Saxo goes choice
Back in the old days, I remember a sales jub challenging me to make a price good enough for a large oil company to trade on in USD/DEM. “64 choice,” I replied. The client didn’t trade; apparently, it had got a better choice price away.
So naturally I’m cynical about the prospects for Saxo’s latest offering, its FX Choice account. In essence, the account allows the bank’s clients to benefit from the super tight – sometimes even choice – prices that result in the stream of liquidity from Saxo’s inter-bank partners.
“FX Choice is particularly useful for active traders who invest primarily at times when the market is at its most liquid. The combination of narrower spreads and a diminishing fee structure means that Saxo Bank is fully addressing the demands of clients who want to take more control of their money when they trade,” says Albert Maasland, head of Saxo’s London office. “Saxo Bank always provides the narrowest spreads possible to clients, and by tightly streaming inter-bank spreads, with FX Choice we have created the opportunity to utilise spreads as low as zero.”
Saxo, along with other online platforms, seeks to normalise its spreads. The new service allows clients to potentially benefit from tighter prices, but in return they have to pay commission.