Saxo Bank Securities Co., the Japanese unit of Saxo Bank, a Danish bank specialized in providing online trading services, said on Friday it has changed the margin rates on trading in the contracts for difference (CFDs) on stock of nine international companies. Most CFDs on these stock have been increased to 25% for both retail and institutional clients.
Investors who trade with Saxo Bank’s Japanese unit CFDs on stocks of LinkedIn Corp., Syngenta, Tesoro Petroleum Corp., Genmab and First Solar Inc. will be offered a new margin rate of 25% for both individual and corporate clients, which is an increase compared to the previous rates of 20% for individual traders and 15% for corporate customers.
Traders of CFDs on the shares of Yahoo Inc. and Softbank will be offered a new margin rate of 25%. Previously, these CFDs were traded with a margin rate of 20% for individuals and 10% for corporate clients. The margin for shares of Netflix has been altered to 25%.
Meanwhile, the margins for CFDs on stocks of Deutsche Bank for institutional clients have been increased to 15% from 10%, while for retail traders they remain unchanged at 20%.
The new rates for Softbank will come into effect as of 15 February, while trading in the CFDs on the rest of the stocks will be under the new the margin rates as of 13 February.
On Wednesday, Saxo Bank Securities Co. introduced new margins on CDSs on the stocks of another three companies. It doubled the margins rates for stock of Freeport-McMoran Inc. and Chesapeake Energy to 50% and 100%, respectively, for both retail and institutional clients. Institutional margins for CFDs on stocks of Vestas Wind Power were decreased to 10%, while retail margin rates were not changed.
Copenhagen-based Saxo Bank acts as a Market Maker and has 30,000 financial instruments available on its platforms, including forex, binary options on forex and stocks and contracts, CFDs, stocks, futures, and bonds, among others. It operates through subsidiary companies across Europe, Asia and the Middle East, Australia, South America, and South Africa.
The company is licensed and regulated by the Danish Financial Supervisory Authority (FSA) and has units that are fall under the regulation of a number of other regulatory bodies worldwide.
Source: Saxo Bank Securities Co.