 Currency Exchange Service for overseas buyers
Buying a property abroad is often the realisation of a personal dream and probably represents one of the greatest expenses of your life. As part of the purchase process, you may need to transfer a Sterling sum into another currency in order to pay for your property. This vital element of the purchase process - one that is often overlooked - can make a huge difference to the price, in Sterling, that you will have to pay for your dream home.
Exchange rates change constantly and 10% fluctuations in a relatively short space of time are not uncommon. This could effectively increase, by 10% (or more), the Sterling amount that you will have to pay. There are various organisations that can convert your sterling into whichever currency you need. Specialist currency dealers will normally offer you a better rate of exchange than your bank and provide a more personalised service. Foreign exchange companies such as Moneycorp often offer a proactive service to their clients, using their expertise to monitor exchange rates on the clients' behalf in order to achieve the best possible rate of exchange.
If you ask your bank to send the money you should expect them to charge you for doing so. The local bank may also make a substantial charge for receiving the money. A reputable currency trader, however, may well be able to reduce those overseas charges substantially by sending the money via a cheaper route.
Contract Options
Spot contracts
The purchase or sale of a currency for immediate delivery. Spot contracts can be very useful if you have an urgent requirement for currency, and are seeking competitive exchange rates with fast and efficient delivery.
Forward contracts
Fixing an exchange rate for the purchase or sale of currency for delivery at a later date (up to two years). This type of contract allows you to fix a rate even if you do not have all your Sterling available to transfer at the time of purchase. Forward buying also removes the risk of adverse currency movements that could lead to the Sterling value of your overseas property increasing between the time of signing the contract and making the actual payment.
Stop loss orders
Setting a minimum level at which required currencies are bought or sold. Stop loss orders effectively protect you from adverse currency movements by guaranteeing a minimum exchange rate.
Limit orders
Setting a level of exchange rate at which, if achieved in the markets, you will buy or sell required currencies.
Savings case study
The savings you can make by using a foreign exchange specialist instead of your bank are considerable. For example, a couple wishing to purchase a property in Spain for 200,000€ would have paid the Sterling equivalent of £134,725 in May 2006. Two months later, they would have paid £138,360 for the very same property. But by securing an exchange rate in advance, they would have made a saving of more than £3,600.
"So far I am really impressed with the way this transaction has proceeded and with the support you and your team have provided. I will certainly be recommending your service to anyone I encounter who wants to move money around the world. I have tried this exercise through my banks in the past and have found it frustrating and expensive - you guys are a breath of fresh air! Best wishes, Keith."
Useful Currency Tools
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