Saxo Bank's profits have been dropping in the first half of 2014 when compared to last year, however the firm remains firmly positioned for better market conditions with client deposits hitting a new record high.
Saxo Bank has just released its Interim Annual Report for the first half of 2014, reporting its operating income at $240.6 million (1.35 billion Danish Krone (DKK)) for the first six months of 2014. The figure is lower by 23% when compared to the first half of 2013, an unsurprising outcome considering the extraordinary trading conditions which the FX and some equity markets participants were enjoying last year.
The Saxo Bank Group reported a net profit of $27.8 million (DKK 156 million) for the first 6 months of 2014, which is lower by a touch more than 40% when compared to the first half of last year, with clients’ collateral deposits increasing by $1.7 billion (DKK 9.7 billion) to a record high of $10.75 billion (DKK 60.3 billion). The company remains well-positioned to benefit from a shift in the low volatility environment persisting throughout the first half of the year.
Operating costs decreased by 10% when compared to last year, coming out at $180 million (DKK 1.01 billion), underlining the continued implementation of a lower cost run rate.
A Saxo Bank spokesperson shared with Forex Magnates, "Despite the low volatility, we are proud of the record numbers of client assets under management we continued to gather this year, which may be deployed when volatility returns to the markets. According to JP Morgan’s global FX volatility index, FX volatility hasn’t been this low in 22 years, i.e. since co-CEO's Kim Fournais and Lars Seier Christensen founded Saxo Bank in 1992."
Outlook for the Remainder of 2014
The company's report highlights expectations of the markets remaining uncertain until a solid economic recovery takes hold, as the outlook for the global economy remains unpredictable due to the incoming effects of the unwinding stimulative monetary policies by some major central banks.
Saxo Bank expects to continue developing its traditional trading business, "focusing on clients, efficiency, profitability and optimization of the entire value chain."
The outlook concludes stating, "Cost control, capital and Liquidity management are, as ever, ongoing themes for Saxo Bank in 2014. With a close eye on overall cost development, the Group will continue its investments in products and platforms. At the same time, system enhancements and knowledge upgrades are expected within the Bank’s core business areas."
Saxo Bank's Risk Management of WLCs
Earlier this year, Saxo Bank released its Annual Report for 2013. Forex Magnates reported about an unfortunate event outlining some weaknesses in Saxo Bank’s risk management of White Label Clients (WLCs).
The issue surfaced in the aftermath of a very rapid drop in values of equities that led to unrealized losses on CFD contracts for a group of clients operating under one of Saxo Bank’s WLCs.
The company reported that the collateral issue arose from a delay in the bank’s stop-out procedures which was caused by the white label’s set-up and subsequently was postponed due to clients’ confirmation of obligations.
According to the text from Saxo Bank’s interim report for the first half of 2014, the Danish FSA conducted an inspection of Saxo Bank’s client risk management processes in February 2014. Focusing on the WLC’s margin trading in light of the accident mentioned above, “The FSA assessed that the incident was caused by weaknesses in the Bank’s manual risk management of WLC’s margin trading, including that the Bank’s risk management practices were insufficient at the time.”
The document states, “As a consequence the Danish FSA in May 2014 issued Executive Orders and Risk Information. The FSA further inspected and concluded that the Bank’s calculation of its own solvency capital requirements as of end March 2014 was sufficient in light of the Bank’s risk management of clients’ margin trading.”
TradingFloor.com
Following the re-launch of TradingFloor.com as an interactive community featuring a social trading platform, Saxo Bank has achieved what any player in the industry would want to - self-generating leads. And do those numbers look good? - According to data in the firm's Interim Annual Report, over 26,000 members are now active on the website, with 300,000 unique visitors every month, which is up from 45,000 visitors per month last year.
The company also consolidated its Saxo TV offering, integrating it with TradingFloor.com and launching it in multiple language versions on the website, including Russian, French, German, Turkish and Greek, with Spanish and Latin versions of the "Sala De Inversión" website migrating to TradingFloor.com.
