Foreign currency exchange - Best exchange rate

Foreign Currency Exchange Rate, Foreign Exchange Services, Foreign Exchange Rate, Foreign Exchange Trading

Best Rates Of Exchange For Any Currency.

This service is available to private and Corporate user, and you will be offered exchange rates normally reserved for large financial institutions. Because of the volume of buying and selling currencies, you pay no hidden fee or commission.

Whether you are looking for currency exchange for a holiday, or for regular transactions converting an income, or you are planning on buying an overseas property. Check out Currency Solutions. Help with your currency exchange rates services and spot and forward foreign exchange facilities.

1 - Why use a Currency Specialist and not my bank?

The direct and simple answer to this is that a Currency Specialist will provide you with a better exchange rate and a more personal and efficient service than your bank.

A Currency Specialist solely deals with Foreign Exchange. This means that the volume of currency trades and lower operating costs allows them to pass significant savings onto their customers whilst maintaining their profitability.

A personal and efficient service is something many people overlook without appreciating its importance until afterwards. How many times have you phoned up your bank to ask for information or action a transfer but have been left frustrated on the line as you are passed from one person to the next and never manage to talk to the same person? With a specialist each client is assigned a personal currency dealer who will guide you through the whole procedure from start to finish.

As part of their personal service, a specialist will keep you up-to-date with information and rates that may affect your situation. This allows you to buy currency at the most opportune time when the exchange rates are in your favour.

Speed and efficiency of transfer is the backbone of a specialist operation. Currency can be transferred to anywhere in the World within a couple hours for the major currencies (subject to having cleared funds from the client). Procedures are in place to ensure that the funds reach their destination safely and on time. This is to be expected of a specialist considering the sheer volume of transactions and transfers from both corporate and private clients that needs to be efficiently handled each working day.

Sending money to some countries, in particular Spain, can be a p roblem. These banks often charge the client to receive incoming funds. This can be as much as 3% of the receiving amount. A specialist can help remove such costs – see part 8.

2. How does it all work?

On initial contact the currency dealer will answer any questions you may have and he/she will send you a Client Information Pack by email/fax/post that clearly explains the whole procedure.

To begin the process you will need register with them by completing and sending back their Terms & Conditions and a copy of either your passport or driving license and a recent utility bill (must be less than three months old). This is required as part of the anti-money laundering procedures.

Your personal dealer will contact you to confirm your registration has been successful and notify you of your Account ID. At this point you will be able to place an order and buy your currency at any time if you so wish. Throughout, your dealer will give you as much help and guidance as you want or need, both prior to actually booking your rate, and also making sure that the currency is safely delivered. If urgent delivery of funds is required (same day or next day) then you must inform your dealer and ensure that they receive cleared funds immediately.

Once your trade has been booked, the exchange rate is fixed; you will be sent a Contract Note and Payment form. The Contract Note confirms how much currency you have bought, the rate at which you have purchased it, and how much it has cost you. It also allows you fill in the account details of where you would like your currency to be sent. The Payment Form contains all the information needed by your bank in order to transfer your funds to the specialist.

You will be notified of when your funds have been received and the onward transfer of your funds to where it needs to be.

3. How long does it take to transfer currency abroad using a specialist?

The whole process from initial contact to receiving cleared funds in your beneficiary account can be done in a few hours for the main currencies – GBP, EUR, USD, CAD. Other currencies may take a little longer because of the international banking systems involved in the transfer of funds. Here is a simple break down in term of timescales.

• The account opening procedure can be done in a matter of minutes by sending and receiving documents by fax or email. Using post to send and receive documents will obviously take longer. On receiving your registration details, your personal dealer will immediately inform you of your Account ID.


• As soon as your account is open you can instruct you dealer to buy currency at any time. If the funds need to reach your beneficiary account the same day, then you must inform your dealer so that he/she may set the ‘value date’ of the trade accordingly.


• As soon as the currency is bought you need to instruct your bank to make an immediate ‘same day’ transfer of funds to the specialist account. This should take a couple of hours (though it is not uncommon for banks to delay this process – contact you bank immediately if you suspect any delays).


• Subject to receiving your cleared funds, on the value date of the trade the foreign funds are transferred to your beneficiary account(s). If the funds are received before 2pm then the client should receive foreign funds the same day for the main currencies.

4. Can I fix my exchange rate now for a future purchase?

An exchange rate can be fixed for up to 2 years in the future. This means that you can determine exactly how much you need to spend on a future purchase without having to worry about fluctuations in exchange rates prices between now and the future.

This type of currency buying is called a Forward Contract as opposed to a Spot Contract where the currency is required immediately (within 2 days). With a Forward Contract 10% of the trading amount is required on the trade date with the remaining 90% on the value date of the trade (i.e. the future date when the funds are required).

If you do not know the exact date of when your funds are required then a Time Option (Flexible) Forward Contract can be requested. This allows you to take early delivery of your funds or draw out part of the full amount before the value date if required.

