I hope to put something out here so that some of you could help one of our readers.
One of our readers signed up for Saxo Markets Online upon the glowing recommendation from some financial bloggers.
He wishes to use the account to trade overseas market and thus there is a need to convert his home currency (SGD) to USD or GBP.
For Saxo, there is a currency conversion cost.
At Saxo’s Commissions, Charges and Margin Schedule, they explained about this currency conversion cost.
From my understanding, each conversion will cost you 0.75%. This feels like a service fee, and I am not sure on top of this fee, the firm earns a bid-offer spread from the conversion.
My reader attempted to convert SGD$10,000 into USD so that he can purchase the stock he wanted. However, he was astounded by the total cost of the conversion.
From what I can see on the screen capture, there were some commission costs of $10 each and then 2 times 0.75% worth of conversion fee.
In total, this adds up to 1.71%!
Personally, I am not familiar with Saxo Markets. I would like to think that if they wishes to operate and thrive competitively, the conversion cost will not be so high.
This might what we term in the IT world as a “user problem”.
If you are familiar with or are currently using Saxo Market to do retail trading, and can help me make sense of what you are seeing on your end, do comment below.
Thanks a lot.