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Saxo Bank GBP/USD spread

Your expert
Adam N.
Fact checked by
Updated
1d ago
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Data-driven Data-driven
Independent Independent

Is the GBP/USD spread low at Saxo Bank as of April 2024?

Not really. The GBP/USD spread is average at Saxo Bank.

The GBP/USD spread is 1.2 at Saxo Bank while the average spread is 1.0 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 on certain positions that are open for several days

Brokerage service highlights at Saxo Bank

💰 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
BrokerChooser score
4.9 4.9 /5
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The spread is a cornerstone of forex trading

The spread is the difference between the best (highest) purchase and the best (lowest) sell price on the market. Also referred to as bid-ask spread or buy-sell spread), spreads are super important when calculating the costs of a forex transaction.

If you have a brokerage account at a forex broker and you open a position, you will need to pay a transaction cost (trading fee). Brokers also need to make money, right? Spreads are one way for brokers to make a pretty buck.

There are two distinct ways in which they do it:

  1. They offer the market spread to their clients but add their own commissions/markups. This method typically involves lower/narrower spreads.
  2. They offer their own spread, which includes their fees and they usually don't apply commissions. In this model, the spread tends to be higher/wider.

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

Spreads for major FX pairs at Saxo Bank
Currency pair Spread 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

There are so-called 0 spread brokers, which claim to work with the lowest possible minimum spread: zero. Sounds great, right?

Except it’s often misleading because they actually charge higher spreads for the vast majority of the trades. The best way to ensure you trade forex at low costs is to check average spreads as 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.

Make sure you check financing rates at your broker

The financing rate or overnight rate is a fee you will have to pay when you hold a leveraged position for more than a day. When you open a leveraged position, you are trading with money borrowed from your broker.

This doesn’t come free, you will need to pay an interest on this borrowed money. This interest is called the financing rate.

If you trade on a very short time horizon (i.e. scalping or intraday trading), the spread will be your most important consideration and you won’t need to worry about financing rates. If, however, you keep your forex position open for several days, the financing rate will become a more important cost factor than the spread on certain trades.

In general, financing rates at Saxo Bank are Low.

The Cable: one of the most popular currency pairs in the world

The GBP/USD currency pair is often called “the Cable” in forex trading circles. It is one of the most traded currency pairs globally, which means high liquidity and relatively low spreads.

The best time for trading GBP/USD is when both the UK and US markets are open for trading. This is from 8:00 AM to 10:00 AM GMT and from 12:00 pm to 15:00 PM GMT.

Looking for the lowest GBP/USD spread FX brokers?

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