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Q.
Where should I buy currency?
You can obviously walk into any high street bank or bureau
de change and exchange your currency for Euros. This may be
convenient for your holidays but for larger amounts of currency
it pays to get in touch with a specialist foreign exchange
dealer such as Moneycorp. Specialist brokers will almost always
offer much more competitive rates than high street banks or
tourist outlets, as they deal exclusively in high-volume transactions
and their overheads are much lower.
Q.
What will it cost me?
Currency brokers do not charge a commission fee as they make
a margin on your money from the high-volume rates they obtain
in the money markets. Don't be afraid to email or pick up
the phone and call a currency dealer like Moneycorp to see
what rates are on offer and compare with your bank. In general
the more money you wish to convert the better the rate. Depending
on your bank or broker, there will be a cost to transfer funds
of between £15 and £40 per 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.
What information do I need to provide in order to make an
exchange?
You can set up a trading facility free of charge and without
obligation. Simply fax or post your completed application
form to your currency dealer along with copies of two forms
of identification e.g. a copy of your passport plus a recent
utility bill or bank statement. Your account is normally opened
the same working day. Moneycorp can open your account within
an hour if your payment is urgent.
Q.
If I take out an Overseas Mortgage and have to make payments
from the UK how can I do this?
Moneycorp provides a Regular Payment Plan to assist those
clients that need to make regular overseas payments. Such
payments might include overseas mortgage payments or transfers
of UK pension payments or any other regular 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 the worry caused by fluctuations in the exchange
rate over that period of time. Moneycorp will deduct the payments
from your account by Direct Debit each month and transfer
directly to the destination account of your nomination.
Q.
How do I purchase currency?
Provided you have set up your trading facility with the broker
or bank you will be able to buy currency over the telephone.
This usually takes the form of a binding verbal agreement
to buy currency at the quoted rate.
Q.
Can I hold out for a particular rate?
Yes, you can instruct the broker to contact you the moment
the rates change to your desired level. Some brokers, such
as Moneycorp, can place an order to purchase currency outside
London trading hours, which will automatically trigger as
soon as your desired rate is achieved. Just make sure 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 make payment
for 3 months?
You can fix an exchange rate for up to two years to make it
easier to plan the cost of your currency payments. This is
particularly useful if you are buying a new property “off
plan”. Through a reputable currency dealer, 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 payable when you wish to have funds transferred overseas.
Many dealers recommend spreading your currency risk by splitting
your currency requirement in two, buying half on a forward
contract, as above, and the rest nearer your completion date.
Q.
Will foreign exchange dealers offer advice about market conditions
and rates?
Currency dealers are not regulated to give advice but many
will provide you with information about prevailing market
trends and currency movements. However, remember that no-one
can predict the markets with any real certainty. You will
have to make your own decision about when to buy currency,
but market knowledge and experience imparted by your currency
dealer will hopefully make that decision easier! Further information
can be found at websites such as www.moneycorp.com where you
can peruse the latest currency charts as well as sign up to
receive daily or weekly market updates.
Q.
How do I pay for my currency?
After fixing the exchange rate with your dealer, you will
need to transfer funds to their client account. The easiest
and quickest way is by bank transfer but some currency dealers
will accept a cheque. Bear in mind that your cheque will have
to clear before funds can be sent. Once the dealer has received
your cleared funds, they will transfer your currency to the
account of your choice.
Q.
How can I find out current exchange rates?
The Interbank rate can readily be found on the internet and
on Ceefax. Moneycorp's website has live currency charts and
you can also view historical exchange rates. Although a useful
guide to current market levels, do bear in mind that unless
you are trading millions of pounds on a regular basis, you
will not receive the Interbank rate for your own transaction!
For a live quote on the amount you are looking to exchange,
it is best to call your currency dealer.
Q.
How long will my funds take to transfer to an overseas bank
account?
Foreign exchange dealers use Electronic Funds Transfer and
can generally get the funds into the destination account a
good deal quicker than a high street bank. Moneycorp has a
same-day transfer service to most European countries and North
America, and next day for all other destinations. Bear in
mind that there is sometimes a short delay in the receiving
bank before your account is credited, this can usually be
overcome with a “proof of payment” document that
your currency dealer can provide on request. |
