FX Volume-based Discount Plan FAQ

What is the FX Volume-based Discount Pricing Plan?
Commissions Level 1 Level 2 Level 3 Level 4 Level 5 Level 6
 Volume USDm (monthly) required 0 - 50 50 - 100 100 - 250 250 - 500 500 - 1,000 > 1,000
Gross Commission per USDm 50 USD 50 USD 50 USD 50 USD 50 USD 50 USD
Discount 0 USD -10 USD -20 USD -25 USD -30 USD -33 USD
Net commission per USDm 50 USD 40 USD 30 USD 25 USD 20 USD 17 USD

The FX Volume-based Discount Plan serves low-volume traders equally as well as it does high-volume traders, taking into account that trading volumes can fluctuate. We charge a standard commission rate of 50 USD per 1 million USD traded, with the benefit of increasing discounts for larger cumulative trading volume, i.e. the more volume traded, the cheaper trading costs (commission) become.

For example:

  • If you trade over 50 million USD, you will receive a 20% (10 USD) discount on commission paid on volume traded up to $100 million.
  • If you trade over 100 million USD, you will receive a 40% (20 USD) discount on commission paid on volume traded up to $250 million.
  • If you trade over 250 million USD, you will receive a 50% (25 USD) discount on commission paid on volume traded up to $500 million.
  • If you trade over 500 million USD, you will receive a 60% (30 USD) discount on commission paid on volume traded up to $1,000 million.
  • If you trade over 1,000 million USD, you will receive a 66% (33 USD) discount on commission paid on volume traded in excess of 1,000 million USD.
What are the key benefits of the FX Volume-based Discount Pricing Plan?

In addition to discounted trading costs with no minimum monthly commission, you will benefit from trading spreads as low as 0.1 pip and competitive pricing across notional trade sizes. This is demonstrated by a sample of data taken from our Spread History Tool:

Spread History Tool

Please click here to see the historical minimum and average spreads observed across different currency pairs and trade sizes in the FX Volume-based Discount Pricing Plan.

Best Execution
In terms of best execution, Saxo (“We”) has a general duty to act honestly, fairly, professionally and in the best interest of the client. In relation to order execution, we are required to take all reasonable steps to obtain the best possible results for clients on a consistent basis when executing client orders or when placing orders with, or transmitting orders to, a third party to execute. The FX Volume-based Pricing Plan is completely transparent when demonstrating best execution, due to the fact that all clients see the same trading spread and price.

We believe that open and transparent markets, coupled with full alignment of interest between providers and clients offer a real opportunity for differentiation between brokers. Strong proof points of our commitment to this have been shown with the publishing of our Enhanced Disclosure Page and by formally signing up to the Global FX Code where Saxo has been a member of the Bank of England Joint Standing Committee playing a key role in the development of the code.

How is the commission fee and discount calculated?

The commission fee is consistent across all currency pairs and is charged on a USD per million USD traded basis, which can also be thought of as a EUR per million EUR traded etc. In the Saxo platforms the commission fee is shown in both the trade ticket and the trade confirmation in the variable (2nd) currency, and charged in the account currency using the prevailing market rate at the time of the trade, plus conversion fee. For accounts denominated in another currency other than the variable (2nd) currency we use a standard conversion fee.

For example, assume the following Spot rates:

  • EURJPY = 130.0
  • USDJPY = 110.0
  • A client trades 100,000 EURJPY in his USD account on which he pays 50 USD per 1 million USD traded (Level 1)
  • USD 50 per USD 1 million traded is the equivalent of 0.005%
  • EUR 100,000 x 130.0 = JPY 13,000,000. JPY 13,000,000 x 0.005% = JPY 650 commission
  • JPY 650 / 110.0 = USD 5.91 commission
  • The standard conversion fee is applied when commissions are converted into the account currency.

While processing the previous trading day, we calculate the month-to-date traded volume, to determine how much commission discount (if any) to apply to each trade. The volume level and the appropriate discount level are calculated according to the following logic:

A) If a client is ‘inactive’ for 3 or more consecutive months, within the last 5 months, they will be charged commission calculated on the average of 1 (or 2) months trading volume.

For example:

  • Current month -1 volume = 250m
  • Current month -2 volume = 190m
  • Current month -3 volume = 0m (no trades that month)
  • Current month -4 volume = 0m (no trades that month)
  • Current month -4 volume = 0m (no trades that month)

Average traded volume = 220m ((250 + 190)/2). The client will start the following month on Level 3.

B) If a client is ‘active’ for 3 or more consecutive months, within the last 5 months, they will be charged commission calculated on the average of the most recent 3 months trading volume.

For example:

  • Current month -1 volume = 250m
  • Current month -2 volume = 190m
  • Current month -3 volume = 350m
  • Current month -4 volume = 300m
  • Current month -5 volume = 300m

Average traded volume = 263m ((250 + 190 + 350)/3). The client will start the following month on Level 4.

When will the discount be credited?

The commission discount will be applied to each qualifying trade at the end of each trading day, meaning that you will get the benefit of lower trading costs as soon as you have earned it. This means that in practice you pay 50 USD per 1 USD million traded, but at the end of each trading day, when applicable, the system will automatically book the commission discount on each qualifying trade back to your account.

Will the volume-based discount level be fixed for the whole month?

You will start a new month charged commission calculated on the average of the most recent 3 months trading volume (if available), and will get the benefit of lower trading costs as soon as you have earned it (e.g. upgraded from a volume-based discount Level 2 to Level 3). You will only be charged higher trading costs (e.g. downgraded from a volume-based discount Level 3 to Level 2) at the beginning of a new month.

Is there a minimum commission for small trade sizes?

Yes. There is a minimum commission of USD 3.

For example, assume the following Spot rates:

  • EURJPY = 130.0
  • USDJPY = 110.0
  • A client trades 10,000 EURJPY in his USD account on which he pays USD 50 per 1 million traded (Level 1)
  • USD 50 per USD 1 million traded is the equivalent of 0.005%
  • EUR 10,000 x 130.0 = JPY 1,300,000. JPY 1,300,000 x 0.005% = JPY 65 commission
  • JPY 65 / 110.0 = USD 0.59 commission
  • The standard conversion fee is applied when commissions are converted into the account currency.

In this case, because the commission due is USD 0.59 (and less than USD 3), a minimum commission of USD 3 applies.

What currency pairs are available on the FX Volume-based Discount Pricing Plan?

All FX Spot & Forward currency pairs are available and all follow the same cost structure, including FX Metals.

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