One Word: Transparency
Clear, straightforward and competitive pricing. No matter what kind of investor you are, with Hugo you always know you’ve got the best deal!
BONDS
> personal service always included
SHARES / FUNDS
> personal service always included
ETFs
> personal service always included
OPTIONS
> personal service always included
FUTURES
> personal service always included
CFDs
> personal service always included
PRICING
CFD FOREX
> personal service always included
PRICING
MANAGED PORTFOLIOS
> personal service always included
General Charges and fees
Interest on your main account is calculated on the Net Free Equity. Interest on sub-accounts is calculated on the Account Value.
Net Free Equity definition
Your Net Free Equity is:
- The value dated cash balance of your main trading account, plus or minus cash balances on your sub-accounts in the same currency
- Plus or minus any unrealised profits or losses from open CFDs, FX Forwards and Futures on your main trading account and sub-accounts in the same currency
- Plus the market value of any FX Options on your main trading account and sub-accounts in the same currency
- Minus any margin required for financing open positions on your main trading account and sub-accounts regardless of sub-account currency
Net Free Equity margin financing
The margin financing requirement may differ from the trading margin requirement. See the full list of cash collateral for margin financing used for Net Free Equity calculation under our General Business terms.
As the Net Free Equity is calculated based on open trade positions across all your accounts, please ensure you have sufficient cash available on your main account currency. If you do not, you risk being subject to a debit interest in your main account currency.
Account Value definition
Account Value of your sub-account is:
- The value dated cash balance of accounts in the same currency
- Plus or minus the value of any unrealised profits or losses from open CFDs, FX Forwards and Futures on accounts in the same currency
- Plus the market value of any FX Options on accounts in the same currency
Interest on accounts
The following interest rates apply to funds deposited with Saxo Bank
- For positive Net Free Equity/Account Value, the interest rate will be the highest of either: the Saxo Bid interest rates minus the markdown or zero. Interest will be paid on the full amount if the Net Free Equity/Account Value is above the threshold.
- For negative Net Free Equity/Account Value, the interest rate will be the Saxo Offer interest rate plus a markup, but never less than the markup. Interest will be charged on the full amount for all Account Values/Net Free Equity.
For deposits in currencies with negative interest rates:
Saxo Bank charges negative interest based on relevant central bank rates. This charge applies to balances above the thresholds stated in the table below. The interest rates applied by central banks are continuously monitored by Saxo Bank. If a rate is changed, Saxo will adjust its negative interest rates accordingly with effect from the start of the next month.
The thresholds, markdown and markup are*:
Positive Net Free Equity/Account value | |
Threshold EUR | 50,000 |
Threshold CHF | 50,000 |
Threshold DKK | 375,000 |
Markdown to central bank rate | -0.50% |
Positive Net Free Equity / Account Value | |
Net Free Equity / Account value above USD (or equivalent) | 250,000 |
Markdown to prevailing Saxo bid interest rate | –3% |
Negative Net Free Equity / Account Value | |
Markup to prevailing market rate however never less that the markup | 8% |
On your main trading account, this threshold will apply to the available Net Free Equity. For sub-accounts it will apply to the account value. Thresholds apply across accounts in the same currency. Negative interest will be calculated daily for the credit balances exceeding the threshold. This will be debited to the main trading account or sub-accounts at the end of each month, for the interest period of the previous month (value date is the last day of the previous month).
*Markdown and markup varies based on the country of client residence.
Interest Calculation and Settlement
Interest will be calculated daily and settled monthly – within seven business days of the end of each calendar month. Interest is calculated according to the day count conventions and market standard set out in the table under Benchmarks Rates.
In supporting your financial aspirations and trading objectives, we provide both funding and liquidity for your trading activities in margin products. Our financing rates apply when you hold an open position in a margin product overnight e.g., a Contract for Difference (CFD) on a single stock.
Your financing rates consist of two components: 1) Saxo Bid/Offer financing rates and 2) commercial product markup/down.
The financing rates are set as:
- Bid = Saxo Bid financing rate – commercial product markdown
- Offer = Saxo Offer financing rate + commercial product markup
Saxo Bid/Offer financing rates
Saxo Bid/Offer financing rates refers to our pricing on financing i.e., we are charging floating interest rates. We use Alternative Reference Rates (ARRs) as an input when setting Saxo Bid/Offer financing rates. For currencies without a designated ARR, a money market rate, monetary policy rate or other relevant financial benchmark will apply as an input.
Saxo Bid/Offer Financing Rates have a floor of zero percent, i.e. the interest rates can not be negative rates.
