One of the most well-known European brokers, Saxo Bank has many advantages that keep attracting traders from all over the world: a large selection of available trading instruments, favorable conditions, and really interesting investment options. However, many traders think Saxo Bank is more suitable for experienced traders, not for complete beginners. In this article, we explain whether this opinion is true and provide a brief overview of the most important features of this broker.
Saxo Bank is a Copenhagen-based broker that mainly works with European traders. However, it has a certain popularity outside of Europe as well: for example, it is used by traders from Japan or Australia, too. Licensed by the FSA (Financial Supervisory Authority), the Danish national financial regulator, the company is considered reliable and safe. Your funds are covered by an insurance program, and there is a rule to keep them separated from the broker’s own money.
The broker is known for its wide choice of trading instruments, such as Forex pairs, CFDs, bonds, and so on. However, Saxo Bank does not consider cryptocurrencies a viable asset, so crypto trading is out of question. When it comes to trading conditions, Saxo Bank is considered a decent broker with pretty average terms: the spreads are narrow, but trading fees could really be lower. All in all, the broker is a good choice for professional traders, but is Saxo Bank good for beginners?
How it benefits novice traders
Novice traders usually prefer to avoid investing too much money at once, so a low entry threshold is a must. However, Saxo Bank has pretty strict requirements for minimum deposits: they start from about £500 for traders from the UK, and the limit is set to $2,000 for the majority of other countries. It means that the broker isn’t very welcoming for beginners who don’t have enough free funds. The leverage is up to 1:30, and the withdrawals are pretty quick.
The broker’s website has a special Training section with many educational articles and video tutorials, and you can apply this knowledge by practicing on a demo account. The customer support is friendly, but there’s no option to chat with them, only phone calls are supported. What’s even better, the broker has ready-made investment portfolios that can be used to make passive income. It makes Saxo Bank pretty useful for novice traders, after all.