General charges and fees
General charges and fees
In supporting your financial aspirations and trading objectives, we provide both funding and liquidity for your trading activities in margin products. Our financing rates apply when you hold an open position in a margin product overnight e.g., a Contract for Difference (CFD) on a single stock.
Your financing rates consist of two components: 1) Saxo Bid/Offer financing rates and 2) commercial product markup/down.
The financing rates are set as:
- Bid = Saxo Bid financing rate - commercial product markdown
- Offer = Saxo Offer financing rate + commercial product markup
Saxo Bid/Offer financing rates
Saxo Bid/Offer financing rates refers to our pricing on financing i.e., we are charging floating interest rates. We use Alternative Reference Rates (ARRs) as an input when setting Saxo Bid/Offer financing rates. For currencies without a designated ARR, a money market rate, monetary policy rate or other relevant financial benchmark will apply as an input.
Saxo Bid/Offer Financing Rates have a floor of zero percent, i.e. the interest rates can not be negative rates.
When you buy CFDs on single stocks e.g., in Hong Kong Dollars, we will convert our funding base into Hong Kong Dollars to finance the underlying purchase of the stocks. Conversely, if you are selling CFDs on a single stock e.g., in South African Rand, we will convert the proceeds from sale of the underlying stocks into our funding base currencies. These operations require active trading in various financial products in the interbank market to manage the liquidity cash flows generated by your trading activities.
ARRs have been developed by working groups consisting of national and international industry associations, market participants, as well as central and reserve banks. They are publicly available and are recognised by National Competent Authorities (NCAs), market participants, and national and international financial industry associations. For more information on the relevant financial benchmarks listed below, please consult the financial benchmark administrator, central or reserve bank.
The Saxo Bid/Offer financing rates are proprietary to Saxo and subject to the provisions in our General Business Terms. One provision could be pass-through of cost related to external factors, such as changes in domestic and/or foreign monetary or credit policies that affect the general interest level or changes in cost structures with liquidity providers and brokers.
As a reference, see applicable Benchmark Rates in the section below.
Commercial product markups/downs
For more information on our general pricing, please consult the page Pricing Overview
Interest calculation and settlement
Interest will be calculated daily and settled monthly – within seven business days of the end of each calendar month.
The Saxo Bid/Ask rates are proprietary to Saxo and subject to the provisions in the General Business Terms. One such provisions could be pass-through of cost related to external factors, such as changes in domestic and/or foreign monetary or credit policies that affect the general interest level or changes in cost structures with liquidity providers and brokers.
We generally use Alternative Reference Rates (ARRs) as an input when setting Saxo Bid/Ask rates. For certain currencies, a money market rate, monetary policy rate or other relevant financial benchmark may apply as an input instead.
The benchmarks used when setting interest rates on deposits and financing rates on margin products are listed in the table below. Saxo reserves the right to apply a business lag to the publication of financial benchmarks when calculating and booking unrealised and realised interest.
| Currency | Day count convention | Benchmark rates |
|---|---|---|
| AED | ACT/360 | Central Bank of United Arab Emirates (CBUAE) repo rate |
| AUD | ACT/365 | Australian Overnight Index Average (AONIA) |
| CAD | ACT/365 | Canadian Overnight Repo Rate Average (CORRA) |
| CHF | ACT/360 | Swiss Average Rate Overnight (SARON) |
| CNH | ACT/360 | CNH China InterBank Repo |
| CZK | ACT/360 | Czech Overnight Index Average (CZEONIA) |
| DKK | ACT/360 | Denmark Short-Term Rate (DESTR) or Current-account rate |
| EUR | ACT/360 | Euro Short-Term Rate (ESTR) |
| GBP | ACT/365 | Sterling Overnight Index Average (SONIA) |
| HKD | ACT/365 | HKD Overnight Deposit rate |
| HUF | ACT/360 | Hungarian Overnight Index Average (HUFONIA) |
| ILS | ACT/360 | Bank of Israel (BoI) rate |
| JPY | ACT/360 | Tokyo Overnight Average Rate (TONAR) |
| MXN | ACT/360 | Overnight TIIE funding rate |
| NOK | ACT/360 | Norwegian Overnight Weighted Average (NOWA) |
| NZD | ACT/365 | Reserve Bank of New Zealand (RBNZ) Official Cash Rate (OCR) |
| PLN | ACT/360 | Poland Overnight Index Average (POLONIA) |
| RON | ACT/360 | National Bank of Romania deposit rate |
| RUB | ACT/360 | Ruble Overnight Index Average (RUONIA) |
| SAR | ACT/360 | Central Bank of Saudi Arabia (SAMA) reverse repo rate |
| SEK | ACT/360 | Swedish Short-Term Rate (SWESTR) |
| SGD | ACT/365 | Singapore Overnight Rate Average (SORA) |
| THB | ACT/365 | Thai Overnight Rate (THOR) |
| TRY | ACT/360 | Turkish Lira Reference Rate (TLREF) |
| USD | ACT/360 | Secured Overnight Financing Rate (SOFR) |
| ZAR | ACT/365 | South Africa Benchmark Overnight Rate (SABOR) |
The base currency of your account(s) is the currency denomination that you have selected for your main account when you opened an account with us.
