How to Make Sure Your Currency Transfers are Secure, Cost-Effective & Well-Informed
If you’re travelling, studying abroad, or emigrating, then you’ll be familiar with the process of currency exchange. Although the currency exchange process isn’t especially difficult, securing a good rate can be challenging. The currency market is extremely volatile and changes all the time, which is why last minute and poorly planned transfers can have such low value. Research and planning ahead are key to making your money go further in the currency market. This is where a Currency Specialist can really make a difference and make your money go further.
In this guide, the team at Halo Financial brings you their top tips on making currency transfers that bring you better value.
1. Don’t use your local bank
For the sake of convenience, most people go to their local bank or post office when they need to exchange currency. However, many people don’t realise that their local bank or post office actually offers the worst rates with additional fees too. This can quickly add up to a big chunk of money, especially when making regular or higher value transfers. Luckily, there are much more cost-effective solutions available to you, such as using a currency broker. Using specialist knowledge and market data, a currency broker can guide you on the best time to send money across borders to get you the best value.
2. Planning ahead is key
Timing is key to getting the best rate out of the exchange market. There isn’t any one specific day, week or month of the year that’s better for exchanging currency. Exchange rates are determined by political factors, economic factors, notable events and sometimes even extreme weather. This is why it’s important to plan ahead. If you know you’re going to need foreign currency in a few months or years, then start your research now. Reach out to a currency transfer company and they will be able to put a strategy in place to help you achieve the desired rate.
If you need to make regular international transfers, they will be able to devise a hedging strategy that helps you mitigate currency risk. You can also track, target and even lock in an exchange rate for future payments through a forward contract. A forward contract allows you to lock in a desirable exchange rate for up to two years, meaning you won’t miss out if the FX market moves unfavourably. This means that you can place an order for the amount that you want to achieve.
3. Stay on top of the market
Currency rates change all of the time, so it’s a good idea to stay on top of the market to get a good idea of when you should be sending money abroad. Staying on top of the market will help you to understand whether you’re getting a good deal. If you’re registered with a currency specialist, they will be able to guide you on whether now is a good time to be sending your money across borders or not. They may also provide regular updates on the currency markets you’re interested in to help you make informed decisions when sending money overseas.
4. Always check for security credentials
Security should be one of your top priorities when making currency transfers. When choosing a company to make international payments with, check their website for security credentials. If you are using a UK company, check that the company is authorised by the Financial Conduct Authority (FCA) . This means that the company must fulfil a strict criteria to ensure they are suitable to conduct payment business, complying with Payment Services Regulations and the FCA’s Conduct of Business requirements. If they have these credentials, then you can be certain that they will facilitate safe and secure payments.
5. Look for value in a company
When choosing a currency specialist, sometimes getting the cheapest rate isn’t always an indicator of good value. As well as promising great rates, the quality of service should be key. After all, in a long-term currency strategy, you’ll be relying on your currency specialist to make your money achieve more, so you’ll want them to have your best interests at heart. Look for what else a currency transfer company offers besides a ‘good rate’. Do they provide regular currency updates so that you can stay on top of the market? Do they promise regular communication and updates on your transfers? These additional extras are what will make a service really worth it, and will help you to achieve more from the currency market long-term.
To find out more about how to get the best exchange rates, contact Halo Financial:
Phone +44 (0) 20 7350 5474 or visit: https://www.halofinancial.com/immigration-industry-association