Business & Economy Personal Finance Money Hack: How To Become Your Own Money Changer?

Money Hack: How To Become Your Own Money Changer?

Author

Date

Category

- Advertisement -

Are you planning to change a larger amount of money from SGD to another currency (or back)? It may be actually more worth it if you take on the role as a money changer instead.

This article serves as a good strategy when you are changing a sum usually in the range of 2-3k SGD and beyond to be worthwhile. If you are changing just 200 to 300 dollars, it easier to just head down to the money changer or if you are buying online, consider using RateX, another local startup. After reading this, you can actually become your own money changer and officially change for your friends and family members and charge them market rate.

A big difference between Google vs Money Changer vs Banks

Banks and Money Changers tend to have a large spread (the differences buying and selling price of a currency). It is illustrated here in this table below, In short, we would really save tons of money if we can change money at FOREX exchange (Google Rate). You can refer to the screenshots also in the appendix at the end of the article.

  Google Rate Money Changer Rate Bank Rate
You Buy 1 USD 1 USD 1 USD
You Pay 1.360 SGD 1.365 SGD 1.373 SGD
Conclusion Best Okay Worst

Here’s what you need:

  1. DBS Multi Currency Account
  2. DBS Visa Debit card (for online purchases)
  3. A broker that allows you purchase foreign currency as well as allows you to deposit foreign currency

Step 1: Convert your currency at your brokers

- Advertisement -

I personally use Interactive brokers for this step. I am pretty sure brokers like SAXO could do the same too. Do take note of their transaction charges at this step as it could eat into your potential savings. Interactive brokers charge about $0.5 to $1 for my transactions.

Step 2: Deposit them into DBS Multi Currency account

You will want to deposit a lump sum into this account instead of tiny bits and pieces as DBS charges $10 for all incoming Fund Transfers.

Step 3: Use DBS Visa for online purchases or over the bank counter to withdraw your currency

If you are withdrawing cash from a branch, try to give them a call before heading down as they tend not to keep too much foreign currency on their desk. There is no charge for withdrawing at the counter for this account.

 

Potential Savings (Google Rate vs Others)

- Advertisement -

As seen in the table below, the savings become more evident and only make more sense when you go into the region of $2 to $3k and becomes more pronounced further with a larger amount.

Money Exchange Rates


Further Reading: SGD to USD Experiment Screenshots

(All data was captured on 7 August at 8:47am)

1) FOREX Market (checking on Google)

I would buy 1USD with 1.360 SGD.

- Advertisement -

2) Raffles Money Change Pte Ltd Singapore

I would buy 1USD with 1.365 SGD.

USD to SGD Money Changer

3) Bank and Cards Rate

I would buy 1USD with 1.373 SGD. Oh, we don’t even want to think about bank rates and visa rates those are the most horrible of them all.

Exchange Rate Singapore USD


Seedly Community Contributor: Jefferson Soh

Jefferson is the owner of The Cat Cafe Singapore. In his free time, he writes about being financially savvy in Singapore and interesting ways to save money on this little red dot. You can follow him on his blog also to learn more about such tips!

Cat Cafe Singapore

Editor’s note: This was a really insightful article by Jefferson who is a part of our Seedly community. You can find out more about what we believe in our Seedly Money Framework where we advocate users to get better at managing their money by themselves!

The post Money Hack: How To Become Your Own Money Changer? appeared first on Seedly.


Source: Seedly
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

- Advertisement -

SG’s reopening has to be evaluated because of large Bukit Merah Covid-19 cluster and rising unlinked cases: Lawrence Wong

Singapore -- In light of a large Covid-19 cluster at Bukit Merah and a rising number of unlinked Covid-19 cases, the timing and scope of Singapore's reopening are being evaluated, says Finance Minister and Covid-19 multi-ministry task force co-chair Lawrence Wong. Covid-19...

Amrin Amin slammed for calling a netizen ‘snowflake’ and telling him not to get offended so easily

Singapore -- Former Senior Parliamentary Secretary Amrin Amin faced a barrage of criticism when he sided with the People's Association against Ms Sarah Bagharib, who accused the association of "disrespect for Malay/Muslim culture" and "lack of diversity". Readers may recall Ms Sarah...

21-year-old ‘streetwalker’ gets scammed by her first customer – a Bangladeshi man – in Geylang

Singapore -- Nancy, a popular "street girl" gives us a look into the dark side of Geylang. Born and bred in Singapore, this 39-year-old shares some of the lesser-known, darker secrets of Geylang, the red-light district. She tells us that she had...
Follow us on Social Media

Send in your scoops to news@theindependent.sg 

Theindependent