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Screenshot of a breaking news alert e-mail from Q2 2017
Copenhagen based multi asset broker Saxo Bank has announced the launch of a new entry level account, called Saxo Essential, with industry leading pricing and prudent risk limits on margin trading of OTC products.
The introduction of Saxo Essential coincides with recent regulatory initiatives aimed at reducing the amount of leverage available to retail clients trading CFDs, as first raised by the FCA and subsequently (and currently considered) by ESMA. Saxo Bank has been supportive of those initiatives, and stated that it feels its business is prepared for change and as such, will be well-placed to compete in the UK and EU markets as these changes take effect in the coming months.
The new account type formally launched yesterday (January 15) in the UK by Saxo Capital Markets UK Limited, and will be followed by a planned roll-outs in Australia and Singapore. In the selected markets trading accounts for individuals will consist of Essential, Classic, Platinum and VIP allowing Saxo to cater for all size and types of client.
The Essential account will offer access to four asset classes; FX, index CFDs, stocks and bonds. Clients will be able to access Saxo’s full range of stocks and bonds, but only the most popular FX pairs and index CFDs at ultra-competitive pricing.
The Saxo Essential account has a minimum funding level of €1,000. Essential also provides clients with the benefit of trading within a limited risk environment where they cannot lose more than the cash on account – known as negative balance protection.
Essential is underpinned by SaxoTraderGO, Saxo’s next generation platform built with OpenAPI technology offering functionality across the entire trade cycle – from pre-trade to execution to post-trade services.
Commenting on the launch, Andrew Edwards, recently appointed CEO of Saxo Capital Markets UK said:
Saxo continuously strives to be the best partner for clients, with a steadfast commitment to providing market-leading choice on product, platform and now account type. We are confident in our ability to compete on cost, and do not believe it’s in our clients’ interest to compete on excessive leverage or risk. The launch of our new Essential account is the next step in that journey, offering a price competitive alternative for entry level traders.
This introduction of Essential aligns us further with our clients’ interests and goes hand in hand with our continued efforts to provide greater transparency to trading, by offering prudent leverage and limited risk accounts. In line with this trend, losses on the Essential account on OTC leverage products will not be able to exceed cash deposits and we’ve imposed margin restrictions around certain exposures.