Saxo Bank Forex Trading Increases 3% in July
Copenhagen based Saxo Bank has bucked the trend of decreasing forex trading volumes by reporting a tidy 3% increase in the month of July. The multi-asset broking firm which terms itself a facilitator in fiscal markets announced that it did $249 billion in forex trades as compared to $242 billion in the month of June. The increase is no doubt very slight, but it comes at a time when other institutional and retail forex trading companies have reported small drops in trading volumes.
Saxo Bank’s performance in its other products was not particularly good. The company’s overall trade volumes for July were $336 billion, a 3% reduction from the previous month. This was because of a less than perfect performance by its Commodities, Equities, and Fixed Income product groups.
Forex trading is the biggest component of the online trading and investment’s overall business. As a matter of fact, it brought in almost 74% of the company’s total trading volumes for the month of July. However, forex made up anything from 70% to 71% of the total trading volumes during the previous few months.
The Danish company’s forex performance this month has no doubt been very impressive, but it has been making efforts of late to diversify from this market. For instance, the company has tied up with Open Markets, a major Australian cash equities broker offering online services. The purpose of the deal is to expand its market reach and to enable its clients to acquire stocks of Australian companies.
Saxo Bank was founded in 1992 and was originally known as Midas Fondsmæglerselskab. It got its present name in 2001 when it got its banking license. A significant player in the online trading industry, the company offers trading in forex, stocks, futures, futures spreads, funds, bonds, and CFDs via its state of the art trading platform. In fact, the company does not deal in any conventional banking products.
The company has dealings with around 100 financial institutions who use its user-friendly and intuitive trading platform to serve their end clients on a White Label basis. Its partners include Old Mutual Wealth, Standard Bank, Banco Best, and Banco Carregosa amongst others. The list of its clients includes banks, brokers, and fund managers.
The Saxo Bank headquarters are in Copenhagen but it has offices in the major global financial centres of London, Zurich, Paris, Tokyo, Singapore, and Dubai. It conducts its operations in 180 different countries, and it daily turnover is around $12 billion.
The privately owned company has received plenty of awards for the quality of its services. For one, it was awarded the title of Best White Label Solution Provider at 2010’s World Finance Foreign Exchange Awards. Profit & Loss magazine awarded it Best Re-labelling Platform in the same year.
The company’s founders, Lars Seier Christensen and Kim Fournais, sold a minority stake in it to General Atlantic in 2005, for a total of $60 million. This stake was subsequently purchased by TPG Capital. At present, the co-founders own 25.71% of its shares apiece whereas TPG Capital owns 29.26% and other minor shareholders share 9.9% in total.
Saxo bank has always striven to provide its customers with high-quality products and service. The company also maintains a high level of transparency in its dealings with its customers. In fact, it was the first non-public financial company to publish its daily and monthly average trading volumes. It also pours a lot of money into upgrading the technology of its products. The company’s digital trading platform is already being used by large numbers of people, and it continues to grow in popularity.