Fluctuating currency markets, along with poor exchange rates and unnecessary fees from your bank, mean that you could lose thousands of pounds when transferring money to Spain to pay for a property.
Using a foreign exchange specialist (sometimes referred to as an ‘FX provider’) means getting a better exchange rate, and usually paying a lot less in fees and hidden charges which could save you a significant amount of money.
For example, if you´re thinking of buying a property in Spain for €250,000, for example, and transfer the funds with your bank, it
would cost you up to £198,427 (that’s at the average bank’s exchange rate of €1.274=£1*, plus a £25 transfer fee).
But the same transaction with foreign exchange specialists Currencies Direct, for example, would have cost you £195,771 (by eliminating transfer fees from the picture and using a better exchange rate of €1.277=£1*).
(* Rates correct on 5 April 2016)
When selling a property in Spain, you are likely to want to transfer a large sum of money back to the UK. When transferring a large sum, the exchange rate becomes all-important.
A ‘forward contract’ can be ideal in this situation. If today’s rates look good, but you don’t need to transfer your money until a later date – for example, three months – a forward contract could help. It is the currency world’s version of ‘buy now, pay later’. A small deposit will fix today’s exchange rate and it’s yours for up to a year.
As Alistair Cotton, money transfer expert at Currencies Direct, puts it, “The currency markets are constantly fluctuating, so when moving a large sum of money, taking advantage of exchange rates when they are in your favour could literally save you thousands.”
Whether you’re thinking of living in Spain permanently or regularly using a holiday home, you may find yourself making regular transfers from the UK – perhaps paying a mortgage, transferring your pension or paying yourself living costs. In this case, look for a regular transfer service – which is ideal for these types of weekly, monthly or quarterly payments. It’s usually Direct Debit driven, and the savings on transfer fees is considerable when compared to the usual transfer fees of typically £20 to £40 that banks impose. Some FX providers do not charge any transfer fees on this type of transfer
What’s more, if the exchange rate moves in your favour, you can actually ‘lock in’ that exchange rate for up to one year.
Every type of overseas money transfer has a service tailored to help you. Learn to discern which products will work best for you and make your life easier – as well as making your money go further.
Buy currency now, for immediate requirements. Use for:
Fix a rate for up to a year, by paying a small deposit today. Use for:
Set up a Direct Debit and even fix the exchange rate for up to one year. Use for:
Set an automated currency purchase when your target exchange rate is reached. Use for:
With foreign exchange markets in a period of fluctuations, people need to develop a clear strategy on how to manage their own currencies. To help minimise the risk of currency fluctuations and to ensure that you secure the most favourable rate, it is wise to turn to a currency specialist to help ensure that you get the best possible deal.
Foreign exchange providers are dedicated to staying on top of the currency markets, but not everyone else has the time. If you’re in that camp, then there are a few tools that you might find useful.
Setting up a rate alert is basically a way to tell your foreign exchange specialist what exchange rate you’re interested in, and what you think is an acceptable deal. They then assign a member of their expert team to monitor the markets for you, who will notify you when the rate becomes available.
Banks simply don’t have the time to offer this service. Most importantly, when your desired rate arrives, you’re under no obligation to actually trade. It’s just a great way to keep abreast of what’s happening in the currency market so you know when the best time is to start trading if you need to.
Stay up to date with rate exchanges and market updates. Most currency providers frequently offer their customers a variety of newsletter options to sign up to, which include daily market analysis, weekly market analysis, rate alerts, plus more.
YouTube daily market analysis podcasts, Facebook posts, tweets or even infographics in Pinterest – foreign exchange companies are embracing all social media platforms to bring to their customers all the latest news of the currency market. Join their social networks, follow them, favourite their posts and even have live conversations on Twitter!
Currencies Direct is the UK’s leading foreign exchange specialists and has helped more than 150,000 people with overseas money transfers. Visit currenciesdirect.com for more information.
Everyone around the world is collaborating and sharing information together. Some of our most recent user contributions are below.
’’ Fantastic. I'll be out there in the sunshine hacking my ball out of the hedges :... ’’Phillip’s comment - Spain’s golf resorts report above par sales
’’ When calculating the gain, in addition to the cost of acquisition, expenditure o... ’’Virtual server’s comment - The gain in Spain