Worked example
Practising on Saxo Bank's numbers
This is an exercise sheet, not a review. We are going to take three things that Saxo Bank publishes — a spread, a ladder of account types and a list of licences — and turn each of them into something you can do arithmetic with. By the end you should be able to repeat the whole exercise on any firm you come across, which is the actual skill being taught.
The figures we are working from
Nothing below is our estimate. Where a firm has not published something, or we could not read it on a source we trust, the box says so instead of guessing — a habit worth copying when you build your own broker notes.
Exercise one — turn the spread into money
The spread is the gap between the price you can buy at and the price you can sell at, and you pay it the instant you enter. Saxo Bank publishes 0.9 pips on EUR/USD. On its own that number means nothing. Here is how it becomes money.
A 1.0-lot EUR/USD round turn here costs about $9.00 in spread at $10 a pip — before any commission.
Now do it without us
Take the spread of any other firm on the practice index, run the same four steps, and write both figures down — per lot and per micro. When you can do that in your head you have stopped shopping on marketing copy and started shopping on cost. The pip value calculator will check your working on pairs where the pip is not a flat ten dollars.
Exercise two — read the account ladder
Account tiers are a pricing structure dressed as a status ladder. Saxo Bank offers 3 rungs. Read them as a question — what does each rung ask of me, and what does it give back? — rather than as a set of prizes to climb towards.
- ClassicThe entry rung. Whatever the published spread applies to, it is almost always this one — so this is the rung your arithmetic above describes.
- PlatinumA higher rung usually trades a tighter spread for a commission, a larger deposit, or a status test. Convert both pricing models to money per lot before you decide either is cheaper.
- VIPA higher rung usually trades a tighter spread for a commission, a larger deposit, or a status test. Convert both pricing models to money per lot before you decide either is cheaper.
Account names as published: Classic, Platinum, VIP. Platforms listed: SaxoTraderGO, SaxoTraderPRO, SaxoInvestor, Mobile apps.
Exercise three — what this licence list means for you
A long licence list is not automatically a good sign. What matters to a beginner is a narrower question: which entity would hold my money, and who supervises that entity? Those are often not the same as the impressive name at the top of the list. Here are Saxo Bank's lines, each with a plain reading.
| Regulator | Entity on the register | Number | What that means for a beginner |
|---|---|---|---|
| Danish FSA (Finanstilsynet) · Denmark | Saxo Bank A/S | 1149 | a top-tier regulator: compensation scheme, capital rules and a public register you can search yourself |
| FCA · UK | Saxo Capital Markets UK Ltd | 551422 | a top-tier regulator: compensation scheme, capital rules and a public register you can search yourself |
| FINMA · Switzerland | Saxo Bank (Schweiz) AG | not verified | a top-tier regulator: compensation scheme, capital rules and a public register you can search yourself |
| MAS · Singapore | Saxo Capital Markets Pte Ltd | not verified | a top-tier regulator: compensation scheme, capital rules and a public register you can search yourself |
| FSA Japan · Japan | Saxo Bank Securities Ltd. | not verified | a top-tier regulator: compensation scheme, capital rules and a public register you can search yourself |
5 of these lines are top-tier — held by Saxo Bank A/S, Saxo Capital Markets UK Ltd, Saxo Bank (Schweiz) AG, Saxo Capital Markets Pte Ltd, Saxo Bank Securities Ltd.. If you are onboarded to a different entity than those, the protections attached to the top-tier line are not yours, however prominently the regulator's initials appear in the marketing. We could not confirm a licence number on 3 lines, which is exactly the kind of gap you should close yourself on the regulator's own register before depositing.
The record behind these numbers
- For a beginner, this matters: saxo Bank A/S holds Danish FSA licence no. 1149 (company registration no. 15731249).
- For a beginner, this matters: saxo Bank A/S was founded in Denmark in 1992 and received its banking licence in 2001.
What we could not verify
The following are unconfirmed and are deliberately left blank rather than estimated: Nobody has published FINMA licence number in a form you could check yourself.; Nobody has published MAS licence number in a form you could check yourself.; Nobody has published japan FSA registration number in a form you could check yourself.; Nobody has published exact minimum deposit (varies by entity; Saxo advertises no minimum in several jurisdictions) in a form you could check yourself.; Nobody has published EUR/USD spread is a reported VIP/Platinum-tier figure rather than a published live average in a form you could check yourself.. Confidence in this file overall: high. When you build your own notes on a firm, keep a list like this one — the gaps are more useful than the figures, because they tell you what to go and check.
Run the same exercise on another firm
PipMentor does not rank brokers, does not award badges and does not tell you where to open an account. This page exists so the arithmetic you learn in the curriculum has real numbers to bite on.