Are margin rates low at Saxo?
Margin trading - borrowing money from your broker to buy more assets than you could otherwise afford - is popular, but it's not available at all brokers, and margin interest rates can vary widely.
Sadly, you can't trade real stocks or ETFs on margin at Saxo. If you insist on leverage, you can trade CFDs at Saxo, at average financing rates; or instead, just check the best margin trading platforms.
I've thoroughly tested Saxo's services to see whether margin trading is possible. Here's what you need to know:
- At Saxo, you can trade stocks/ETFs with leverage in the form of CFDs only.
- Saxo CFD fees are average, including average financing rates.
- Margin trading involves borrowing money from your broker to increase your exposure.
- Looking for real margin trading? Check our list of the best margin trading platforms.
Before we begin, let's see if Saxo is available in your country:
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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62% of retail CFD accounts lose money
62% of retail CFD accounts lose money
Leveraged trading available for CFDs only
At Saxo, you can't trade real stocks or ETFs on margin. Your only chance for leveraged trading at Saxo is to trade CFDs (contracts for difference).
Unlike in the case of regular stock trading, you don't actually hold any asset when trading CFDs; you merely bet on the price movements of an underlying asset (which can be a stock, ETF, commodity, bond, etc).
Are you new to all this? Check out our introduction to the main concepts of CFD trading.
CFD financing rates
Also referred to as a swap fee or overnight rate, the financing rate is the cost you have to pay for holding a leveraged position overnight. The financing rate is one of your most important cost items in CFD trading. Your costs stemming from financing rates add up over time: the longer you hold your position, the larger your financing cost will be.
Financing rates are set at the broker's discretion but are usually closely linked to benchmark interest rates. In other words, if interest rates in general are high, financing rates will also be higher. Financing rates can also vary depending on the type of security being traded.
Average CFD trading fees, average financing rates
At BrokerChooser, we regularly collect and update financing rate data along with other data sets for more than 100 brokers globally. Check out financing rates and overall CFD trading costs at Saxo in the following tables and see how they compare to rates applied by some close competitors.
| Broker | CFD financing rate class | Apple CFD financing rate |
|---|---|---|
| Saxo | Average | 8.1% |
| Swissquote | Average | - |
| Interactive Brokers | Low | 6.1% |
| Broker | CFD fee class | S&P 500 index CFD fee |
|---|---|---|
| Saxo | Average | $3.3 |
| Swissquote | Average | $2.8 |
| Interactive Brokers | Average | $4.6 |
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62% of retail CFD accounts lose money
FAQ
What is the margin rate at Saxo?
The level of margin rates used by Saxo depends on a number of factors. The rate will vary depending on the currency in which you borrow the funds as well as the amount of money that yu borrow from Saxo.
How are margin rates calculated at Saxo?
Saxo calculates margin rates by using a reference benchmark rate for each currency and adding a markup. The reference rate is usually in line with the interest rate of the currency in question. The size of the markup depends on the type of account you have and the amount of funds you borrow from Saxo.
How often does Saxo change margin rates?
Saxo can change the margin rate at its own discretion but there is no fixed or standardized frequency for these changes. Saxo may adjust margin rates based on various factors such as market conditions, regulatory changes, risk management strategies, and business decisions. It is possible that the margin rate will change on your outstanding loan if you keep a position open for a longer period of time.
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62% of retail CFD accounts lose money
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Further reading
- Diversifying your investments
- Saxo stock conditions explained
- Stock trading at Saxo: an expert guide and rating
- Saxo penny stocks trading conditions explained
- Saxo bond availability
- ETF trading conditions at Saxo explained
- Saxo fractional shares trading conditions explained
- Saxo cash interest rate
- Saxo ESG investing
- Saxo invest $100,000
- Saxo Bank IPO accessibility
- Saxo Mexican stocks trading availability
- Saxo US stock trading details
- Saxo Australian stocks trading availability
- Saxo Canadian stocks trading availability
- Saxo Japanese stocks trading availability
- Saxo French stocks trading availability
- Saxo Italian stocks trading availability
- Saxo Swiss stocks trading availability
- Saxo Hong Kong stocks trading availability
- Saxo Dutch stocks trading availability
- Saxo Spanish stocks trading availability
- Saxo Singapore stocks trading availability
- Saxo Swedish stocks trading availability
- Saxo Norwegian stocks trading availability
- Saxo forex spreads explained
- Saxo EUR/USD spread explained
- Saxo GBP/USD spread explained
- Forex trading at Saxo: Discover the key features and highlights
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.
