Selecting a Foreign Currency Account for Businesses

Joan Poon14 August 2020

5MIN READ

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.

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.

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.

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: