Saxo Bank Redefines Cash for Clarity

Saxo Bank has announced updates across its platforms, GO, PRO, and Investor, focused on cash redefines. This move aims to provide users with clarity and transparency regarding their account balances and cash management.

The key change involves revising the definition of ‘Cash’ across all platforms. Saxo Bank will segregate accruals, such as financing and corporate actions, from the traditional cash balance. This means that clients may notice a decrease in their reported ‘Cash’ balance after the update, even though their overall account balance will remain unaffected.

To simplify, the new definition of Cash now includes the cash balance plus intraday transactions that are not yet settled. This adjustment aims to streamline client’s perception of their available funds on the platform.

In tandem with this redefinition, Saxo Bank is introducing a new subtotal termed ‘Total Accruals.’ This category will encompass all financing accruals (including unrealized costs like borrowing expenses and interest) and corporate action accruals (anticipatory cash flows from events such as dividends and taxes).

Saxo Bank Redefines Cash for Clarity

While altering the definition and presentation of ‘Cash’, Saxo Bank assures that fundamental financial metrics like Account Value remain unchanged. The calculation of Account Value will now include the new Cash definition (excluding accruals), the value of held positions, and the newly introduced Total Accruals.

Amidst these changes, Saxo Bank reassures its clients that risk-related metrics such as buying power, available margin, or funds available for withdrawal will remain unchanged. These metrics will continue to reflect the same calculations and definitions as before the update, ensuring the consistency and reliability of their platform.

Saxo Bank is revising the definition of ‘Cash’ on all platforms and will send platform notifications to inform all users of these changes. This proactive communication strategy underscores Saxo Bank’s unwavering commitment to transparency and client satisfaction in its financial services offerings.

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