How to get USD with minimum commission/charges?

[invisible999]

Hello everybody,

A very practical and short question - how can I can USD in Singapore with minimum fees and commissions except going to Arcade?

Now a longer explanation: I need to do telegraphic (wire) transfer of USD in third country. Problem is that if I use SGD to wire money then there will be following fees:

- Local outgoing bank's (in the case DBS) fee
- Exchange fee on top of the Interbank exchange rate. DBS adds 2%
- Intermediate bank's fee
- Recipient bank's fee

At the end, if sending $10K, fees are ending up $250 and more. Not acceptable to me.

If I open account in USD at DBS and use that account to send money, that there will be only ibanking fee but not add-on fee on the exchange rate. So the goal is to get USD with minimum commission/fees here, in Singapore and deposit it to DBS.

Your constructive feedback is appreciated.

 

[Trazora]

Hello everybody,

A very practical and short question - how can I can USD in Singapore with minimum fees and commissions except going to Arcade?

Now a longer explanation: I need to do telegraphic (wire) transfer of USD in third country. Problem is that if I use SGD to wire money then there will be following fees:

- Local outgoing bank's (in the case DBS) fee
- Exchange fee on top of the Interbank exchange rate. DBS adds 2%
- Intermediate bank's fee
- Recipient bank's fee

At the end, if sending $10K, fees are ending up $250 and more. Not acceptable to me.

If I open account in USD at DBS and use that account to send money, that there will be only ibanking fee but not add-on fee on the exchange rate. So the goal is to get USD with minimum commission/fees here, in Singapore and deposit it to DBS.

Your constructive feedback is appreciated.

Maybe you should apply for DBS MCA account. https://www.dbs.com.sg/personal/deposits/savings-accounts/dbs-multi-currency-autosave

 

[invisible999]

Maybe you should apply for DBS MCA account. https://www.dbs.com.sg/personal/deposits/savings-accounts/dbs-multi-currency-autosave

I already have it. I first need to get USD to deposit it to my account and then send it.

 

[Trazora]

I already have it. I first need to get USD to deposit it to my account and then send it.

Thought can convert to USD within iBanking without fees? http://forums.hardwarezone.com.sg/t...bank-dbs-join-discussion-win-5303712-500.html

 

[invisible999]

Thought can convert to USD within iBanking without fees?

My understanding is that when you 'buy' currency - either via withdrawal thru ATM at another country to sending the currency via wire, it is the exchange rates posted on DBS sites which are used. And yes, they add 2% on top of the interbank exchange rate. Which means for 10K you will spend $200 in fees.

 

[Trazora]

My understanding is that when you 'buy' currency - either via withdrawal thru ATM at another country to sending the currency via wire, it is the exchange rates posted on DBS sites which are used. And yes, they add 2% on top of the interbank exchange rate. Which means for 10K you will spend $200 in fees.

Oic, if need be you can get your queries answered by DBS using this thread http://forums.hardwarezone.com.sg/travel-accommodation-89/hello-dbs-bank-5192591-18.html

 

[koreanlover]

http://forums.hardwarezone.com.sg/money-mind-210/global-money-transfer-worldfirst-alternatives-5240664.html

http://forums.hardwarezone.com.sg/100408825-post16.html

Try Worldfirst or Transferwise ?
I have never tried them, don't know which is better.
Maybe PM the guys who used them in the above threads.

 

[OwenMania]

http://forums.hardwarezone.com.sg/money-mind-210/global-money-transfer-worldfirst-alternatives-5240664.html

http://forums.hardwarezone.com.sg/100408825-post16.html

Try Worldfirst or Transferwise ?
I have never tried them, don't know which is better.
Maybe PM the guys who used them in the above threads.

the problem with transferwise is that they only give you money in SGD. you cannot request USD from them

If you need USD, call up the bank then talk to them.
Die die negotiate for a good rate. If the amount is big enough, they may give you 0.5% off the spot rate (which is the live market rate)

 

[Shiny Things]

Yeah, unfortunately the banks will ream you out whichever way you do it.

