Personal Finance Bank accounts

FCY securities settlement account with SCB: What you need to know

Elle Kasser

18.09.21 (updated more than 1 year ago)

Read time 3 minutes

If you’re thinking of getting into online trading to help boost your investments and grow your net worth, you may be considering using Standard Chartered Bank (SCB). With SCB you can trade online across multiple markets, covering products like Stocks, ETFs, and listed Company Warrants¹.

To trade with SCH you’ll need a securities settlement account - and if you’re thinking of trading on foreign stocks, you’ll also need one or more FCY securities settlement accounts. This guide explains why.

📝Table of contents:
What is a SCB securities settlement account and how does it work? Do I need a USD settlement account to invest shares in USD with SCB?

What is a SCB securities settlement account and how does it work?

To trade online with SCB you need a securities settlement account to keep your day to day funds separate from the funds you intend to invest and trade with². This means that the settlement account is effectively a prepaid account you can top up in advance, and then use to trade with later. That has the advantage that you’ll always know the funds you need for a quick trade are there, and there will be no delay in getting the money transferred over from a different account.

The Standard Chartered securities settlement account doesn’t have any minimum balance requirement - you simply keep the funds you intend to trade in there. There’s no interest paid on the securities settlement account, though, so you probably don’t want to hold a high balance unless you’ll use it in the near future.

Do I need a USD settlement account to invest shares in USD with SCB?

You need an SCB securities settlement account for each online trading account, and each currency you trade in. That means that if you want to trade in USD, you’ll need an SCB USD securities settlement account to get started.

If you have an individual and a joint online trading account, and want to trade USD in both, you’ll need to open 2 USD settlement accounts, and link one to each of your online trading account options.

You’ll need to top up your USD securities settlement account to be able to use it. If you’re adding money from your normal SCB Singapore dollar account, check the fees and exchange rates which apply for the transfer.

It’s common to find an exchange rate markup being used when banks convert currency. That’s an extra charge on top of any upfront conversion fee. Compare the exchange rate being applied by SCB against the mid-market exchange you’ll find on Google. If there’s a difference, that’s probably a markup, and you’ll want to factor it into your costs when you’re assessing your potential investments.

Investing abroad and looking for easy, low cost currency conversion? Get Wise

A diversified investment portfolio is a healthy investment portfolio - and one smart way to diversify is to invest in different markets around the world. This might mean you need to switch currencies from SGD to the currency you want to invest in - and then back again with you earn dividends or sell investments based overseas.

Converting currencies, and sending international payments, can be expensive. But with a Wise multi-currency account it doesn't have to be.

Open a Wise account online for free, with no minimum balance and no monthly fees to pay. You can then hold and convert 50+ currencies, using the real mid-market exchange rate, and low transparent fees. That can be 6x cheaper than using a regular bank account.

Then when it’s time to withdraw your money from foreign investments, use your Wise local bank account details - for SGD, USD, GBP, EUR, AUD, NZD, CAD, HUF and TRY - to get paid fee free. Hold your balance in whichever currency you like, make international payments, or convert back to SGD to withdraw to your regular account. Whatever you choose to do, you pay less in fees, and keep more of your investments for yourself.

Join over 10 million people and businesses already using Wise 🎉
Open your account in minutes

People celebrating Wise

Trading internationally with Standard Chartered will mean you have to open one or more FCY securities settlement accounts to manage your money wisely. Make sure you read all the small print before you start trading online with SCB, so you’re aware of all the fees, and the exchange rates which might apply when dealing with FCY trades.

And don’t forget to check out the Wise multi-currency account as a smart and simple way to hold, send and spend dozens of different global currencies - and spend less on fees so you can grow your investments faster.

Sources:

SC Singapore - Online Trading
SC Singapore - Online Trading FAQs

Sources checked on 10th September 2021

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.