Saxo Bank Reports Worst Monthly FX Volumes in 4 Years

November has proven to be a tough month for trading providers, with firms widely reporting a drop in their trading volumes. Joining the growing list of brokers in this situation is Saxo Bank.

During November, the multi-asset broker posted a month-on-month drop across the board for foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term), commodities, fixed income, and equities trading volumes.

FX trading, which attracts the largest volumes for the broker, noted a monthly trading volume of $107.4 billion in November. When measuring this against the previous month, which had a volume of $141.2 billion, it is lower by 23.9 percent.

The trading volume in November is the lowest monthly figure for the whole of 2019. The next lowest volume was reported in April. Still, the fourth month of the year achieved a trading volume of $124.3 billion, which is 13.6 percent higher.

In fact, November’s volume is the lowest monthly FX trading volume achieved since at least the beginning of 2016. On a yearly comparison, last month’s volume has shrunk by 37.4 percent, against a trading volume of $171.7 billion in November of 2018.

Commodities trading falls for Saxo Bank

The monthly trading volume for commodities was also down month-on-month. Specifically, it fell by 4.7 percent from $33.7 billion in October of 2019 down to $32.1 billion in November, with an average daily volume of $1.5 billion. However, when weighing it against the same period of the previous year, trading has increased by around 34 percent.

Fixed-income trading during the month of November also slumped by about 27 percent, coming in at $8.4 billion. The average daily volume also fell from $500 million in October down to $400 million in November.

The second last month of 2019 also brought a drop in trading for Equities. In particular, volumes fell from $62.8 billion in October to $44.7 billion during November. As a percentage, this represents a drop of 28.8 percent.