You can definitely negotiate with DBS (I've done it before), and if you've got Treasures status they'll halve the wire transfer fees, but it's still a lot. Worldfirst and Transferwise are well regarded, but they won't get you all the way.

My usual method I recommend:
* Open an Interactive Brokers account;
* Transfer SGD into Interactive, and convert it to USD at the interbank spot rate(!);
* Transfer the USD out to your American bank account.

Problem is, you have to maintain an IBKR account, which is $10 a month, but I think that's worth it, because they're a good broker.

 

[OwenMania]

Yeah, unfortunately the banks will ream you out whichever way you do it.

You can definitely negotiate with DBS (I've done it before), and if you've got Treasures status they'll halve the wire transfer fees, but it's still a lot. Worldfirst and Transferwise are well regarded, but they won't get you all the way.

My usual method I recommend:
* Open an Interactive Brokers account;
* Transfer SGD into Interactive, and convert it to USD at the interbank spot rate(!);
* Transfer the USD out to your American bank account.

Problem is, you have to maintain an IBKR account, which is $10 a month, but I think that's worth it, because they're a good broker.

Thanks Shiny. can you Transfer the USD to your DBS bank's USD account? so that you can store the USD here.

 

[dragonbryan]

It's the same one. If you trf without exchange rate they will charge you "commission in lieu of exchange" anyhow you would be paying for it. Go arcade even worse, you deposit foreign currency cash they will charge you for depositing

 

[invisible999]

Thanks Shiny. can you Transfer the USD to your DBS bank's USD account? so that you can store the USD here.

+1 on this question.

It's the same one. If you trf without exchange rate they will charge you "commission in lieu of exchange" anyhow you would be paying for it. Go arcade even worse, you deposit foreign currency cash they will charge you for depositing

Could you clarify what you mean? Transfer from where to where? How much is "commission in lieu of exchange" and how it is calculated? How Arcade is related to foreign cash deposit?

 

[SBC]

Anyone know if any money changer provides you a USD cash cheque when you are change SGD to USD?

 

[invisible999]

Anyone know if any money changer provides you a USD cash cheque when you are change SGD to USD?

AFAIK, they do not have banking license, so can't ussue checks.

What a fracked up situation - at Arcade today one can buy USD for 1.357.

Went to DBS and asked them for exchange rates. Got following answer: for exchanging >USD 50k - 1.3610; for less than <50k - 1.3637.

How a street money exchanger can have better rates I still can't get it.

Even if you get USD in cash, there is a catch depositing it. HSBC for example charges 0.75% for cash deposit. DBS charges 0.125% if drawn in check or telegraphic transfer.

 

[invisible999]

My usual method I recommend:
* Open an Interactive Brokers account;
* Transfer SGD into Interactive, and convert it to USD at the interbank spot rate(!);
* Transfer the USD out to your American bank account.

Problem is, you have to maintain an IBKR account, which is $10 a month, but I think that's worth it, because they're a good broker.

Could you help me to understand their fee structure?
There are at least 4 pages with fees/commissions listing but they are quite difficult to understand.
https://www.interactivebrokers.com/en/index.php?f=4969

Let's try to use following practical example:

- Open account and deposit 20000 SGD
- Exchange that 20K to USD
- Transfer out the exchanged funds to US bank account via ECH
- Close the account after one month

What would be fees associated with each step?

Also, will they (IB) send you 1099 for the transferred funds like it is income? Want to avoid headache with IRS as well.

 

[foozgarden]

AFAIK, they do not have banking license, so can't ussue checks.

What a fracked up situation - at Arcade today one can buy USD for 1.357.

Went to DBS and asked them for exchange rates. Got following answer: for exchanging >USD 50k - 1.3610; for less than <50k - 1.3637.

How a street money exchanger can have better rates I still can't get it.

Even if you get USD in cash, there is a catch depositing it. HSBC for example charges 0.75% for cash deposit. DBS charges 0.125% if drawn in check or telegraphic transfer.

for sure the street rate is better than banks.
i have been going to mustafa for many years to sell my USDs.
i have done some comparisions, and mustafa's rate is usually a few cents more than DBS FX rate. sometimes, even up to 1+cent (i use DBS MCA to store my USD)

Thanks Shiny. can you Transfer the USD to your DBS bank's USD account? so that you can store the USD here.

most likely possible. just have to pay the standard TT charges.

