Saxo Bank announces December FX volume of $121 billion

While many currency markets saw a relatively quiet month in December, Saxo Bank, based in Copenhagen, has released its monthly metrics, which revealed a continuing month-over-month fall.

The most recent numbers showed a significant consolidation in important volume sectors, but they fell short of several previous highs reached last month.

The average daily FX volumes at the Danish multi-asset brokerage fell to $5.5 billion, a -12% month-over-month decline from $6.3 billion in November. However, when viewed over a yearlong period, this amount fell more drastically than its 2021 equivalent, falling by 20% from $6.9 billion in December 2021.

The total monthly FX volume reported by Saxo Bank for December 2022 was $121 billion, down 12.3% from $138 billion a month earlier. Additionally, this amount represents a 20 percent annual decline from $152 billion in 2021.

Saxo Bank’s commodities division disappointed as well, with revenue coming in at $1.4 billion in December 2022, 7% less than the $1.5 billion reported in November.

When Saxo Bank installed Baffle’s Data Protection Services in October to safeguard sensitive client data, maintain compliance with strict regulations, and support the bank’s transformation to a highly scalable cloud and microservices architecture, that is when we last reported on Saxo Bank. Baffle will be incorporated into the bank’s and trading platform’s customer-facing products as well.

Prior to this, its Japanese division made headlines for lowering the minimum order size for stock index CFDs to allow traders greater flexibility for tiny transactions.

Investors in Saxo Japan can now place orders for as little as 0.1 or 0.01 lot, depending on the traded instrument. The barrier to trading indices is reduced by this new trading structure, which also offers improved advantages for CFD traders.

The move removes obstacles that many investors have when attempting to invest in a broad portfolio of listed securities, with the goal of attracting more youthful consumers.

By distributing their relatively little investment capital among a wider variety of equities through fractional trading, investors can diversify their portfolios of stocks.

The first brokers to provide stock fractions for sale and purchase were US-based. The move sparked a new rush by international brokers to follow suit amid growing competitiveness in the sector to woo the next generation of investors as they looked beyond the no-fee trading war.

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