The virtues of investing cannot be emphasised enough, especially in our current times of high inflation where the purchasing power of our money erodes fast. Fortunately, in this age of the internet and technology, the typical investor has quick and easy access to the global markets, enabling one to invest in a wide multitude of investments, ranging from stocks, ETFs, bonds, forex, and even cryptocurrencies.
To trade or invest in these various financial instruments, we need a good brokerage platform that we can not only trust with our hard-earned savings but also one that provides access to a wide selection of instruments at a low (or affordable) cost.
One such brokerage is Saxo Markets (formerly known as Saxo Capital Markets). As a veteran brokerage firm in Singapore with its operations dating back to 2006, it might be a familiar name to more seasoned local investors.
Saxo Markets is a licensed subsidiary of the Danish Saxo Bank, which was founded in 1992 and has assets that total more than US$85 billion. Saxo Markets holds a capital markets services licence under the Monetary Authority of Singapore (MAS). Therefore, all funds and securities that are deposited by the clients with Saxo Markets will be segregated from Saxo Markets’ own money and assets.
So, if you are interested in opening a trading account with Saxo Markets, here’s a step-by-step guide on how you can do it.
How Saxo Markets Differentiates Itself
There are different types of brokerages that we can choose from, such as stock brokers, forex brokers, full-service brokers, and discount brokers. Each of these brokers offers a different value proposition, which results in a difference in the cost of trading and user experience.
Here are some of the features that Saxo Markets provides that you need to know about.
Large Number Of Investable Products
Saxo Markets states on its website that it offers users of its platform access to over 60,000+ instruments across various types of products.
This includes leveraged products such as Crypto FX pairs, Forex, Forex Options, Contract For Differences (CFDs), futures, commodities, and listed stock options; investment products such as stocks, bonds, ETFs, and crypto ETPs; and asset management products such as their SaxoWealthCare, SaxoSelect, and regular savings plans.
With such a wide offering of products, a Saxo Markets account could be suitable for a wide spectrum of user profiles, including those of risk-loving traders and those of risk-averse long-term investors.
5 Different Account Tiers
When you open an account with Saxo Markets, which has a minimum account funding of $3,000, you have a choice between five price plans. Moreover, as there is no lock-in, you can switch at anytime between these plans as and when your needs change.
The first plan is the bronze plan, which is charged a monthly fee of $1 and is suitable for the everyday investor who is looking to buy and hold their investments to grow their savings. The account charges an annual custody fee of 0.06% if you opt-in to the securities lending.
The second plan is the silver plan, which comes with a monthly fee of $5 but gives you cheaper transaction fees than the bronze plan, access to more tools, and free real-time price data on US stocks. This account could be suitable for the average investor who also dabbles in short-term trading and could benefit from the lower trading fees.
The third plan is the gold plan, which comes with a monthly fee of $15. It offers cheaper transaction fees than the silver plan and provides free real-time price data on more markets – US, EU, UK, and CH stocks.
The fourth plan is the platinum plan, that you need to pay a monthly fee of $45. It offers cheaper transaction fees than the gold plan and provides free real-time price data on more markets – US, EU, UK, CH, and SG stocks.
The fifth and last plan is the diamond plan, for which you would need to pay a monthly fee of $145. It offers the cheapest transaction fees of all plans and provides free real-time price data on more markets – US, EU, UK, CH, SG, & HK stocks. This account is suitable for the more seasoned trader who trades and invests frequently across various markets and wants the lowest commission possible.
Low Trading Fees
Fees are an important criterion when choosing a brokerage, as low transaction fees equate to more savings. This is why it could be beneficial to pay a small monthly fee, especially for the higher tier plans from Silver to Diamond. In fact, you can offset the monthly fees with the Saxo Rewards points that can be earned when you deposit and maintain your funds and through your trading activity.
[Update]: Now, you can receive cash rebates when you trade a minimum of USD 10 million in notional value on FX or CFD indices in a calendar month. For instance, with at least a Gold account plan, you will receive USD 3 for each trade, amounting to USD 1 million in notional value.
Here’s a quick summary of the trading fees for Singapore and US stocks, including US stock options, across the five different plans that you can get with Saxo Markets.
Source: Saxo Markets
CFDs are a popular instrument for retail investors. Here’s the price comparison for the US-based Index CFDs across the different account plans.
Here are the trading fees for the major FX pairs across the different plans if you are looking into trading the Forex market.
Lastly, here are the trading fees for the Futures contract for the popular indices across the different account plans.
Do note that the above fees apply to new clients only. For more details on the transaction fees for the other instruments, you can check out Saxo Markets.
