April’s FX Volume on Saxo Bank Dives 27% MoM

After a continuous surge in trading demand for a few months, Saxo Bank has reported a significant decline in monthly forex trading volumes for April, along with a dip in overall trading demand.

According to the latest numbers, the Danish broker recorded a forex trading volume of $124.2 billion in April, which is down from the previous month’s trading volume of $170.5 billion. That was a decline of 27.1 percent in a month. Additionally, FX trading reduced on a yearly chart as the broker posted a volume of $163 billion for April 2020.

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The daily average trading volume for last month also dropped to $5.6 million from March’s $7.4 billion. However, it is not clear if the demand remained dull throughout the month or if there were some sporadic spikes in trading.

Trading Industry Took a Dive

A similar downturn can be seen across most of the other asset classes that are offered for which Saxo Bank offers retail trading services. In the equities division, the monthly trading volume dropped by 35 percent month-over-month to $114.2 billion. The daily average in equities trading came in at $5.2 billion in April, compared to the previous month which brought in $7.6 billion.

Moreover, demand in commodities trading fell to $31.6 billion from March’s $38.8 billion. However, the fixed income segment, which brings a fraction of Saxo’s total trading volume, witnessed a surge in demand month-over-month. The asset class brought $9.4 billion in volume last month, while the number was $8.3 billion in the previous month.

With mostly dull markets, the overall trading demand on Saxo slipped heavily to $279.5 billion, which is down by almost 29 percent with a daily average of $12.7 billion.

Meanwhile, Saxo reported an annual profit of DKK 750 million for 2020, which jumped from 2019’s profit of DKK 40 million.

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