In supporting your financial aspirations and trading objectives, we provide both funding and liquidity for your trading activities in margin products. Our financing rates apply when you hold an open position in a margin product overnight e.g., a Contract for Difference (CFD) on a single stock.

Your financing rates consist of two components: 1) Saxo Bid/Offer financing rates and 2) commercial product markup/down.

The financing rates are set as:

• Bid = Saxo Bid financing rate - commercial product markdown
• Offer = Saxo Offer financing rate + commercial product markup

Saxo Bid/Offer financing rates

Saxo Bid/Offer financing rates refers to our pricing on financing i.e., we are charging floating interest rates. We use Alternative Reference Rates (ARRs) as an input when setting Saxo Bid/Offer financing rates. For currencies without a designated ARR, a money market rate, monetary policy rate or other relevant financial benchmark will apply as an input. 
Saxo Bid/Offer Financing Rates have a floor of zero percent, i.e. the interest rates can not be negative rates.

When you buy CFDs on single stocks e.g., in Hong Kong Dollars, we will convert our funding base into Hong Kong Dollars to finance the underlying purchase of the stocks. Conversely, if you are selling CFDs on a single stock e.g., in South African Rand, we will convert the proceeds from sale of the underlying stocks into our funding base currencies. These operations require active trading in various financial products in the interbank market to manage the liquidity cash flows generated by your trading activities.

ARRs have been developed by working groups consisting of national and international industry associations, market participants, as well as central and reserve banks. They are publicly available and are recognised by National Competent Authorities (NCAs), market participants, and national and international financial industry associations. For more information on the relevant financial benchmarks listed below, please consult the financial benchmark administrator, central or reserve bank.

The Saxo Bid/Offer financing rates are proprietary to Saxo Bank Switzerland and subject to the provisions in our General Terms & Conditions. One provision could be pass-through of cost related to external factors, such as changes in domestic and/or foreign monetary or credit policies that affect the general interest level or changes in cost structures with liquidity providers and brokers.

As a reference, see applicable Benchmark Rates in the section below.

Commercial product markups/downs

For more information on our general pricing, please consult the page Pricing Overview 

Interest calculation and settlement

Interest will be calculated daily and settled monthly – within seven business days of the end of each calendar month.

The Saxo Bid/Ask rates are proprietary to Saxo Bank Switzerland and subject to the provisions in the General Business Terms. One such provisions could be pass-through of cost related to external factors, such as changes in domestic and/or foreign monetary or credit policies that affect the general interest level or changes in cost structures with liquidity providers and brokers.

We generally use Alternative Reference Rates (ARRs) as an input when setting Saxo Bid/Ask rates. For certain currencies, a money market rate, monetary policy rate or other relevant financial benchmark may apply as an input instead.

The benchmarks used when setting interest rates on deposits and financing rates on margin products are listed in the table below. Saxo Bank Switzerland reserves the right to apply a business lag to the publication of financial benchmarks when calculating and booking unrealised and realised interest.

Custody fees for stocks and ETFs

For accounts with positions in stocks or ETFs, a custody fee is applied depending on your account tier and securities portfolio value. The custody fee is calculated daily using end-of-day position values and billed monthly, subject to 8.1% VAT. No minimum monthly custody fee is applied. The maximum charge applied amounts to CHF 10 per month.

No custody fees are charged for mutual fund investments or bond holdings.

Security transfer out incurs a fee of CHF 50 – or the equivalent amount in the account currency – each security position.

Clients with a Classic Account placing orders over the phone, chat or email will be subject to a manual order fee of CHF 50 per order. Certain products that cannot be traded on the platform may be exempt.