Investment
firm Saxo has introduced a new Flexible ISA product in the UK after
experiencing a 591% increase in demand for its stocks and shares ISA during
January and February compared to the same period last year.
Saxo Launches Flexible ISA
Following Nearly Six-Fold Surge in Demand
Saxo’s
Flexible ISA (Individual
Savings Account) allows investors to contribute up to the standard £20,000
annual allowance while offering the ability to withdraw and replace funds
without affecting this limit. The product features US trades starting at $1, UK
trades from £3, foreign exchange fees as low as 0.25%, and has no platform fee.
“At
Saxo, we want our clients to feel empowered to make the most of their
savings,” said Dan Squires, Chief Commercial Officer of Saxo UK. “Recent
market volatility has underscored the need for agility and responsiveness when
investing, and our new Flexible ISA reflects our commitment to providing our
clients with this.”
The launch
comes as the Cboe Volatility Index recently reached its highest level since
early 2020, indicating increased market uncertainty that has prompted investors
to seek more adaptable investment options.
The move
comes a few months after
XTB introduced a zero-fee ISA in an effort to compete in the £400 billion
market. Meanwhile, CMC
Invest added ISA options to its offering, including a savings product with
a 4.85% AER.
Saxo Bank Client Base
Jumps 132% After Fee Cut, Women Lead Surge
The new
offering gives investors access to over 18,000 investment products including
stocks, ETFs, bonds, and funds in a single platform. This broad selection aims
to help investors diversify and adjust their portfolios in response to changing
market conditions.
Saxo’s move
follows a broader pattern of growth for the firm, which
has seen a 132% year-over-year increase in new trading clients after
updating its pricing structure in
January 2024.
The company
has also reported demographic shifts in its customer base, with the proportion
of clients under 25 rising from 9% to 15% between
2023 and 2024, while the number of new female clients tripled to represent
18% of new UK customers.
The firm’s
pricing revisions have eliminated custody and platform fees while reducing
trading commissions across various markets, changes that appear to have
contributed to increased client engagement and trading activity.
Safra Sarasin Agrees to
Buy 70% Stake in Saxo Bank
In March, Swiss
private bank J. Safra Sarasin reached an agreement to purchase a 70% stake
in Saxo Bank. The deal, worth approximately 1.1 billion euros ($1.19 billion),
values the Danish online trading and investment platform at around 1.6 billion
euros. Saxo Bank had been searching for a buyer for several months.
Looking
ahead, Saxo
Bank expects a decline in revenue in 2025. This follows a strategic
decision to change its distribution model and reduce the number of markets it
serves, which included ending relationships with some existing clients in 2024.
Despite the short-term financial impact, the company stated in its 212-page
annual report that the changes are intended to support long-term growth.
This article was written by Damian Chmiel at www.financemagnates.com.
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