5. Is my money safe?

It is important to use a reputable specialist. A specialist will clearly disclose their company registration number and be fully affiliated with HM Customs Monetary and Excise. This is the Government body that monitors anti-money laundering procedures for which all money services need to fully comply.

A specialist will have the banking structure and procedures to ensure that your funds are safe from the moment it is deposited into their Client Account to when it arrives as foreign currency in your beneficiary account abroad.

Your funds are deposited in Client Accounts which are segregated from the company business accounts for the sole purpose of exchange and onward transfer of payments. The accounts are held by major UK banks to ensure protection and security of funds at all times.

In terms of technological security, the specialist’s online trading platform and payment system are the same as those used by the major banking institutions. All international transfers are made using SWIFT* priority transfers. Please note that banks and other institutions may use standard and low priority transfers which can take between 3-10 working days. SWIFT payments are the fastest and safest method of international payment. This allows for same day and next day delivery for the major currencies.

* Society for Worldwide Interbank Financial Telecomunications

6. Is it possible to guarantee that the funds will arrive by a specified date?

A specialist will maximise the outcome of the funds arriving on a pre-agreed date. It is not possible to guarantee arrival of funds because of external parties involved in the transfer process. However, with a specialist you can be assured that everything that can be done is being done to ensure that your funds reach you beneficiary account safely and on time.

A common misconception many people have is that electronic bank to bank transfers are instantaneous. International transfers usually require the intervention of intermediary banks to forward credit the funds onto beneficiaries. These processes are not automatic and require manual intervention. Not surprisingly delays or errors do happen.

Specialists are aware of these pitfalls and have the processes in place to remedy these p roblems should they arise. If required, an official bank transfer receipt (MT-103) can be issued. This can be used as proof of payment and to release funds in situations where the banks ‘hold on to payments’ – Greek banks and Spanish banks commonly do this to receive interest.

7. How does a currency specialist make their money?

It all sounds too good to be true – great exchange rates, free personal dealer, no commission or transfer fee – many people naturally will be sceptical of the service that is offered by a currency specialist.

A specialist makes their money by offsetting the exchange rate they get (a so called Interbank rate) by a nominal margin which is given to a client (“client rate”). This margin is much less than what you would get from your bank. But due to the sheer volume of repeat business and lower operating costs everyone benefits – apart from the banks.

Banks deal with hundreds of different financial products and the complexity of their operation means that there are bound to be shortfalls in how cost-effective and efficient they can manage their operation. A currency specialist as the name suggests deals solely with the Foreign Currency business. This allows them to target their operation in the most efficient manner.

8. What about foreign bank receive costs?

Some foreign banks, especially those in Spain, charge a premium to receive funds from abroad. This can be as much as 3% of the amount to be transferred, which is considerable.

There are several ways that receive costs can be avoided. If the funds are sent to a notaire account or a resident account in that country then there will be no receive charges, i.e. ask if you can send your funds directly to your foreign solicitor or estate agent account.

You may be able to negotiate with your bank to reduce these charges. But make sure you get written confirmation from them before you send out your funds.  

A specialist have procedures which can reduce these receive costs and in many cases remove them completely. For example, a specialist can open bank accounts on your behalf in a foreign country whereby you receive no charges whatsoever. If you intend to make repeat transfers it makes sense to have this banking facility open.

9. What will the exchange rate be next week?

This really is a 100 million dollar question. If we knew, we’ll all be millionaires!

A specialist cannot advise you of what future rates will be or when to buy currency, but they can give you the facts, such as trends from current and past historical data and the latest market information, to which you can make an informed decision. More importantly, a specialist acts as your eyes and ears and will contact you at the most opportune time when the rates are in your favour.

The currency market is one of the most volatile markets. The most traded currencies which include the EUR, USD and GBP have seen huge fluctuations in recent times due to instabilities in the global economies. Even when historical trends are strong, there is no guarantee that future trends will follow the same pattern. Speculating on future exchange rates is an extreme risk – one which is not recommended. If someone says they can guarantee what the exchange rate will be next week – would you trust them?

A specialist will try and minimise currency risk and have trading options such Forward Contracts and Limit Loss orders to guard against adverse currency fluctuations.

10. What affects exchange rates?

Generally speaking, exchange rate movement relies solely on macroeconomic factors – “big picture” issues and concepts. Significant movements in exchange rate can be attributed to three main factors:

Interest Rates

Each currency has a central bank, and this central bank issues an overnight lending rate. This is a prime gauge of a currency’s value. In recent history, low interest rates have resulted in the devaluation of a currency.

Unemployment Rate

The unemployment rate is a strong indicator of a country’s economic strength. When unemployment is high, the economy may be weak – and hence its currency may fall in value.

Geopolitical Events

Like all markets, the currency market is affected by what is going on in the world. Key political events around the world can have a big impact on an economy and the value of its respective currency.

For the Best Exchange Rates try Currency Solutions

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