When you buy CFDs on single stocks e.g., in Hong Kong Dollars, we will convert our funding base into Hong Kong Dollars to finance the underlying purchase of the stocks. Conversely, if you are selling CFDs on a single stock e.g., in South African Rand, we will convert the proceeds from sale of the underlying stocks into our funding base currencies. These operations require active trading in various financial products in the interbank market to manage the liquidity cash flows generated by your trading activities.
ARRs have been developed by working groups consisting of national and international industry associations, market participants, as well as central and reserve banks. They are publicly available and are recognised by National Competent Authorities (NCAs), market participants, and national and international financial industry associations. For more information on the relevant financial benchmarks listed below, please consult the financial benchmark administrator, central or reserve bank.
The Saxo Bid/Offer financing rates are proprietary to Saxo Bank and subject to the provisions in our Document Center. One provision could be pass-through of cost related to external factors, such as changes in domestic and/or foreign monetary or credit policies that affect the general interest level or changes in cost structures with liquidity providers and brokers.
As a reference, see applicable Benchmark Rates in the section below.
Commercial product markups/downs
For more information on our general pricing, please consult the page Pricing Overview
Interest calculation and settlement
Interest will be calculated daily and settled monthly – within seven business days of the end of each calendar month.
The benchmarks used when setting interest rates on deposits and financing rates on margin products are listed in the table below. Saxo Bank reserves the right to apply a business lag to the publication of financial benchmarks when calculating and booking unrealised and realised interest.
Currency | Day count convention | Benchmark rates |
AED | ACT/360 | Central Bank of United Arab Emirates (CBUAE) repo rate |
AUD | ACT/365 | Australian Overnight Index Average (AONIA) |
CAD | ACT/365 | Canadian Overnight Repo Rate Average (CORRA) |
CHF | ACT/360 | Swiss Average Rate Overnight (SARON) *) |
CNH | ACT/360 | Chinese Offshore Yuan Hong Kong Interbank Offered Rate (CNH HIBOR) |
CZK | ACT/360 | Czech Overnight Index Average (CZEONIA) |
DKK | ACT/360 | Denmark Short-Term Rate (DESTR) |
EUR | ACT/360 | Euro Short-Term Rate (ESTR) **) |
GBP | ACT/365 | Sterling Overnight Index Average (SONIA) |
HKD | ACT/365 | Hong Kong Overnight Index Average (HONIA) |
HUF | ACT/360 | Hungarian Overnight Index Average (HUFONIA) |
ILS | ACT/360 | Bank of Israel (BoI) rate |
JPY | ACT/360 | Tokyo Overnight Average Rate (TONAR) |
MXN | ACT/360 | Overnight TIIE funding rate |
NOK | ACT/360 | Norwegian Overnight Weighted Average (NOWA) |
NZD | ACT/365 | Reserve Bank of New Zealand (RBNZ) Official Cash Rate (OCR) |
PLN | ACT/360 | Poland Overnight Index Average (POLONIA) |
RON | ACT/360 | National Bank of Romania deposit rate |
RUB | ACT/360 | Ruble Overnight Index Average (RUONIA) |
SAR | ACT/360 | Central Bank of Saudi Arabia (SAMA) reverse repo rate |
SEK | ACT/360 | Swedish Short-Term Rate (SWESTR) |
SGD | ACT/365 | Singapore Overnight Rate Average (SORA) |
THB | ACT/365 | Thai Overnight Rate (THOR) |
TRY | ACT/360 | Turkish Lira Reference Rate (TLREF) |
USD | ACT/360 | Secured Overnight Financing Rate (SOFR) |
ZAR | ACT/365 | South Africa Benchmark Overnight Rate (SABOR) |
* For positive Net Free Equity or Account Value in Swiss Franc the applicable benchmark is Swiss National Bank (SNB) policy rate.
** For positive Net Free Equity or Account Value in Euros the applicable benchmark is European Central Bank (ECB) deposit facility rate.
When you trade an instrument in a currency that differs from your base denomination, conversions – including trading profits/losses – are executed using the FX spot mid-price, based on the time you close your position, plus/minus 0.5 percent.
The Currency Conversion fee does not apply to margin collateral. Only settlement of actual payments to or from the trading account are included, for example, buying/selling cash Stocks, paying/receiving options premium etc.
The rate used for currency conversion of amounts booked to your account is shown in the trading platforms under the “Trades Executed” report.
