Avoid Shocking Fees When Making Money Transfers to Hong Kong

Making Money Transfers to Hong KongHong Kong is a vibrant hub of business, food, shopping and culture. As a result, there are a number of reasons you might be transferring money there. Whether it’s for business or personal reasons it’s important to find a way that suits you best when it comes to making money transfers to Hong Kong. We want you to find the best value for money, and understand that you’ll want a convenient method as well.

For a quick comparison table of exchange rates and fees, click here.

What will this guide cover?

This guide will cover:

  • Personal transfer – sending money to family or friends in Hong Kong
  • Business transfer
  • Buying or selling a property in Hong Kong
  • Studying Overseas
  • General costs of sending money to Hong Kong
  • Your options to send money to Hong Kong
  • Information you’ll need for the transfer
  • General information

Personal transfer from Singapore to Hong Kong

You can set up a personal transfer from Singapore to Hong Kong through a number of methods:

Your bank:

This is a convenient way to go, as you don’t have to set up any additional accounts. However, keep in mind that despite this convenience, they will not offer a competitive rate and may charge nasty fees. Not all banks will support the Hong Kong Dollar (HKD) but all will accept transfers in the US Dollar (USD).

Money transfer companies:

These companies will offer you a better exchange rate and lower fees. Here are some providers that transfer money from Singapore to Hong Kong:

Business transfer from Singapore to Hong Kong

If your business is transferring money between Singapore and Hong Kong, there are two critical things you must consider when finding the best option:

  1. The exchange rate margin: This is the difference between the wholesale exchange rate that you’d find on google or XE and the rate you actually get for the transfer.
  2. Additional business products they offer such as forward exchange contracts, foreign currency accounts and limit orders.

Any of the companies listed above can be used to make business transfers between Singapore and Hong Kong. Our choice for business transfers is HiFX. Their exchange rates and zero fee structure will allow you to maximise your overseas receipts or payments. They also offer Foreign Currency Accounts which means you can hold the funds a foreign currency and exchange them at a favourable time.

Buying or selling property in Hong Kong

There is no doubt that it can be a stressful time if you’re buying or selling property, even more so if you’re trying to do it internationally! You might be trying to buy property in Hong Kong, or selling it and transferring the money back to Singapore. We’d recommend trying to find a provider that has a global presence so that you have support on either end when making a large payment for property settlement.

Our choice would be TorFX for property settlement transfers, as you are assigned a local account manager that will have a strong global support network to guide you when needed.

Studying overseas

Tuition and studying is expensive, even more so if you are doing it internationally. As much as we would like them to, tuition fees aren’t getting any cheaper. Annual payments to universities or other education providers, along with all other expenses, can really add up, particularly abroad. As these payments can be large, you need to know the best method of payment before moving your funds.

  • For larger payments, the most important factor to keep in mind is the exchange rate.
  • For smaller payments, you should keep an eye on the transfer fees as these can really impact how much your transfer costs you proportionately.

There are many methods of transferring funds abroad, but we would HiFX as they are great for saving on those hefty costs when paying for things such bills.

General costs for sending money to Hong Kong

Time to put together the fees. Calculating the costs can be difficult, as nearly all fees, charges and exchange rates are dependent on how much are you sending, the way you are sending the funds and the way it is being received. The most common fees are as follows:

  1. A transfer fee
  2. Exchange rate margin: the different you will pay between the wholesale exchange rate on xe.com and the rate you will actually get
  3. Bank fees: The fees that you bank will charge for sending the money to the correct account overseas.
  4. Receiving bank fees: The fees the receiving bank will charge you for converting into the correct currency.

Your options for making money transfers to Hong Kong

When it comes to sending money from Singapore to Hong Kong there are a number of methods you can utilise:

Via your bank

This is without a doubt convenient. It’s easy and it’s quick because you don’t have to set up any additional accounts. The money can normally send the money successfully within 3-5 business days depending on your bank. However, banks will generally have uncompetitive exchange rates which make them unattractive if you’re sending large amounts of money abroad.

Check with your bank and research the fees and exchange rates based on the amount you plan to send over.

Paypal

Paypal is also convenient and it’s a highly popular way of transferring money abroad. It’s also by far the quickest with transfers sometimes being completed within minutes. It is better for smaller amounts under $1000NZD as although the exchange rate is equal to those of banks, the fees are slightly less. It’s particularly handy if you are paying from your own Paypal account directly into another Paypal account.

A money transfer company

This is our preference for when it comes to international money transfers. There are an overwhelming amount of money transfer companies to choose from but they will offer the best rates and lowest fees. Different companies will have various minimum and maximum transfer amounts set, and the transfer itself will usually take around a business day longer than banks or Paypal.

You will need to create an account with the company before sending the money – you can do this online:

  • Register your details on the website. You will need I.D handy for this.
  • Account needs to then be approved, and you’ll receive your login details.
  • Enter the bank details of where you are sending the money, that is, the ‘Beneficiary’ or ‘Recipient’
  • You will get a quote based on the fees and exchange rate for sending the money.
  • Once you’re happy with the quote provided to you, you can confirm the transfers and fund it from your local account.

Information you’ll need for the transfer

You’ll need the details of the bank account you are sending the money to i.e. the beneficiary or recipient details. These details will be:

  • Account name of your Recipient
  • Their address
  • Their SWIFT code

SWIFT codes

Swift codes for the biggest banks in Hong Kong:

HSBC : HSBCHKHHHKH

Bank of China (Hong Kong) : BKCHHKHH

Hang Seng Bank : HASE HKHH

Standard Chartered Bank : SCBLHKHHMAC

General Information

It’s important to weigh up the most important factor for yourself when it comes to making the transfer. PayPal and Western Union are the fastest options when it comes to making your transfers, but will charge fees and not have competitive rates. Similarly, banks will not offer very good exchange rates but are extremely competitive. The most cost-effective way will be through a money transfer company, the fees will be low and the rates competitive. It will take about 2-3 business days for the transfer to go through.

Check the details of your chosen method, as all will have their own restrictions, fees and charges. Banks and Paypal will not have a minimum amount, but most money transfer companies will so check before you register.

Case Study

Dan moved to Singapore five years ago for his job as an engineer. Over the past five years, Dan has tried numerous ways of transferring money back to his home in Hong Kong for his family. This is so they can pay bills in their residence that Dan still owns.

Unfortunately for Dan, not all the methods he has tried have paid off and he has lost money in fees and poor exchange rates. However, Dan has just discovered TorFX and their no fee structure. He now avoids transaction charges and gets a better exchange rate than his bank would offer. He simply signs into his account and processes his transfer from SGD-HKD from his Singaporean account to his Hong Kong account. Peter doesn’t have to worry at all whenever he flies home now, knowing he and his family have access to funds easily.

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