Saxo Capital Markets, an online trading platform based in Singapore, has introduced a simplified pricing structure to lower trading costs for clients.

At the same time, Saxo has discontinued its account plans, which means clients will no longer incur monthly fees. Instead, they can move to the Platinum or VIP tiers and enjoy more attractive pricing based on their trading activity and/or account value, the company says.

The majority of Saxo’s clients trade in global markets, where a significant component of trading costs come from currency conversion. By slashing its currency conversion cost to 0.25%, clients investing in markets outside of their home currency will see significant savings.

“These changes are driven by the need to offer simpler and more transparent pricing to our clients. Having surpassed the one million client mark and amassed significant scale has enabled us to pass better pricing on to our clients,” says Adam Reynolds, Saxo’s Asia-Pacific chief executive officer.

Investors are typically charged two types of transaction fees: commission fees, displayed as a percentage rate and accompanied by a minimum, and currency conversion costs, incurred when placing trades outside their home currency. In addition to transaction fees, there are also other brokerage fees involved.

While there is strong competition around commission fees, there is less transparency and awareness on the other fees involved when placing a trade. Investors placing small orders end up paying the minimum commission which is more expensive than the commission rate. Over time, these fees compound and significantly erode returns.

“The investing landscape in Singapore is advancing at hyper-speed. We see a trend of investors demanding cost-effective ways to be invested in more geographies, across more sectors and in more asset classes,” Reynolds notes.  “This pricing overhaul is a crucial step in our commitment to pursue win-win with our clients.”