5 ways to capitalise on competitive pricing to diversify your investment portfolio
With Saxo Markets announcing reduced commission fees, we look at the opportunities this presents for investors.
Sponsored by Saxo Markets (AFSL 280372). In January 2024, Saxo Markets has reduced the prices of its commission pricing by up to 87%. To find out more about how this can benefit your investing and to get started, visit the Saxo Markets website.
January 2024 has already been a big month for Saxo Markets. The company announced a significant restructure in its commission pricing, with reductions of up to 87%.
Changes like this in the brokerage market represent a number of opportunities for investors. So today, we're taking a look at some of the ways investors can capitalise on competitive pricing to diversify and build wealth.
👋 Hey there! Since we've partnered with Saxo Markets for this article, we'll be using its products as tools for demonstration throughout. However, you should always do your own research in order to find a trading platform that suits your particular needs.
It's important to note that all investments have risks – you should always consult with a financial professional prior to making any major financial decisions.
1. Diversifying into new markets
Any experienced investor knows the value of diversification.
Diversifying your portfolio can help insulate your holdings against the vagaries of different market cycles. This can help keep your overall holdings viable over a long-term period.
But this doesn't just apply to branching across different industries (though we will talk about those shortly). It can also apply to different markets and different asset classes.
Having a trading platform that provides you with access to a broad spectrum of markets and assets can allow you to broaden your investing horizons.
Let's look at Saxo Markets as an example. Through a Saxo account, you're able to trade across 125 different exchanges around the world, as well as asset classes like stocks, ETFs, bonds, cryptocurrencies, forex, forex options, listed options, CFDs, futures and commodities.
Additionally, with the reduction in commissions and the lack of limits on trading volumes, Saxo Markets can potentially offer a more cost-effective way to trade, too.
Find out more about the markets and assets available via Saxo Markets
Start trading with Saxo Markets
With Saxo Markets, you're able to access 71,000+ ASX, Wall Street and international stocks, forex, exchange-listed options, ETFs, CFDs, crypto, bonds, futures, and more. As of January 2024, Saxo Markets commission fees are as follows:
- Min. AUD$3 – ASX Stocks
- Min. US$1 – US stocks
- Min. GBP£3 – UK Stocks
- Min. US$0.75 – Stock options
- Min. AUD$1 – Futures
Saxo Markets also offers 3 trading platforms, designed to cater for different investing needs and experience levels
SaxoInvestor: Designed for new investors, with a user-friendly format.
SaxoTraderGO: An award-winning platform for the more experienced investor seeking comprehensive insights.
SaxoTraderPRO: A professional-grade platform for professional investors.
2. Leveraging lower conversion fees
Every trader knows that you need to spend money to make money – but it's savvy to avoid unnecessary outlays, especially when you're purchasing in overseas markets.
Conversion fees are essentially the charges incurred when converting Australian dollars into foreign currency. For investors regularly engaging in international markets, these fees can significantly erode profits. They accumulate subtly – yet rapidly – much like the costs of frequent international transactions.
Some platforms are a bit cheeky, making you convert your dosh before you even buy anything. It's like being charged for window shopping – and it adds up!
So it's important to look for a trading platform that's transparent in its fees.
Let's look at Saxo Markets again. Currently, Saxo Markets has some of the lowest FX conversion fees on the market, at just 0.25%.
Keeping conversion fees down isn't just about saving a few bucks here and there. It's a big leg up for your portfolio in the long run. Lower fees mean you've got more to play with, whether you're diversifying or doubling down on your investments.
Learn more about trading with Saxo Markets
Saxo Invested Australia review: Share trading platform
Saxo Invested allows you to trade over 60,000 instruments on 50 global stock exchanges and provides lower commissions for active traders.
Read more…3. Investing in new industries
One benefit of reduced fees is that you have the opportunity to explore new terrain as an investor.
If you're relatively new to investing, this may mean you're diversifying from your initial investment for the first time. For more experienced investors, you may be looking for more subtle shifts to cover known gaps in your portfolio, or to take advantage of emerging fields.
As 2024 kicks off, it's clear that tech remains strong on a number of fronts. AI-related stocks have garnered substantial interest, as have electric vehicles.
Given the wider concern about recession in Australia, there has also been greater interest in recession-resistant stocks, such as healthcare and consumer staples.
Now, as is always the case with investing, caution is still necessary. Before expanding your portfolio, it's important to consider whether new investments are aligned with your overall strategy. Seeking professional advice may be worthwhile before proceeding.
Explore the industries available through Saxo Markets
4. Purchasing larger quantities
Reduced commission and lower conversion fees can also mean an opportunity to continue in similar purchasing patterns, albeit on a larger scale.
As with diversification, this needs to be approached carefully. You don't want to overcapitalise in a particular industry or on a particular asset and place your overall portfolio at risk.
However, this can also be an opportunity to expand your holdings, and take advantage of offers that may have previously been out of reach.
Learn more about investing through Saxo Markets
5. Using platform tools to upskill as a trader
Formal schooling tends to make up a relatively small percentage of our lives. But if you're paying attention, you never really stop learning.
The same is true for trading. The market is always evolving; new trading techniques and technologies emerge regularly. So it's key to keep your finger on the pulse.
With this in mind, it's always worth looking for an investment platform that offers educational resources and tools.
Through its trading platforms, Saxo Markets offers a range of different educational resources. These range from introductory videos to help you get to grips with the platform itself, to regular podcasts and webinars detailing trading developments.
Additionally, investors can open a Saxo demo account. This allows you to practice trading techniques via a simulator tied to real-world values.
Having access to these sorts of resources can enable you to develop as a trader and find new investing opportunities.
Discover how you can upskill as a trader with Saxo Markets
Discover more about trading with Saxo Markets
Sponsored by Saxo Markets (AFSL 280372). In January 2024, Saxo Markets has reduced the prices of its commission pricing by up to 87%. To find out more about how this can benefit your investing and to get started, visit the Saxo Markets website.