Saxo Bank's FX volume saw a 23% drop in January, while stocks and commodities businesses outperformed, reflecting market resilience.
In recent forex broker news, it's reported that the FX trading volume of Saxo Bank forex broker has indicated a marked reduction in data for January. This Danish broker's customers traded about $4.9 billion in average daily volume (ADV), 23% down from the previous month and a decrease of up to 6% compared to year-on-year figures.
FX volume in monthly terms amounted to $106 billion, fell by 21% against December 2023, and became lower by 9% compared with January of the past year. Nevertheless, this low-fee broker prevailed, with stocks and commodities businesses showing an average daily volume (ADV) worth $10 billion and $1.8 billion in January 2024.
Overall, the aggregate daily volume across all asset classes dropped to $17.1 billion per day from a high of $176 billion the prior month.
In this latest development, this multi-asset broker has joined the FairXchange ecosystem to improve its data-driven communications with LPs as a commitment towards technological advances for improved trading.
The Danish FSA has classified Saxo Bank forex broker as a SIFI (Systemically Important Financial Institution), meaning it contributes mainly to the financial system. It is heavily regulated and protected to ensure stability.
While the FX volume has significantly reduced over this period, there is an indication that this no-commission broker continues to grow its customer base, with total active accounts reportedly surpassing 1 million for the first time in its history.
Furthermore, considerable growth could be observed in client assets as they amounted to DKK 721 billion, mainly due to favorable net funding from cash and securities that reached for this transaction.