A contract for difference (CFD) is a famous form of derivative in finance. Derivatives are time-limited contracts that get their value from the asset’s market performance. They allow you to speculate on different financial markets, including indices, stocks, commodities, cryptocurrencies, and forex pairs. You never buy the assets, but trade on the fall or rise in their price, generally over a short span.
So, for traders that can afford the USD 10,000 minimum deposit (GBP 500 for the UK), Saxo Bank provides competitive pricing, interactive trading platforms, great research, trustworthy customer service, and 40,000 plus trading instruments.
Launched in 1992, this institution runs multiple regulated banks and is licensed in six tier-1 jurisdictions, making it a secure broker (low-risk) for trading CFDs and forex.
We have a detailed guide for you on Saxo CFD without any further lingering, including its margin requirements, leverage, trading platforms, and more.
Part 1: An Introduction to Saxo Bank CFD trading
With Saxo bank CFD, you can go long or short on 9,500+ instruments with low commissions and tight spreads. All in all, Saxo Bank is an exclusive broker, needing a minimum deposit of USD 10,000 (GBP 500 for the UK, SGD 3,000 for Singapore, and USD 3,000 for Australia) to open an entry-level “Classic” account.
Saxo CFD comprises the following key features:
1 – Ultra-Competitive Pricing
You can trade US stock CFDs from USD 3 and US Wall St 30 from 1.4 points.
2 – Access to 9,500+ CFDs
You can execute CFD Trading on single stocks, indices, forex, commodities, options, and bonds.
3 – Award-Winning Platform
There are several benefits from integrated Trade Signals, news feeds, and innovative risk-management features.
4 – Expert Service, Trusted for 25 Years
With 660,000 satisfied customers, Saxo Markets offers world-class service around the clock.
Saxo Bank’s Selection of Assets
1 – Single stocks and ETFs
CFDs on 8,800+ single stocks and 675 ETFs traded on the world’s biggest exchanges
2 – Indices
Tight spreads on 29 index-tracking CFDs, including US Wall St 30, US Tech NAS 100, Germany 40, and more
3 – Forex
CFDs on FX pairs, including EURUSD, EURGBP, GBPUSD and AUDUSD.
4 – Bonds
CFDs on five government bonds, including the German 10-year bund and French 10-year OAT
5 – Commodities
Thirty-five commodity CFDs cover energy, agriculture, metals, softs, and emissions.
6 – Index Options
Fifteen index option CFDs, including the SPX, DJX, and Hong Kong index
Part 2: What are Saxo CFD margin requirements?
Now, let’s understand Saxo CFD margin requirements in detail as follows. Also, get to know the types of margins offered by the Saxo bank CFD.
1 – Initial and Maintenance Margin
The margin requirement applicable for Saxo CFD trading to opening and maintaining a margin position includes two elements:
- Initial margin: the amount of margin needed to open a new position.
- Maintenance margin: the amount of margin necessary to maintain an open position.
List of Saxo CFD Margin Requirement
|Symbol||Sector||Initial/Margin||Min Trade Size|
2 – Tiered Margin Methodology (Saxo CFD Margin Methodology)
Margin requirements vary by instrument and depend on the exposure offered over the provided instrument. Margin requirements may be according to regulatory mandated minimums and changes as per the underlying volatility and liquidity of the instrument. Due to this factor only, the most liquid instruments in most cases need a lower margin requirement.
CFD trading Saxo provides a tiered margin methodology to handle economic and political events that may conclude with the market changing rapidly and becoming volatile.
The average margin requirement (‘Blended Margin Requirement’) grows with the tiered margin with the exposure level. The opposite is also true, as the exposure level also decreases the margin requirement. This concept is as illustrated below:
The various stages of exposure (or tiers) described are an absolute number of US Dollars (USD) among multiple instruments. Each instrument has a specific margin requirement at each level.
You must also note that margin requirements may get replaced without prior notice. Saxo bank CFD reserves the right to multiply margin requirements for bulk position sizes, including client portfolios considered to be of high risk.
3 – Single Stock and ETF CFDs
The maintenance and initial margin of an ETF CFD or a single stock depend upon the stock rating. Saxo defines six different stock ratings. This rating is derived from the liquidity, market capitalization, and volatility of the underlying asset.
|Saxo Rating||Initial Margin||Maintenance Margin|
* Initial Margin of 20% and Maintenance Margin of 10% can apply to some Single Stocks and ETF.
