Foreign Currency – Save a Fortune
When it comes to foreign currency, whether you’re going on holiday or making a big transaction, where you buy it from could make all the difference.
If you're going abroad, you'll need to decide where and how to get your foreign currency. This should be dictated by the circumstances of your trip. If you're just going for a two-week break in the sun that's very different to if you're emigrating or retiring abroad.
Is Foreign Currency Top of your List?
It may be the last thing you think of if you're aiming to move abroad – but foreign currency exchange should be on the top of your list. Why? If you're buying a property for instance and you put in an offer, by the time the sale goes through, the exchange rates could have fluctuated dramatically. This puts you in a bit of a gambling situation – should you take the risk and end up paying up to thousands of pounds more because the pound has weakened? Or could you end up saving if the pound strengthens? The fraction of a fluctuation will have big ripples on your budget if you're spending a substantial amount of money on a property transaction. Choosing to use a foreign currency broker is one way of fixing the exchange rate in your favour so you're not risking losing thousands of pounds.
Get the Most out of Foreign Currency
But if you're going away for two weeks, you still want to get the most out of your money. There are a variety of ways you can get foreign currency now, such as the pre-pay card launched by the Post Office, travellers cheques, ATM machines overseas and the bureau de change. However, all these transactions come with a fee and will vary depending on the exchange rates on offer. Investigations and surveys reveal that there is quite a significant gap on foreign currency exchange rates depending on where you buy. One investigation revealed that the best deal in foreign currency turned out to be a full 5% cheaper than the worst. That kind of percentage can be massive if you plan to buy a substantial amount of foreign currency.
Ensure you get the best Exchange Rate
Exchange rates and fees frequently vary and so it's important that you shop around. Foreign currency exchange brokers are advisable if you want to send money abroad regularly, you are conducting business abroad that necessitates foreign currency exchanges, or you're making a major transaction, such as a car or property purchase. This way you can ensure you get an advantageous exchange rate and that you get that rate as wholesale rather then at a tourist rate, meaning a little more for your money.
Be Wary of Hidden Charges
You should be wary of ‘loading charges' if you decide to use a credit card abroad – this can add 2.75% on foreign transactions. This percentage can translate as a major ripple on your finances if you're spending a lot in that foreign currency. Most credit card companies also add a handling charge, often with a minimum £2 fee per transaction. It's advised then that you use cards sparingly and shop around for the best exchange rates. If you're moving abroad, sending regular payments to a foreign bank account from your home bank account should be done using a foreign exchange broker to ensure you get the most out of your foreign currency.
Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money with us by getting better currency exchange rates than with your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk