First Direct Foreign Exchange
First Direct Faster Payments Abroad
First Direct offer a wide range of trading options for you to send money overseas. First Direct can provide this full range of international payment services because they are part of the HSBC Group, one of the largest banking. You will need to bank with the First Direct in order to utilise their foreign exchange services.
So when you’re doing business abroad, exchange rate fluctuations could impact on your bottom line. Managing the potential risks provides protection for your business and even helps you take advantage of changes in currency rates.
First Direct foreign exchange products include:
Spot foreign exchange
A straightforward but potentially high risk method of buying or selling foreign currency. A spot foreign exchange contract is a binding obligation to buy or sell a set amount of currency at the current market rate, for settlement after two working days.
Forward foreign exchange
This is a contract to buy or sell a set amount of currency at a pre-agreed rate of exchange, for delivery on a future date (typically within one year). It allows you the choice of accurately forecasting and managing your cash flow and costs, or protecting your profits. The price is based on the spot rate when the deal is booked, with an adjustment that reflects the interest rate difference between the two currencies involved.
Time options
An option to buy or sell a currency at a pre-agreed rate, until a pre-arranged future date. Time options offer flexibility and protection from adverse exchange rate fluctuations. There is no upfront premium but you must still complete the sale or purchase by the final maturity date, even if exchange rates change for the worse.
Currency options
An option, without obligation, to buy or sell a currency up to a future specified date at a pre-agreed rate. By paying an ‘up front’ premium you can take advantage of positive fluctuations and enjoy protection from adverse exchange rate movements.
First Direct offer a wide range of foreign currency accounts in a range of currencies. These are suitable if you regularly make and receive payments in a particular foreign currency, travel to certain countries, own a property abroad or have surplus currency funds. International Personal Accounts (previously known as Foreign Currency Accounts) are available to 1st Account customers and offer immediate access to your funds.
