monetary-policy-impact-on-interest-rates

​Due to the introduction or ongoing levy of negative interest rates on account credit balances by some central banks and deposit banks, Saxo group will charge negative interest rates on our standard institutional offering in the relevant reference currencies to any institutional or corporate clients you may be servicing. As Saxo places our clients’ cash conservatively, Saxo is sharing this burden and not completely recovering our costs for the benefit of our clients. ​

The charge will apply to balances above the threshold indicated in the table below. On the main trading account, this threshold will be applied to the available net free equity and, in the case of sub-accounts, to the account value.

The negative interest will be calculated daily for the account credit balance exceeding the threshold and debited to the main trading accounts 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).

The thresholds and negative interest rates are currently at:

 Threshold Negative interest rate (p.a.) 
 EUR250,000 -0.40% 
 CHF250,000 -0.75% 
 DKK2,000,000 -0.65% 
 SEK2,500,000 -0.50% 

 

The negative interest rates indicated above will be charged as of 1 March 2017 and apply until further notice. The rates charged are subject to change. The information is also provided on the trading platforms and on Saxo’s institutional prevailing rates website at  http://institutional.saxobank.com/prevailing-rates/general-terms/ in accordance with the General Business Terms.

The reference interest rates applied by the central banks are continuously monitored by Saxo Group. If the negative interest rate environment was to change, Saxo aims at adjusting the negative interest rates.

As you are aware, stocks, bonds and ETFs can also be used as collateral for margin trading.

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning 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 Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

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This advertisement has not been reviewed by the Monetary Authority of Singapore.