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Saxo Bank EUR/USD spread

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Adam N.
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1d ago
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Is the EUR/USD spread low at Saxo Bank as of April 2024?

Not exactly. The EUR/USD spread is average at Saxo Bank.

The EUR/USD spread is 0.8 at Saxo Bank while the average spread is 0.6 for the same currency pair at 60 brokers reviewed by BrokerChooser.

My key findings in a nutshell
Adam
Adam Nasli
Financial Wizard | Forex • Algo Trading • Market Analysis

I've thoroughly tested Saxo Bank services with our analyst team by opening a real-money account and these are my most important findings:

  • Spreads are crucial when calculating trading costs and profitability
  • Even if the spread is low/narrow or average, other fees may be high at a broker
  • Some brokers offer narrow spreads but charge a commission on top
  • Financing rate levels are also important if you keep certain positions open for several days

See the table below for forex spreads used by Saxo Bank for major currency pairs.

Forex spreads for major FX pairs
Currency pair Spread at Saxo Bank Low / Average / High
EURUSD 0.8 Average
GBPUSD 1.2 Average
AUDUSD 0.8 Low
EURCHF 1.2 Low
EURGBP 1.0 Low

Data updated on April 15, 2024

Saxo has one of the best currency pair selections among all brokers. Clients can also trade Forex Swaps (FX Swaps).

BrokerChooser score
4.9 4.9 /5
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Deposit features and brokerage service highlights

As a forex trader, you need a reliable broker with superb services at affordable costs. See the most important features of Saxo Bank's services in the table below.

Key features of Saxo Bank services
💰 Deposit fee $0
💰 Withdrawal fee $0
💳 Deposit methods Bank transfer, Credit/debit cards
💸 Account base currency AED, AUD, CAD, CHF, CNH, CZK, DKK, EUR, GBP, HKD, HUF, ILS, JPY, LTL, MXN, MYR, NOK, NZD, PLN, RON, RUB, SEK, SGD, USD, TRY, ZAR
💸 Minimum deposit $0
🗺️ Country of regulation Denmark, UK, France, Italy, Switzerland, Singapore, Japan, Hong Kong, Australia
🎮 Demo account provided Yes
📋 Read more Check out the Saxo Bank review for 2024

Data updated on April 15, 2024

Why are spreads important in forex?

The spread (also called bid-ask spread or buy-sell spread) is a crucial notion in forex trading. The spread marks the difference between the best (highest) purchase and the best (lowest) sell price on the market. Spreads are important when calculating the trading fees of a forex position.

When you open a forex position through your broker, you will have to pay a transaction cost (trading fee) and this is where spreads come into the picture.

Forex brokers make money in one of the following two ways:

  1. They pass on the market spread to their clients and add their own commissions/markups
  2. They provide their own spread, which includes their fees.

Some brokers work with their own spreads and incorporate their fees into them. On the other hand, they usually don't apply commissions. In this model, the spread tends to be higher/wider.

Others use market spreads without incorporating their fees into the spreads or by adding a small markup. In return, they apply commissions. This method typically involves lower/narrower spreads.

Many brokers advertise themselves as 0 spread brokers, however, this can be misleading. While there are indeed service providers out there whose minimum spread is 0 or close to 0, for the vast majority of the trades they charge higher spreads.

The best way to ensure you trade forex at low costs is to check average spreads, because those reflect the true costs charged by the broker.

Is there a commission at Saxo Bank on forex trades?

Generally speaking, the lower/narrower the spread, the better for forex traders. But as explained above, you also need to consider whether your broker charges a commission. Brokers that charge a commission typically work with lower spreads but the final cost may still be higher. Do the math before making a decision.

Does Saxo Bank charge a commission?

No, there is no FX commission at Saxo Bank. All FX fees are built into the spread.

Why do financing rates matter?

If you trade forex, you need to be familiar with the concept of financing rates. A financing rate (or overnight rate) is a brokerage fee charged when you hold a leveraged position for more than a day.

A leveraged position means you borrow money from the broker to trade. Your broker will charge you an interest on this borrowed money. This interest is called the financing rate.

Forex traders that trade on a very short time horizon (i.e. scalping or intraday trading) pay close attention to spreads but do not need to worry about financing rates. If, with certain forex positions that are open for several days, the financing rate will become a more important cost factor than the spread.

In general, financing rates at Saxo Bank are Low.

The Fiber: the most traded currency pair in the world

Nicknamed “the Fiber,” the EUR/USD currency pair is generally considered the most traded currency pair in the world as it involves the currencies of two of the world’s largest and most reputable economies.

Due to its popularity, the EUR/USD is characterized by very low spreads, high liquidity and the ability to place large volumes of trade. The pair is a favorite among traders that engage in forex scalping.

Looking for the lowest EUR/USD spread FX brokers?

If you are looking for brokers with the lowest EUR/USD spread and FX fees, check our top list of the lowest EUR/USD spread brokers.

For more details on Saxo Bank, read our comprehensive Saxo Bank review for 2024.

Check out this short video for a behind-the-scenes peek into how our experts personally test and evaluate brokers.

Further reading

Author of this article

Adam Nasli

Financial Wizard | Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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