UOB foreign exchange rates for businesses: Hidden fees and comparison
UOB (United Overseas Bank) is among the top leading banks in Singapore and Southeast Asia, offering a range of corporate banking services for small and large enterprises. 1 in 2 SMEs in Singapore maintain a banking relationship with UOB1 and enjoy services like business loans, cash management, and UOB BizSmart, a suite of solutions that help SMEs automate their business processes.
Understanding UOB’s foreign exchange rates is essential for managing your business’ cross-border payments. SMEs operate on thin margins, and a friendly exchange rate ensures they get the most value from every Singapore dollar. Additionally, being aware of hidden fees reduces unexpected costs and gives SMEs better financial control.
In this article, we’ll uncover UOB’s exchange rates, fees, and their impact on businesses. We’ll also discuss how Airwallex can help Singapore businesses save on foreign exchange fees and transfer fees.
UOB currency exchange rate: What are the hidden fees?
Before we get into UOB’s rates, it helps to understand how foreign exchange rates are determined.
Banks buy and sell currencies 24 hours a day, 7 days a week. When financial institutions trade currencies amongst themselves, they use the interbank exchange rate - the rate at which banks buy and sell currencies among themselves in the global financial market. This rate is influenced by the supply and demand for different currencies, which can fluctuate based on economic conditions or geopolitical events.
When you go to UOB to exchange SGD for MYR or other currencies, the rate you’ll see will be different from the interbank rate. That’s because UOB imposes a foreign exchange markup or margin - the difference between the rate at which a bank buys foreign currency and the rate at which it sells it.2 Banks charge this margin to cover operational costs and the risk of fluctuating currency values.
It’s important to note that foreign exchange markups are not unique to UOB. Other financial institutions and money changers add margins too. For instance, Airwallex always offers the interbank exchange rate and charges transparent fees that you’ll see before confirming the transfer.
Compare UOB foreign exchange rates
Understanding foreign exchange rates and markups helps businesses get the best value when converting money. To illustrate this, here is a snapshot of UOB’s SGD exchange rates compared to Airwallex’s, which is based on the interbank exchange rate against the Singapore dollar.
Let’s say you need to convert SGD to USD to pay for a sales software subscription. The “Buying” column shows that you need SGD 1.312 to buy 1 USD from UOB. On the other hand, if you were returning from a business trip to Australia and want to convert your remaining AUD to SGD, look at the “Selling” column to see the rates. In this case, selling AUD 1 to UOB will get you SGD 0.91.
Currency rates taken on 6 June 2024 at 1:40pm GMT +8. Rates taken from UOB Money Changing Rates (Singapore dollar) and Airwallex FX and Transfers. All rates are provided for illustration purposes only and do not reflect present-day rates.
Based on this table, the exchange rates for major currencies are more favourable with Airwallex compared to UOB.
How do UOB currency exchange rates impact your business transactions?
SMEs banking with UOB need to keep a close eye on the exchange rates when they need to pay overseas suppliers or remote workers. Exchange rates are constantly fluctuating, and it can be difficult to identify the best times to exchange money. On top of the foreign exchange margin, UOB also charges fees for international money transfers. The fees for overseas transactions depend on the payment method, whether you use a corporate card or make a telegraphic transfer. We explain in greater detail below:
UOB overseas transfer
Companies with suppliers in China or overseas employees need a cost-effective way to make international payments. Does UOB offer the best value for money? Let’s take a look below.
| UOB SGD corporate account | UOB Global Currency Account | Airwallex Business Account | |
|---|---|---|---|
| Foreign currency markup | Not stated | Not stated | 0.4% - 0.6% depending on the currency |
| Outward telegraphic transfer fees | 1/16% commission (min. SGD 10, max. SGD 100) plus cable and/or agent fees | 1/8% commission (min. S$10, max. S$100) plus agent fees, if any | No transfer fees when using local transfer methods to 110+ countries 20-35 SGD for SWIFT transfer methods |
| Fees for amendments and cancellations | SGD 30 per amendment or cancellation | None | |
| Fees for tracing payments | SGD 20 per tracer | None | |
Sources: UOB fees3, Airwallex fees4
A quick comparison shows that UOB’s telegraphic transfers have a variety of fees on top of the exchange rate. UOB’s international transfers typically use the SWIFT payment network, where financial institutions charge fees for their part in facilitating the transaction.
