Saxo Japan Adjusts Fixed Spread Period for Key FX Pairs
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.
About the Adjustment for 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) |
What Does It Mean?
Here is what it means for users.
Reduced Fixed Spread Trading Window
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.
Recent Changes in Other Pairs
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.
Potential Impact on Costs
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.
More Stable Trading Conditions
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.
Strategy Adjustments
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.
Increased Risk Management Considerations
With the potential for more fluctuating spreads outside the fixed period, traders might need stricter risk management practices to avoid unexpected costs during trades.
About Saxo Bank
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.
Way Ahead
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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