FX Volume-based Price Plan​ - FAQ

Why has Saxo introduced FX Volume pricing with volume based commission charges?

We believe each Saxo client deserves the freedom to choose the pricing structure that they feel is best for their needs. Importantly, we are not forcing our clients to pay commission. We are simply giving clients an additional choice to select whether they prefer to trade on tighter, variable spreads with a post-trade commission (ECN style) OR to trade on all-inclusive spreads, which are typically a bit wider, but generally more consistent (not fixed, but more frequently the same level).​

What are my trading costs with FX Volume commission based pricing?

Each client chooses the pricing model that best suits their expected monthly volumes. The client ​will be charged the respective USD per USD million traded commission fee​ that is calculated and transparent on each trade. The fee can be seen in the Trade Ticket Confirmation and also in the Open Positions monitor.

The commission fee is based on the USD equivalent notional amount of each trade, shown in the trade confirmation in the 2nd currency, then converted to the final account currency equivalent at the end of day.

 


For accounts denominated in another currency other than USD Saxo Capital Markets will use the closing rate of the last business day of the month for purposes of determining if the minimum commission is applicable to your account.

What are my choices of incremental and minimum commission level?

Commission charges per USD million traded vary from USD20 to USD60 per million traded and correspond with prospective total trade volume per month. Commission rates and corresponding monthly FX volume are detailed below. 

Forex commission price plans
FX Active 60FX Active 30FX Active 20
Commission
($ per $ million)
603020
Minimum commission
(monthly)
ZeroUSD 600USD 2,000
​​​​Corresponding FX Spot
volume (monthly) 1)
USD 0-20mlnUSD 20-100mln​above USD 100mln

1) Cumulative USD equivalent volume across all currency pairs on a monthly basis

The FX60 (USD60 per million traded) price plan is applied to all Standard accounts by default. To change to FX30 (USD30 per million traded) or FX20 (USD20 per million traded) price plans clients should contact us on +44 20 7151 2100 or email PrivateSalesUK@saxomarkets.com.​

If you want to apply for our 'All-inclusive' Price Plan Account which allows to process on fixed spreads (in normal market conditions) without additional commission, please go to www.uk.saxomarkets.com/forex.​

Where price plans have a minimum cumulative monthly commission requirement it is important to note that if the minimum cumulative monthly commission requirement for that plan is not reached a client will be charged the shortfall.

For example, a client who selects the FX30 (USD30 per million traded) price plan needs to meet minimum cumulative commission charges of USD600 per month which equates to USD20 million trade volume.  If in one month the client trades USD8million, this would result in cumulative monthly commissions of USD240.  USD240 is less than the monthly minimum of USD600 (in order to qualify for the USD30 level), the client will be debited the difference of USD360 (USD600 minus USD240).

How are my commission costs calculated?

​The commission rate is consistent across ALL currency pairs, including XAU. This is what it means to have the commission expressed as USD per USD million traded (which can also be thought of as EUR per EUR million traded, etc.). This commission is charged in your account currency.

Commission example: Assume spot rate of 1.10 for EURUSD. A client trades 100,000 EURJPY in his USD account on which he has selected to pay 30 per million. EUR million traded = EUR 100,000 / 1, 000,000 = 0.1.  EUR commission = EUR 0.1 * 30 = EUR 3.00. USD commission = EUR 3.00 * 1.10 = USD 3.30​. The standard conversion fee is applied when commissions are converted into the account currency.

If my account is denominated in a currency other that USD how do you determine whether the minimum requirements are met?​

We use the end of day rate on the last trading day of the month to calculate your equivalent USD commissions. ​​

Why wouldn’t everyone choose the lowest commission rate of USD20 per USD million instead of USD60?​​

The lowest commission rates are not necessarily appropriate for all clients. The commission-based pricing structure allows you to pay lower per-unit commission rates, but there are also minimum monthly commission amounts payable. A client that trades USD8 million per month would likely want to choose to pay USD60 per USD million, as that would result in a monthly aggregate commission of USD480. Conversely, if that client had chosen to pay USD30 per million, then the cumulative commission on that USD8 million trade volume would be USD240. However, since that USD240 would be less than the monthly minimum of USD600 (in order to qualify for the USD30 level), the client account would, at the start of the next month, be debited the difference of USD360 (USD600 minus USD240).​​​​​

Is the minimum monthly commission charged in addition to the commission charged on each trade?​​

No. The minimum is just that – a minimum. There are no additional commission charges above the cumulative per-trade commission charges in cases where the cumulative per-trade commission charges are greater than or equal to the minimum monthly commission amount for the respective chosen commission level.​​

What is the minimum monthly commission for clients that open their account mid-month?

