Saxo Bank Securities Co., the Japanese arm of multi-asset trading specialist Saxo Bank, has announced changes to its trading conditions for select foreign exchange (FX) pairs.
Saxo Bank Securities Co., Ltd., the Japanese branch of Saxo Bank, is adjusting trading conditions for five FX currency pairs.
This decision responds to ongoing market volatility and aims to provide customers with more stable spreads. The change involves shortening the period during which fixed spreads are available for the selected pairs.
The new conditions will take effect on September 3, 2024. Previously, Saxo Japan suspended fixed spreads on the AUD/JPY pair.
| Currency Pair | New Fixed Spread | Old Trading Period | New Trading Period |
| USD/JPY (US dollar/yen) | 0.2 pips | 8:00 AM – 4:59 AM the next day (EST) | 8:00 AM – 3:59 AM the next day (EST) |
| GBP/JPY (British pound/yen) | 1.2 pips | 9:00 AM – 5:59 AM the next day (EDT) | 8:00 AM – 3:59 AM the next day (EST) |
| EUR/USD (Euro/US dollar) | 0.4 pips | 8:00 AM – 4:59 AM the next day (EST) | 8:00 AM – 3:59 AM the next day (EST) |
| AUD/USD (Australian dollar/US dollar) | 0.6 pips | 9:00 AM – 5:59 AM the next day (EDT) | 8:00 AM – 3:59 AM the next day (EST) |
| GBP/USD (British pound/US dollar) | 0.9 pips | 8:00 AM – 4:59 AM the next day (EST) | 8:00 AM – 3:59 AM the next day (EST) |
Here is what it means for users.
The period during which fixed spreads are available will be shortened by one hour. This change might impact traders who rely on specific trading windows for consistency in their strategies.
The recent suspension of fixed spreads for AUD/JPY reminds traders that conditions can change quickly, reinforcing the importance of staying updated on broker announcements.
The reduced fixed spread window could lead to wider spreads outside of this timeframe, increasing trading costs, especially for scalpers and high-frequency traders who depend on tight spreads.
By limiting the fixed spread period, Saxo Japan aims to offer more stable and predictable spreads during market hours when liquidity and price stability are generally higher.
Traders relying on fixed spreads for certain pairs may need to reassess their strategies to accommodate the narrower time window. This could involve adjusting trading hours or reconsidering the types of trades executed during non-fixed spread times.
With the potential for more fluctuating spreads outside the fixed period, traders might need stricter risk management practices to avoid unexpected costs during trades.
Saxo Bank Securities provides online trading and investment platforms that give clients access to various financial instruments, such as Forex, stocks, CFDs, futures, funds, bonds and spreads. The company is an online broker with a bank license but does not offer traditional banking products.
Saxo Japan’s way forward involves further strengthening its market adaptability by closely monitoring global financial trends and adjusting trading conditions accordingly. Key priorities will be expanding its product offerings and integrating more advanced risk management tools.
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