Saxo Bank: No-IBAN account with no withholding

Saxo Bank: The Danish no-IBAN account bypassing Spain's central bank

A Danish bank covered by Denmark’s guarantee fund, with no client IBAN, no withholding at source, and a trading platform defenders call the best in the market. This is how Saxo Bank presents itself to those seeking to move savings out of Spanish banks without giving up stock market trading. The first deposit must be made via transfer to the bank’s account in London, with the holder’s name in the reference; from there, you can top up by credit or debit card and withdraw only by transfer to an account in the same holder’s name.

What is Saxo Bank and why is it being discussed?

Saxo Bank is a Danish entity, not Spanish, and Denmark is not in the euro. This means the account is not subject to Spanish banking regulations or Spain’s Deposit Guarantee Fund, but to the Danish one. The minimum account was 10,000 euros a year ago, though it was offered at 2,000 euros at the time of the conversation. It pays no interest because it is not a savings account, but a trading account: forex, futures, stocks, CFDs, and ETFs.

You can open it online in a few days. There is Spanish-language support by email and phone, with a Madrid number, and they respond quickly. You can grant powers to your spouse. The first deposit must be a transfer to the bank’s account in London, but you can top up any amount with a credit or debit card for free. With cards, the transaction appears as pending immediately and is available the next business day. To withdraw, only transfers are allowed: they do not issue cards. They are strict: the sender and beneficiary must be the same person.

The account has no IBAN: how do you declare it?

Here is the point that generates the most doubts. According to the information gathered, the account has no own IBAN, but an INET number that appears within the client area. Deposits are made to a general bank account in the client’s name, and withdrawals are transferred to any account in the holder’s name, including Andorra. There is no credit card or any other banking service.

Spain’s central bank, consulted by a participant, replied that this type of account is declared according to Circular 2/2001 and that the DD1 form is not used. The circular, in section 1.3, states that no reporting is required when a series of conditions are met simultaneously. The interpretation drawn from the conversation is that, since it is a securities account, there is no need to declare it unless you exceed 6 million euros. That is the conclusion repeated in several messages, although there is no official confirmation beyond the response from the Bank of Spain.

Withholdings, dividends, and taxation

There are no withholding taxes at source, according to the experience of those with an account. This does not miccionan you do not have to declare capital gains: in each income tax return, you must declare capital gains or losses, regardless of whether you withdraw the money or not. Another matter is whether the tax authority has the means to know this if the taxpayer does not declare it.

Regarding dividends from US stocks, withholding has decreased. It used to be 30%, but now Saxo Bank automatically applies the W8 BEN form for private clients, so only 15% is withheld. This is a relevant detail for those investing in the American stock market.

Fees: from free custody to the 2013 shift

For years, Saxo Bank charged no custody, depositary, or maintenance fees, nor withdrawal fees. This allowed you to keep money idle without cost. One participant confirmed that since January 2010 he had only traded in 2012 and was not charged anything in 2010 and 2011 for not moving the money.

However, in January 2013, an email announcing changes was received: starting February 1, 2013, a 0.28% annual custody fee for stocks and 0.20% for bonds, including taxes, would be applied to accounts with little or no activity. Accounts with five or more trades per month would continue to pay no custody for stocks. The fee would be calculated daily on the closing value and charged monthly. The reaction was immediate: some clients began to withdraw funds. One of them even left the account at zero and received a call from the bank asking why he had not traded. Weeks later, it was confirmed that Saxo Bank would no longer charge custody. The episode left a residue of distrust.

The platform: good fruta, real errors

Saxo Bank’s platform has supporters and detractors. Some consider it the best in the market, with a web version, an installable program for Windows only, and apps for iPhone and Android. But not everyone is happy: a client with an account for a few months described errors that were more than acceptable and said he did not like it, although he admitted that for those who do not day trade it is not a problem.

There are testimonials of technical failures: stops not executed, orders cancelled, and strange errors that have caused people with experience to lose money. It is not a scam, but the complexity of the platform and its bugs can play nasty tricks on those who only want to use the account as savings or buy some ETFs.

Leverage, currencies, and the Swiss franc

To trade forex, Saxo Bank works with 100:1 leverage, which does not allow you to choose a lower ratio to keep long positions without volatility closing them. This is a limitation for those who want to trade with less risk. As for the account currencies, if you have less than 100,000 euros, you must choose the currency when opening the account; if you do not want it in euros, the conversion is spot plus 0.05%. Sub-accounts with various currencies are only allowed from 100,000 euros.

The Swiss franc appears in the conversation as a safe haven. The Swiss National Bank set a minimum exchange rate of 1.20 francs per euro and committed to defending it with interventions. The discussion revolves around whether the franc is artificially weak and what would happen if the central bank stopped intervening. The conclusion drawn is that, if you can only choose between euros, dollars, or francs, the Swiss franc is the least bad option, although it depends on the central bank maintaining the floor.

Problematic withdrawals and customer service

Customer service is fast and in Spanish, but does not always resolve issues. One participant ordered a transfer of 9,955 dollars on January 8 and, to date, had not received the money in the other account, although it had already been deducted from Saxo Bank. He only obtained an incident number and the promise that they would reply. Others, however, have withdrawn money several times to ING without problems.

The bank also calls when it detects inactivity, as peine with a client who left the account at zero. This is a practice that can be interpreted as commercial trinc-up or as control, depending on how you look at it.

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Saxo Bank’s account is not a standard current account. It has no IBAN, pays no interest, has no card, and forces you to trade or at least keep the money in a trading platform. For those seeking a refuge outside Spanish banks, the combination of the Danish guarantee fund, absence of withholding, and flexibility to withdraw to any account in the holder’s name is attractive. But the lack of IBAN, platform errors, and the 2013 custody fee episode make it clear that it is not a product for sleeping peacefully.