Denmark-originated broker Saxo Bank reported higher trading volumes in the forex (FX) market for October, breaking a four-month streak of consecutive declines. The total FX volume for the past month stood at $112.5 billion, showing an increase of 6% compared to September 2023. The overall monthly volume also recorded a more pronounced uptick.
FX Volumes of Saxo Highest Since May 2023
According to the latest data published by the broker, the average daily volume (ADV) remained steady at $5.1 billion, but the total FX volume rebounded from $106.1 billion. The October values were the highest since May and among the highest this year.
This allowed for a break in the downward trend observed since mid-year, stemming from decreasing investor activity in the markets due to falling volatility .
Saxo's total volume for all asset classes (including commodities, equities, and fixed income) grew from $438.3 billion to $462 billion, with the ADV modestly strengthening from $20.9 billion to $21 billion.
The strongest growth momentum was observed in the FX market and equities, where the monthly volume jumped from $289.1 billion to $297.5 billion.
Compared to October 2022, the figures are mixed. While the total volume turned out to be significantly higher than the reported $432.2 billion, the FX volumes were at noticeably lower levels. Last year, they were at $127.9 billion.
This reflects the situation reported by FxSpotStream. In its case, foreign exchange volumes grew on a monthly basis but fell on an annual basis.
Saxo Bank UK's Profit Dips
The recent financial overview indicated that Saxo Bank's UK branch net earnings decreased 16% to £10.47 million in 2022, notwithstanding an expansion of its clientele by 20,000. The bank experienced a drop in net operating income from £32.1 million to £26.2 million and reported an operating profit of £10.30 million, a decline from the preceding year's £15.56 million. The net profit, despite the shrinkage, was £10.47 million, marking an improvement of 16% from the £12.41 million recorded in 2021.
Corresponding with the Saxo Bank Group's global financial disclosures earlier this year, the UK branch's figures revealed a slight fall of 6% in net profit, totaling DD 711 million for 2022. Nonetheless, the first half of 2023 has already shown a surge of 34% in profits, despite a persistently lower level of trading by retail investors.
Amidst these financial developments, the UK's Financial Conduct Authority has warned about fraudulent schemes imitating Saxo Bank. These "clone firms" are meticulously duplicating the legitimate firm's details, such as names, websites, addresses, and logos, to dupe people into believing they are dealing with a genuine financial institution.