One way to save on conversion and transfer fees is to send or receive money in multi-currency accounts. The UOB Global Currency Account lets business owners hold 10 popular currencies. These currency accounts typically require an initial deposit, minimum average daily balance and possible monthly fall-below fees if the balance requirements are not met.5
Like the UOB Global Currency Account, creating an Airwallex Business Account lets you create 23+ Global Accounts with local bank details, including branch codes and dedicated account numbers. These Global Accounts come at no cost and you can receive payments in USD, GBP, EUR, CNY, and more without the hassle of setting up a bank account in the markets you’re entering. You also get access to Airwallex’s interbank exchange rates for these currencies.
Airwallex also partners with local payment rails in 110+ countries. There are no transfer fees if you use local rails to send funds to these countries because you bypass the SWIFT network entirely. In fact, 70% of these transfers arrive on the same day. If you do need to make a SWIFT transfer, you pay a flat fee which makes it easier to anticipate transaction costs.
UOB charges a percentage commission, which means the higher the amount you transfer, the more fees you pay.
UOB overseas transaction: Corporate credit card usage
UOB imposes several fees when your business makes a foreign currency transaction using an SGD-denominated corporate credit card. That’s because the currencies need to be converted at the prevailing rate, and the necessary foreign exchange margins apply.
In contrast, the Airwallex virtual card charges no foreign transaction fees for 10+ currencies when you pay using the balances in your Airwallex account. If your balance isn’t enough, Airwallex will automatically convert currencies at the interbank rate and charge a small fee.
Here’s an overview of UOB and Airwallex’s card rates for foreign currency transactions. Bear in mind that each UOB corporate card may have additional terms, conditions, and fees.
| UOB SGD-denominated corporate cards | Airwallex Borderless VISA Card | |
|---|---|---|
| Exchange rates for overseas transactions in USD or AUD | Converted to SGD at the card network’s prevailing exchange rates | None if debited from funds in your Airwallex Global account (10+ currencies including USD or AUD) OR Auto-converted at VISA’s prevailing daily rates for all other currencies |
| Exchange rates for overseas transactions in non-USD, non-AUD, and non-SGD currencies | Converted at the card network’s prevailing exchange rates, first to USD then to SGD | None if debited from funds in your Airwallex HKD, GBP, EUR, JPY, CAD, NZD, CHF accounts OR Auto-converted at VISA’s prevailing daily rates |
| Currency conversion admin fee | 3% on top of the amount converted | No fees |
| Fees for SGD transactions processed outside of Singapore | 1% international processing fee | No fees |
| Annual fee | SGD 36.67 - SGD 692.71, depending on the card | No fees |
Sources: UOB corporate card agreement6, Airwallex card conversions7
How Airwallex offers competitive FX rates for businesses
Access to interbank exchange rates and affordable fees is a must for any business that makes frequent overseas transactions, such as supplier payments. Airwallex offers a cost-effective alternative to UOB’s telegraphic transfers with our all-in-one Business Account.
Our full-featured account lets you pay out to over 150 countries, hold 20+ currencies, and convert at friendly rates, without the hidden fees imposed by banks. Here’s how Airwallex can help you get the best exchange rates and minimise transfer fees:
Transparent exchange rates and fees for international transfers. Our interbank rate is determined by us concerning live exchange rates from our banking partners and market data sources. When you make overseas transfers with Airwallex, you’ll always see the exchange rate, markup, and fees before completing the transaction. You can check our currency converter to see the estimated rates in real time.
Accept and hold 23+ currencies in local currency accounts. Airwallex Global Accounts lets you collect, hold and transact balances in 23+ major currencies including GBP, USD, EUR, AUD, CAD, CNY and more. Each currency account is assigned unique account details for local and international payments, so you don’t have to pay SWIFT fees for incoming transfers, such as when receiving USD payments from clients in the USA.
Low or zero fees to 110+ countries via local payment rails. Unlike other fintech firms, Airwallex’s FX and Transfers facilitates cross-border payments as though it were a local transfer. That’s because Airwallex works with local payment rails in 110+ countries and economic territories like the EU, which allows overseas payment to bypass the SWIFT network. 70% of our transfers arrive on the same day.
Accept eCommerce payments from 180+ countries. With our Payment Gateway, you can accept customer payments from 180+ countries and 160+ local payment methods like Klarna, AliPay, and WeChat Pay. You also enjoy like-for-like settlement in 11 currencies. This means you can collect and hold payments in AUD, CAD, CHF, EUR, GBP, HKD, JPY, NZD, THB, SGD and USD without converting them into SGD. You can then use the funds to pay suppliers in that same currency, which helps you avoid unnecessary conversion fees.
