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Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 13 March 2013 at 6:58 GMT

SaxoTrader: From early beginnings to the world's best

Co-founder and CEO / Saxo Bank A/S
Denmark

Saxo Bank has come a long way since starting its own IT development efforts in the mid-1990s. Online trading was initially conducted by companies such as E-Trade and Datek, which were trading US equities.

Back then, the industry did the majority of its trading in global capital markets via telephone, supported by just a few dedicated and very expensive institutional single-product trading platforms, which required dedicated and costly communications lines. Trading multi-assets on one platform via the internet did not exist. 

Private individuals, family offices, small- to mid-sized hedge funds and asset managers did not have efficient access to global capital markets unless they used the phone and paid up for a less than fantastic level of product, price and service.

This has most certainly changed and I honestly think it is fair to say that Saxo Bank has been at the forefront of that development - and we still are.  

Everything we do at Saxo Bank is focused on developing “the best tools to reliably trade the world’s markets - anytime, anywhere”.

For a long period of time, making a profit trading capital markets was quite easy and many made fortunes riding the massive bull markets in equities. 

Before the dotcom bubble and even until the global financial crisis started in 2008, most investors were used to making money trading their local stocks and bond markets.

This has now changed!

Japanese investors were the first to understand, the hard way, unfortunately, that stocks do not always just rise. The Nikkei topped out at the beginning of 1990, reaching about 40,000. In 2008 - 18 years later - we saw the the index hit its lowest level below 7,000. The Nikkei is now trading at about 12,250.

Nikkei Monthly

Many other global investors have experienced volatile and sometimes very quickly declining markets from 2000 until today: the first quarter of 2013. The S&P 500 topped out at about 1,550 in 2000, it fell to about 760 in 2002, rose again to around 1,575 in late 2007, then fell again to 665 at the beginning of 2009. It is now back testing its highs in the 1,555 area.

sp monthly

This is indeed a roller coaster and a long-time bull investor did not make money in that period. In fact, they most likely lost it - if not in the markets, then from buying a lot of Pampers to protect against the worst side effects of a sensible stomach.

I mention this because it is not a law of nature that equities are in a permanent bull market, hence it is critical to be able to trade all relevant capital markets, no matter what the macro economy is doing. It is known that there is typically a difference in time between the different macro cycles of various asset classes. 

In other words, if you can trade in equities, fixed income, soft commodities, precious metals, energy products and foreign exchange in global market places with access to all relevant geographical regions using the likes of cash instruments, various leveraged instruments, futures, options and CFDs, then you control the best possible tools to reliably trade the global markets, anytime, anywhere.

This is a powerful cocktail and forms the concept and ideas behind everything we do at Saxo Bank.

Add to this trader communities, education, risk-management tools, superior charts, news, idea forums, copy- and auto-trading capabilities, support for all types of interests of global traders and investors and you end up with the best possible multi-asset trading platform in the world.

At Saxo Bank, we are 100 percent committed to continuously listening to our growing base of active traders and investors as we constantly do our best to always develop and stay at the very frontier of global capital markets trading and investing.

It’s all about creating opportunities and facilitating the best possible experience for our clients. 

We cannot guarantee that our clients always make the right decisions in the markets, but we will try to ensure that they have the best possible tools and the most relevant information to make the best possible decisions and have the best possible and most efficient access to the global market place.

This goes for all individual traders and investors - both professional and private - who are keen to make their own trading decisions, but we are also developing tools and support for investors with a more generic longer-term capital allocation approach.

All in all, we are going to launch a large variety of new tools and innovative ways for global traders to interact and share views and knowledge. We will continuously comment on all on these initiatives here on TradingFloor.com. 

We have some extremely exciting new innovations that we will launch over the course of 2013 in terms of integrated products across our platforms and new ways to find inspiration and ideas to trade the global markets and to manage risk, for instance.

I am very proud and look forward to showcasing everything that we have in the pipeline. In the meantime, I suggest that you familiarise yourself with TradingFloor.com and our many new products, platforms and services. 

But I can assure you that there are some extremely interesting developments coming up.

In the meantime, if you have ideas or suggestions for us, please e-mail Rune Bech, who runs TradingFloor.com and a number of other interesting initiatives focused on the digital platform experience at Saxo Bank, at rbe@saxobank.com

Best, Kim

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