Currency exchange Singapore: how to save money & time (2025)

Key takeaways

• The rate you see isn’t always the rate you’ll get, as providers often add a markup. Understanding your provider’s true exchange rate is the first step to keeping costs low. 

• While physical money changers might offer convenience for tourists, businesses need secure, scalable, and licensed providers that can handle high transaction volumes at competitive rates. 

• With Airwallex, you can instantly convert 60+ currencies online at interbank rates, without hidden markups. It’s fast, low-cost, and fully transparent, so you always know exactly what you’re paying. 

If your business makes international payments, you’ve probably felt the sting of a bad exchange rate.

Maybe you’ve been hit with a surprise markup. Or seen your supplier costs spike overnight because of a swing in the Chinese yuan or US dollar. Even small shifts in the exchange rate can eat into your margins, especially when you’re making frequent, high-value transfers.

And while you’re trying to keep costs predictable, your team isn’t always sure if they’re paying 2%, 3%, or even 5% in hidden fees.

This article will show you how to take back control. You’ll learn how currency exchange works in Singapore, how to avoid inflated conversion rates, and why Airwallex offers a faster, more cost-effective way to exchange and move money globally.

What you need to know before exchanging currency

Whether you're paying overseas suppliers or receiving customer payments, securing a competitive exchange rate can make a difference to your bottom line. Even a small change in rates or hidden fees can cost you more than you think. It pays to know these things before you make a move.

Understand the interbank rate and how providers mark it up

The interbank exchange rate is the “real” exchange rate used when banks trade currencies with each other. It’s the baseline rate you’ll see on platforms like xe.com. Most providers don’t give you this rate; instead, they’ll add a small markup to offset their costs. This means you get less value for every dollar exchanged.

Before you exchange currencies, check the interbank rate and compare it to what your provider is offering to see how much you’re really paying.

Compare rates across providers

With rates changing constantly, it pays to shop around. Online currency converters can help you check live rates and see how they stack up across different providers. Fintech firms like Airwallex also publish their exchange rates and transfer fees on their website, so you can see exactly how much you or your recipient will get.  

Choose an MAS-licensed provider

To reduce your risk, make sure you’re using a provider regulated by the Monetary Authority of Singapore (MAS), and check if they have any of these licences.¹

• A money-changing licence is required to conduct over-the-counter cash currency exchanges. This licence applies only to physical money changers and does not cover remittances or digital transfers.

• Authorisation as a Major Payment Institution (MPI) or Standard Payment Institution License (SPI) to handle a broader range of services, including digital payments and overseas remittances. These licences are typically held by fintech firms or digital wallets that manage higher transaction volumes.

These licences ensure providers comply with MAS requirements for Anti-Money Laundering (AML) and safeguarding customer funds. Check out our article on security and compliance to learn more about how to keep your transactions safe.  

Watch out for foreign ATM markups

If you're withdrawing funds during an overseas business trip, always pay in the local currency. Choosing to convert on the spot (often labelled “with conversion”) can result in poor rates and extra fees set by the ATM operator. This can be especially costly for recurring business travel or overseas team expenses.

What are the best ways to exchange currency in Singapore? 

The best way to exchange currency depends on your business’s needs. Here are the most common options available in Singapore, along with their pros and cons.

Physical money changers

Physical money changers are often found in commercial areas like Raffles Place, Orchard Road, and Little India. Check out our guide on the best money changers in Singapore for a comprehensive list.

Money changers usually offer competitive exchange rates for common currencies and are a popular choice for one-time transactions. However, they may not be ideal for businesses. These providers operate within fixed hours and have limited stock for less common currencies. 

It’s also worth noting that not all money changers offer transfer services. You’ll need to undertake the risky task of carrying cash to a bank overseas or remittance agent to transfer money.

Online money changers

Online platforms allow you to compare rates and make exchanges from your desktop or mobile. Some even offer door-to-door delivery or digital wallet storage. While these can be convenient for individuals, they’re usually not designed for businesses that require speed, volume, and international transfers at scale.

Not all providers are licensed, so check that they hold the right money-changing and payment licences from the MAS. 

Banks

Banks provide a secure and familiar way to exchange currency, especially if you already have a business account with them. While convenient, banks typically offer less competitive exchange rates by adding a 1–3% markup on the interbank rate. This markup is often hidden within the exchange rate itself.²

Banks are also a common way to transfer money after exchanging currencies. In 2023, nearly 50% of businesses in Singapore used bank transfer for overseas payments.³ However, bank transfers come with significant fees, especially when routed through the SWIFT network. You can expect to pay anywhere from S$10 to S$120 per transaction, depending on your bank account and whether the transfer is done online or through the branch.⁴ 

This is where fintech firms like Airwallex are helping businesses move beyond the limitations of traditional money changers. Thanks to our proprietary connections to local payment rails in 120+ countries, you can bypass SWIFT and make international transfers quickly – with 95% arriving as fast as within the same day. 

