Withdrawal experience with IC Markets and Paypal

By | June 29, 2017

In summary, this article talks about the cheapest way to withdraw via IC Markets (basically free) and my withdrawal experience with IC Markets using this cheapest method (PayPal). If you want to skip the details, scroll right to the bottom for the 2 cheapest ways to withdraw via IC Markets.

I recently tried withdrawing from IC Markets using Paypal for the first time, since the other option of international bank wire was more costly AUD $20

withdrawal experience with IC markets

The idea was, Paypal does not charge any fees when withdrawing to your bank account over $200. Below $200, there is a $1 fee.

withdrawal experience with IC markets

This is true, but my PayPal balance is in USD and PayPal automatically converts this to my local currency (SGD), with no option to withdraw the PayPal balance in USD and Paypal’s exchange rates are more expensive. I would like my bank do the conversion instead. Rates: Paypal – 1USD to 1.342 SGD , my bank 1USD to 1.371 SGD, spot rate is 1.380

withdrawal experience with IC markets

Paypal’s exchange rate

withdrawal experience with IC markets

My Bank’s Exchange Rate

withdrawal experience with IC markets

Spot rate from XE.com

So at the end of the day, withdrawing from PayPal would cost about the same as doing a international wire from IC Markets to my local bank. Let’s break it down how this is so:

Let’s say I was withdrawing 1,500 USD.

International wire AUD20 + my bank charges SGD20, then convert $1,500USD to SGD at 1.371 (my bank’s rate) . The calculation is as follows: First converting USD to SGD: 1,500USD * 1.371 = 2056SGD. Then deducting bank wire fees: 2056SGD – (20AUD + 20SGD) = 2016SGD (Final amount)

PayPal would be 1,500USD * 1.342 = 2013 SGD

Therefore, both are about the same

However, PayPal is still useful. There are two hacks I want to talk about

One: Withdrawing via PayPal is still cheaper if you send them local currency. Because PayPal doesn’t charge any fees on local currency withdrawals above $200 (below $200 they charge $1). I just need to get IC Markets to convert USD to SGD for me (Rate is 1.361, better than PayPal), then withdraw the converted funds to PayPal. 

withdrawal experience with IC markets

Note the exchange rate is even better! (1.37) if you convert amounts greater than 1,500 USD (not shown here)

Example: I have IC Markets convert 1,500USD to 2041.5 SGD. I then withdraw 2041.5 SGD to PayPal. I withdraw the final sum of SGD 2041.5 from PayPal to my local bank account incurring no extra charges

Hack 2: Withdrawal is completely free if you have local currency (SGD) in IC Markets and withdraw it to PayPal

Example 2: Let’s say I have 1,500SGD in IC Markets and I withdraw it to PayPal. The withdrawal is free. I then withdraw the 1,500 SGD from PayPal to my bank account, incurring no charges because withdrawals from PayPal is free above $200.

Compare this with an international bank wire of $20 (sender’s bank) + $20 (receiving bank) fees

So to sum up: the cheapest way to withdraw from IC Markets are the following 2 methods

  1. Convert your USD to local currency within IC Markets (especially if you have a large sum), you get better rates, then withdraw via PayPal
  2. If you already have local currency in IC Markets, withdraw via PayPal

So what did I do with the USD 1,500 stuck in my PayPal and I am forced to convert it to SGD at a poor exchange rate given by PayPal?

I deposited the money back to IC Markets, (no fees) then I got IC Markets to convert the USD to SGD at a rate better than PayPal and similar to my local bank by doing an internal funds transfer between two live accounts (one in USD and one in SGD), then withdrew the sum to PayPal in local currency (SGD), incurring no charges.

There you go! Hope you learnt the cheapest way to withdraw via IC Markets!

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withdrawal experience with IC markets

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3 thoughts on “Withdrawal experience with IC Markets and Paypal

  1. Leonard Lim

    I maintain a SGD account with IC Markets.

    Does Paypal charge any fees (e.g. 3.5% cross-border fee) when you sent SGD via Paypal to IC Markets?

    Likewise, when withdrawing SGD from IC Markets to Paypal, and then withdrawing SGD from Paypal to your SGD account, did Paypal charge you too?

    I have been trying to get confirmation from Paypal but those guys are not helpful at all and bit around the bush without answering my simple questions.

    Hope to hear from you. Thanks in advance.

    1. Linton Post author

      Hi Leonard,

      Does Paypal charge any fees (e.g. 3.5% cross-border fee) when you sent SGD via Paypal to IC Markets?

      – No. But you cannot pay via credit card. You have to first transfer money into your paypal account. (How?: Login to Paypal, Click ‘top up’ on the left side of the screen (below your paypal balance).

      Scroll all the way down to Quick Tips and click ‘Learn how here’.

      Follow the instructions. You will need to send money to:

      Beneficiary name
      PayPal Pte. Ltd
      Bank of America, N.A., Singapore
      Bank code
      Branch code
      Account number
      Remember to include your PayPal Consumer Reference Number (You can find this when you first click ‘Top up’)

      The money will take 4-6 days to arrive. Now using this balance in your paypal account, you can send money directly to your IC Markets account using Paypal with Zero fees.

      Likewise, when withdrawing, there is zero fees when sending money from IC Markets to paypal. When the money is in Paypal, just withdraw the money to your bank account, you will not be charged anything.

      Kind regards,


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