If you invest/trade in the US market and earn profits, how is the currency conversion done? E.g. USD to SGD. Is it done through the respective broker's exchange rate? - Seedly
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Anonymous

Asked on 21 Apr 2019

If you invest/trade in the US market and earn profits, how is the currency conversion done? E.g. USD to SGD. Is it done through the respective broker's exchange rate?

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Junus Eu
Junus Eu
Level 9. God of Wisdom
Answered on 21 Apr 2019

I usually keep my USD profits in that trading account, so yes, only when I am looking to transfer back to my SGD account.

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (Feb)

Level 8. Wizard
Answered on 02 Feb 2020

Yes, and this (obviously not so visible fees for conversion) is exactly the reason why, when your primary currency is SGD, and You want to buy USD (or other foreign currency) based equity, you should (even with a Singapore based broker!) switch the currency via a much cheaper company. Cheapest one as far as I know currently Transferwise (only ca. 0.30 % !).

Mode:

Order USD on Transferwise for Your SGD sum and tell them to which account (i.e. Your USD nominated brokerage account) to send the USD, pay Transferwise by one of Your SGD nominated accounts, wait 2-3 days, USD arrive at Your brokerage account, ready for action ...

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport

02 Feb 2020

0.465 % is currently the Transferwise fee for converting/sending 5000 SGD to USD f.ex.
Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 21 Apr 2019

For me I transact in USD on the brokerage platform only, and use DBS mca to do the fx conversion. So I only convert to USD if I'm looking to send a wire to my account

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport

02 Feb 2020

May be not the best option (still invisible fees): https://transferwise.com/sg/blog/dbs-multi-currency-card
Yeo Enk Loui
Yeo Enk Loui
Level 6. Master
Answered on 21 Apr 2019

I could be wrong but I believe that the currency conversion is done through the respective broker's exchange rate.

For Saxo Capital Markets, "Currency conversions of trading costs as well as profits and losses from trading activities are executed at the mid FX Spot rate when you close the position, plus/minus 0.5 % for settlement of actual payments to or from the trading account are included, for example, buying/selling cash Stocks, paying/receiving options premium etc.".​​​

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