 

[foozgarden]

Anyone know if any money changer provides you a USD cash cheque when you are change SGD to USD?

never heard such thing before

 

[foozgarden]

AFAIK, they do not have banking license, so can't ussue checks.

What a fracked up situation - at Arcade today one can buy USD for 1.357.

Went to DBS and asked them for exchange rates. Got following answer: for exchanging >USD 50k - 1.3610; for less than <50k - 1.3637.

How a street money exchanger can have better rates I still can't get it.

Even if you get USD in cash, there is a catch depositing it. HSBC for example charges 0.75% for cash deposit. DBS charges 0.125% if drawn in check or telegraphic transfer.

there is no OTC charge if you draw/deposit it out in cash.
i belive DBS is the only bank that offers this.
i have done that many times too, so i know

 

[foozgarden]

Hello everybody,

A very practical and short question - how can I can USD in Singapore with minimum fees and commissions except going to Arcade?

Now a longer explanation: I need to do telegraphic (wire) transfer of USD in third country. Problem is that if I use SGD to wire money then there will be following fees:

- Local outgoing bank's (in the case DBS) fee
- Exchange fee on top of the Interbank exchange rate. DBS adds 2%
- Intermediate bank's fee
- Recipient bank's fee

At the end, if sending $10K, fees are ending up $250 and more. Not acceptable to me.

If I open account in USD at DBS and use that account to send money, that there will be only ibanking fee but not add-on fee on the exchange rate. So the goal is to get USD with minimum commission/fees here, in Singapore and deposit it to DBS.

Your constructive feedback is appreciated.

hey TS,

are you looking to get on hand USDs?

i do have USD in my DBS eMCA, which i want to change to SGD. i usually go to mustafa to do it, but its not so convenient.
maybe we can work out some mutually beneficial arrangement? the USDs are brand new and in 100 denomination and come from DBS, you can count it on the spot when the counter lady passes it over. everything is legal and transparent.

in my opinion, you cannot avoid all the above mentioned charges. you can only minimize some, not all.
trust me, i tried to find a way round it.
(unless you handcarry it yourself into the US, but max is 10k - legally)

you can PM me, if you are interested to move this forward.

 

[Izumi8]

Could you help me to understand their fee structure?
There are at least 4 pages with fees/commissions listing but they are quite difficult to understand.
https://www.interactivebrokers.com/en/index.php?f=4969

Let's try to use following practical example:

- Open account and deposit 20000 SGD
- Exchange that 20K to USD
- Transfer out the exchanged funds to US bank account via ECH
- Close the account after one month

What would be fees associated with each step?

Also, will they (IB) send you 1099 for the transferred funds like it is income? Want to avoid headache with IRS as well.

I think IB could be the best in terms of forex conversion as you can get Interbank Spot Rate with just less than 5 pips spread for USG/SGD. ( DBS > 180 pips, other banks even worse) If you are transferring USD20K, 180 pips means at least SGD180 got eaten by banks for both side (Buy or Sell) In this case for IB, USD/SGD spread less than 5pips during London trading hours. so for IB the you got charge SGD5 for each side for USD20K.

Step A: FAST Transfer to IBKR Citibank SGD account (FREE), transfer from DBS will reach IB usually withing 2 hours during London Morning Opening Hours.
Step B: Convert to USD or any currency using IB CONV (spot rate less than 5 pips)
Step C: IB impose 3 workings day waiting period for every fresh deposits. So your money that was deposited on Monday can be withdrawn on Friday.
Step D: Withdraw (TT) all the USD to your DBS multi currency account. You will see the money credit into DBS USD account and DBS charge SGD10 for this. IB is free for first withdrawal monthly. USD funds can reach DBS accounts within 12 hours if you submit the request during New York Trading Opening Hours.

For first transfer every month, total fees could be less than SGD20. Of course, IBKR one round trip could take 7 working days. Money changer or DBS TT conversion is immediate. If you are not very urgent, IB has lowest fees.