Premium clients can request additional sub-accounts from Saxo Bank in any currency, for example to segregate:
Establish sub-accounts for instrument currencies you commonly trade to eliminate paying conversion
fees on each individual trade back to your account currency.
Sub-accounts are also commonly used to establishing separate portfolios that you can monitor and track the performance on – for example using the Performance tools in the Account Overview of the SaxoTraderGO platform.
By default, sub-accounts share funds and margin so that you don't need to hold funds on an account to open positions from that account.
You can now request the segregation of sub-accounts to prevent the funds or margin on one account being used for trades on another. If you try to place trades on a segregated sub-account with insufficient funds, the trade will be rejected.
Notes about trading with sub-accounts
A few things to be aware of when trading from sub-accounts:
- Whenever you trade you need to choose the specific sub-account you want to trade from – the platform does not automatically chose the most appropriate sub-account for you. However the platform will warn you if you try to place a trade on an account when a sub-account with a matching currency is available.
- If you have two opposite positions in two separate sub-accounts, they will not net out at the end of the day.
- When placing a trade, the platform takes into consideration the total funds and margin available to the sub-account, not only the assets available in the specific sub-account. Unless you have segregated sub-accounts (see below), if you do not have enough funds in a sub-account, you will still be allowed to place trades on the sub-account if free funds or margin are available in other accounts.
- If you trade on a sub-account which has insufficient funds or margin, you may get a negative balance on the sub-account and will be charged interest on this negative balance. To avoid this, make sure you keep your sub-accounts balances positive.
- You always need to maintain sufficient funds in your main account to cover your
Net Free Equity requirements. For segregated sub-accounts, you need to cover the Net Free Equity requirements on each segregated sub-account.
- You can easily transfer funds between sub-accounts at the current conversion rate using the inter-account transfer function . The conversion rate will be the current exchange rate plus a conversion fee.