The monthly volume of foreign exchange (forex) trading on the Saxo Bank platform significantly decreased in February to $92.4 billion from $106.7 billion in the previous month. That was a month-over-month decline of 15.4 percent.

FX Demand Drops Significantly

The overall monthly forex volume on the platform dipped below $100 billion last month for the first time in two years. It is only above the $95.7 billion monthly forex volume the company posted in December 2021.

The daily average of FX trading on Saxo in February came in at $4.4 billion, compared to $4.9 billion in January. Year-over-year, the latest monthly volume diminished 16.6 percent, and the daily average contracted 20 percent.

The drop in the forex volumes dragged the overall total monthly volume to $358.3 billion from $375.5 billion, a reduction of 4.5 percent. However, the daily average for both months remained similar at $17.1 billion.

Other Asset Classes Held Ground

While the drop in forex demand was significant, demand for other asset classes also fell marginally. Equity, the top asset class on Saxo in terms of trading volume, ended the month with $217.4 billion, down from $219.7 billion in the previous month. However, the daily average of equities jumped to $10.4 billion from $10 billion.

Commodities followed a similar trend: the monthly volume declined to $39 billion from $39.3 billion, while the daily average jumped to $1.9 billion from $1.8 billion. When it comes to fixed-income instruments, the monthly volume dropped to $9.5 billion from $9.8 billion, but the daily average escalated to $0.5 billion from $0.4 billion.

Meanwhile, Saxo Bank's revenue for 2023 advanced to DKK 4.48 billion from DKK 4.45 billion in the prior year. However, its net profit decreased 8.1 percent to DKK 711 million.