Saxo Capital Markets (Australia) Pty Ltd ABN 32 110 128 286 AFSL 280372 (‘Saxo’ or ‘Saxo Capital Markets’) is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Combined Financial Services Guide & Product Disclosure Statement to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.
Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as CFDs and Margin FX products may result in your losses surpassing your initial deposits. Saxo Capital Markets does not provide ‘personal’ financial product advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Capital Markets does not take into account an individual’s needs, objectives or financial situation.
The information or the products and services referred to on this website may be accessed worldwide, however is only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website is not intended for residents of the United States.
The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-au/about-us/awards.
The Tradingfloor.com website is the property of Saxo Bank A/S as an affiliate of Saxo Bank, and is a part of Saxo Bank Group, Saxo Capital Markets has entered into an arrangement with TradingFloor.com to allow clients of Saxo Capital Markets upon their consent to access information on tradingfloor.com and use their Saxo Trading Account to enter into transactions through Tradingfloor.com. Any materials or other social trading features available on the TradingFloor.com website are provided by Saxo Bank A/S and Saxo Capital Markets does not accept any responsibility or liability for the contents or services made accessible through TradingFloor.com. For the avoidance of doubt, should clients decide to enter into any transaction through TradingFloor.com Saxo Capital Markets will be the counterparty to any transaction entered into by clients and not Saxo Bank.
Social Trading involves risks, even when following and/or replicating other Profiled Traders. Past performance of a trader indicated on Tradingfloor.com is not indicative of future results. When reviewing the portfolio or financial performance information, opinions or views of a Profiled Trader, you should not assume that the Profiled Trader is unbiased, experienced, professional, independent or qualified to provide financial information or advice. Tradingfloor.com does not contain (and should not be construed as containing) financial, investment, tax, trading advice and should not be construed as an offer or solicitation for the subscription, sale or purchase in any financial instrument. Saxo Bank A/S or its affiliates will not be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available as part of Tradingfloor.com or as a result of the use of Tradingfloor.com.
Client Money and TOCM
How is client money held and invested by Saxo Capital Markets?
Saxo Capital Markets holds client money in a ‘pooled’ client segregated trust account, a portion of the client money is invested in a term deposit which is also designated as a client segregated trust account. All Saxo Capital Markets’ client segregated trust accounts are held at an Australian ADI (Authorised Deposit-taking Institution), and are in compliance with Australian client money laws and regulations.
Will Saxo Capital Markets use Client A’s profits sitting in the client segregated trust account, to cover the margin obligations or deficit balances of Client B?
No, Saxo Capital Markets will not use Client A’s profits held in the client segregated trust account, to meet the margin obligation of Client B, or even the deficit balance of Client C. To ensure this, daily reconciliation is performed by back office to verify adequate funds always remain in client segregated trust accounts.
Does Saxo Capital Markets use client money held in the client segregated trust account to hedge its own positions?
No, Saxo Capital Markets does not use client money held in the client segregated trust account to hedge clients positions.
Does Saxo Capital Markets withdraw required margin deposit out of the client segregated trust account while a client maintains his/her open position?
Required margin deposited by clients, physically remain in the client segregated trust account while clients maintain their existing margined positions. Certain brokers may be entitled to withdrawal required margin deposits funded by clients, into their ‘house’ account, while clients hold their existing margined positions, funds should be returned once the client has exited out of their existing margined positions.
At what point is Saxo Capital Markets entitled to move funds held or invested in the client segregated trust accounts to their own Saxo Capital Markets ‘house’ bank account?
Situations when funds are withdrawn from the client segregated trust account and transferred to Saxo Capital Markets ‘house’ account, are situations when those funds are no longer considered client money. This may include, but not limited to situations where the client realises his/her losses; is charged commission, interest and/or financing rates; other similar fees and charges; or as permitted under the Corporations Act (Cth) 2001.
- Saxo Capital Markets does not at any point associate or mingle its own funds with client money held or invested in client segregated trust accounts, and vice-versa.
- Saxo Capital Markets client segregated trust accounts are all held and maintained in Australia, at no point does client money leave the Australian jurisdiction.
- Saxo Capital Markets parent company, Saxo Bank A/S headquartered and regulated in Denmark, do not have the power, access and control to withdraw client money out of client segregated trust accounts.
- To understand the counterparty risk associated with client money, refer to Saxo Capital Markets Combined FSG & PDS under counterparty risks for client money.
TOCM (Transparency of Client Money)
What is TOCM?
TOCM is a quarterly review on aggregated client money statements and client segregated trust accounts held with Saxo Capital Markets, conducted by a ‘Big 4’ audit firm, and delivered to all of Saxo Capital Markets’ clients.
The scope of the auditors review is based on the following;
- Audit of internal controls and procedures in respect to Saxo Capital Markets’ handling of client monies;
- Audit of physical cash deposited with Australian Authorised Deposit-taking Institutional (ADI);
- Reconciliation of balance in clients’ trading accounts and the segregated trust bank accounts.
The report provided by Saxo Capital Markets auditors will include an overview of Saxo Capital Markets’ responsibilities for client money, the auditors responsibilities and inherent limitations and last but not least a very clear and concise conclusion of the review. The report is delivered to Saxo Capital Markets clients on a quarterly basis.
What is Saxo Capital Markets’ motive behind TOCM, and why is it important?
Integrity and honesty are Saxo Capital Markets' core organisational values. TOCM is simply another step towards providing its clients comfort, and confidence in their preferred online broker. Saxo Capital Markets believe investors are entitled to know that their funds are where they say they are; TOCM empowers Saxo Capital Markets clients with this advantage.
By offering TOCM, a regular and independent 3rd party opinion on the transparency and visibility of client funds, Saxo Capital Markets aim to give its clients the confidence and assurance that no other Australian Financial Services License (AFSL) holder currently offers.
Finally, Saxo Capital Markets is the ‘first mover’ on Transparency of Client Money. Saxo Capital Markets hope that other brokers will join in on this initiative to restore and improve investors’ general confidence to the industry,
If you have any further questions regarding client money or TOCM, please feel free to speak to one of Saxo Capital Markets representatives. +61 2 8267 9000.