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Currency Exchange - Buying Euros at the Best Rates - Your FAQs
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Currency Exchange - Buying Euros at the Best Rates - Your FAQs
FPL Home > Money Transfer > Currency Exchange - Buying Euros at the Best Rates - Your FAQs

 
Currency exchange ? buying Euros at the best rates
Whether you?re emigrating or buying a holiday home overseas, France is an attractive option. But, many people forget to consider exchange rate fluctuations and subsequently don't obtain their currency at a competitive price. By using a foreign exchange specialist your money will go a lot further.

Your FAQs

Q. Where can I sort out my money transfers to France?
You can obviously walk into any high street bank, but for larger amounts of currency it pays to get in touch with a foreign exchange specialist. Companies like this will almost always offer much more competitive rates than high street banks, as well as lower fees and quicker transfer times.

Q. What will a currency specialist offer me that my bank won’t?
Besides the competitive rates and lower transfer fees, a currency specialist will offer a more personal service. Clients usually deal with a dedicated Account Manager, who is trained to help guide you through the currency markets. There are many different ways of buying your currency, ranging from small regular payment plans (i.e. for paying a mortgage with funds from the UK) through to forward transactions (where you can fix a rate for up to two years). For more information, see Foreign Exchange – the basics (Currency exchange options which save you money).

Q. What is the minimum amount that I can buy or transfer?
The minimum amount is usually £5,000 (or currency equivalent), though smaller amounts are considered. The minimum amount for transfers made under the Regular Payment Plan offered by Moneycorp is £250 per month. For more information, see Foreign Exchange – the basics (Currency exchange options which save you money).

Q. What will it cost me?
In general, the more money you convert the more you will save. Depending on your bank, there will be a cost to transfer funds of around £40 per transaction. Currency specialists such as Moneycorp charge only £15 per transaction. Your foreign bank is likely to charge you a "receiving fee" when your currency is sent. Some currency specialists will cover this cost for you. What’s more, they do not charge any commission on your transaction. It's a good idea to compare the total cost of a currency trade, as some currency dealers do not charge a transfer fee but more than make up for this difference in the exchange rate that they quote.

Q. How do I purchase currency?
Once you have set up a Trading Facility with your foreign exchange specialist, you will be able to buy currency over the telephone, or online.

Q. Can I hold out for a particular rate?
Yes, you can instruct your dealer the moment the rates change to your desired level. The broker can place an order to purchase currency outside London trading hours, which will automatically trigger as soon as your desired rate is achieved. Do ensure you are being realistic about the rate you are looking for and be prepared to wait!

Q. What if the rate is good now, but I don't need to or can't make payment for three months?
You can fix an exchange rate for up to two years, making it easier to plan the cost of your currency payments (this is a called a "forward transaction"). This is particularly useful if you are buying a new property "off plan". With most currency brokers, forward buying your currency is very straightforward. Simply book an exchange rate and send your dealer a deposit, usually 10% of the contract value. The 90% balance of your currency contract is usually payable when you wish to have your funds transferred overseas.

Q. Will foreign exchange dealers help me understand market conditions and rates?
Currency specialists will provide you with information about prevailing market trends and currency movements, and will happily explain everything in jargon-free terms. But, remember that no one can predict the markets with absolute certainty. You will have to make your own decisions about when to buy currency – of course, market knowledge and experience provided by your currency dealer will hopefully make those decisions easier. At websites such as www.moneycorp.com, you can view latest currency charts as well as sign up to receive daily or weekly market updates.

Q. How can I pay an overseas mortgage, or transfer my pension from the UK?
Most currency brokers offer a regular payment service to help clients who need to make regular international transfers. A service like this is ideal if you need to make overseas mortgage payments or pension transfers. The Regular Payment Plan allows you to fix an exchange rate on regular overseas payments for a period of between 6 and 24 months, removing any worry caused by fluctuations in the exchange rate over that period of time. The payments will usually be deducted from your account by Direct Debit each month and your funds transferred directly to the account you nominate.

Q. How do I pay for my currency?
After booking an exchange rate, you will need to transfer funds to the currency broker. The easiest and quickest way is by CHAPS or BACS. Bear in mind that any cheque you send will have to clear before funds can be sent. Once your cleared funds have been received, your currency will be transferred to the overseas account specified.

Q. How can I find out current exchange rates?
Simply phone your foreign exchange specialist, or go online and use a currency converter. Many sites provide historical exchange rates, as well as up-to-date rates. Do remember that some sites display the "Interbank" rate ? the rate at which banks trade - and you will not receive this.

Q. How long will it take for my funds to reach my overseas bank account?
Brokers often use Electronic Funds Transfer (EFT) and can generally get your funds to the destination account a good deal quicker than a high street bank (usually on the same day for France). Bear in mind that there is sometimes a short delay at the receiving bank before your account is credited; this can usually be overcome with a "proof of payment" document that your broker can provide on request.

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