Sax Bank’s FX Volumes Rise but Slumps Annually

Global politics boosted risk appetites in FX as Danish multi-asset brokerage Saxo Bank’s trading rose to $141.2 billion last October.

The broker’s clients traded a total of $6.1 billion daily, roughly $500 thousand more than in September.

The monthly FX volume was $141 billion, up 19% the month prior. Despite the positive news, it was a significant drop from September 2018’s $188.6 million figure.

October 2019 showed slightly better activity in the average daily volume at $10.8 billion per day.

The figure was 2% higher than September 2019’s $10.6 billion but was also 21% lower than the $13.8 billion last year.

The Danish Supreme court decided to favor the bank in the lawsuit from the SNB’s Black Swan last month.

Investors left a capital hole in Saxo when the Swiss National Bank removed the Swiss franc’s euro peg. The broker lost $107 million because of this in January 2015.

Saxo Bank claims to aim for democratized investment and trading and facilitating clients’ access to global capital markets through technology.

The platform is available in 20 languages and claims to form the “technology backbone” of 100 or so financial institutions worldwide.

BinckBank and Saxo Acquisition 

The Danish investment bank acquired Dutch online broker, BinckBank, in August 2019. As of November 8, Saxo owns nearly 98% of the outstanding share capital, boosting overall revenue.

The forex bank acquired BinckBank for €6.35 per share with a €424 million value, subject to an 80% minimum acceptance condition.

Saxo claimed its acquisition was to “continue its investment in the digital client experience.”

As an online broker, BinckBank provided an intuitive platform and services by a much larger Group with enhanced resources and capabilities.

Both banks share technology infrastructure and claim to offer an “optimal” SaxoExperience.

CEO and founder of Saxo Bank, Kim Fournals, said the acquisition was a win-win decision for both parties.

Their team-up gives them the capability to become the leading global provider of multi-asset trading and investment solutions.

BinckBank offers investment, asset management, and savings services. Its typical market includes retail customers, business and legal entities, and independent asset managers.

The online broker prides itself on having a stable platform that offers access to important financial markets and analysis tools.

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