Saxo Bank Review 2024: Everything you need to know
Updated: Oct 2
We have tested Saxo Bank and show you in this review how you can trade shares and other financial products easily and inexpensively in Switzerland.
📖 Overview
Welcome offer 🚀 CHF 200 Trading CreditWith the voucher link you will receive a trading credit (credit of trading fees) in the amount of CHF 200. Learn more |
☝️Saxo at a glance
The advantages at a glance: Saxo Bank is a broker that offers comprehensive trading and investment functions. In addition, Saxo Bank does not require a minimum deposit and offers extremely attractive fees.
The disadvantages at a glance: It is currently not possible to be entered in the share register. In addition, the tax statement costs CHF 108.10.
Saxo Bank Review: Trading with the favourable online broker
Finding a broker for your share portfolio can be tedious. The choice is limited and experience shows that the fees are usually high. Saxo Bank has recently introduced a radical reduction in fees. Saxo Bank is an online broker that allows you to trade the entire range of financial products such as shares, ETFs, funds, derivatives, options, futures and cryptocurrencies via app or computer. In this review, we report on our experiences with Saxo Bank.
Who owns Saxo Bank?
Saxo Bank was founded over 30 years ago by the then 26-year-old Kim Fournais with the equivalent of CHF 70,000 in start-up capital and one employee. Today, Fournais is still CEO and owns around 28% of the shares in the bank. Saxo Bank now has more than one million clients and manages more than CHF 90 billion for them. Around 260,000 trades are executed on the platform every day. Saxo Bank employs around 40 people in Switzerland and holds a banking licence. Saxo Bank (Schweiz) AG is headquartered in Zurich.
What can Saxo Bank do?
With Saxo Bank, you can easily and conveniently buy or sell the financial products you want at low fees from the comfort of your own home. You can execute your transactions using either the desktop version or the app. The desktop trading interface offers many useful functions.
Saxo Bank meets the needs of the beginner trader (SaxoInvestor), the advanced investor (SaxoTraderGO) as well as the needs of the professional trader (SaxoTraderPRO). The trading platform is considered to be particularly powerful and was particularly popular with experienced traders and frequent traders before the fee reduction, as the fees are reduced with high trading volumes. Since the fee reduction and the abolition of inactivity fees, Saxo Bank is now also very interesting for infrequent traders and so-called buy and hold investors.
Saxo Bank Account Opening
Saxo Bank recognises the three different account levels "Classic", "Platinum" and "VIP". There is no minimum deposit required for the standard "Classic" account. There is therefore no entry barrier. If you have no trading experience, you can also deposit just a few francs to try out the trading platform. Alternatively, you can also open a demo account first to test Saxo Bank with CHF 100,000 play money. At the "Platinum" and "VIP" levels, the already attractive fees are up to 30% lower. A minimum deposit of CHF 250,000 is required for "Platinum" and one million for "VIP".
To open an account, you must enter your details online and have your identity verified. After Saxo Bank has opened your account (takes around 2-3 working days), you will be asked to make an initial deposit. You can deposit any amount. If you have opened the account via our link, you will receive the trading credit of CHF 200 after a further 1-2 working days.
Saxo Bank trading platform
Saxo Bank (Schweiz) AG offers three different trading platforms: SaxoInvestor, SaxoTraderGO and SaxoTraderPRO:
SaxoInvestor offers all basic functions and is very clearly organised
SaxoTraderGO offers comprehensive trading and investment functions with an intuitive user interface
SaxoTraderPRO offers detailed market analysis functions and is aimed at experienced traders. For this review, we only tested SaxoTraderGO
You don't have to choose a trading platform in advance. You can log in to your preferred trading platform with your access data. We recommend that you start with SaxoInvestor. If the functions on offer are not enough for you, you can always switch to SaxoTraderGO or even SaxoTraderPRO.
Saxo plans to continue investing in the trading platform, for example in the area of artificial intelligence. The aim is, for example, to be able to give clients personalised advice. It is conceivable, for example, that customers could be made aware of cluster risks, recommended a similar ETF with lower fees or made aware of an attractive entry opportunity.
Saxo Bank Securities Lending
If you allow Saxo Bank to lend your securities to other market participants, you can generate additional income and also benefit from the elimination of custody fees. When Saxo lends your securities to other market participants for a certain period of time, they pay a lending fee. This income is split equally between you and Saxo. Saxo deposits a collateral of at least 102% of the value of your loaned securities and exempts you from any custody fees. This applies regardless of whether your securities are actually lent. As soon as you have activated securities lending, the custody fees are completely waived. You can sell your lent out securities at any time and also deactivate securities lending again if you wish. You can see at any time whether and which of your securities are currently on loan.
Is Saxo Bank safe?