Platinum & VIP clients may be permitted, at our discretion, to open multiple accounts which can be denominated in the same or a different currency to that of their main account. If you have multiple accounts with us, you should consider the following:
- opposite positions of rolling spot forex in the same currency cross on the same account will effectively cancel each other out. However, opposite positions of rolling spot forex in the same currency cross across different accounts will not cancel each other and will be continuously rolled over until closed by you or us;
- if you operate multiple main accounts (as opposed to one main with one or more sub-accounts), you should note that any funds deposited on one main account will not be considered as margin collateral for another main account, unless we agreed otherwise in writing. Therefore, the margin requirements are applied severally on each main account. Consequently, a default resulting in a compulsory close-out of open margined positions in one main account could occur even though another main account has funds available for margin trading;
- Interest on your main account is calculated on the Net Free Equity and interest on your sub-accounts is calculated on the Account Value.
Before you open a Margin Trade you are required to have sufficient funds or collateral in your account that is at least equal to the initial margin requirement as indicated on the relevant product trading rates and conditions page or displayed on the trading platform. The margin is usually a small percentage of the overall value of the contract.
Although the margin required is small in comparison to the overall value of the contract, price movement may result in the requirement to place additional funds at a short notice to maintain the position(s). You will need to satisfy the margin requirements and failure to do so may result in a compulsory close-out of the open margined position(s).
It is not just vital but also your responsibility to effectively manage and monitor your account at all times to ensure that it does not breach 100% margin utilisation. If your account breaches 100% margin utilisation, then automatic margin close-out may commence, and consequently positions may be closed and existing orders may be cancelled.
We do not charge any inactivity fees.
Custody fees for stocks, ETFs/ETCs, and bonds
For accounts with stock, ETF/ETC, or bond positions, an annual custody fee* applies, as shown below. The custody fee will be calculated daily using the end of day values and charged on a monthly basis.
| Custody fee p.a. | Classic account | Platinum account | VIP account |
|---|---|---|---|
| Stocks and ETFs/ETCs/Bonds | 0.12 % | 0.12 % | 0.08 % |
| Funds | 0.4 % | 0.2 % | 0.1 % |
Clients placing orders over the phone, chat or email will be subject to a manual order fee of EUR 50 (or account currency equivalent) per order. Certain products which cannot be traded on the platform (such as market-made instruments on the LSE, offline bonds, and specific algorithmic orders) and must be executed with the help of the trading desk can still be done free of charge.
For transfers of Stocks to an account outside of Saxo and exit fee will be charge. This fee will be EUR 50 per line of stock with max. EUR 160 fee or the currency account equivalent.
When you trade an instrument in a currency that differs from your base denomination, conversions—including trading profits/losses—are executed using the FX spot mid-price, based on the time you close your position plus/minus 0.25 percent. We charge no more than plus/minus 0.25 percent in currency conversion fees.
The currency conversion fee does not apply to margin collateral. Only settlement of actual payments to or from the trading account are included—for example, buying/selling cash stocks or paying/receiving options premiums.
The rate used for currency conversion of amounts booked to your account is shown in the trading platforms under the Trades Executed report.
Positions held overnight in Listed Futures, CFD Futures, and short Listed Options will be subject to a carrying cost.
The carrying cost is calculated based on the daily margin requirement and applied when a position is held overnight. It is charged at the end of each month.
For Futures the funding rate used for calculating the carrying cost is based on the relevant Interbank-rate + markup at: 2.5% (classic accounts), 1.5% (platinum accounts), or 0% (VIP accounts).
For short Listed Options the funding rate used for calculating the carrying cost is based on the relevant Interbank-rate + markup at 1.5%.
Carrying Cost = Margin requirement * Days held * (Saxo Offer Financing Rate + Markup) / (365 or 360 days)
You are able to access extensive account reporting tools from the trading platforms, including Account and Financial Statements, Portfolio Reports, and Trades Executed.
For Classic clients there is a fee of USD 50 (or account currency equivalent) when requesting online reports to be delivered by standard mail or email.
This fee will also apply for third-party requests for reports from, for example, auditors.
Small trade sizes will incur a minimum ticket fee of 10 USD (or account currency equivalent). A small trade size is any trade below the commission threshold which for most currency pairs is 50,000 units of base currency, however variations occur. Full details on minimum commission thresholds can be found here.
