Foreign currency conversion rate

Are you getting a good conversion rate when you buy and sell foreign currency, such as Australian dollar or British pound?

Look at the buy and sell rate. The difference is called the spread. This is the charge imposed by the bank to cover their expenses and profit. It is the cost incurred by the customer to convert from Signapore dollar into the foreign currency and to convert it back at a later date.

If the spread is less than 0.5%, it is a good rate. If it is more than 1%, it is too expensive.

I found the spread charged by a local bank to be as follows:

        TT    OD
USD    1.1%  1.6%
Euro   1.1%  1.3%
GBP    1.3%  1.7%
AUD    1.6%  2.1%
NZD    1.7%  2.2%
Other  2.6%  3.4%

TT - telegraphic transfer
OD - on demand, i.e. currency notes
The spread is slightly lower for sums above $50,000

LOWER SPREAD AT POEMS.COM.SG
I found the spread on foreign currency at POEMS (Philips Securities) to be 0.3%. In the future, I will convert my money at POEMS and ask them to transfer it to a bank to place on fixed deposit.