For the provision of the service Saxo Bank charges a Service Fee of 0.9% p.a. calculated on the value of the Balanced Portfolio account. The fee is inclusive of VAT where applicable.
The Service Fee is calculated on a daily basis and charged at the end of each quarter. If you stop your investment in-between quarters the accumulated amount of Service Fee will be charged at that time.
We do not charge trading commissions when we implement your initial investment or when we rebalance your portfolio. Furthermore, we do not apply custody fees, inactivity fees or apply minimum ticket fees to your portfolio.
Please note, that if you choose a Balanced Portfolio that is denominated in a different currency than that of your funding account you will incur a currency conversion fee (0.5% of the invested amount per conversion).
The manager of the Exchange Traded Funds also charges a fee for managing the fund’s assets. This charge is called an Expense Ratio and is deducted from the value of the assets held by the fund so the price of the ETF is net of the Expense Ratio. The total Expense Ratio incurred by each Balanced Portfolio can be found in the description of each portfolio and is separate from the Service Fee.
Calculated example for the Service Fee:
A client invests 20,000 EUR on 1st April
Starting account balance is 20,000 EUR. Service Fee = 0.9% p.a., payable quarterly in arrears
The service fee is calculated every day.
The daily service fee amount is calculated according to this formula:
End of Day Account Balance * (Service Fee Percentage / 365)
The fee for the first day is calculated as follows: 20,000 * (0.009 / 365) = EUR 0.49
To simplify the example we assume that the account value remains at EUR 20,000 for April (30 days), EUR 21,000 for the rest of the quarter (May and June = 61 days)
With these assumptions the accrued service fee for the quarter can be calculated as follows:
(20,000*(0.009*(30/365)) + (21,000*(0.009*(61/365)) = EUR 46.38
Please note that the actual figure may vary slightly due to rounding.
Account situation at the end of the quarter:
Beginning of quarter account balance
P & L
End balance before fees
End of quarter account balance
*all figures in EUR
The Service Fee is in addition to the ETFs' Expense Ratio. The Expense Ratio is deducted from the assets of the ETFs and paid to the manager of the ETFs.