Earn Higher Interest On Your Account Balance
If you’re on the Silver, Gold, Platinum, or Diamond account plans and maintain an account balance of at least $5,000, your deposits will earn a market interest rate. These rates will be updated daily and will vary with your account balance, with the best rates earned on account balances above $100,000. There is no lock-in period or cap on the amount that you can deposit to earn interest.
Check out the latest rates that you can earn on the different currencies using the interest rate calculator here.
Different Platforms Cater To Different User Profiles
As investors, we expect the platform that we are using to be both user-friendly and one that is designed with good user experience (UX) design. In that regard, Saxo Markets lets you choose between three different interfaces when you open your trading account.
There is the SaxoTraderGO, which is the trading platform that is popular with most of Saxo Markets’ clients, and it is suitable for traders of all experience levels. It comes with a comprehensive range of trading and investing features such as the fundamental analysis tools, news and expert research tab, and an extensive charting package that has multiple technical analysis tools that offer automated trade signals and live charts.
For the more advanced traders, including those who use multi-screen trading, they can choose the SaxoTraderPRO platform. It is engineered for speed and productivity, with high-performance tools built to manage and execute orders. The platform comes with advanced trading features such as depth trader, time and sales data, and even allows you to place algorithmic orders.
Lastly, for the everyday or long-term investor, there is the SaxoInvestor platform. Though it is built on the same technology as the other platforms with SaxoInvestor, you get a simpler interface that is more user-friendly with the aim of providing everything that you need to invest quickly and safely. It also offers a comprehensive portfolio overview to keep track of your investments easily.
Opening An Account With Saxo Markets
Step 1: Sign up for an account by clicking <Here>.
Step 2: Submit your details.
You can submit the details for your account opening via Singpass or without it, though it has a longer application processing time. The details required will be the same regardless of which method that you choose, though applying via your Singpass would be more hassle-free.
Submitting your details (Using Singpass)
Simply, scan the QR code and agree to allow access.
Step 3: Verify your Singpass details.
Now that your details are auto-filled, you need to verify that all the information is accurate. If there’s any discrepancy, make the changes. You will also be required to create a password at this stage, which consists of 8 characters, with at least one number and one character. Do remember to note it down. Once done, click Next.
Step 4: Submit your employment details.
This includes the name of your employer and your job title.
Step 5: Declare your financial information.
This includes the source of your income and the amount of your investable assets. You are also required to share how much you intend to invest for the year and the number of trades that you might average a month. Lastly, you will also be asked whether you want to opt-in to the securities lending program, which may incur a custody fee depending on the tier of your account.
Step 6: Declare your tax details.
As a Singaporean, your tax identification number is your NRIC. Before you click Next, fill in the other details accordingly.
Step 7: Complete the Customer Knowledge Assessment (CKA) and Customer Account Review (CAR).
This is a requirement by the Monetary Authority of Singapore (MAS) when opening a trading account. You would need to first declare whether you are a retail investor (which is applicable to most of us) or an accredited investor.
Next, you need to declare your educational qualifications and whether you have any other financial qualifications. Your answers will determine the type of instruments or products that you can trade using your account.
Step 8: Complete your W-8BEN Form.
You need to complete this form as it is required for trading US products. First, verify your details before clicking Next.
Continuing with the W-8BEN Form, once you have verified your details, you will be asked to sign the form. Thankfully, this can now be done digitally with a click of a mouse. Once done, you will be one step closer to completing your account sign-up.
Step 9: Understanding the Terms and Conditions.
Lastly, it is good for you to read the different terms and conditions to better understand the risks involved.
Below this acknowledgement of terms, you will see two boxes with text. You would need to read and scroll to the bottom of these two text boxes. Otherwise, you would see red text instructing you to scroll to the bottom to accept the terms.
Once you have scrolled to the bottom of both texts, you will see the option to accept the above terms and conditions. If you agree with the terms, check the box and click continue.
Do be patient once you have clicked submit as the application may take some time to process. Therefore, do not close your browser until you see the below message indicating that you have now opened your Saxo account.
With that, look out for your login details via the email that you registered with Saxo Markets. Also do whitelist their emails and addresses to ensure their emails do not end up in your spam box.
Saxo Markets Ongoing Promotions
Saxo Markets is a trusted brand that not only offers lower commission rates but access to a wide range of products for both the opportunistic trader and the risk-averse investor alike.
A Saxo Markets trading account will benefit whether you are looking to trade traditional investment products like stocks and bonds, take more opportunistic trades with leveraged products such as Forex or CFDs, or even take a hands-off approach with Saxo Markets’ asset management products.
The post Step-By-Step Guide To Opening A Saxo Markets Trading Account In Singapore appeared first on DollarsAndSense.sg.
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