FAQ for uSMART Auto Currency Conversion

1. What is Auto Currency Conversion?

uSMART offer multi-currency facility which provides an added advantage for client to maintain foreign currency balances that makes it easy for clients to trade the global markets in the traded currency. 

Auto currency conversion is a feature that automatically offset all debit balances (both settled and unsettled) with currencies in credit balances (settled amount only). With this added facility, CASH account client will be able to trade in traded currency without the need to convert beforehand.

With effective from 23 December 2022, all existing and new account opened (both CASH and MARGIN account) will be auto enrolled with auto currency conversion to help client avoid incurring interest on the debit balances when they have credit balances in other currency.

Auto currency conversion will be performed when the accounts have debit balances in both settled and unsettled amount arises from transactions such as T+0 buy trade, fee/charges, fund withdrawal and etc. The credit balances that are available to use to offset debit balances will be based on settled amount only. For example:

 

Example 1: Client A has Cash Balance of USD 0 & SGD 1,000

He purchased USD 500 worth of US shares and cash balance become: - USD 500 & SGD 1000

Assume USDSGD FX rate: 1.4

After US trading day on T+0, system will auto convert SGD 700 to offset the USD deficit.

 

Example 2: Customer B has Cash Balance USD 0 and SGD 100

He sold SGD 1,000 worth of SG shares and purchased USD 500 worth of US shares on the same day at T+0

New cash balances at the end of trading day on T+0 become: -USD 500 & SGD 1,100

As the SG stock settlement is T+2, the SGD sales proceed of SGD 1000 will not be used for conversion on the same day at T+0, therefore at the end of the trading day, system will only auto convert SGD 100 to offset partial of the debit balances in USD.

 

2. Which account types are eligible for Auto Currency Conversion?

Both Cash and Margin account are auto enrolled for the benefit from Auto Currency Conversion.

 

3. When will Auto Currency Conversion be performed?

Auto currency conversion will be performed after the market closes for the respective currency markets on a best effort basis. For example, where there is an SGD debit balances (both settled and unsettled) in the accounts, the currency conversion shall be performed to offset the SGD deficit after Singapore’s market hours. 

 

4. What exchange rate will be used in the Auto Currency Conversion?

Auto currency conversion will be performed based on prevailing real-time exchange rates that are superior to that of most banks.

 

5. If there any fee for Auto Currency Conversion?

This service is free of charge.

 

6. Which currency credit balances will be used to offset first?

The hierarchy of currencies to be utilized for offsetting will be from the highest value to lowest value. This is to reduce the number of currency pairs require to offset the debit balances.

 

7. Can I opt out for Auto Currency Conversion?

All existing and new account opened will be auto enrolled with auto currency conversion to help client avoid incurring interest on the debit balances when they have credit balances in other currency. To opt out from this service, please reach out to uSMART Customer Support.