Can you trade options with Saxo Bank?
Options trading provides you the best opportunity to add value to your portfolio and generate more revenues with limited funds. Options strategies may range from purchasing a call option to complicated multi-leg options. Trading platforms allow investors to trade in options, but not all are ideal for these trades.
Saxo Bankis one of the most opted trading platforms, licensed and regulated by Danish banks, that empowers investors to invest in global financial markets.
But can you trade options at Saxo Bank? Being a vast platform, Saxo bank investors doubt whether or not they can trade options with the online platform. Our experts have compiled all the details related to your doubt and have clarified answers to the reader’s queries. Scroll down to learn more.
Available markets at Saxo Bank
| DEGIRO | Interactive Brokers |
Saxo Bank | |
|---|---|---|---|
Forex |
Yes |
Yes |
Yes |
Metals |
Yes |
Yes |
Yes |
Crypto |
Yes |
Yes |
Yes |
Indexes |
Yes |
Yes |
Yes |
Stocks |
Yes |
Yes |
Yes |
ETF |
Yes |
Yes |
Yes |
Options |
Yes |
Yes |
Yes |
Saxo Bank currently offers 20 options markets. However, Interactive Brokers, one of its biggest competitors, offers 34 options markets. Again, DEGIRO presents you with 30 options markets.
Saxo Bank fees for trading options
Have a closer look at the fees charged for Saxo Bank options trading. Saxo Bank has created three pricing tiers: Classic, Platinum, and VIP. You can also find a difference in the fee depending on the currency. Check the fee for the stock options
| Classic | Platinum | VIP | |
|---|---|---|---|
USD |
3.00 |
2.00 |
1.25 |
GBP |
2.50 |
1.50 |
1.00 |
EUR |
3.00 |
2.00 |
1.00 |
CHF |
4.00 |
3.00 |
1.00 |
HKD |
30.00 |
20.00 |
10.00 |
AUD |
5.00 |
3.00 |
1.00 |
Fees for contract options
| Classic | Platinum | VIP | |
|---|---|---|---|
USD |
6.00 |
3.00 |
1.50 |
GBP |
5.00 |
2.50 |
1.00 |
EUR |
6.00 |
3.00 |
1.00 |
CHF |
8.00 |
4.00 |
1.50 |
JPY |
1000.00 |
800.00 |
700.00 |
AUD |
10.00 |
5.00 |
2.00 |
SEK |
75.00 |
40.00 |
15.00 |
HKD |
30.00 |
25.00 |
15.00 |
CAD |
6.00 |
3.00 |
1.00 |
If you like to trade over 5,000 contracts every month, you can contact the Saxo Bank team. The prices on the table apply to new Saxo Bank clients. You must access pricing details from the trading platform as an existing client. Your country of residence also makes a difference in the price.
An example of an options trade
Suppose Mr. X has created a diversified US stock portfolio within a few months. But he does not like to sell those stocks right now. Simultaneously, he is concerned about the potential market downturn that may affect his profit.
The central part of his stocks is related to the tech industry. That is why he has thought of having insurance by purchasing a put option in a stock exchange (such as NASDAQ). The strike price and the closing price are close to each other. Mr. X then selected a 6-month option. He can sell his put option when there is a decline in NASDAQ. There may be a correlation between his stocks and NASDAQ. So, using an option contract, Mr. X can hedge his market exposure.
FAQ
Are there any minimum fees for trading listed options on Saxo bank?
Saxo Bank has not set any minimum ticket fees if you trade listed options. Based on your account tier, you need to pay a flat-rate fee for every trade.
How is the carrying cost calculated?
This calculation is based on standard margin requirements. The price is applicable for the position held overnight.
What is a short option margin?
The sum of a premium margin and additional margin results in a short margin.
What are the requirements for activating an advanced profile to buy and sell options on Saxo Bank?
Your account value should be at least 5,000 USD. Moreover, you should acknowledge the risks related to short selling options.
Team that worked on the article
Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.
He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.