The latest volume data from Saxo Bank shows a decline in its trading volume. The Denmark-based multi-asset brokerage started 2023 with low volume and recorded a decline from December 2022.
Saxo Ban has reported its monthly metrics that show the monthly volumes from 2021 to the present. As per these stats, the January 2023 volume at the Retail FX and CFDs broker stood at $375.6 billion. This was an 18% drop from the previous month of December when the volume remained $415.7 billion.
The monthly client reading volume at Saxo Bank averaged $405 billion throughout 2022. The latest data also makes January 2023 the broker’s slowest month since August 2022. This sharp decline can be associated with a 21% decline in equities volume which came out to be $220 billion. The FX trading volume also dropped by 17% and remained $115 billion during this period.
In other Saxo Bank news, the minimum order size of stock indices CFD was lowered by the broker in Japan. This was done to provide better flexibility and convenience to small traders. After this change, the Japanese users would now be able to open trades of as low as 0.01 lot per order.
The move is expected to attract more clients to the platform and increase the trading volume. This is also likely to trigger competition in the industry to gain more users. It was also reported earlier that Saxo Bank was considering an IPO in Denmark. This was after the bank’s plans of SPAC merger couldn’t come to fruition last year.
The recent decline in the trading volume are not encouraging for the firms IPO plans as it would only lead to a lower valuation during the listing process. China’s Geely Group and Finland’s Sampo group are already trying to get rid of their stakes.
CIO of the Saxo Bank is betting on the commodities. according to Steen Jacobsen, he doesn’t expect rate cuts by the US Federal reserve in 2023. The Chief Investment Officer also told Yicai Global that he was bullish on commodities in the mid and long terms.
This post was last modified on Feb 10, 2023, 08:22 GMT 08:22