Is Saxo Bank too late?

Saxo Bank is opening a representative office in China to tap into the bourgeoning economy, one of the fastest growing in the world.

Saxo Bank, an investment bank that specialises in online investments in the international capital markets, will be launching its trading platform, known as the SaxoTrader. This online platform enables clients to trade currencies, shares, CFD contracts, futures, options and other derivatives as well as to manage their own portfolio.

“In the Asian-Pacific region you find a client base that is knowledgeable, technologically sophisticated and receptive to information on investment instruments. The future of online trading will be determined by self-directed investors, who are eager to diversify and ready to learn. Saxo Bank’s value proposition is uniquely suited to Asian investors in that kind of environment” said Shailendra Robin Patel, Saxo Bank’s Senior Executive Director for Global Business Development.

Overseas banks in China have been declaring sharp business growth. These foreign-funded banks, with clear advantages in expertise and credentials in capital market businesses, have made big fortunes from securities brokerage businesses in the first half of this year.

Take Standard Chartered Bank for example. It has doubled its business income in China, with pre-tax profit rising 30 percent to US$1.8 billion. Many overseas banks have been quick in adding new outlets, extending their financial domination from big cities to smaller ones. Standard Chartered Bank will have 40 outlets in 15 cities this year while Bank of East Asia will have 37 branches and sub-branches.

Saxo Bank will be opening its first branch in Beijing.

With so many foreign banks embedded in the financial heartbeat of this booming economy, and the local banks moving rapidly into the highly profitable wealth management arena, is Saxo Bank too late? And is the investor sufficiently ‘self-directed’ to trade such a complex range of investment products?