CGSI iTrade: Why need to change Settlement Currency when key in Order for foreign stock?

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 If you come across to invest in foreign stock exchange, one of the important things to take note is foreign exchange.

Let's assume you want to buy a HK stock, at time to key in purchase order, look for the field call Settlement Currency (Sett. Curr), usually the system will default the local currency for that stock Exchange..(HK market is HKD, US market is USD)


If you have HKD in your trading a/c, default as HKD for Settlement Currency is fine. However, if you only have MYR in your trading a/c, then I strongly advise to change the Settlement Currency to MYR so that the system will capture the day’s exchange rate, which is cheaper compared to the Bank's counter exchange rate.


What will happen if you don’t change the Settlement Currency to MYR when key in purchase order?  When your purchase order matches and comes to payment due date, the system will look for HKD. Since you don’t have HKD in trading a/c, txn can not be settled and the team will need to manually convert MYR to HKD at the Bank Counter exchange rate. (which normally higher than exchange rate you see on purchase screen) Hence, it’s better to change settlement currency to MYR if your account do not have HKD.




For sell order, this is depend case by case.

When key in sell order, if you want to receive the fund as HKD, then let the system default as HKD. (I highly recommend this if you still want to invest with  the same fund in the next few days)   However, if you plan to withdraw the fund, then change the settlement currency to MYR is better option to enjoy the good exchange rate.





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