Interest on funds deposited with Saxo Bank
Interest on your main account is calculated on the Net Free Equity.
Interest on sub-accounts is calculated on the Account Value.
Since the Net Free Equity is calculated on open trade positions on all your accounts, it is important to make sure that sufficient cash is available on your main account.
Otherwise, you risk being subject to a debit interest on your main account exceeding the credit interest payable on your sub-account(s).
Net Free Equity Definition
Your Net Free Equity is:
- The cash balance of your main trading account
- Plus or minus any unrealised profits or losses from open CFDs, FX Forwards and Futures on your main trading account
- Plus the market value of any FX Options on your main trading account
- Minus any margin required for financing open positions on your main trading account and sub-accounts
Additional comments related to the calculation of interest:
- Interest is calculated separately for each currency the client holds. There is no netting between currencies.
- If a client holds multiple accounts in a given currency, a net balance is calculated and the same resulting credit or debit interest rate is applied to all the accounts in that currency, whatever the sign of the balance of the individual account.
- Margin requirements are always applied to the base currency account even if the trade was executed on another account.
- Unrealized PL is applied to the account where the position was traded.
Net Free Equity Margin Financing
Cash collateral for Net Free Equity margin financing may differ from the trading margin requirement. See the full list of cash collateral for margin financing used for Net Free Equity calculation under our General Business Terms, located
To avoid paying interest on your account you are required to hold sufficient cash collateral ensuring a positive Net Free Balance.
The trading margin requirement (leverage) described under each trading product is the minimum amount of collateral you must maintain on your account at all times. This collateral may be in the form of cash or stocks, ETFs and Bonds after applicable haircuts.
Account Value of a sub-account is:
- The cash balance of the account
- Plus or minus the value of any unrealised profits or losses from open CFDs, FX Forwards and Futures on the account
- Plus the market value of any FX Options on the account
Account Interest Rates
The following interest rates apply to funds deposited with Saxo Bank:
- For positive Net Free Equity interest will be the higher of market bid rates minus a mark-up and zero. Interest will be paid on the full amount for all Account Values.
- For negative Net Free Equity interest will be market ask rates plus a mark-up, however never less than the mark-up. Interest will be charged on the full amount for all Account Values
As of 1 March 2017, Saxo Bank will charge negative interest rates on our standard offering in relevant reference currencies. The charge will apply to balances above the threshold currently 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.
The rates charged are subject to change.
|CHF||250,000 ||-0.75% |
Interest Calculation and Settlement
Interest will be calculated daily and settled monthly - within seven business days after the end of each calendar month.
Currency Conversion fee
Currency conversions of trading costs as well as profits and losses from trading activities are done using the prevailing mid-spread close rate as of 17:00 New York time, plus/minus 0.5%. For FX Options the rate is plus/minus 0.1%.
The Currency Conversion fee does not apply to margin collateral. Only settlement of actual payments to or from the trading account is included, for example, buying/selling cash Stocks, paying/receiving options premium etc.
The rate used for currency conversion of amounts booked to your account is shown in the trading platforms under the "Trades Executed" report.