Saxo Capital Markets UK Profits Drop Despite Client Growth Surge

Saxo Capital Markets UK, the London-based trading arm of Danish investment firm Saxo Bank, posted a significant drop in profits for 2024, even as it recorded a sharp rise in new clients following a cut in trading fees.

According to the company’s latest filings with Companies House, annual profit declined to £7.6 million, down 32% from £11.2 million the year before. Profit before tax also dropped by nearly 30% to £10.4 million. The decline came as the company slashed trading commissions and eliminated several retail fees in an effort to attract more users to its online trading platform.

The strategy appeared effective in terms of user acquisition. Saxo UK brought in 3,600 new active clients during the year—almost double the 2,000 it added in 2023. Client assets under management also rose by 14% to £2.63 billion.

But the downside was clear: revenue took a hit. Trading income fell by £3.5 million to £24.4 million, which the company attributed to both lower commission fees and a muted trading environment marked by reduced market volatility.

Saxo Capital Markets UK Profits Drop Despite Client Growth Surge

“Lower pricing combined with low market volatility throughout most of 2024 resulted in a drop in the trading revenue for the company of £3.7m,” the company stated in its annual report.

The company’s cost base remained under control, with administrative expenses largely unchanged at £16 million. But its cost-to-income ratio rose to 66%, up from 57% in 2023—reflecting thinner margins amid pricing competition. Shareholders’ equity dropped to £62.4 million, in part due to an increased dividend payout of £11.3 million, compared to £10 million the year before.

On the upside, Saxo UK benefited from higher interest rates. Net income from client deposits rose to £10.2 million, up from £9.1 million, helping offset some of the loss in trading revenues.

Saxo UK, like many online brokerages, faces growing competition in a market increasingly driven by low-fee offerings and ease of access for retail traders. The company acknowledged that challenging macroeconomic or geopolitical factors could weigh on demand.

Despite the pressure, Saxo remains in a strong regulatory position, with £54.7 million in capital reserves—far above its £18 million requirement.

There are also signs of a potential rebound. The company reported stronger trading activity in early 2025, spurred by recent geopolitical events. It also introduced a Flexible ISA product in April, following a surge in interest in its Stocks and Shares ISA earlier this year.

In March, Chairman Richard Balarkas stepped down after a decade with Saxo Bank UK. His departure marks the end of an era as the company prepares for its next phase of growth under evolving market conditions.

Company Overview

Saxo Bank stands out as a premier multi-asset broker, offering exceptional research capabilities and an exceptional trading platform, along with an impressive array of over 70,000 tradable instruments, which include spot forex, FX options, NDFs, CFDs, stocks, stock options, exchange-traded funds, ETNs, futures, and 33,000 bonds. For engaged traders, Saxo Bank offers a comprehensive and immersive trading journey, boasting an extensive toolkit, research resources, and premium features.

Discover more in our Complete Review.