4 – Index CFDs
Index CFDs Margins (Normal Market Conditions)
|Index Trader||Initial Margin||Maintenance Margin|
|US 30 Wall Street||5%||2.50%|
|US Tech 100 NAS||5%||2.50%|
|EU Stocks 50||5%||2.50%|
|Germany Mid-Cap 50||5%||3.50%|
|Germany Tech 30||5%||2.50%|
|South Africa 40||20%||10%|
|UK Mid 250||5%||10%|
Index CFDs Contract Details (expiring)
|Index Tracker||Initial Margin||Maintenance Margin|
5 – Forex CFDs
|Instrument Name||Symbol||Initial Margin||Maintenance Margin|
|British Pound/US Dollar||GBPUSDBP||20%||10%|
|Australian Dollar/US Dollar||AUDUSDAD||20%||10%|
6 – Commodity CFDs
|Instrument Name||Symbol||Initial Margin||Maintenance Margin|
|US Natural Gas||NATGAS||20%||10%|
|NY Sugar No. 11||SUGARNY||20%||10%|
7 – Bond CFDs
|Initial Margin||Maintenance Margin||Product/Instrument|
|20%||10%||German Government 5 year Bobl
German Government 2 year Schatz
|20%||10%||German Government 10 year Bund|
|20%||10%||French Government 10 Year OAT|
|20%||10%||Italian Government 10 Year BTP|
Part 3: All about Saxo CFD trading 2021 [Official Source]
Forex is genera traded on margins, with each brokerage firm specifying its leverage. Generally, Saxo Bank CFD leverage terms are derived on a tiered margin methodology, as already discussed above.
This protects a management mechanism against all economic and political scenarios as the market is volatile and can lead to immediate changes. Saxo Bank has a max leverage of 1:30, in sync with other authorized and regulated brokers in the European Union.
After understanding all the critical information you need to know about the Saxo bank CFD, it’s time to shift your focus towards learning CFDs trading done on SaxoTrader GO.
After launching the SaxoTrader GO and logging in, you first need to consider its watchlist, placed or present on the left side panel of the platform.
You can select one of the predefined lists from the watchlist, including CFD Indices, which allows you to trade a wide range of major world indices. Then, there are CFD Commodities on the watchlist. So, you can quickly track essential commodities such as Energies, Oil and Gas, gold and precious, agricultural items, etc.
They also offer a wide range of stock CFDs from 30 major stock exchanges.
Now, let’s begin to create a new watchlist with the SaxoTrader GO CFD trading platform!
Step 1: Click on the drop-down list below the Watchlist button on the left panel and hit the New List tab.
Now, click on Add Instrument tab and type in the name of the instrument you’re looking for trading in CFDs.
For instance, type in the GERMANY 30 to trade the entire indices of 30 German companies. Click the instrument icon in the drop down list that comes and confirm with Done button.
Step 2: Now, click on the red and blue CFD eye icon and click Trade.
The Trade Ticket window opens, and you can quickly move it around your screen. With the Trade Ticket, you can place the change and size of the order by setting the order type, etc. Here, you can also add a Take Profit and Stop Loss order.
Enter the number of you would like to trade in the Quantity field. To trade on market prices, you need to change the order size to Quick Trade. At the bottom of the Trade Ticket, you can find relevant information about your trade’s margin and nominal value.
After you’ve executed the order, a notification will appear on the right-side panel of the screen. After checking the notification, click the Ok tab to close it.
Step 3: You can view the new position in the Position section on the bottom of your screen. You can close your open positions or place related limits and stop loss orders directly from here.
Click on the Add button and choose your stop and limit prices to place a related limit order or stop order. You have two options to place or execute your orders.
You can either specify the percentage or the price level. Click on the respective column. Once you’ve completed the setup, click on the Place Order button so that the window containing all relevant order information will appear. Then, hit Confirm to place the order.
Finally, a notification window will appear on the right-hand side of the screen confirming that your order has been placed. Again, click on Ok to close the notification window.
Step 4: Click on the Orders tab in the bottom section of your screen to view orders. This section allows you to edit or cancel the placed related orders.
You can immediately close an open position by clicking on the Position section and the Price in the Close button. Hit the plus sign next to the instrument name if you’re holding multiple positions, and then click on the Close Price button in the respective row.
Step 5: You can view the Charts by clicking the Charts button next to the Overview window. The icons on the chart will show you open positions and related orders for this particular instrument.
You can hide or show these icons by clicking the Settings tab on the top-right side of your screen. Then, a window will appear within which you can tick the boxes of Show Orders and Show Positions.