The FX Spot market is used for immediate currency trades. The term “Spot” refers to the standard settlement convention of two business days after the trade date (known as T+2) 1. For example, a EUR-USD trade executed on a Monday will settle on a Wednesday (if there is not a public holiday in either currency on Tuesday or Wednesday, in which case the trade will be settled on the next available business day). The settlement period refers to the amount of time that is allotted to both parties to satisfy the trade’s obligations. At Saxo, FX Spot trades do not settle. Instead, open positions held at the end of a trading day (17.00 Eastern Standard Time) are rolled forward to the next available business day2.
The rollover is made up of two components; the Tom/Next swap points (Forward Price) and the Financing of unrealised profit/loss (Financing Interest).
1. Tom/Next swap points (Forward Price)
Bid/ask interest rates for each currency are derived from swap points quoted by Tier-1 banks. Client specific mark-ups are added to the derived interest rates, which are then used to calculate swap points for each currency pair. These swap points are used to adjust the opening price of positions4 being rolled next business day2.
| CLASSIC | PLATINUM | VIP | |
| Tom/Next Swap Points (Forward Price) | |||
| Mark-up/down rates3 | +/-0.75% | +/-0.45% | +/-0.45% |
2. Financing of unrealised profit/loss (Financing Interest)
Any unrealised profit/loss on positions that are rolled from one day to the next are subject to an interest credit or debit. The unrealised profit/loss is calculated as the difference between the opening price of a position (possibly corrected for previous Tom/Next rollovers) and the Spot price at the time that the rollover is performed.
The rate is calculated based on the daily market overnight interest rates plus/minus a mark-up corresponding to +/- 2.00%. The final rate is used to adjust the opening price of the position4.
Example: Buy 100,000 EURUSD Spot on Monday, Sell 100,000 EURUSD Spot on Tuesday.
| Day | Value Date | Position | Description |
|---|---|---|---|
| Mon | Today (“T”) | +100,000 | » Trade to buy 100,000 EURUSD T+2 at 12.00 GMT
|
| Tue | T+1 | -100,000 | » Trade to sell 100,000 EURUSD T+2 at 03.30 GMT » Opening (buy) position rolled from T+2 to T+3 at 10.00 GMT5 » Unrealised profit/loss available in Positions module from 10.00 GMT 6 » End-of-day files available from 10.00 GMT |
| Wed | T+2 | » Realised profit/loss available in Positions module from 00.00 GMT » Forex Rollover report available from 04.00 GMT |
When you trade CFDs with Saxo, you finance the traded value through an overnight credit/debit charge. If you open and close a CFD position within the same trading day, you will not be subject to overnight financing.
When you hold a CFD position overnight your CFD position will consequently be subject to the following credit or debit:
- Holding Long CFD position after 17:00 EST incurs a financing charge, which is calculated as follows:
- Price x No. of CFDs x (Saxo Offer financing rate + markup) x (Day count convention*)
- Holding Short CFD position after 17:00 EST creates a financing credit, which is calculated as follows:
- Price x No. of CFDs x (Saxo Bid financing rate - markdown) x (Day count convention*)
*See Benchmark Rates
| Overnight financing markup/down rates | Classic | Platinum | VIP |
| Index CFDs and Single Stock CFD's | |||
| Long/Short positions | +/-3.00% | +/-3.00% | +/-2.00% |
A proxy voting service fee will be charged to clients who subscribe to Saxo’s meeting services, which enables voting in the event of corporate actions. In addition, a fee will be charged for every vote (including changes to a vote).
| Description | Cost |
|---|---|
| Service subscription | EUR 30 p.a. plus VAT |
| Vote/Changing a vote | EUR 5 per vote plus VAT |
The Service subscription fee will be charged on a quarterly basis at the end of the quarter. Clients opting in and out within the same quarter will be charged the full amount. Note that the service subscription fee will first be charged at the end of Q4 2020; no service subscription fee will be charged for Q3 2020.
The per vote fee will be incurred from September 3rd, and initially debited from your account as a single collected amount at the end of Q4 2020. From 2021 the per vote fee will be charged in real-time at the time of voting.
When applicable, both fees will be converted to the relevant local currency and subject to a currency conversion charge.
Where a client fails to withdraw all assets and/or cash on an account after their termination date (specified by Saxo), an administration fee of GBP 40 (or account currency equivalent) may be charged per month for the continued servicing of the account.
This will be charged for as long as assets/cash continue to be held on the account.
If the account’s cash balance is reduced to zero but positions remain open, under the General Business Terms, we may close open positions at the prevailing market rate to cover the fee.
We will notify clients if this fee is charged to their account.
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