There are over 60 000 trading instruments available for investors to trade. Resulting in more chances of finding what works best for the trader and their preferred strategy. It’s not a secret that every market has its own characteristics. Many traders that fail in FX trading become consistently profitable in trading ETFs or stocks. Giving the opportunity to choose the right market is a great advantage Saxo Bank provides to its clients.
It should be noted that providing a huge number of assets to choose from might be damaging for novice traders, as they might get distracted and go from market to market making losses and not learning anything. Markets might be different but trading psychology is the same. Every trader needs to manage their emotions when using and developing a trading system. If you don’t have a profitable trading system and you’re blaming the markets for your bad results, changing to a different market is not going to fix your problems.
Forex trading on Saxo Bank
Forex trading is very popular among traders. With Saxo Bank platforms, you can access more than 190 currency pairs.
Saxo Bank’s initial Forex margin rates start at 3.33% for major FX pairs including EUR/JPY, USD/CAD, EUR/USD, and USD/JPY. A margin rate is an interest rate applied when an investor is trading using a margin. Margin rates are different for each broker.
Spreads start from 0.6 pips. Spreads are the difference between buying and selling price of an asset and pip measures the smallest whole unit price move on the markets.
In addition, Saxo Bank’s trading platforms SaxoTraderGo and SaxoTraderPro provide 50+ technical indicators and built-in tools for trading signals, making trading more informative and simple.
Saxo Bank offers up to 50:1 leverage, which protects investors from taking very high risks in highly volatile markets. Low leverage protects traders from taking huge losses, but it also prevents you from getting high rewards in a short period of time. 50:1 leverage simply means that with every dollar, you have the power to control 50 dollars using “borrowed” money.
Stock trading on Saxo Bank
Stock trading is very popular among traders as stocks provide opportunities for both short-term speculators and long-term investors. As you may know, stocks and currencies move very differently. Potentially Stock prices can go up without a ceiling and can go down as low as 0. Currencies, on the other hand, are backed by people and countries and their prices are measured relative to each other. Therefore, currencies usually move in a range.
Stock trading is attractive for day traders, swing traders, and mutual and pension funds as well. It’s important to note that these markets are not risk-free and you should be well-prepared before considering investing.
Saxo Bank offers access to more than 22 000 stocks across core and emerging markets. The list of markets includes Hong Kong, New York, London, and 50 more.
Commissions start from $1 on US stocks. The fees decrease as account types go from Classic to VIP.
Cryptocurrency trading on Saxo Bank
Cryptocurrencies have become very popular recently. Many people believe that they are the future of money and are eager to catch the opportunity of getting involved with them. For others, cryptocurrencies are just a financial bubble waiting to burst. Either way, you can still make money on the bearish and bullish markets.
With Saxo Bank, you can trade more than 9 cryptocurrencies. Saxo Bank offers crypto FX pairs for both short-term speculators and long-term investors. You can trade Bitcoin, Ethereum, and other well-known coins against major currencies. This gives you an advantage, as you don’t need to exchange between currencies when cashing out.
Furthermore, while trading crypto CFDs you don’t have to worry about crypto wallets and keeping your coins away from hackers.
One more thing to consider is liquidity. Trading actual coins might be more expensive than trading crypto CFDs as many more orders are placed in the CFD market. When liquidity is decreased in the markets, the distance between bid and ask prices increases.
Indices trading on Saxo Bank
Indices follow the performance of certain companies traded in the stock market. For instance: the US30 or Dow Jones Industrial Average Index is a price-weighted index of 30 top US companies.
With a Saxo Bank trading account, you can trade Index CFDs such as US30, US500, UK100, US TECH 100, GER 40, AUS 200, and HK50. Trading CFDs gives you an opportunity to profit from price movements without actually owning the assets you trade.
It’s important to note that the indices show the health of the economy as they follow the performance of main companies. Even if you are planning to only trade currencies, the falling price of UK100 might indicate the weakness of the British economy and change your opinions on the future value of GBP
Commodities trading on Saxo Bank
Commodities are raw materials that can be mined or grown.
Saxo Bank offers:
- Spot Metals(Gold against 12 currencies)
- Commodity CFDs(20 commodity CFDs)
- Exchange-traded commodities (trade Individual commodities, sub-sector, or an entire commodity sector).
- Stocks (oil firms and mining companies)
Leverage goes up to 5:1, and the trading fees vary between Classic and VIP account types. In general, trading fees are reasonable, considering the high level of security Saxo Bank is providing to its clients.