Online money transfer
Overseas money transfers through FX currency exchange companies, is a very competitive business.
Regular monthly transfers of money are made for a variety of reasons: to make overseas mortgage payments, pay school fees - or other education costs including university, business stock payments and salary transfers, property management fees and rental agent payments, overseas investment payments and pension contributions, medical treatment payments and family fund transfers.
Overseas transfers for any amounts and any destination warrant a request for as near to 'Interbank' exchange rate as possible.
Online currency solutions companies will strive to save you time and money generally offering:
No hidden costs or commission charges on foreign exchange
The best exchange rates available
Savings compared to high street banks - better exchange rates, faster and cheaper transfers than a high street bank
Security for money payments through a 'Client Account'
Regular payments for transfers by automated direct debit
Forward contracts for fixed exchange rates to help with risk assessment, stable pricing, stock flow and budgeting.
Choosing your contract option:
Ask the dealer which contract option is best for your individual circumstance.
Timings, currency requirement, volume and reason for transfer will be assessed before advising which contract type offers the best option.
If you need to transfer money quickly (for a deposit on a property or on completion of a purchase), a spot contract is usually executed.
If you want to guaranteed and fix an exchange rate irrespective of future fluctuations in the currency markets (great for budgeting), a forward contract is a good option. A deposit is taken when you fix the contract, then settlement is made on or before the value date.
Stop Loss / Limit Order
If you need to transfer money but are not in an immediate hurry, you can set a Stop Loss / Limit Order to see if you can achieve a cheaper exchange rate - if your chosen exchange rate is achieved, your currency order will be executed. Setting a 'stop' will protect you should the exchange rate fall steeply whilst you are waiting to achieve a cheaper rate.