After a shy month, demand for Saxo Bank's forex instruments rose again in April. According to the latest figures, the monthly volume of Forex instruments on the platform reached $99.3 billion last month. The daily average also improved to $4.5 billion.
Forex trading volume is recovering from the bottom
The rebound occurred last month after Saxo Bank reported its lowest monthly volume since 2016 in March. That month, the platform handled just $85.1 billion in foreign exchange volume, down 7.9 percent in a month and 45.3 percent in a year.
The latest figure shows that forex trading volume in April rebounded by more than 16.6% month-on-month, while year-on-year it declined by 3.4%. Despite a recovery from lower demand in the previous two months, the latest figure is still lower than other months in the past two years.
The daily average foreign exchange also rebounded to $4.5 billion, rebounding from $4.1 billion in March and $4.4 billion in February.
Record month for stocks
At the same time, demand for stocks showed significant improvement, reaching $303.7 billion in monthly volume. On a monthly basis, demand for shares jumped by about 27 percent, while on an annual basis it rose by a staggering 74 percent. It is also a record for monthly volume of stocks.
The daily average for stocks reached $13.8 billion last month, compared to $11.4 billion in March 2024 and $8.7 billion in April 2023.
Headquartered in Denmark, Saxo Bank was founded as a brokerage in 1992, and was rebranded to its current name in 2001 after obtaining a banking licence. Apart from Forex and stocks, the company offers trading services in commodities and fixed income instruments. The platform also offers CFDs for cryptocurrencies in some markets in the Asia-Pacific region but does not publish those quantities.
Monthly demand for goods also improved, reaching $70.7 billion, compared to $44.1 billion in the previous month. However, fixed income saw monthly volume decline to $9 billion from $9.3 billion.
The increased demand for stocks and foreign currencies also pushed Saxo Bank's total monthly volume to $482.7 billion, an increase of 27.8 percent month-on-month and 52.4 percent year-on-year.
Meanwhile, Saxo Bank is said to be considering selling its minority or majority stake at a valuation of between €1.5 billion and €2 billion. Earlier, the Danish broker failed to complete a SPAC deal that would have taken it public.
This article was written by Arnab Shomi at www.financemagnates.com.