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Anonymous
As I would be closing Autowealth account, I am considering my options of withdrawing the balance of about USD$13k and transfer it to my Interactive Brokers (IBKR) account. I have a DBS Multi-Currency account (DBS My Account). If you were me, would you...
1) Withdraw in USD. I would likely be charged SGD$10 for inward remittance by DBS. Have checked with Autowealth, no additional charges for USD withdrawal.
2) Withdraw in SGD, hence Saxo would exchange the USD to SGD before transferring the SGD to DBS My Account. Subsequently transfer SGD to IBKR to exchange USD.
The reason I asked is if I chose option 2, would you think the double exchange USD>SGD by Saxo, followed by SGD>USD by IBKR (+USD$2 IBKR fee) for the amount of USD$13k involved be more than the SGD$10 incurred via option 1. I thought for a good long while but couldn't get my head around especially when I am not a forex expert, so seeking more level-minded heads here, or any better ways to suggest. Thanks in advance.
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Tan Choong Hwee
20 Sep 2021
Investor/Trader at Home
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Yes, option 2 incurs double exchange cost and fluctuation. Option 1 cost is fixed and only 0.07% of your fund. Just go with option 1.