in July, the Danish Financial Supervisory Authority (FSA) has officially designated Saxo Bank as a Systemically Important Financial Institution (SIFI). Widely recognized as “too big to fail,” SIFIs hold a critical position within the financial landscape, warranting heightened regulatory oversight and safeguards to ensure their stability and prevent catastrophic consequences.

The Copenhagen-based broker reported higher revenues and net income for the first half of 2023. The multi-asset group marked a rise in H1 revenues, which came in at DKK 2.24 billion, up 4.7 percent from DKK 2.14 billion for the same period last year. As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 376 million, up 25 percent from DKK 302 million in the January-June period of 2022.

Meanwhile, Saxo Bank won more clients with total active accounts crossing 1 million for the first time in the company’s +30-year history. Additionally, Saxo Bank managed client assets worth DKK 721 billion, a substantial increase from DKK 591 billion a year ago, which was positively impacted by net funding of cash and securities totaling DKK 79 billion.