Cash withdrawal and deposit with two brokers

Just to record my experience in cash withdrawal from optionsXpress (OX) and cash deposit to Saxo Capital Markets (Saxo).

Cash Withdrawal from OX


Before I requested for withdrawal, I have noticed my name in OX was spelled in the reverse order, so my name on the cheque issued by OX would be different from my UOB bank account name. I am not sure if the bank will accept such cheque.

I wrote to OX to find out how I can change my account name. The reply was to write them request in a letter to change the account name; and to speed up things, I could scan and email the letter. So I wrote the letter, print, sign, scan and finally email to OX. Within a week, the account name was changed according to my request. I was ready to request for a withdrawal by cheque.


I login to make the request but forgot the 4-digit PIN required on the withdrawal page. I went to the helpedesk chat room to reset my PIN and finally made the withdrawal. Here is the time line:

  • Sep 3: Submitted withdrawal request.
  • A week after Sep 3: Received the USD cheque.
  • Sep 11: Deposited the cheque into the deposit box at UOB bank. Wrote my name, account number and contact number at the back of the cheuqe.
  • Sep 15: Received a receipt by post for the deposit of the USD cheque. 
  • Oct 10: The money is deposited into my SGD savings account. 
  • Few days after Oct 10: I received a credit advice (below) that gave the details of the commission and conversion rate. 
Credit Advice
Cheque amount  USD 74.12
Less: Correspondent bank agent commission USD 15.00
Less: Correspondent bank charges  USD   0.00
Converted @ 1.4760000 SGD 87.26
Less: Handling commission SGD 10.00
Less: Telex charge SGD   0.00
Less: Postage SGD   5.00
Amount credited SGD 72.26

I am OK with the time taken to withdraw and cash in the cheque, but the commissions are just too high.

Cash Deposit to Saxo Capital Markets

  • Day 1: Issued a SGD personal cheque that bears my name on the front surface. Wrote my Saxo account number and login ID on the back of the cheque. Sent the cheque to Saxo by post; attn to my broker.
  • Day 2: My broker SMS me that the cheque was received and would be deposited in two days.
  • Day 4: The money was deposited into my cash account and ready for trading.

10 responses to “Cash withdrawal and deposit with two brokers

  1. Hi Choozm,

    May I know how was your experience withdrawing funds from Saxo?

    1) For SG dollar account
    2) For US dollar account

    Do they mail you a cheque or transfer into your online banking account?



  2. Hi Jerome , I have not withdrawn money from Saxo. Will post if I have done so.

    There is only one cash account in Saxo for me and it is in SGD. The currency of cash account is chosen by you upon account opening. You can choose SGD, USD, Euro and other major currency.

  3. Hi Choozm,

    How much risks are you exposing yourself to Saxo’s counterparty as in you’re not the direct owner of the etf?


  4. Hi Ryan,

    I am not sure if I get you correctly on the counterparty risk, but are you referring to the counterparty risk of the equity swap used in Lyxor ETF?

  5. Hi choozm,

    What i meant is the credit rating of Saxo as your etf is held in the name of Saxo, which is in turn held custodian in Goldman Sachs.

    It is different in Singapore context as in your stock is held in cdp directly under your name.

  6. Hi Ryan,

    From my understanding, if Saxo were to go bust, the shares are still held in custodian by Goldman Sachs and will be taken over by new broker or sold at market value to return to investors. The counterparty risk is hard to quantified, at least to me.

    What happen to our shares if CDP or SGX goes bust? CDP is a subsidiary of SGX.

  7. Hi there,

    I’m pretty new to stocks investment and especially to Optionsxpress.. Have a few short questions:

    1) Optionsxpress offers local SGD JP Morgan Bank Account for investors to transfer $ to. Is it better to use this, or use Customs House’s bank draft and mail to their SG office?

    2) MM Fund : When I signed up, I’m confused with this, and selected NO. Not sure if its good to select MM fund to store the excess funds>?? And which MM fund to use? After going through the prospectus of each fund.. still confused.

    Thank you, hope to hear from you soon.



    • Hi Faustine,

      I have not used Optionsxpress for a long time. As far as I know, the transfer to SGD JP Morgan Bank Account will save you time but I remember I asked about the exchange rate used to pay your trade in USD: it was more expensive. Customs House’s bank draft has cheaper exchange rate but the process is longer. Anyway these are my experience few years back. It is better to call both optionsxpress and Custom House to check their indicative exchange rate.

      The MMF I used was Daily Dollar International Fund because its dividend was not subject to the tax withholdings. Check the prospectus here to confirm:

      Using MMF is better as your idle money in Optionsxpress will continue to earn “interest” in the form of dividend.

      Hope this helps.

  8. hi there,

    i saw your write up about your experience with optionsxpress. i just want to clarify what you mentioned there, that upon receiving your check on your withdrawal you just deposited it in your UOB account. does that mean that local banks in SG can accept US cheque and convert it to SGD then deposit straight to your SGD savings account? or did you maintain a USD savings account with UOB?

    hope you can clarify thanks.

    • Hi art,

      Sorry for my late reply. I have a SGD savings account with UOB. I just deposited the USD cheque into the SGD savings account, and the bank will convert it to SGD then deposit to my SGD savings account. Hope this clarifies.

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