Saxo cancels custody fees
Updated: Mar 14
Saxo Bank has recently completely waived all custody fees. We show how advantageous this is for you as an investor.
📖 Overview
Welcome offer 🚀 CHF 200 trading credit With 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
|
Saxo cancels custody fees
Saxo Bank has no longer charged any custody fees since the beginning of February 2025. Previously, the custody fee was 0.22% of the custody account volume, up to a maximum of CHF 10 per month. Following the significant reduction in trading fees at the beginning of 2024 and the introduction of a free ETF savings plan, the abolition of custody account fees is another welcome reduction in fees. Saxo has set itself the goal of being as cost-efficient and accessible as possible for everyone.
What are custody fees?
Custody fees are costs charged by banks and brokers for the safekeeping of securities in your custody account. They are charged either as a fixed amount or as a percentage of the securities account value. The amount of the custody fees varies greatly depending on the provider.
Not all providers without custody fees offer an attractive overall package. In such cases, the trading fees are often above average. You should therefore always check them carefully to avoid unexpected costs. Saxo is different: not only the custody fees, but also the trading fees in the Swiss market are particularly competitive. You can find all the details in the detailed Saxo Review.
Advantages of free custody account management
A free custody account means that more capital is available for investments. This significantly increases returns, especially for long-term investments. After all, those who hold their securities for the long term benefit in particular from a fee-free custody account, as no ongoing fees are incurred during the holding period apart from the trading costs for buying and selling.
Sample calculation
To illustrate that even supposedly low custody fees have a negative impact on returns, consider the following example:
Zürcher Kantonalbank charges custody fees of 0.3% of the custody account assets. We now assume that someone already has a custody account totalling CHF 100,000 and invests a further CHF 500 every month for the next 30 years. After 30 years and an assumed return of 7%, the value of the custody account will be around CHF 1.2 million.
With custody fees (0.3 % p.a., e.g. ZKB): CHF 47,000 Costs
With Saxo (no custody fees): CHF 47,000 more in the custody account
With a custody fee of 0.3% per annum, the Zürcher Kantonalbank client would have paid around CHF 47,000 in custody fees. After 30 years, the Saxo client would therefore have CHF 47,000 more in his custody account. This example shows impressively how much small fees can add up over the years.
How can Saxo offer such favourable fees?
When you think of an online broker with favourable fees, you might think of FlowBank, which went bankrupt in 2024. It turned out that a favourable price alone was not enough - FlowBank was only able to attract just over 20,000 customers before it went bankrupt. As FlowBank had already violated the orders of the Swiss Financial Market Supervisory Authority (FINMA) long before it went bankrupt, the bankruptcy was ultimately opened in order to protect clients' assets.
The situation is different at Saxo: Saxo Bank Switzerland is a company within the Saxo Group, which serves around 1.2 million clients worldwide and has over 100 billion in assets under custody. This size means that Saxo Bank Switzerland benefits from efficient structures that many local banks and brokers do not have. For example, the costs for the banking infrastructure or the trading platform can be spread across the entire client base. It is these economies of scale that make a sustainably attractive fee structure possible.
Is Saxo Bank safe?
A distinction must be made between the cash balance in your account and the investments.
Saxo Bank (Switzerland) AG 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. In the event of Saxo Bank's bankruptcy, the bankruptcy trustee would transfer the securities to another custody account.
Conclusion: Low custody fees are important
Custody account fees are an important criterion when choosing a broker, as they reduce the return. Providers without custody account fees are therefore an attractive alternative, especially for long-term investors.
Apart from the attractive cost structure, Saxo Bank scores with a strong trading platform, a wide range of securities and a transparent cost structure, making it an excellent choice for traders and investors. Anyone who values professional trading opportunities and cost efficiency should take a closer look at Saxo Bank.
Thanks to the free ETF savings plan and the otherwise very attractive fees, Saxo has more than doubled its customer base within a year. Find out everything you need to know in our full Saxo Bank review.
Welcome offer 🚀 CHF 200 trading credit With the voucher link you will receive a trading credit (credit of trading fees) in the amount of CHF 200. Learn more |
