Quote from Chood:
Lon Eagle corrected me, although my post, read entirely, shows that I meant 300 DKK, not 30 DKK.
My Saxo customer account agreement, para 22.3 states, "The Guarantee Fund for Depositors and Investors Act provides security for cash deposits up to DKK 300,000 and for securities up to EUR 20,000 in case of Saxo Bank's financial default." Lon Eagle is correct that the DKK amount for cash deposits presently converts into about 40k Euros, half that for securities.
But Saxo's default is not the worry or issue. It's business model ensures that it makes money -- like a bookie who collects every losing bet instantly and rarely pays off the winners (or at least gets to choose when, if, and how much to pay winners). That explains why Saxo is not FSA licensed in the UK and cannot be licensed in places like Australia, where regulation prohibits exploitation of customer accounts. For those reasons, I would avoid not only Saxo, but also the dealers it white-labels its platform to. The business model (ergo the platform) depends on exploiting the customer, or certainly enables that.
The Saxo customer account agreement states -- in fine print mind you -- that Saxo trades against customers and prices currency pairs differently for different customers at the same time. We read those provisions, of course, before sending Saxo money to open our account, but was assured by it that every customer is streamed the same prices and spread for every pair, and that every customer's order is executed without spread shifting, other price discrimination, or dealer intervention. That proved untrue in our account in short order. With real money on the line, the Saxo platform did not operate like the demo. Profitable limit orders were not filled, with excuses given as to why.
