Saxo Bank Allows Fractional Index CFDs Trading for Japanese Traders

The Japanese operation of Saxo Bank has introduced fractional stock index contracts for differences (CFDs) trading, thus lowering the trading barrier for retail traders.

Announced earlier this week, the broker lowered the minimum trading unit of the stock index CFDs from 1 to 0.1 or 0.01, which depends on the trading instrument. The platform offers more than 20 stock index CFDs to traders.

“Until now, the minimum trading unit for the US N100 stock index was 1, so a minimum of 176,951 yen was required for trading. However, since the minimum trading unit has been changed to 0.01, it is now possible to trade from 1,770 yen,” the broker explained.

Lowering the Trading Barrier

CFDs are complex derivatives instruments but allow traders to take positions in both bull and bear markets. These instruments are popular among short-term traders rather than long-term investors.

Saxo Bank is a Denmark-headquartered offering online trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more money being spent on advertisements and sponsorships to attract potential traders. Secondly, more traders are aware of the ease in applying for online accounts; the low barrier to entry now means a trader only needs to deposit virtually as little as one wants in order to places trades. Thirdly, the improvement of financial technology, better performing hardware and software, leading to quick and consistent execution, which in turn is helped by higher liquidity, and reduced trading costs such spreads and commissions, have fueled the retail trading industry immensely. How to Trade Online?Before the emergence of the Internet, traders would have to place trades over the phone, which could be rather cumbersome, especially if one wanted to place multiple trades in a short space of time. Indeed, online trading has opened a new field of trading in the form of foreign exchange scalping, whether manually, or by way of automated trading robots. An example of online trading is the trading the foreign exchange market with a forex broker, using a platform which the broker will provide. The trader installs the platform on their computer, and they are given the information and tools needed to start trading. The most common online retail platform for forex trading is known as MetaTrader 4 (MT4). Read this Term services. Its services are available across Europe and several countries in the Asia Pacific.

The introduction of fractional trading with stock index CFDs in the Japanese market came months after the broker introduced the same in the other markets.

“Since the number of trading units has decreased at once, it has become easier to trade,” Koji Yamanaka, CEO of Ascendant, highlighted.

Japan is a major market when it comes to retail trading Retail Trading In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail traders in every market ranging from commodities to stocks. The forex market is by far the largest and has the most retail traders. Retail foreign exchange trading is a small segment of the broader foreign exchange market where individuals speculate on the exchange rate between different currencies. In 2020 it is estimated that the forex market will exceed 7 billion dollars in daily activity. Retail Trading Sector Continues to GrowThe retail sector has developed with the advent of dedicated electronic trading platforms and the internet, which have allowed individuals to access the global currency markets. In 2016, it was reported that volume from retail foreign exchange trading represents 5.5% of the whole foreign exchange market or $385 million in daily trading turnover. Individual retail traders can access the same trades as central banks and online financial institutions. The retail forex trading industry is growing every day with the advent of trading platforms and their ease of accessibility on the internet.Retail traders rely on brokerage services who provide access to markets in the form of comprehensive trading platforms. The most common of these are MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which offer trading to forex, stocks, contracts-for-difference (CFDs), and other assets. In finance, retail trading refers to individual traders, trading through a broker, or on a platform. This can include novice traders and experienced traders. Trading and investing are divided into two categories, retail and institutional. Institutions include investment banks like JP Morgan or Citibank and global central banks like the US Federal Reserve and the European Central Bank. When we talk about retail trading however, we usually are referring to forex trading, but there are retail traders in every market ranging from commodities to stocks. The forex market is by far the largest and has the most retail traders. Retail foreign exchange trading is a small segment of the broader foreign exchange market where individuals speculate on the exchange rate between different currencies. In 2020 it is estimated that the forex market will exceed 7 billion dollars in daily activity. Retail Trading Sector Continues to GrowThe retail sector has developed with the advent of dedicated electronic trading platforms and the internet, which have allowed individuals to access the global currency markets. In 2016, it was reported that volume from retail foreign exchange trading represents 5.5% of the whole foreign exchange market or $385 million in daily trading turnover. Individual retail traders can access the same trades as central banks and online financial institutions. The retail forex trading industry is growing every day with the advent of trading platforms and their ease of accessibility on the internet.Retail traders rely on brokerage services who provide access to markets in the form of comprehensive trading platforms. The most common of these are MetaTrader 4 (MT4) and MetaTrader 5 (MT5), which offer trading to forex, stocks, contracts-for-difference (CFDs), and other assets. Read this Term. But the market is dominated by the local brokerages with the presence of a small number of global brands. Meanwhile, the Japanese arm of Saxo Bank is ending its support for MetaTrader 4, a popular trading platform for trading forex and CFDs, next month.

Saxo Bank also onboarded several key executives in recent months to strengthen its operations. Among the new appointments is Mette Skou as Global Head of Business Partnering and Ronni Bollerup Butler as Head of Electronic Trading.