Head of Saxo Bank: “The financial world is about to change. Active clients have found a way to multiply their equity.”
According to Emmanouil Lemonakis, Head of Central Eastern Europe Region for Saxo Bank, the approach to banking services will change significantly. “The process has already started and I believe that the trend moves towards more active bank clients who will not be satisfied with just depositing their funds somewhere and then waiting for several years without being actually able to influence matters for a dubious profit. People will want to be more active in looking after their money, and that is something we already provide for our clients.”
What will be different in banking?
Well, I can give you an example from telecommunications. Long ago, you would go to a post office to make a phone call, later the phones would appear on the streets in phone boxes and the luckier would finally get a phone in their homes. Today, the mobile phone fits in our pocket and has many other useful functions that save time and money. In the financial world, the post office with a phone is the stone financial institution where you can get a savings account or a unit trust. Today, this is not enough. The active and inquisitive clients are looking for new and user friendly ways to enhance their capital. After years spent with one of the largest global financial institutions I feel that this change is inevitable and I would like to be a part of the change.
How is Saxo Bank prepared to face this challenge, specifically?
I believe that Saxo Bank is the bank of the future. It represents the biggest supermarket of investment opportunities and tools you can use to transform the opportunities into yields from the comfort of your home or your mobile phone. No begging at the large banks for better yields. I have an idea, I read the market analyses, I choose the right tools, and I begin to manage my funds on my own.
How can anyone begin to invest?
You can just fill in our form at saxobank.com, and our team will introduce the applicant into the trading world depending on his/her experience so far. Experienced investors already know what they are looking for and after a quick comparison of our demo SaxoTrader platform with their current platform they open their account. Beginner clients can read our materials on individual products first, including videos on technical analysis or trading psychology, they can connect to our webinars or online workshops from the comfort of their home, and usually they try trading for several weeks in the demo environment. You can start an account online from the comfort of your home in five minutes, you just need two copies of ID documents. As soon as you receive your payment instructions you can transfer funds to the Saxo Bank account and start trading.
What is the most frequent question the investors ask when they think about opening an account?
Firstly, they ask how the invested funds are protected. Unlike other brokers, Saxo Bank is a full bank with a bank license and as a Danish bank it offers a really high standard of protection in its field.
The second most frequent question is our product range. With over 42,000 investment tools, Saxo Bank is a real supermarket of opportunity. Saxo Bank doesn’t provide investment consultancy but enables its clients to access global and sector focused analyses alongside another innovative function – connecting trading with social networking via tradingfloor.com, which is gaining popularity as we speak.
How do you deal with objections that trading is “speculative” or “hazardous”?
It is necessary to have a certain inner discipline. Just like when you learn new things, it is common that it doesn’t work at the start and one is upset, but then it starts working and suddenly you feel well. I recommend a very slow start for those who decide to trade on their own. If they have a large disposable income, I recommend working with professional fund managers.
The minimum investment with Saxo Bank is 10,000 dollars. Some of your competitors require less. Why is the sum so high?
We provide solutions for serious investors, financial managers and banks. If you want to just bet or “play” on the equity market, Saxo Bank is not the right choice. Our future clients can learn and try all the opportunities on the Saxo Bank demo account, so it is a kind of a dry run. The investor will get a virtual 100,000 dollars and they can try trading safely and will see if they want to continue with a live account.
Where do you think it’s sensible to start trading?
Most clients start with foreign exchange transactions. Personally, I believe it is better to begin with something tangible. I prefer to select several commodities, stocks, or international indexes. I can find much more information on oil, gas, copper, silver, or Germany in the form of a story, and I will begin to build a mosaic of information to use for future decisions. Unless a trader is willing to have a phone or tablet at hand at all times to check exchange rates I recommend to focus on options. They can be sold only after gaining some experience. Let’s say I will focus on Germany and its DAX index. I don’t want to monitor the market daily but I believe that its value will be higher in a week or month. So in the instrument search engine, which is similar to the Internet search engine, I select options, DAX, the date and value I believe DAX will reach in future. I select the call option, and enter the date in my calendar so I can check the result. As this is a “European option” you are not interested in the development but only in the result on the selected day. This way, I can have more “irons in the fire” and wait for the selected days to bear fruits. The advantage here is that the expenditure on the option purchase is the highest possible loss you may incur if the option does not come through. But the yield potential is practically unlimited.