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QuestionsCategory: MiscellaneousLow Cost Funding of USD Brokerage Accounts
Jieren Zheng asked 3 years ago

Hi Everyone,
I was thinking about having everyone’s opinions regarding any good suggestions for cheap means to fund USD Brokerage Accounts?
I have found DBS Remit which is probably the cheapest compared to the main 3 banks, I heard Citibank and maybe CIMB has good ones as well.
That being said, anyone tried remittance companies such as InstaRem, CYS Remit?
Also, we have companies like Worldfirst and Transferwise which offer very cheap fees with good Fx rates as well, anyone tried using them to fund?

Would like to see what the community thinks :)

Jieren Zheng replied 3 years ago

Ah shucks, I placed it in the wrong category, would any of the mods help me change? ^^”

Thanks

Jieren Zheng replied 3 years ago

Thanks guys.

Just to add that for those brokers using ACH, you can use Transferwise (at least that’s what the customer service told me).

Tony replied 3 years ago

I think if you buy USD with Transferwise, the USD you receive will be held at their trust account located in the US. To transfer the money into your USD denominated Singapore account, they will have to use SWIFT, which incurs additional fees depending on the banks involved in the transfer. This includes any number of banks between the bank of Transferwise US trust account and your Singapore USD account. You Singapore bank will also charge a fee for receiving SWIFT transfer.

The cheapest means I have found to not incur the fees of SWIFT (for holding your USD in a non-DBS Singapore bank) is to open a DBS eMCA+ (not eMCA) account, which has a very low monthly fee and allows free interbank USD transfer by cheque deposit within Singapore. The downside is that you’ll have to visit a branch to deposit your USD

Jieren Zheng replied 3 years ago

Thanks for sharing!

How is your experience with DBS Remit?

I did check with DBS vickers that if we have an MCA account, we could receive USD for CDP transactions or even overseas.

Tony replied 3 years ago

I have not starting buying foreign currencies with my eMCA account so cannot share any experience on this.

Based on my understanding, with your USD denominated Singapore account, it would be free for it to receive USD from another Singapore bank, However, it would not be free to receive USD from any overseas account — your Singapore bank will charge a fee.

Jieren Zheng replied 3 years ago

Yup, that’s why I was thinking of Transferwise though, or even Worldfirst, because the accounts are located in US (I used both to receive payments from Amazon), but to get the funds back to SG is cheaper than the usual wire fees. But seems like DBS Remit would be a good option to send USD, but to receive, perhaps Transferwise I guess.

Tony replied 3 years ago

Yes. You could also consider the citibank multicurrency account. I heard that it allows you to hold a USD account with them based in the US.

Jieren Zheng replied 3 years ago

Yup, I have heard of it too.

Jieren Zheng replied 3 years ago

Checked with Transferwise (ACH) and Worldfirst (SWIFT), if your brokerage is fine with 3rd party transfer, they can fund the account, else in my case of using TDA, you can’t because TDA will see that the funds coming from someone else (Worldfirst). But because Transferwise uses a US bank account, they can receive money when you withdraw from the US brokerage account (because it is an account with your name on it).

Tony replied 3 years ago

Useful information for people with US brokerage accounts. Thanks for sharing 😁

Jieren Zheng replied 3 years ago

Figured to ask around and share because people might have better ideas, and everyone can learn :)

DL replied 1 year ago

hi Jieren,
May i know if you are using tdameritrade?
also how are you funding your account now?

thanks!

Jieren Zheng replied 1 year ago

Hi DL,

I am still using TDA.

However, they have another means of funding which is via FAST Transfers to DBS bank accounts only.

The Fx is rather competitive, no fees to transfer.

DL replied 1 year ago

thank you Jieren.

Jieren Zheng replied 1 year ago

Welcome!

Note withdrawal is $25 each time (they don’t offer the reverse for some reason).