When it comes to foreign currency transfers, most of us think it can be a tad complicated and we simply arrange a direct transfer online through our bank account. However we looked into the process and found it really is worthwhile to spend just a little bit of time to set up an account with a trusted currency exchange company, and that it really is possible to save money by using their specialist services with a better rate than you’ll get from a bank and less costs. We asked the experts at Currencies Direct to explain how you can save money by using a currency transfer company.
Can I really save by using a currency dealer versus a bank?
Absolutely. You can definitely make savings by using a currency broker rather than a bank because the rates are usually in the client’s favour. Most brokers don’t charge a fee either so that’s an additional saving. At Currencies Direct we have no hidden fees, zero transaction costs and secure the best exchange rate on your behalf
Do I have to transfer money to a currency company’s account before conversion is done?
Yes you do but it’s a simple process. If you want to carry out a transaction you need to first register with a broker. We give you a dedicated point of contact and if you want to, you’ll be able to discuss rates and agree a rate that’s right for you with advice on just what is and isn’t realistic. We have real people on the end of the phone you can talk to, not just chat bots. Once agreed the rate is locked in and you have 5 working days to send your funds to the broker in order to complete the transaction. Once the funds have been received they will then be sent straight away to the account you specify.
I’m buying a house in France but don’t need to transfer the payment for 3 months, can I make savings by talking to a currency company now or should I wait until I need to transfer the money?
As the exchange rate market is constantly going up and down, when it comes to large sums of money, it’s definitely worth starting to monitor exchange rates in advance of the date that you need the transaction to be made. Once you’ve registered with a currency broker they can update you on market movements and monitor rates on your behalf. Brokers can offer the chance to agree a rate up to two years in advance of the required transaction date (unlike banks which can’t do this), so you may be able to lock in a rate that’s in your favour. It doesn’t cost anything to discuss this and there’s no obligation but for some this could lead to securing a favourable rate in advance.
This also protects the client from market volatility if for example between the time of offer/compromise, there was a sudden drop in your selling currency. Also with a forward contract, you just need to provide a small deposit of 10% to secure the rate with the balance payable at the time of convertion. There is also the option of a limit order where you put all the funds on account and set your desired exchange rate and when this is struck, funds are automatically converted.
What if my bank limits my daily transfers? It’s not uncommon for certain banks to limit the amount a client can transfer say perhaps £50,000 per day. If a client wishes to convert £300,000 then it’s just a case of informing your dedicated account manager of this and they will set daily alerts as and when your transfers are received and when all funds have been received they will convert at that agreed rate so you aren’t penalised for this.
I have to pay a mortgage and bills in France which means I have to transfer money each month – is this something I should consider doing through a currency dealer? Will it save me money or is the amount, for instance Euros 1000 too low?
For regular payments it is certainly worth speaking with a broker. Savings available on smaller regular transactions aren’t as big as you’ll make on a larger amount but if you take it over a year, then you’ll find it’s absolutely worthwhile. If you set up a ROPS (Regular Overseas Payments) plan with your currency broker it will also save you time, the payments will be made regularly so you don’t have to remember (or forget!).
Are my funds protected?
Yes, Currencies Direct only use segregated client accounts so funds are ringfenced at all times. Currencies Direct are also FCA regulated in the UK, FinCEN in the US etc and having 5 stars on Trustpilot gives an honest view from our clients perspective.
The Good Life France uses Currencies Direct who specialise in overseas property purchases. Registration is easy and secure, plus there are no added fees. They save their customers thousands of pounds with their advantageous rates of exchange and guidance. You can speak to one of their experts over email or phone. Find out more about currency transfers here: currenciesdirect.com
