Conditions for Bond Trading

Commissions

Bonds are traded with the following commission on buy and sell (of total value):

​Commission​Minimum
​0.08%​EUR 80*

*or equivalent in base currency

Target Spreads

For most bonds, in particular corporate bonds, bid and offer prices are not publicly available, as the majority of trading takes place outside regulated marketplaces. Bonds are traded OTC with Saxo Capital Markets as counterpart, and OTC trading conditions apply. Please see Saxo Capital Markets' execution policy for further information.

Bond typeExpected Rating​Commission​Target spread​Example bid/ask​
Corporate Bonds (Investment Grade and short maturity) and Developed Markets Government Bonds​​Higher than BBB​8 bps.​20-80 bps.​98.00/98.80​
Corporate Bonds (High Yield) and Emerging Markets Government BondsLower than BBB8 bps.​80-200 bps.102.50 / 104.50
​ 

The target spreads as indicated above are minimum spreads and based on normal market conditions for the mentioned bond categories. Actual and realised spreads depend on individual market and liquidity conditions, and may differ from the above, even within same bond category and for the same issuer. The client is always quoted both the bid and ask price, thus the actual spread for every trade is known. Clients can accept the quote and request for trade. All quotes on request are indicative and subject to market and liquidity conditions.

Minimum Trade Size

The minimum trading size for each bond trade accepted by Saxo Capital Markets is nominal EUR 50,000 or the equivalent in other currencies.

Using bonds as collateral for margin trading

Saxo Capital Markets allows bonds to be used as collateral for margin trading (with Forex, CFDs, Futures or Contract Options). The collateral value available for margin trading depends on the rating of the bond, as outlined below:

​Definition ​Margin Collateral
​Highest Rating ​95%
​Very High Quality ​90%
​High Quality ​80%

Lower rated bonds will not be accepted as collateral for margin trading. If you are unsure about the collateral value for a specific bond position, please send an email to PrivateClientTradingUK@saxomarkets.com​​ or contact your account executive.

Coupon Payments

Coupon payments from bond positions will be credited to the client’s account less withholding taxes (if any applicable).

Custody Fees

See our Custody fees for bonds here​.


The value of your investments can go down as well as up.
Losses can exceed deposits on margin products. Please ensure you understand the risks.

 
Saxo Capital Markets UK Limited is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.

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