Now, you’re all done with SaxoTrader GO CFD trading.
Part 4: A Detailed Comparison Chart of Top 5 CFD Trading Platforms
This section will deal with the basic similarities or differences between Saxo Bank CFD and four other major trading platforms.
|Broker||Saxo Bank||IG||CMC Markets||Plus 500||OANDA|
|Online Trading Platform, Mobile Trading Platform, MT4, ProRealTime, APIs||Next Generation, MT4, Mobile Trading Apps||Web Trading Platform||MT4, MT5, Mobile Apps|
|Products||Leveraged Products – Crypto FX, Forex, CFDs, Futures, Commodities, Forex Options, Listed Options; Investment Products – Stocks, Bonds, ETFs, Crypto ETPs, Mutual Funds, Managed Portfolios, Regular Savings Plan||Forex, Shares, Commodities, Spot Trading, Futures Trading, Cryptocurrencies, Weekend Trading, Volatility Trading, Knock-Outs Trading||Ways to Trade – CFDs, Spread Bettings; Products to Trade – Forex, Indices, Cryptocurrencies, Commodities, Shares, Share Baskets, Treasuries||Crypto, Indices, Forex, Commodities, Shares, Options, ETFs||Forex, Indices, Metals, Commodities, Bitcoin, Account, Instruments|
|Major Regulatory Bodies||It complies with strict regulatory requirements in 15 jurisdictions, including Denmark, the UK, Singapore and Australia. Regulations – Danish Financial Services Agency (FSA) and the UK Financial Conduct Authority (FCA)||IG International is licensed to operate with digital asset business and investment business by the Bermuda Monetary Authority; IG Securities Ltd is regulated and authorized by the Japanese Financial Services Agency (the ‘JFSA’) for Securities and Currencies, the Ministry of Economy, Trade, and Industry (‘METI’) for Hard Commodities, and the Ministry of Agriculture, Forestry and Fisheries (‘MAFF’) for Soft Commodities.||Financial Conduct Authority in the UK (FCA)||Cyprus Securities and Exchange Commission (CySEC)||OANDA (Canada) Corporation ULC – Investment Industry Regulatory Organization of Canada (IIROC); OANDA Europe Limited – Financial Conduct Authority; OANDA Asia Pacific Pte Ltd – Monetary Authority of Singapore; OANDA Australia Pty Ltd– Australian Securities and Investments Commission ASIC; OANDA Europe Markets Limited – Malta Financial Services Authority; OANDA Global Markets Ltd – BVI Financial Services Commission|
|Maximum Leverage||1:30||50:1 (US Clients); 20:1 (Shares); 200:1 (Forex & Indices); 50:1 (Commodities)||1:500 (Professional Clients); 1: 30 (Retails Clients)||1:300 (Forex CFDs); 1:20 (Shares CFDs)||50:1 (Varies accordingly)|
|Margin Requirements||Initial Margin begins from 5.0%||Begins from 10%||15% (Canadian Shares); 30% (US Shares), and begins from 3.0% on various products||Begins from 20%||Begins from 0.50%|
|Demo Account||Free 20-Day Demo Account||Yes||30-Days Free Demo Account||Yes||Yes|
|Fees||No withdrawal fee, deposit fee, and account fee except the Inactivity fee||Debit Card – Free for Visa and MasterCard; Credit Card – 1% charge for Visa and 0.5% charge for MasterCard; HKD FPS – Free||No withdrawal fee, deposit fee, and account fee except the Inactivity fee||No withdrawal fee, deposit fee, and account fee except the Inactivity fee||No withdrawal fee, deposit fee, and account fee except the Inactivity fee|
Part 6: Some FAQs
1 – Does Saxo have leverage?
Yes, Saxo Bank provides maximum leverage of 1:30.
2 – Is Saxo bank a good broker?
Yes, Saxo bank is a regulated broker by different regulatory bodies within 15 jurisdictions.
3 – What is the best CFD trading platform?
We can judge any best CFD trading platform on certain factors, which is a bit of a subjective aspect. However, to decide on the best CFD trading platform, the first and foremost thing you should always look for is security. And, you can look upon regulatory bodies of particular CFD trading platforms you want to trade with.
Trading Saxo CFDs, cryptocurrencies, and FX include a high-risk degree. All providers have retail investor percentage accounts that lose money, especially while trading CFDs. So, always consider all this risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work.
Hopefully, our review on Saxo bank CFD trading has proved to be relevant and truthful. If you believe any information listed above is indecent, don’t hesitate to contact us in the comments section below.