The Importance of the Key Information Document (KID) and its Impact on Trading
The Key Information Document (KID), also known as the basic information sheet, is a central tool for promoting transparency in the financial market. It provides retail investors with clear information about financial products, including their features, risks, potential returns, and costs.
Contents of a KID:
- Product Description: Goals and characteristics of the financial instrument.
- Risks and Returns: Presentation of potential risks.
- Costs: Breakdown of costs associated with the product.
- Performance Scenarios: Possible future performance developments.
Tradability of Financial Instruments:
The KID is required to sell certain investment products to retail investors. Without a KID, these products may be restricted for retail investors. Reasons for this can include the complexity of the product or regulatory requirements.
Conclusion:
The KID protects investors by ensuring they only invest in products they understand. For financial institutions, this means they must ensure that all necessary documentation is in place to offer their products.
How to check if the Key Information Document is available
You can check if an instrument has the required KID in the trading conditions (top right) under Trading rates > Key Information Document
The message 'Exposure cannot be increased due to instrument configuration' will appear if you place an order for the mentioned instruments, if the KID is not available for the instrument.
Disable the visibility of non-tradable instruments
- To disable the discoverability of non-tradable instruments, click Disable discoverability of non-tradable instruments as shown above in the error message
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You can also disable this by clicking
> Under Settings, click Platform settings > Next to Show non-tradable instruments in platform, click the toggle
>
I was able to trade a particular instrument until now, but not anymore, why?
You might lose access to trade an instrument because regulations require the KID to be updated whenever there are changes to the information that are significant enough to affect the investor’s decision to invest. Saxo must therefore restrict access to trade instruments where providers haven't yet updated the KIDs until the new updated KIDs are made available again.
Why are there restrictions on certain instruments such as ETFs?
KIDs are designed to help you understand the key features, risks, costs, and potential returns of financial products, enabling you to make more informed investment decisions. This requirement is part of broader efforts to promote financial stability and consumer protection in the financial markets.
What instruments can I trade?
Saxo offers a wide range of instruments. You can discover the full list in multiple places on and off the platform. The example below uses ETFs, but the same tools apply across other instruments, including bonds, CFDs, futures, FX, and options:
- Go to the full list of available ETFs in your country
- On the platform:
- By using the search bar and sorting for ETFs, you can discover the full list of ETFs. If you disable the visibility of non-tradable instruments, you will only see those you are able to trade.
- The screener gives you an overview of currently available ETFs and allows you to use filters such as currency, ratings, issuers, country/regions, exchanges, and more.
- The watchlist provides you with a tool to follow and monitor your favourite instruments. Here, you can add instruments to easily access them all. You can have multiple watchlists.
- You can also get inspiration for new ETFs by navigating to Research > Markets > ETFs. Here, you can discover the most popular ETFs, educational material, best-performing ETFs, currently trending ETFs, and much more.
- You can also use these tools for other instruments such as bonds, CFDs, futures, forex, and options.
Example of a non-tradable ETF:
Example of a tradable ETF:
If you have any questions regarding the KID, or if the absence of a KID on the platform appears, from your perspective, inexplicable, please contact our support team.