Minimum commissions for clients opening an account mid-month will be calculated on a pro-rata basis. This will determine whether or not the minimum commitment has been met through the course of normal trade activity or if there is a shortfall to be charged at month-end. ​​

What happens if I want to change pricing terms mid-month?

You can request to change the commission rate (and the associated minimum monthly commission fee commitment) at any time. The minimum commissions will be calculated on a pro-rata basis for the period. This will determine whether or not the minimum commitment has been met through the course of norma​​l​ trade activity or if there is a shortfall to be charged at the end of the month.


What are my spreads if I choose commission-based pricing?

Choosing “FX Volume based commission pricing” the spreads are as low as 0.2 in EURUSD.  The distinguishing feature of the commission based pricing is only the commission; USD60, USD30, USD20.  The spreads are the same no matter which commission level you choose. With the “All-inclusive spreads”, spreads, are typically a bit wider, but generally more consistent (not fixed, but more frequently the same level).  You can see our historic spreads for both price types here​

Are the spreads different depending on if I choose to trade on all-inclusive spreads or FX Volume style pricing with volume based commissions?

​Yes. Saxo encourages all clients to compare both live and historic FX spreads, as well as to review the minimum monthly commission fees to be sure everyone selects the pricing terms that best suits their individual needs.​​

Is FX Volume style pricing the same as Agency Execution (also known as No Dealing Desk (NDD) model or Direct Market Access (DMA) liquidity)?​

No. Saxo´s FX Volume style pricing choice simply offers clients an alternative way to view their trading costs. Saxo´s liquidity and order handling is the same for the FX Volume based commission price structure as it is and always has been for the all-inclusive spreads price structure.​​

Wouldn’t everyone choose to trade on narrower spreads and pay commission instead of trading on the wider all-inclusive spreads?

Not necessarily. We know many clients value the consistency an all-inclusive spread offers (e.g. where EURUSD could be at a spread of 2 pips 99% of the time). However, we also understand that the more active trading clients who trade larger volume may prefer to see spreads constantly changing with every tick, giving them the opportunity to choose their entry/exit points more precisely.​

Can existing clients change their pricing terms to enjoy FX Volume style commission based pricing?​​

Yes. Every client has this choice. If ever you would like to change pricing terms for your account, simply contact your Saxo Account Executive or send an email to our Client Services team. They will be happy to facilitate the change for you.​​

I signed up for USD30 per USD million and already traded more than USD100 million. It’s only the 13th of the month, how do I get the benefit of the commission rate reduction from USD30 to USD20?

The commission level will not change automatically based on your volume traded. To request a change in commission rate (and corresponding minimum monthly commitment level), please contact your Saxo Account Executive or send an email to our Client Services team. They will be happy to facilitate the change for you.​​

Can I pay a higher per trade commission with a lower monthly minimum if I become less active?

This can be done at any time, but it is not done automatically. The monthly minimum commission chosen by each client will apply until they request a change. To request a change in commission rate (and corresponding minimum monthly commitment level), please contact your Saxo Account Executive or send an email to our Client Services team. They will be happy to facilitate the change for you.​​

Which currency pairs are available with commission-based pricing?

As with the all-inclusive spreads pricing terms​, all currency pairs are available and all follow the same cost structure, including spot metals. The commission rate is not more expensive when you trade something other than the most popular currency pairs.​​

Are there differences in Tom/Next rollover or other costs if I trade on commission-based versus all-inclusive spreads?​​

No. All other standard costs are the same, no matter if a client chooses to trade on all-inclusive spreads OR the tighter FX Volume style spreads available with additional volume based commissions. Please refer to prices​ for more information.​

Are the margin requirements and available leverage the same no matter which pricing terms I choose?

Yes. Saxo standard margin requirements apply. Introduction of FX Volume based commission pricing is solely a way to offer lower per-trade trading costs to clients that trade higher volumes; all other terms of client accounts remain consistent.​​

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