A distinction must be made between the cash balance in your account and the investments. Saxo Bank (Switzerland) Ltd has its own banking licence and is regulated by the Swiss Financial Market Supervisory Authority (FINMA). Your liquid assets are therefore subject to Swiss deposit protection and are protected up to an amount of CHF 100,000 in the event of bankruptcy. Your securities are also kept safe at all times, as securities are not included in the bank's balance sheet and therefore do not become part of the bankruptcy estate if the bank goes bankrupt. Your securities belong to you at all times.
Saxo Bank Fees
Fees are an important criterion when choosing your broker. Saxo Bank offers relatively favourable fees for Switzerland. The fees have been harmonised with other European countries and are now the same for all markets. For the "Classic" account level, you pay a custody account fee of 0.22%, which is based on your invested capital. There is no minimum fee; the fee is capped at CHF 10 per month or CHF 120 per year. The average custody account fee therefore falls below 0.1% for a custody account value of over CHF 120,000. No custody account fees are charged on uninvested assets or bonds. If you allow Saxo Bank to lend your securities to other market participants, you also benefit from the elimination of custody account fees.
Fees are also charged for the purchase and sale of financial products. These vary depending on the product and transaction amount. You can find a detailed overview here.
For trading in US equities, the fees start at 0.08% or at least USD 1. On the Swiss stock exchange SIX, the fees are also 0.08%, but at least CHF 3. When trading domestic securities, stamp duty of 0.075% is also charged. For foreign securities, the stamp duty is 0.15%. This tax is payable by all brokers in Switzerland and must be paid by them to the Swiss Federal Tax Administration.
US stock exchanges (NASDAQ, New York Stock Exchange) | 0.08% (min. 1 USD) |
Swiss Stock Exchange SIX | 0.08% (min. 3 CHF) |
German Stock Exchange (XETRA) | 0.08% (min. 3 EUR) |
UK stock exchange (London Stock Exchange) | 0.08% (min. 3 GBP) |
French Stock Exchange (Euronext Paris) | 0.08% (min. 2 EUR) |
If you wish to purchase financial products traded in a foreign currency, Swiss francs will be converted into the corresponding currency. This incurs currency conversion fees of around 0.25%. With other brokers, these currency conversion fees are often significantly higher.
To summarise, this fee model makes Saxo one of the most cost-effective trading platforms in Switzerland for foreign-listed ETFs and equities. The transaction costs for trading Swiss securities are also among the lowest in Switzerland. The fees charged by "traditional" banks are significantly higher in comparison, which has a direct impact on returns. Saxo's fee model pays off in particular for people who trade frequently. Thanks to the reduction in fees and the abolition of inactivity fees, the offer is now also interesting for infrequent traders and so-called buy and hold investors.
Interest at Saxo Bank
If you do not want to invest all your money in your trading account, you can earn attractive interest on the uninvested capital. The amount of interest varies depending on the currency and amount. You can easily calculate the interest rate using the interest calculator.
Saxo Rewards Loyalty Programme
You automatically collect bonus points when you make your first deposit and when you trade. You can use these points to upgrade from the normal "Classic" price level to the "Platinum" or "VIP" levels. Trading costs are reduced at these levels. However, level advancement is only possible with high investment and trading amounts. Details of the Saxo Rewards programme can be found directly on the homepage.
What we like less about Saxo Bank
It is currently not possible to be entered in the share register. This means that you are not able to attend a general meeting or receive any dividend in kind. Another disadvantage: the tax statement costs CHF 108.10. Although you can enter individual items in your tax return yourself, you will need the tax statement for numerous items and transactions.
Conclusion: Is Saxo Bank recommendable?
Saxo Bank offers a clear and easy-to-use trading platform. Compared to other brokers, the fees are extremely attractive and transparent - Saxo is one of the most favourable brokers in Switzerland for foreign shares and ETFs as well as for Swiss securities. Saxo Bank also has a banking licence in Switzerland, so although Saxo Bank is based in Denmark, it is not a foreign broker. Saxo Bank offers a wide range of financial products at fair prices and with Swiss security standards.
If you open your Saxo Bank account via this promo link, you will also receive a trading credit of CHF 200, which you can use to make your first purchases.
Welcome offer 🚀 CHF 200 Trading CreditWith the voucher link you will receive a trading credit (credit of trading fees) in the amount of CHF 200. Learn more |
Frequently asked questions about Saxo Bank
What does Saxo Bank offer?
Saxo Bank is a broker that offers comprehensive trading and investment functions. The two trading platforms SaxoTraderGO and SaxoTraderPRO are considered to be particularly powerful.
What are the advantages of Saxo Bank?
What are the disadvantages of Saxo Bank?
Sources:
Saxo Bank Experience • Saxo Bank Review • Saxo Bank Review • Saxo Bank Test
