Saxo Bank August Forex Dips, Equities Surge

Saxo Bank, a prominent name in the retail trading arena, has unveiled its monthly performance metrics for August. The data reveals a slight decrease in monthly forex trading volume, sliding from $112.9 billion in the previous month to $112.3 billion. Furthermore, the daily average volume witnessed a decline, dropping from $5.4 billion to $4.9 billion, marking a 9.2 percent decrease.

This dip in trading activity was largely expected, attributed to the influence of the summer holiday season on trading demand. This trend is not unique to Saxo Bank, as it’s observable across various trading platforms, whether retail or institutional. Notably, FX trading reached its peak in March this year, boasting a monthly volume of $155.6 billion.

Looking at year-on-year performance, August demonstrated a strengthening demand. In August 2022, Saxo Bank managed forex trading worth $109.8 billion, indicating a marginal 2.2 percent increase compared to the latest figures.

Saxo Bank, headquartered in Denmark, holds a prominent global presence, particularly in the Asia-Pacific region. Alongside forex, its offerings extend to equities, commodities, and fixed income. The bank also delves into the realm of crypto CFDs in specific markets, although these statistics are not routinely disclosed.

Earlier this year, Denmark’s financial markets supervisor issued an order for Saxo Bank to divest its cryptocurrency holdings. Furthermore, Saxo earned the designation of a Systemically Important Financial Institution (SIFI) in Denmark, subjecting it to stringent capital requirements.

August witnessed a resurgence in equities demand, amassing a monthly volume of $295.8 billion, surpassing the $222.1 billion recorded in July. The daily average trading volume with equities instruments was $12.9 billion, up from July’s $10.6 billion.

Commodities trading also displayed improvement, escalating from $29.6 billion in July to $37.9 billion. Additionally, fixed-income instrument volumes increased from $7.3 billion in July to $7.8 billion.

The Substantial Rise

Despite the relatively muted performance in the forex sector, the volumes of other asset classes, especially equities, contributed significantly to Saxo’s overall monthly volume, which reached $453.7 billion. This reflects a substantial month-over-month increase of approximately 22 percent and a remarkable year-over-year surge of 40.5 percent.