Personal Currency Transfers

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Foreign exchange for property purchases

If you are planning to purchase a property abroad then one of the main points you will be thinking of is about how to finance the move and how can you secure the best exchange rate for your purchase with such a volatile foreign exchange market. Here is some simple advice which could save you as well as on the foreign exchange rate. A big tip would be to avoid your bank as they often get away with offering poor foreign exchange rates.

Changing your money through a foreign exchange broker instead will save you money, as they are able to offer competitive exchange rates, alternative products and low fees, as well as faster payments. Foreign exchange brokers can offer clients alternative ways of protecting themselves against fluctuating exchange rates. You will have the ability to fix the rate now for a date in the future, with a forward contract. This means that if you are buying a house you will know exactly how much it will cost you when the completion date comes. In the same some foreign exchange brokers can also offer ‘currency options’ with which you can gain if the exchange rate gets better over a specified time period.

Whether you need to pay your overseas mortgage or simply send money to your overseas bank account, a foreign exchange broker can save you a great deal of time and money. It would be wise to check all the options open to you when buying property overseas, as going straight to your bank could make the process a lot more expensive than necessary.

Hedging Strategies for your future property purchase

Foreign exchange brokers can offer clients a number of solutions for their international money requirements. The majority of foreign exchange transactions are spot transactions. This is an agreement to buy or sell currency at the present market value. The settlements of these trades are usually within a couple of days of the contract being made.

In the past, individuals and companies would arrange their international transfers through their banks. These deals are not always transparent and with some institutions, even today, the settlement rate might only be decided after the funds have been taken from a client’s bank account. A foreign exchange broker should be transparent in its service and charges as well as offering better exchange rates than banks. A larger foreign exchange brokerage can get the best prices from the market due to the volumes it is trading on an ongoing basis. A client can benefit by talking to an expert who is focussed solely on the exchange rates.

Another useful service available through a foreign exchange broker is a forward contract. This type of contract allows a client to book a foreign exchange transaction at the current rate and the payment will be made on a date in the future. This protects clients from negative exchange rate movements in the future, which would otherwise increase the cost of their overseas property. The downside to forward contracts is that if the rates then move in your favour you miss out on that improvement as you have already agreed and fixed your rate.

However, certain FSA regulated foreign exchange brokers like World First can also deal Currency Options for clients. These allow clients to protect themselves at a certain exchange rate for a transfer in the future and still benefit if the rates then move in their favour. For example, in the case of a future property purchase the client knows the worst exchange rate they will receive for their property purchase in 6 months time, thereby knowing the maximum the property will cost them, however if the rates move in their favour the property will then become cheaper for them.

World First is one of the leading foreign exchange brokers in the UK who offer exceptionally levels of customers service and an exchange rate to keep their customers coming back, Get more than just a foreign exchange quote with World First, use their experience in foreign exchange solutions to save you money.

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