Saxo Bank review: Platform launches new margin lending accounts in Singapore

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Saxo Bank launches new margin accounts

New features designed to strengthen risk management

A major improvement to the offering is the introduction of tiered collateral rates, which now provide more favourable leverage for stocks and ETFs rated between risk levels 2 and 5. This adjustment is expected to reduce borrowing costs for clients seeking to maximise purchasing power in diversified, moderate-risk portfolios.

Saxo has also implemented partial stop-outs, replacing the previous full liquidation model. Instead of fully closing out a position when margin requirements are breached, only a portion of the position will be reduced—giving clients more proportional risk management and better preservation of long-term strategies.

Mahesh Sethuraman, CEO for Saxo Singapore, said the enhancements reflect the bank’s focus on client-centric innovation. “We are constantly listening to our clients and evolving our platform to deliver the best investing and trading experiences for our clients,” he said. “The enhancements to our margin lending offering will provide greater flexibility, transparency, and strategic control, whether clients are looking to amplify their buying power or optimize dividend income.”

Margin lending: Higher potential returns with higher risk

Margin lending allows investors to borrow funds to purchase additional assets such as equities, ETFs and bonds, using their existing portfolio as collateral. While it introduces higher risk—particularly during market volatility—it can also increase potential returns, including enhanced dividend yields.

An example provided by Saxo:

- A client investing $5,000 without leverage earns a 5.5% dividend yield.

- With margin lending, investing $20,000 (via a $15,000 margin loan), net dividends rise to $647, a 12.94% yield even after interest costs.

The new margin lending account structure also supports trading in stock options and enables physical delivery of underlying assets upon option assignment.

A continuing legacy of innovation

Founded in Copenhagen in 1992, Saxo Bank has grown into one of the world’s largest multi-asset trading and investment platforms. Its headquarters, technology infrastructure and regulatory footprint—including licences under the Danish FSA and multiple global regulators—position it as a leading provider of advanced trading solutions.

With more than 2,500 professionals across global financial centres, Saxo Bank continues to invest heavily in technology and open-banking capabilities that now power over 200 financial institutions worldwide.

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