Saxo Bank’s forex volume surged by 27%, reaching $130.5 billion last month

Earlier this year, in April, Saxo Bank recorded its lowest monthly forex volumes since December 2021. Before that, in March, the volumes were extremely high, sitting on $155.5 billion within a single month. In April, that figure dropped to only $102.8 billion.

Now, the data for May shows that the monthly FX volume has once again seen an improvement, completing the month with a 27% surge, leaving the monthly volume at $130.5 billion. The Copenhagen-headquartered retail CFD and forex broker revealed the figures this Wednesday as part of its trading metrics for April.

What did the May figures reveal?

Saxo Bank said that the new monthly volume also increased the daily average volume to $5.7 billion, representing a 12% increase compared to the previous month. Meanwhile, the overall trading volume has surged by 28%, reaching the figure of $407 billion.

The bank’s latest forex volume figures came after a steady decline, periodically interrupted by quick surges. For example, the March surge managed to beat three months of consecutive declines in volume. The volume also slid by 12% in December 2022, dropping to $121.3 billion. It continued to drop in January, concluding the month with a total of $115.2 billion. After that, it nosedived even further, hitting $110.8 billion in February, after another 4% drop.

Other asset classes offered by Saxo Bank have also seen a significant surge in trading activity throughout May. For example, trading volume in commodities surged by 19%, reaching a total of $40.7 billion. Equities surged as well, going up by 31% and hitting $228.2 billion. Even fixed income completed the month with $7.6 billion, which represents a 12% surge.

Saxo Bank sees strong financial performance

As mentioned, the total trading volume surged by 28%, reaching $407 billion in May after rising by $318.78 billion in the past month. Meanwhile, overall, the average daily volume spiked by 11%, totaling $17.7 billion, which managed to beat the $15.9 billion seen one month earlier, in April.

The new forex volume comes at a time when the bank saw strong financial performance. Last month, the firm revealed that its client assets have finally gone beyond $100 billion. The figure is important as it represents a five-fold increase in five years.

THe Danish bank and global financial service provider believe that the growth came as a result of its strategy of transferring the advantages of central bank rate hikes to the users. However, Saxo Bank was also recently flagged by the securities regulator in Australia, supposedly for deficiencies in its TMDs (target market determinations) due to some CFD offerings.