Multi-currency Borderless Cards. Issue physical and virtual Borderless Cards for free, and use them wherever VISA cards are accepted. Pay lower transaction fees and avoid unnecessary currency conversion by using the balances in your multi-currency accounts. You also get 1% unlimited cashback on international and domestic spend in all categories like marketing spend or business travel.
Foreign exchange risk management. Our Transactional FX service lets you lock in desired exchange rates. Round-the-clock real-time monitoring helps you get the very best prices on your currency conversions.
Final thoughts
There’s a reason why UOB won 3 Best SME Bank awards in 2024.8 Not only do they make local transactions simpler for new businesses; but they also offer industry-specific banking solutions, such as POS terminals for F&B and trade finance solutions for wholesalers.
However, UOB may not be the most cost-effective choice for foreign currency exchange and international transfer fees. Like all financial institutions, they charge a markup on every forex transaction. However, their markup may vary depending on the business. You also need to pay various fees and commissions for telegraphic transfers and cross-border card transactions. Airwallex can help you realise your global ambitions through our financial tools and business-friendly rates. We offer market-leading interbank rates for all currency pairs. Our multi-currency Global Accounts help you avoid unnecessary conversion by letting you hold, settle and send 23+ currencies. You also get low or no transfer fees when you use local payment rails to send funds to 110+ countries.
Singaporean businesses like EU Holidays, Saturday Club, and igloohome already use Airwallex to get transparent exchange rates and lower transfer fees. See for yourself and open a free Airwallex account today.
Frequently asked questions
1. How does UOB determine its foreign exchange rates?
UOB determines their exchange rates based on the interbank rates they get from global financial markets. They also add a margin to cover their costs and ensure profit.
2. How long does a UOB international transfer take?
It takes 1 - 5 business days to send funds via UOB telegraphic transfers. These transfers are subject to delays caused by time differences and banking holidays.
3. Is there a UOB currency exchange rates converter?
No, but you can view UOB’s exchange rates against the Singapore dollar on their website. These rates are indicative only and may not reflect the most current rates.9
4. How often are UOB’s foreign exchange rates updated?
Like all foreign exchange rates, UOB’s rates are subject to change without prior notice. Currency values are constantly fluctuating, so it’s important to keep checking for the most up-to-date exchange rate.
5. Are there any limits on the amount I can exchange with UOB?
No, UOB Business Account holders have no limits on the amount of currencies they can exchange with UOB.
6. Do UOB’s foreign exchange rates apply to credit card transactions?
Yes. If a non-SGD transaction is made on an SGD-denominated corporate card, the transaction will be converted to SGD. The exchange rate will either be based on UOB’s prevailing exchange rate or at the exchange rate set by the card network (i.e. VISA or MasterCard), depending on whether the conversion was done by UOB or the card network.5
7. Can I receive foreign currency transfers into my UOB account?
Yes, you can receive foreign currency transactions into your UOB account. If you use your UOB SGD account, the amount will be converted to SGD using prevailing bank rates. If you have a UOB Global Currency Account, you can accept 10 currencies without converting to SGD.
Sources and references
1. https://www.uobgroup.com/AR2015/customers.html
2. https://www.investopedia.com/articles/forex/090314/how-calculate-exchange-rate.asp
3. https://www.uobgroup.com/uobgroup/rates/remittance-fees-outward.page
4.https://www.airwallex.com/sg/pricing#Transfers-&-FX
5. https://www.uob.com.sg/corporate/transaction-banking/operating-accounts/global-currency-account.page#features
6. https://www.uob.com.sg/web-resources/corporate/pdf/corporate/corporate-banking/credit-cards/uob-corporate-cardmember-agreement.pdf
7. https://help.airwallex.com/hc/en-gb/articles/900003301566-What-is-the-automatic-conversions-for-cards
8. https://www.uobgroup.com/uobgroup/about/awards/index.page
9. https://www.uob.com.sg/online-rates/foreign-exchange-rates-against-singapore-dollar.page
***Note: This publication does not constitute legal, tax, or professional advice from Airwallex nor substitute seeking such advice, and makes no express or implied representations/warranties/guarantees regarding content accuracy, completeness, or currency.
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Shermaine spearheads the development and execution of content strategy for businesses in Singapore and the SEA region at Airwallex. Leveraging her extensive experience in eCommerce, digital payment solutions, business banking, and the cross-border industry, she provides invaluable insights that guide businesses through the complexities of global commerce. Specialising in crafting relevant and engaging content that resonates with business owners, her work is designed to drive growth and innovation within the fintech and business economy space.
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