The bulk of our assets is parked in SG. We have a few thousand EUR in Paris and we will start earning some USD and we'll need some starting USD initially when we move over.
So we were looking for ways to move the funds around safely and cheaply.
Cash
The most simple way, is to carry cash. I withdraw all my EUR and bring it back to SG, or I could withdraw and close my French bank account and carry the EUR to the US.
It's simple. There's a probability I get robbed, pick pocketed, or I may just drop the money.
The exchange rates in SG are pretty good. But in France and US, they don't have money changers run by individuals giving competitive rates. Most money changes are run by companies so the rates aren't very good.
Pros
Simple
Fairly good rates in SG
Cons
Possibility to drop/lose the money
I will have to carry thousands of dollars in USD while I wait for my US bank account to be opened
Double exchange rate, EUR to SGD before SGD to USD
I have to buy at whatever rates is available when I'm in SG, or whatever rate is available when I'm in the US.
Online Banks/Financial Services
There are 2 apps that stand out. Transferwise and Revolut. They give very competitive rates for their foreign exchange and transfer fees. They are both quite user friendly. I can just transfer EUR to the account, execute the FX to buy SGD, and transfer to my SG account.
I can keep the EUR in the online accounts and change for USD and when I move to the US, I can transfer the USD to my US bank account.
The idea and efficiency is awesome... EXCEPT... when I look at the reviews. I admit there are many positive reviews.
But the negative reviews are concerning. There are stories that after transferring the money to the online accounts, the user gets their account locked, pending know-your-client requirements, and even after they upload their passport or other forms of identification, their account is not unlocked and there is no one they are able to talk to, to resolve the issue. There are stories that the money has been sent from the online account but somehow doesn't reach the recipient and somehow, the company is unable to find out where the money has ended up.
Yes, I understand that these may just be a small percentage of users. But it is very concerning. I have no interest in getting a few thousand EUR locked up with no one I can talk to, to resolve the issue. The move between countries is already stressful enough and I would prefer if I have one less stress to think about.
If I ever use it, I may use it for values less than $500. I doubt I will ever want to run the risk of locking up thousands of dollars with no easy way to retrieve it. The problem is, they are willing to accept money BEFORE they request for KYC documents. So they have a good chance to lock up the funds while the KYC is being cleared. There is NO WAY to retrieve the money until the KYC is cleared.
Ok, I'm sure there are many people who have successfully transferred money using these apps. It's a personal thing. Some people are more comfortable or willing to trust these apps/companies. Personally, I'm not comfortable with it. Not when I'm moving a few thousand dollars.
Pros
Very good exchange rate and very low transfer costs
No need to carry cash
Convenient, can keep it in the online account and move the funds whenever I want to
I can perform the FX whenever I want, I can keep my EUR if I think the rate is bad and use SGD to buy USD
Cons
Potential issues due to transfer
Potential issues due to KYC requirements
Potential to lock up or lose the money
Use a Multi Currency Account in an SG Bank
Most banks have multi currency options, DBS, UOB, OCBC, HSBC, Citibank...
I can just open a multi currency account, then transfer EUR to my SG bank.
Then in my SG bank, I can convert some money into USD and transfer to my US bank once I open my US bank account. It's pretty simple and I can do this online.
Problem is... the costs are expensive.
They don't give good exchange rates, there are transfers cost, etc...
BUT... it is safe. If there's any issue, I can always call the bank in SG and I have confidence that they will work with me to try to settle the issue.
Even if they have poor FX rates, I probably can still handle that depending on how much I transfer. I'm not expecting to transfer much. Just a few thousands, maybe $5-10k, so the expected losses due to bad FX rates could range between $150-$300...
BUT I'm willing to accept this... For better sleep. As I've said before, the move is stressful itself as it is. Having a seamless transition is very important to me.
Furthermore, I realized that DBS Multiplier account IS a multi currency account. So... I already have an account ready for me to transfer my EUR out of my French bank.
Pros
Safe
Online. I can keep the funds and transfer it anytime I want.
I can perform the FX whenever I want, I can keep my EUR if I think the rate is bad and use SGD to buy USD
Cons
Expensive FX rates and transfer fees
Potentially double exchange rates. I suspect banks will also FX EUR to SGD, then from SGD to USD
Ok so there you have it. Based on some light research these are the ways I've looked into to move my funds from EUR to SGD and USD. I'll definitely want to withdraw all my EUR and close my French bank account. I don't know how much USD I'll need when I move over. So it will be best if I can keep it flexible which is why an online account would be better. I don't want to carry cash all around the place.
This left me with the online transfer solutions or an actual bank.
Since I didn't like the idea of having issues with my transfer, in the end I opted for the traditional route by just paying for the service.
Anyone else got any better idea?
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