Saxo Bank has just released its Interim Annual Report for the first half of 2014, reporting its operating income at $240.6 million (1.35 billion Danish Krone (DKK)) for the first six months of 2014. The figure is lower by 23% when compared to the first half of 2013, an unsurprising outcome considering the extraordinary trading conditions which the FX and some equity markets participants were enjoying last year.
The Saxo Bank Group reported a net profit of $27.8 million (DKK 156 million) for the first 6 months of 2014, which is lower by a touch more than 40% when compared to the first half of last year, with clients’ collateral deposits increasing by $1.7 billion (DKK 9.7 billion) to a record high of $10.75 billion (DKK 60.3 billion). The company remains well-positioned to benefit from a shift in the low volatility environment persisting throughout the first half of the year.
Operating costs decreased by 10% when compared to last year, coming out at $180 million (DKK 1.01 billion), underlining the continued implementation of a lower cost run rate.
A Saxo Bank spokesperson shared with Forex Magnates, "Despite the low volatility, we are proud of the record numbers of client assets under management we continued to gather this year, which may be deployed when volatility returns to the markets. According to JP Morgan’s global FX volatility index, FX volatility hasn’t been this low in 22 years, i.e. since co-CEO's Kim Fournais and Lars Seier Christensen founded Saxo Bank in 1992."
Outlook for the Remainder of 2014
The company's report highlights expectations of the markets remaining uncertain until a solid economic recovery takes hold, as the outlook for the global economy remains unpredictable due to the incoming effects of the unwinding stimulative monetary policies by some major central banks.
Saxo Bank expects to continue developing its traditional trading business, "focusing on clients, efficiency, profitability and optimization of the entire value chain."
The outlook concludes stating, "Cost control, capital and Liquidity management are, as ever, ongoing themes for Saxo Bank in 2014. With a close eye on overall cost development, the Group will continue its investments in products and platforms. At the same time, system enhancements and knowledge upgrades are expected within the Bank’s core business areas."
Saxo Bank's Risk Management of WLCs
Earlier this year, Saxo Bank released its Annual Report for 2013. Forex Magnates reported about an unfortunate event outlining some weaknesses in Saxo Bank’s risk management of White Label Clients (WLCs).
The issue surfaced in the aftermath of a very rapid drop in values of equities that led to unrealized losses on CFD contracts for a group of clients operating under one of Saxo Bank’s WLCs.
The company reported that the collateral issue arose from a delay in the bank’s stop-out procedures which was caused by the white label’s set-up and subsequently was postponed due to clients’ confirmation of obligations.
According to the text from Saxo Bank’s interim report for the first half of 2014, the Danish FSA conducted an inspection of Saxo Bank’s client risk management processes in February 2014. Focusing on the WLC’s margin trading in light of the accident mentioned above, “The FSA assessed that the incident was caused by weaknesses in the Bank’s manual risk management of WLC’s margin trading, including that the Bank’s risk management practices were insufficient at the time.”
The document states, “As a consequence the Danish FSA in May 2014 issued Executive Orders and Risk Information. The FSA further inspected and concluded that the Bank’s calculation of its own solvency capital requirements as of end March 2014 was sufficient in light of the Bank’s risk management of clients’ margin trading.”
TradingFloor.com
Following the re-launch of TradingFloor.com as an interactive community featuring a social trading platform, Saxo Bank has achieved what any player in the industry would want to - self-generating leads. And do those numbers look good? - According to data in the firm's Interim Annual Report, over 26,000 members are now active on the website, with 300,000 unique visitors every month, which is up from 45,000 visitors per month last year.
The company also consolidated its Saxo TV offering, integrating it with TradingFloor.com and launching it in multiple language versions on the website, including Russian, French, German, Turkish and Greek, with Spanish and Latin versions of the "Sala De Inversión" website migrating to TradingFloor.com.
Retail Trading & Prop Firms in 2025: Five Defining Trends - And One Prediction for 2026
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
