Investment firm Saxo has introduced a new Flexible ISA product in the UK after experiencing a 591% increase in demand for its stocks and shares ISA during January and February compared to the same period last year.

Saxo Launches Flexible ISA Following Nearly Six-Fold Surge in Demand

Saxo's Flexible ISA (Individual Savings Account) allows investors to contribute up to the standard £20,000 annual allowance while offering the ability to withdraw and replace funds without affecting this limit. The product features US trades starting at $1, UK trades from £3, foreign exchange fees as low as 0.25%, and has no platform fee.

"At Saxo, we want our clients to feel empowered to make the most of their savings," said Dan Squires, Chief Commercial Officer of Saxo UK. "Recent market volatility has underscored the need for agility and responsiveness when investing, and our new Flexible ISA reflects our commitment to providing our clients with this."

The launch comes as the Cboe Volatility Index recently reached its highest level since early 2020, indicating increased market uncertainty that has prompted investors to seek more adaptable investment options.

The move comes a few months after XTB introduced a zero-fee ISA in an effort to compete in the £400 billion market. Meanwhile, CMC Invest added ISA options to its offering, including a savings product with a 4.85% AER.

Saxo Bank Client Base Jumps 132% After Fee Cut, Women Lead Surge

The new offering gives investors access to over 18,000 investment products including stocks, ETFs, bonds, and funds in a single platform. This broad selection aims to help investors diversify and adjust their portfolios in response to changing market conditions.

Saxo's move follows a broader pattern of growth for the firm, which has seen a 132% year-over-year increase in new trading clients after updating its pricing structure in January 2024.

The company has also reported demographic shifts in its customer base, with the proportion of clients under 25 rising from 9% to 15% between 2023 and 2024, while the number of new female clients tripled to represent 18% of new UK customers.

The firm's pricing revisions have eliminated custody and platform fees while reducing trading commissions across various markets, changes that appear to have contributed to increased client engagement and trading activity.

Safra Sarasin Agrees to Buy 70% Stake in Saxo Bank

In March, Swiss private bank J. Safra Sarasin reached an agreement to purchase a 70% stake in Saxo Bank. The deal, worth approximately 1.1 billion euros ($1.19 billion), values the Danish online trading and investment platform at around 1.6 billion euros. Saxo Bank had been searching for a buyer for several months.

Looking ahead, Saxo Bank expects a decline in revenue in 2025. This follows a strategic decision to change its distribution model and reduce the number of markets it serves, which included ending relationships with some existing clients in 2024. Despite the short-term financial impact, the company stated in its 212-page annual report that the changes are intended to support long-term growth.