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Selecting a Foreign Currency Account for Businesses

Joan Poon14 August 2020
5MIN READ

World Account for B2B transactions

What is a foreign currency account?

A foreign currency account allows users to receive, hold and convert multiple currencies all in one single account. For example, in your multi-currency account, you may open a GBP account to receive pounds and decide to hold GBP currency or convert it into your SGD account. All of this in one global currency account!

 

Should your business use a foreign currency account?

This account is suitable for exporters, wholesalers and online merchants who make multiple global transactions to overseas contractors and international customers. Here are some common ways to use a foreign currency account for your business:

  • Receive funds from overseas businesses
  • Receive foreign earnings from global customers or marketplaces
  • Convert currencies within your multicurrency account
  • Pay overseas contractors and suppliers
  • Payroll for international employees
  • Pay business taxes (eg. UK VAT)

 

Traditional banks: Foreign currency account for businesses

Pros

Cons

  • Flexibility – Hold and convert multiple currencies whenever the exchange rate works in your favour
  • Wide range of currencies available
  • Customer support available
  • Some banks offer interest to your foreign account though it may be low
  • Minimum deposits
  • Minimum daily balances
  • Monthly account maintenance fees
  • Interest charges for selected currency accounts
  • Only ACRA registered businesses are eligible

 

Alternatives for businesses: Multi-currency account by payment specialists

Pros

Cons

  • Hold and convert multiple currencies on one online platform
  • Cheaper conversion fees than banks
  • No account maintenance or service fees
  • Some specialists can provide customer support
  • No overdrafts protection (Helpful when businesses need to take a loan, often lower than credit card interest charges)
  • No interest from holding currencies in your account though interest rates are minimal

 

 

Choosing a global currency account for your business needs:

Businesses should evaluate their options to find the best foreign currency account to suit their needs. Here are some considerations.

  1. Be aware of all the fees and charges
  • All account maintenance fees
  • Transaction charges

Banks do have hidden fees, determine all the account fees when apply for a multi-currency business account. The volume and frequency of your global payments will also help to determine how costly these fees will become.

  1. Your available business’ cashflows

If you do not have a huge capital run your daily business, using a foreign currency account with a bank can be costly because of the minimum deposits. You can opt for a cheaper and easier multi-currency account offered by payment specialists like WorldFirst.

  1. Available currencies

Whether you’re receiving from global customers or paying overseas contractors, understand the main currencies you transact in. Choosing a multi-currency account that offers more currencies may be helpful as your business scales globally.

 

For Business Owners & Online Sellers: World Account (a multi-currency account)

Whether you’re just starting out a global business or making frequent overseas transactions, World Account is an alternative currency account to what banks are offering.

Features

World Account for Online Sellers

Account Registration Free
Account Maintenance Fee Free
Receive money in SGD, USD, AUD, CAD, HKD, NZD, GBP, EUR, JPY1, CNH2 Free
Get bank account details Free
Pay out in more than 30+ currencies Free
Exchange Rate Margin (Currency conversion) 0.1 – 0.5%
Transaction Fee (No Currency Conversion) USD 10 – 20 or 0.15-0.5%
Add into your currency accounts3 from your business bank account

*Note: Check on the transfer fees (if any) by your sending bank, before making a transfer to your currency account

Free
Minimum deposits $0
Minimum and Maximum Balance No limits
Dedicated Account Manager and Customer service Yes

1JPY receiving account only applicable for funds from Amazon Japan. 

2CNH refers to Chinese Yuan in the offshore markets (ie. outside of China, such as Singapore, UK, HK). CNH does not refer to CNY/RMB used within China itself.

3Add into 9 currency accounts: SGD, USD, AUD, CAD, HKD, NZD, GBP, EUR, CNH

 

How to open a World Account?

Step 1: Register for a free World Account online.

Suitable for:

  • Online sellers selling on marketplaces or own a storefront

Step 2: Verify your account.

We just need a few verification documents to set-up your World Account, this helps us prevent fraud and keeps your money safe. Documents required* depending on your business nature:

  • Sole-trader – non-ACRA/ individuals (Your ID required) OR
  • ACRA business (ACRA documents, Directors’ and Shareholders’ ID proof required)

Step 3: Upon verification online, your account is activated!

You’ll receive a dedicated account manager as well as currency bank details for all the currencies you may require. You can start using World Account to:

  • Receive money in 10 available currency accounts
  • Share your global bank account details to collect overseas funds from customers
  • Add beneficiary and make overseas supplier payments

*more documents may be required depending on your business structure 

Sign Up button

What our clients say

 

Disclaimer: 
These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. 
All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits. 
*Although WorldFirst has prepared the Information contained in this website with all due care and updates the Information regularly, World First does not warrant or represent that the Information is free from errors or omission. 
Read full disclaimer here 
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Joan Poon
Integrated Marketing Specialist

Joan is WorldFirst's integrated marketing specialist for South East Asia. She brings 5 years of experience having worked in previous marketing and communication roles at Cartier, SPH, KRDS (a social media agency) and Prudential. She graduated from Singapore Management University (SMU) with a double major in Marketing and Corporate Communications. On days off work, she enjoys hunting for cost-saving deals online.

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