Custody fees for stocks, ETFs/ETCs and bonds
For accounts with stock, ETFs/ETCs or bond positions a custody fee of no more than plus/minus 0.12 % p.a., The minimum custody fee will always be applied to a default account. The custody fee will be calculated daily using the end-of-day values and charged on a monthly basis. Regional differences may apply.
Minimum fee
Custody fee p.a. | Monthly minimum fee | |
Stocks and ETFs/ETCs | 0.12 % | EUR 5.00 |
Bonds | 0.12 % | EUR 5.00 |
* Note that custody fees vary based on country of residence. To check the custody fee for your account, please log in to the platform, open Trading Conditions of a stock, ETF or bond and view the custody fee under the Trading rates tab.
Value Added Tax (VAT)
Custody fee is a VAT liable service, so VAT will be applied on top of the custody fee:
Physical persons
- residing within the EU, Danish VAT 25 % will apply
- residing outside of the EU, no VAT will be applied by Saxo Bank A/S
Corporate/Institutional client
- having its place of business in Denmark, Danish VAT 25 % will apply
- having its place of business within the EU (except for Denmark), no VAT will be applied by Saxo Bank A/S if a valid EU VAT ID is provided.* A reverse charge invoice will be provided.
- having its place of business within the EU (except for Denmark), Danish VAT 25 % will be applied if a valid EU VAT ID is not provided.
- having its place of business outside the EU, no VAT will be applied by Saxo Bank A/S, but local VAT rules may apply
*Only a EU VAT ID that is verifiable through the EU commission’s website: http://ec.europa.eu/taxation_customs/vies/vatRequest.html?local=en will be registered as a valid EU VAT ID. If the EU VAT ID is not verifiable, please contact your local VAT authority.
Benefits of trading with Hugo
Award winning
By teaming up with Saxo Bank we are able to offer you their globally renown technology. Backed up by our client service. When you open a Saxo Bank account, and start using Saxo Bank systems, we will be there to take your orders, demonstrate the platforms and be your day to day contact for all your investing needs.
User friendly platforms
Being successful as an investor is about making the right choices. For 15 years now, Saxo platforms have won awards for being the most user-friendly independent investment systems on the market. They are designed so that you can switch between the device that suits you best – computer, tablet or mobile phone – at any given time.
First Class service
Our team consists of experts with years of investing knowledge. We make it a personal goal to ensure you receive the service that Hugo has built its reputation on. You can count on us whenever you need help – as often as you need!
Introducing broker commissions
The Client shall be especially aware of:
• The Introducing Broker receives commissions, fees, and other income (hereinafter together referred to as the Trading Commissions) based on the Client’s transactions with Saxo Bank. Therefore, a conflict of interest may exist if the Introducing Broker is authorized to act on behalf of the Client as the Trading Commissions are typically dependent on the number and size of executed transactions.
• The payment of Trading Commissions may entail that the Client pays more than Saxo Bank’s standard retail rates.
•The Trading Commissions can generally be determined as the difference between the following two sets of prices multiplied by the notional traded amount: a. the individual Target Spread/Rates that is shown on the Trading Platforms in the Trading Condition window under the “Account” menu b. the Standard Institutional Target Spread/Rates for Introducing Brokers as displayed under “Institutional” – “Rates & Conditions” on Saxo Bank’s website: www.home.saxo.
• As Trading Commissions are negotiated individually for each Introducing Broker, the Trading Commissions may be higher or lower than as set out above. In certain cases, Saxo Bank retains a share of the commission, which leads to lower commissions. In other cases, the commission may be calculated on the basis of lower spreads which will lead to higher Trading Commissions.
• For FX-trading specifically, only under exceptional circumstances will the institutional spread for an Introducing Broker be reduced by more than 30% of the Standard Institutional Target Spread.
• For Stocks and CFD-trading, only under exceptional circumstances will the commission deviate more than 0.1% of the transaction value compared to the Standard Institutional Commission. The above spreads and commissions, and deviations of spreads and commissions may change over time. If the Client wishes to be informed about the specific Trading Commissions paid to the Introducing Broker as a result of the Client’s transactions, the Client may at any time contact the Introducing Broker or Saxo Bank’s Service Centre by e-mail at support@accountservices.saxo.
Additional Local Fees and Charges
Exchange Fees
Where applicable, the fees charged by exchanges will be added to the published transaction costs. The price of exchange fees per transaction are shown in the trade ticket when booking a trade.
