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Saxo Bank margin rates

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Adam N.
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1w ago
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Are margin rates low at Saxo Bank as of February 2024?

You cannot trade real stocks/ETFs on margin at Saxo Bank. CFDs are available if you want to trade using leverage. Financing rates for CFDs at Saxo Bank are low. .

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:

  • You can trade stocks/ETFs with leverage in the form of CFDs at Saxo Bank.
  • The financing rate for CFDs refers to the cost of holding a leveraged position overnight.
  • Financing rates are one of the key cost items when trading CFDs.
  • The longer you keep a position open, the higher your trading cost will be.
  • Each broker sets their own financing rate.

At BrokerChooser, we regularly collect and update financing rate data along with other data sets for more than 100 brokers globally. Check out the financing rates at Saxo Bank in the following table and see how they compare to the rates applied by two of its closest competitors.

CFD financing rates at Saxo Bank
CFD financing rate class
Average Average Low
Apple CFD financing rate
8.9%
-
6.8%
Vodafone CFD financing rate
8.7%
-
6.7%
S&P 500 CFD financing rate
8.9%
7.9%
6.8%
Euro Stoxx 50 CFD financing rate
7.4%
6.4%
5.5%

Data updated on February 16, 2024

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What is the financing rate in CFD trading?

Also referred to as a swap fee or overnight rate, the financing rate is the cost you have to pay for holding a leverage position overnight. Trading on leverage means you use funds borrowed from your broker to increase your buying power. You will have to pay interest on these borrowed funds and this is called the financing rate. Apart from specific trades when you will receive interest, the financing rate is one of your most important cost items in CFD trading.

As financing rates will greatly determine the cost of a trade, investors are advised to check how much their broker charges. Each broker will use their own financing rate.

Financing rates are usually closely linked to benchmark interest rates. In other words, if interest rates are high, financing rates will also be higher. Financing rates can also vary depending on the type of security being traded.

Your costs stemming from financing rates add up over time: the longer you hold your position, the larger your financing cost will be.

FAQ

What is the margin rate at Saxo Bank?

The level of margin rates used by Saxo Bank 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 Bank.

How are margin rates calculated at Saxo Bank?

Saxo Bank 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 Bank.

How often does Saxo Bank change margin rates?

Saxo Bank can change the margin rate at its own discretion but there is no fixed or standardized frequency for these changes. Saxo Bank 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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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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