In February, trading on Saxo Bank experienced an overall reduction of 4.2%, with a total volume amounting to $359.8 billion for the month – and even more significantly, signifying a 14% decrease compared to last year’s numbers!
Despite a shorter month, the daily average trading volume on the platform experienced significant growth; it increased to an impressive $18 billion from its previous level of $17.1 billion in just one month. However, even this remarkable amount needed more for the total monthly trading volume, which decreased due to fewer days.
Saxo Bank’s FX Volumes Took a Hit Due To the Shorter Month
In the foreign exchange trading market, monthly currency pair success totaled $110.8 billion- a noteworthy decline from the prior month’s $115.2 billion total. The daily average was then augmented by 3.8%, amounting to an impressive figure of $5.5 billion daily!
Year-over-year, the demand for forex instruments has remained relatively unchanged. In February 2022 alone, Saxo Bank achieved a phenomenal $112.7 billion worth of global currency trading volume with an exceptional average daily turnover rate of $5.6 billion!
Boasting its headquarters in Denmark, Saxo Bank provides trading services with equities, fixed-income instruments, and commodities. Notably, the demand for equities offerings is still strongest: $208 billion in total trading volume was reported – a 5.3% decrease from last month and 17% down from the same period as last year. Last November, set an all-time high record for equity volume at Saxo; however, subsequent figures have dropped off following the downward spiral of market trends overall.
Last month, $32.9 billion in commodities and $8 billion in fixed-income instruments were exchanged, representing a slight uptick from the previous month. It indicates that demand for these two asset classes is gradually growing higher.
A Profitability Plunge
Saxo Bank has recently revealed its annual report, emphasizing that it achieved a net profit of DKK 711 million in 2022 – a six percent decrease. The company stated that the drop was caused by “customers trading less due to macroeconomic instability,” which created an atmosphere of fear and doubt among potential traders. As such, profitability took a hit as fewer individuals were encouraged to partake in financial activities with Saxo Bank.
On top of that, the number of newly acquired customers on the platform dropped to 157,000 in 2022, a 40% decrease. Despite this setback, the broker maintained record-breaking customer numbers with 876,000 clients at year’s end. Furthermore, as part of its August 2019 acquisition of BinckBank, the Danish platform transfers its users for even more growth potential and success!
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