Taxation on UK Shares
For UK stocks a Panel for Takeovers and Mergers (PTM) Levy and Stamp Duty may be applicable. Stamp Duty is applied on all buy transactions at a rate of 0.5% of the transaction value. A PTM Levy of GBP 1 is applied to buy and sell transactions where the Gross Value of the trade exceeds £10,000. Please note that for Irish registered stocks, Stamp Duty is 1% of the transaction value.
Taxation on Hong Kong Shares
For Hong Kong stocks, Stamp Duty and other charges apply: 0.108%
Note: Automated trading from 09:30-16:30 with a break between 12:00 – 13:30.
Taxation on Singapore Shares
For Singapore Stocks a Clearing Fee of 0.0325% is payable, subject to a maximum of SGD 600.
Taxation on South African Shares
The Johannesburg Stock Exchange applies a Securities Transfer Tax (STT) of 0.25% when opening a stock position (on stock buy trades).
Taxation on French Shares
For purchases of French large cap Stocks a Financial Transaction Tax (FTT) of 0.30% will apply.
Taxation on Italian Shares
For purchases of Italian listed stocks a Italian Financial Transaction Tax (FTT) of 0.10% will apply.
Depository Receipt fees – US
It is standard practice for US depository receipts to charge an annual administration fee up to USD 0.05 per share depending on the issuing depository bank. The intent of the fee is to cover costs for the banks that take on the operational processes necessary to issue and trade the
depository receipt line. Typically the fee is deducted when dividend payments are made, however, in case the depository receipt does not pay a dividend or did not include the custodial fee in their dividend events, the fee will be administered through fee-only events. The dividend fee is stipulated in the Deposit. Agreement between the depositary bank and the company based upon industry standards. The Deposit Agreement is filed with the SEC and is readily accessible by the public.
The fee per depository receipt is not dependent on the total amount of dividend being paid but the amount of shares held.
SEC Section 31 Fees for US Shares
Saxo Capital Markets passes on to clients the SEC Section 31 fee of $20.70 per million (0.224 BP) on US exchange stock SELL transactions where
client orders are entered directly into the underlying market. This fee applies only to US exchanges.
To read more about Section 31 visit: http://www.sec.gov/answers/sec31.htm
Subscription to Market Data fees
At Saxo Bank all equities trade on actual market data from the stock exchanges. To receive and trade on real-time market data, you will have to subscribe to the individual exchange.
A subscription to live price data from an exchange gives you access to live prices on Stocks, Single Stock CFDs, ETFs/ETCs and CFDs on ETFs/ETCs from the particular exchange.
An Online Subscription Tool is available in the trading platform. In the tool, you will find a list of available exchanges and news services alongside the applicable monthly fees. You will be able to subscribe and unsubscribe to services of your choice. Further information can be found in the Subscription Tool guide, which is also available on the trading platform.
Level 1 or Level 2 data
Level 1 price data refers to the first level of the order book on the exchange. With a Level 1 subscription you can see live, streaming, bid and offer prices.
With a Level 2 price data subscription you can see live, streaming prices as with Level 1 but on top of this you can see the market depth of bid/offer prices and the amounts available at each price point. and fees correct as of 30/04/2019
Carrying cost
Overnight positions in short Stock and Contract Options are subject to a carrying
Stock options:
The carrying cost is calculated on the basis of the daily margin requirement and applied when a position is held overnight.
The funding rate used for calculating the carrying cost is based on the relevant Interbank-rate + markup (150 bps).
Carrying Cost = Margin requirement * Holding time * (Relevant Interbank rate + Markup) / (365 or 360 days).
Contract options:
The carrying cost is calculated on the basis of the daily margin requirement and applied when a position is held overnight.
The funding rate used for calculating the carrying cost is based in the relevant Interbank-rate + markup (150 bps).
Carrying Cost = Margin requirement * Holding time * (Relevant Interbank rate + Markup) / (365 or 360 days).
Holding fee on bought options
Holding fees on long option positions (all maturities) will not be applied for the first 30 days – holding fees will only apply after 30 days of holding a position. The fee will be calculated daily based on the below schedule and charged end-of-month.
Bought Options daily holding fees per million (Nominal Value)
Carrying Cost on overnight Futures
Overnight positions in Futures are subject to a carrying cost.
The carrying cost is calculated on the basis of the daily margin requirement and applied when a position is held overnight.
The funding rate used for calculating the carrying cost is based on the relevant Interbank-rate + markup (150 bps).
Carrying Cost = Margin requirement * Holding time * (Relevant Interbank rate + Markup) / (365 or 360 days)
Please note that relevant benchmark rates are floored at 0%.
