Saxo’s Forex Trading Volume Stagnates in Summer

The widely recognized retail trading brand Saxo Bank disclosed its August monthly metrics, demonstrating a slight reduction in monthly forex trading volume. It fell to $112.3 billion, a minor dip from $112.9 billion in July. The daily average volume also experienced a fall, descending to $4.9 billion from $5.4 billion, a 9.2% decline.

Summer Holidays Impact Saxo’s Forex Demand

The mild demand was anticipated, reflecting the summer holidays’ effect on trading demand. This pattern is not unique to Saxo Bank and can be observed in other retail and institutional trading platforms. Since the year’s start, March witnessed the peak of FX trading, hitting a monthly volume of $155.6 billion.

Compared to the same period last year, August’s demand improved. With forex trading volumes at $109.8 billion in August 2022, the recent figures display a slight 2.2% increase.

Saxo Bank operates from Denmark, maintaining a significant international footprint, particularly in Asia-Pacific. Apart from forex, the bank also handles equities, commodities, and fixed income. It provides crypto CFDs in selected markets, although these numbers are not routinely reported.

Earlier in the year, Saxo Bank was advised by Denmark’s financial markets supervisor to relinquish its cryptocurrency holdings. Saxo Bank also became a Systemically Important Financial Institution (SIFI) in Denmark, subjecting it to stricter capital requirements.

Equity Demand Skyrockets

Equity demand reached new heights in August, recording a monthly volume of $295.8 billion. The increase from July was $222.1 billion in trading volume. The daily average for equities instruments hit $12.9 billion, an increase from July’s $10.6 billion.

Moreover, commodities demand rose to $37.9 billion from $29.6 billion, and volumes with fixed-income instruments climbed to $7.8 billion from $7.3 billion.

While forex demand remained stagnant, the increased volumes of other asset classes, particularly equities, pushed Saxo’s total monthly volume to $453.7 billion. It marks a monthly increase of approximately 22% and an impressive 40.5% increase year-over-year.

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