Automated teller machines (ATMs) 

ATMs can be a convenient option if you need cash on overseas business trips. However, many foreign ATMs offer Dynamic Currency Conversion (DCC), a feature that lets you pay in Singapore dollars instead of the local currency. While it may seem helpful, DCC often comes with poor exchange rates and hidden markups. To avoid inflated costs, always choose to be charged in the local currency.

Drawbacks of traditional currency exchange methods

For businesses operating across borders, how you exchange and move money matters. On top of hidden fees, here are some downsides to relying on traditional methods for changing currencies:

1. Limited flexibility

Going to a money changer or a bank branch is an inefficient process for growing companies. Moreover, not all money changers carry the currencies you need, which can delay payments. Limited operating hours can also keep you from responding quickly during public holidays or weekends.

With fintechs like Airwallex, you get 24/7 digital access to over 60+ currencies at interbank rates, allowing you to convert funds only when you need to. 

2. Risky cash-based transactions

Physical money changers in Singapore often deal in cash, which exposes your business to theft or loss. It also means having to physically transport Singapore dollars to banks or exchange counters, which takes time and adds operational hassle.  

3. Missing out on better exchange rates

Lack of real-time access makes you vulnerable to the volatilities of the foreign exchange market.  By the time you visit a money changer or bank, rates may have shifted against your favour. This can reduce the value of your dollar, especially with frequent or high-value transfers where small rate changes can have a big impact.

Airwallex’s multi-currency wallet lets you receive, hold, and send funds in different currencies, so you can avoid the risk of bad timing on FX rates. That means if you run a business based in the US and want to receive payment in euros from your German distributor, you can hold the payments in euros until you need to pay your French supplier. This way, you avoid the immediate cost of converting to USD and back, and you can wait for a more favourable exchange rate when you need to send payment.  

4. Extra step for sending funds overseas

While some money changers in Singapore claim to offer money transfer services, not all are licensed by the MAS to do so. Using an unregulated provider can expose your business to compliance risks, so you’ll need to verify if your preferred money changer holds the proper licence. Otherwise, you’ll need to visit a separate remittance centre or bank to complete your transaction.

Airwallex is licensed as a Major Payment Institution by MAS, so your business can transact globally with the confidence that your funds are secure and compliant. Learn more about how Airwallex Business Accounts work to keep your funds safe here. 

Airwallex: a better alternative to currency exchangers for global businesses

Money changers and banks may be familiar, but they’re not built for modern businesses. Hidden fees and cash-based exchanges can limit your control and cost you more than you realise. 

Airwallex lets businesses convert 60+ currencies at interbank rates and transparent fees. But we’re more than a currency exchange – Airwallex offers a complete financial solution designed to help businesses move money globally with greater speed, clarity, and control.

On top of offering fast currency exchange services at market-leading rates, Airwallex lets you make batch transfers to up to 1,000 recipients across countries, currencies, and transfer methods – without having to write a single line of code. 

Moving forward, you can even schedule conversions in advance at a fixed exchange rate with just a prepayment of 5–10% of the total conversion amount, offering you better protection from exchange rate fluctuations. You can even open 20+ local currency accounts in 60+ countries and get local bank details to receive payments without the usual fees.

Just ask Little Blossom, a Singapore-based manufacturer of baby snacks. By using Airwallex for their US supplier payments, Little Blossom gained access to better exchange rates, minimising the impact of FX movements on their bottom line. With Airwallex Bill Pay, Little Blossom was also able to automate the payment process for multiple bills and sync these transactions with their Xero accounting system – all on one platform. 

Whether you're managing global supplier payments or optimising cross-border cash flow, Airwallex goes beyond currency exchange to deliver a powerful, all-in-one financial solution for modern businesses. Say goodbye to slow, fragmented processes – and start moving money smarter with Airwallex. 

Frequently asked questions (FAQs)

Do money changers in Singapore offer better rates than banks?

It depends. Money changers may offer better rates for common currencies, but not always. It's best to check and compare rates across providers before making a transaction.

How do I avoid high conversion rates and hidden charges?

Use providers that offer transparent exchange rates with no hidden markups. Fintech platforms like Airwallex display interbank rates and fees upfront. Avoid converting at ATMs or during checkout, where rates are often inflated.

What is the best time to exchange currency?

Exchange rates fluctuate throughout the day based on market activity. While there’s no perfect time, monitoring the market or setting rate alerts can help you exchange when rates are more favourable.

How do I tell if it is safe to exchange money with a currency exchange provider?

Check if the provider is licensed by the MAS. Licensed providers must follow strict regulations that protect your funds and ensure fair practices.

Sources: 

1. https://www.mas.gov.sg/regulation/payments/licensing-for-payment-service-providers

2. https://www.investopedia.com/articles/personal-finance/082115/best-ways-save-currency-exchanges.asp

3. https://www.statista.com/statistics/1480588/singapore-popular-methods-to-send-cross-border-b2b-payments/

4. https://www.dbs.com.sg/documents/276102/282855/pricing-guide.pdf

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.