Learn how a currency specialist can help you
Christopher Nye of NRLA partner, Smart Currency Exchange, explains more about exchange rates and two commonly used services by overseas homeowners and those with business dealings overseas.
It’s no secret that exchange rates fluctuate daily in response to a range of economic and political data releases. The pound-to-euro rate for example, can move quick and without warning.
In fact, the rate has fluctuated as much as 3% in the last three months alone, meaning the price in Pounds Sterling of a €250,000 property in France, Spain or Portugal, has fluctuated by £6,500.
The pound’s movement against the US dollar is even more extreme, changing by as much as 6% since the start of the year.
For those who own overseas properties or for anyone making international transfers, there are specialist services that Smart Currency offers that your bank may not.
Forward contracts
A forward contract allows you to lock in a preferred exchange rate for up to 12 months. It can be a useful tool that can help you avoid the risk that comes with unpredictable market fluctuations.
Benefits:
- Allows you to budget your finances accordingly.
- Gives you access to guidance from trusted currency specialists.
- Ensures your payments are safe and secure, as Smart Currency is authorised by the Financial Conduct Authority.
- Helps you achieve your goals with peace of mind and reduces uncertainty.
The process contains just two steps. The first, involves finding a day rate that you would like to lock in – your Personal Currency Trader at Smart can help you with this. The second step regards making the payment – simply complete the transfer when you need it, taking advantage of the rate that you previously locked in.
To set up an account with Smart Currency and find out all about Forward Contracts, simply pick up the phone and dial +44 (0)20 7898 0541 or fill in this short form.
Market orders
If the current rate doesn’t quite fit within your plans and you’d rather wait for the market to move in favour, then market orders can be helpful. There are two solutions that Smart Currency offers. They are called an ‘order to buy’ and an ‘order to call’.
What’s the difference?
An order to buy is when you set an exact exchange rate. If the currency market moves and hits that exchange rate, regardless on the time of day (5 days a week), the order will trigger automatically, buying and selling the currency at the rate you’ve already pre-agreed with your trader.
The benefit of this is that your trader monitors the rates for you, so you can relax and don’t have to rush to contact us. If the rate isn’t hit, we won’t book anything in.
An order to call does exactly what it says on the tin, however instead of auto-buying your currency if hit, your trader will give you a call when your desired rate becomes available, allowing you to decide whether to go ahead or not.
So, while you’re busy living your life, we’ll worry about the exchange rates. It’s that simple.
To find out more about how an order to buy or an order to call works and how it could be a great option for you, register with Smart Currency today or fill out this short enquiry form and someone will be in touch soon.
