Buying and Selling USD

[maliciousmonster]

Hi, I'm looking for open a USD account to buy and hold USD. Anyone know what's the best way to do it? So far I'm looking at opening a Wise USD account and top up SGD via PayNow and convert to the USD account. And maybe if USD rise again I can sell USD back to SGD and transfer back to my local bank account, or maybe I can use the USD to deposit into my IBKR/MooMoo account to trade.

Anyone got any suggestions to buy/sell USD efficiently?

 

[BBCWatcher]

What’s wrong with Interactive Brokers for this purpose? Buy U.S. dollars and park them in U.S. T-bills if you wish.

 

[maliciousmonster]

The main purpose is not to use the funds for trading on IBKR, but to arbitrage against USD. e.g. when USD is down at 1.35, I might buy $100k worth and hold it and wait till 1.38 to sell at a $3k profit before commission & fees. Basically doing what money changer does

 

[BBCWatcher]

The main purpose is not to use the funds for trading on IBKR, but to arbitrage against USD. e.g. when USD is down at 1.35, I might buy $100k worth and hold it and wait till 1.38 to sell at a $3k profit before commission & fees. Basically doing what money changer does

Interactive Brokers should be fine with that pattern as long as you’re not repeatedly withdrawing funds. But if you’re really interested in speculating on the SGD-USD exchange rate how about currency options?

 

[maliciousmonster]

Interactive Brokers should be fine with that pattern as long as you’re not repeatedly withdrawing funds. But if you’re really interested in speculating on the SGD-USD exchange rate how about currency options?

I'm not very well versed with options though but will go study a bit. By that do you mean like CFD trading like IG, Saxo Markets etc? If yes, then I'm not interested in margin trading. I prefer safer and buy with full cash and hold.

 

[CaptainWu]

Does Wise gives you interest for the USD? If not then probably put this in brokers better while you are holding as most of them can invest into MMF which probably giving you 3+% for now and considerable low risk, also with reasonable exchange rate when you convert between SGD to USD.

 

[BBCWatcher]

I'm not very well versed with options though but will go study a bit. By that do you mean like CFD trading like IG, Saxo Markets etc? If yes, then I'm not interested in margin trading. I prefer safer and buy with full cash and hold.

No.

I haven't really looked into this, but it appears that USD/SGD futures are available on the Intercontinental Exchange (ICE). Details here. I'm not sure how to enter a trade ticket for any of these futures contracts via Interactive Brokers. I assume it's possible, but I don't know for sure.

 

[fr33d0m]

The main purpose is not to use the funds for trading on IBKR, but to arbitrage against USD. e.g. when USD is down at 1.35, I might buy $100k worth and hold it and wait till 1.38 to sell at a $3k profit before commission & fees. Basically doing what money changer does

A lot of effort and risk for 3K….

 

[revhappy]

No.

I haven't really looked into this, but it appears that USD/SGD futures are available on the Intercontinental Exchange (ICE). Details here. I'm not sure how to enter a trade ticket for any of these futures contracts via Interactive Brokers. I assume it's possible, but I don't know for sure.

IBKR has CME group's globex currency futures. I have traded INRUSD futures before, which is part of emerging markets NDF.

But it seems they dont have SGD, they have G10 and then then have EM and SGD is part of neither.

https://www.cmegroup.com/markets/fx.html#products

 

[fr33d0m]

IBKR has CME group's globex currency futures. I have traded INRUSD futures before, which is part of emerging markets NDF.

But it seems they dont have SGD, as part of the major pairs, very strange.

SGD is dominated by MAS and such a small market. There is really no depth or much profit

 

[revhappy]

SGD is dominated by MAS and such a small market. There is really no depth or much profit

I am actually quite surprised, Kiwi is part of G10 and it is like such a marginal country's currency. SGD is a much more trade heavy currency. SGD should take Kiwi's place in the G10, but maybe MAS doesnt want that unnecessary attention.

 

[JuniorLion]

I'd say go with IBKR for this.

 

[revhappy]

How about just maximizing high interest account promotions? HSBC ega account is giving 5% for next 3 months. You can keep your funds in SGD.

 

[fr33d0m]

I am actually quite surprised, Kiwi is part of G10 and it is like such a marginal country's currency. SGD is a much more trade heavy currency. SGD should take Kiwi's place in the G10, but maybe MAS doesnt want that unnecessary attention.

Mundellian trilemma. SGD exchange rate is controlled.

I guess, NZ still uses independent monetary policy so exchange rate is free

 

[maliciousmonster]

I'd say go with IBKR for this.

Thanks, I just checked IBKR is indeed cheaper to buy USD. Wise charges 0.47% while IBKR is above xe mid market rate. Looks like for now, the cheapest way is to purchase USD from IBKR and withdraw USD from there using the free 1x monthly withdrawal

 

[888888888888]

suppose ibkr seems to suit; and for other forex broker is about 2pip or so. for small txns, i just swipe with revolut for convenience but w much wider spreads. i guess both ibkr/revolut will incur inward fees once you transfer to bank.

 

[reddevil0728]

Thanks, I just checked IBKR is indeed cheaper to buy USD. Wise charges 0.47% while IBKR is above xe mid market rate. Looks like for now, the cheapest way is to purchase USD from IBKR and withdraw USD from there using the free 1x monthly withdrawal

I think ppl say before you should avoid using ibkr to just change money and withdraw. They are not set up for that objective and may close your account

 

[maliciousmonster]

I think ppl say before you should avoid using ibkr to just change money and withdraw. They are not set up for that objective and may close your account

Maybe I'll try to do some trades with them and see if I can avoid getting my account closed. I guess my modus operandi is to be flexible. For example - maybe USD hits 1.35, I'll buy a bulk of it, however the market or stock might not be in my favor so it doesn't make sense to hold USD in ibkr since it doesn't generate interest. Instead, I may choose to withdraw and put it in SCB USD$aver account where I can at least earn 3% interest while waiting. Once I'm ready to buy in, then I'll transfer from my USD savings account and buy. If market continue to not be in my favor but USD rise to 1.4, I can alternatively sell my USD back to SGD.

 

[RedsYWNA]

Maybe I'll try to do some trades with them and see if I can avoid getting my account closed. I guess my modus operandi is to be flexible. For example - maybe USD hits 1.35, I'll buy a bulk of it, however the market or stock might not be in my favor so it doesn't make sense to hold USD in ibkr since it doesn't generate interest. Instead, I may choose to withdraw and put it in SCB USD$aver account where I can at least earn 3% interest while waiting. Once I'm ready to buy in, then I'll transfer from my USD savings account and buy. If market continue to not be in my favor but USD rise to 1.4, I can alternatively sell my USD back to SGD.

If you have USD 100k AUM, IBKR's liquid USD does generate fairly decent interest (currently at 3.33%, less the first USD 10k). And IBKR's spread is gd too, hard to beat.

 

[maliciousmonster]

If you have USD 100k AUM, IBKR's liquid USD does generate fairly decent interest (currently at 3.33%, less the first USD 10k). And IBKR's spread is gd too, hard to beat.

wow, didn't know that they give interest too. ok seems like ibkr is the solution to everything i have. thanks guys!