Are you looking to buy a house abroad? You’ll need local currency for your deposit and balance payment. The balance may not be due for several months so consider protecting yourself from adverse currency movements as occurred in the first part of 2008 with the Euro strengthening dramatically against Sterling. In the six months between October 2007 and March 2008 the Euro fluctuated some 13% against the pound. The Interbank rate (the rate at which money moves between banks) reached a high of 1.45 and a low of 1.26 Euros to the pound. Imagine the cost of your new French home rising by over 10% between paying your deposit and having to fund the balance. Of course the rates can also work in your favour but can you afford to take the risk? It can be a very good idea to agree a conversion rate with your dealer for a fixed date in the future. This way nothing is left to chance and you know exactly what your new overseas property is going to cost you.
"When we bought our place in France, we set up three accounts with different foreign exchange dealers in the UK. We were then able quickly to obtain quotes for converting Sterling to Euros in order to finance our deposit. When the house sale was finalised and we had an entry date, we again asked for three quotes and agreed a conversion rate for the balance payment, in our case this was in six month's time. This fixed our costs and cushioned us from any adverse movements in the currency markets. We not only saved a considerable amount of money over the high street banks but also obtained the most competitive rate from the foreign exchange dealers."
Agree a currency conversion rate with your dealer as soon as you know when the balance payment of your house is due. This is called a forward trade and protects you from movements in the money markets.
Moving overseas and require living expenses.
If you are planning on moving abroad for a time and need to fund expenses whilst there then it can be worthwhile setting up an appropriate bank account in the relevant local currency. Currency conversions from your dealer can then be transferred direct into your account.
Set up 2 or 3 free trading accounts with dealers of your choice. This allows you to easily and quickly obtain quotes and trade as and when required, secure in the knowledge that the rate you achieve is very competitive.
Need a regular income stream?
Perhaps you have retired abroad and need to convert your pension into the local currency on a regular basis. Whatever your needs, a regular payment can be set up with the dealer of your choice to convert an agreed amount on an agreed date at an agreed rate.
If you need regular currency conversions, then agree the amounts, conversion rate and dates, with the dealer of your choice.
Whatever your currency requirements it pays to get the Best FX Rate.
Obtain a quote from one of our exchange dealers and compare with your local bank or other provider. The quote is free and there is no obligation to trade. So what have you to lose?