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The importance of finding the best exchange rate
| Whether your
property is an investment, holiday or retirement home, or if you plan to
live there permanently, it's easy to forget about the boring things, like
how to transfer the money to pay for the place. You'll be paying for your
property in a foreign currency and if you choose the wrong method to
transfer your cash you could end up thousands of pounds worse off. Finding
the best exchange rates and methods of transfer can make a very big
difference to the amount you eventually pay. And you will certainly want to
ensure that the price that you have to pay for your property does not
increase due to an adverse exchange rate movement. Currency brokers
versus banks
This is where currency brokers or specialist foreign exchange companies
come in. They are able to offer many benefits over and above what high
street banks can offer, while making the process of buying property
relatively easy. The main advantages are as follows: |
| All information is treated in strict
confidence (although it will be passed a specialist currency exchange
professional in order to provide you with details
of the best products and rates available). By submitting the form to us you are deemed to have
authorised any such disclosure. |
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The main advantages of using a currency broker
- Currency brokers/foreign exchange companies offer the most competitive
exchange rates available, saving you money.
- They offer lower transfer fees than many banks.
- They can transfer your money more quickly than many banks.
- They do not charge commission.
- They can protect you from adverse currency movements, allowing you to
lock in to favourable exchange rates, thereby fixing exchange rates for
settlement in the future.
- They have friendly, expert staff on hand to guide you through the
process, often available outside of the normal opening hours of banks.
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Euro exchange rates - how the rates vary
Here is an example of how differing exchange rates could affect you, as we compare three leading high street banks with foreign exchange specialist Moneycorp.
If you had transferred £50,000 into Euros on 13 October 2005 at 12 noon, Moneycorp would have used an exchange rate of 1.4545, crediting you with €72,725. Their transfer fee would have been £15.
HSBC would have used an exchange rate of 1.3985, crediting you with €69,925. HSBC would also have charged you a £21 transfer fee.
Lloyds TSB would have used an exchange rate of 1.4453, crediting you with €72,265, while also charging a £30 transfer fee.
Barclays would have used an exchange rate of 1.4514, crediting you with €72,570, while charging a £20 transfer fee.
So you would have been €2,800 better off by using Moneycorp instead of HSBC, €460 better off using Moneycorp instead of Lloyds TSB, and €155 better off using Moneycorp instead of Barclays.
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Options available from currency brokers
More detailed information about the products on offer from currency brokers can be found by following the links below, but to summarise these are:
Forward Contracts - whereby you 'fix' an exchange rate so that you aren't effected adversely by currency fluctuations in the future. More information is available via the link below.
Spot Contracts - whereby you purchase currency 'on the spot', at the exchange rate of the day. More information is available via the link below.
Regular Payment Plans – for regular money transfers (eg: pension or mortgage payments) which again can be 'fixed' for up to two years.
Read more about all of these options in our article: Currency exchange options which save you money.
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Don't throw money down the drain - talk to the specialists
Whatever your situation, it makes sense to talk to a specialist. Currency brokers monitor the currency markets and are always available to give market guidance. This enables clients to make an informed decision on when to exchange their funds and what type of arrangement would be the best bet.
Want to save time and money? Open an account now with this link:
Or get one of the Moneycorp team to phone you (saving you the price of the call). Just click on the phone icon, type in your telephone number and someone will call you straight back...
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