Establish subaccounts for instrument currencies you commonly trade to eliminate paying conversion fees on each individual trade back to your account currency.
Subaccounts are also commonly used to establish separate portfolios where you can monitor and track the performance–using the performance tools in the Account Overview of SaxoTraderGO for example.
Segregated subaccounts (Account Level Margin)
By default, subaccounts 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 subaccounts to prevent the funds or margin on one account being used for trades on another. If you try to place trades on a segregated subaccount with insufficient funds, the trade will be rejected. For a detailed description please read: What is Account Level Margin?
Notes about trading with subaccounts
A few things to be aware of when trading from subaccounts:
- Whenever you trade you need to choose the specific subaccount you want to trade from – the platform does not automatically chose the most appropriate subaccount for you. However the platform will warn you if you try to place a trade on an account when a subaccount with a matching currency is available.
- If you have two opposite positions in two separate subaccounts, 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 subaccount, not only the assets available on the subaccount. Unless you have segregated subaccounts, if you do not have enough funds you will still be allowed to place trades on a subaccount if free funds or margin are available in other accounts.
- If you trade on a subaccount which has insufficient funds or margin, you may get a negative balance on the subaccount and will be charged interest on this negative balance. To avoid this, make sure you keep your subaccount balances positive.
- You always need to maintain sufficient funds in your main account to cover your Net Free Equity requirements.
- You can easily transfer funds between subaccounts using the inter-account transfer function . The conversion rate will be the current exchange rate plus a conversion fee.