FINANCE & LAW
Getting the best deal on overseas money transfers
Timing is everything
For expats, no matter how often you transfer your money over- seas, the timing of the transaction is crucial. The first step of any transfer is to go online and view the ‘interbank rate’ which will let you know approximately where the exchange rate is at any time. However, bear in mind that this is not a set rate and it moves continuously, often up or down 2% in a single day. There are many factors affecting the movement of the rate and impor- tant political events, for instance, have the potential to move the rate even more than 2%. And this is where experts come in – it is important to speak to a foreign exchange specialist who can provide you with all of the relevant information and upcoming data releases that you should be taking into account. Although no one can predict exactly where the market is going, an expert in this field can closely monitor exchange rate fluctuations and ensure that you do not transact at the least preferable time dur- ing any particular day or week. In addition, they can alert you to any positive moves in your favour to enable you to take advan- tage of a particularly good rate. It is a foreign exchange special- ist’s job to be as proactive as possible and monitor the rate on your behalf, freeing up your time to focus on your actual move.
No UK bank account? No problem!
For those moving into the UK, they will of course need to set up a UK bank account. As those who have already had to do this will know, it can be a very arduous process. It’s therefore worth knowing that you do not need to have a bank account to make payments to the UK. For example, at Argentex, we pro- vide a facility for non-residents which allows them to send us their currency, whichever one they hold, and we will then pay their property deposit, school fees and any other UK expenses
they have in pound sterling. The advantage of this is that our clients can still access excellent exchange rates but do not have to have a bank account set up in advance. This facility is espe- cially helpful and allows you greater flexibility if your move date is subject to changes or delays at short notice.
Hedging your bets
If you are coming to the UK on a short term basis, you may want to consider a forward contract for your currency. This is a very simple measure that ensures that there is no risk: to your earnings, which are paid in sterling in the UK, devaluing against your own home currency. It works simply by ‘buying forward’ your currency. For instance, if you know how much money you are going to earn for the next year, you can lock in some of that value for the exchange rate available today, but to be used at a date in the future. This means that you can budget effectively and rest assured that you will still be able to move your funds back home at the same rate.
Peace of mind
Security of our client’s funds is something that we are asked about a lot. It goes without saying that when making an interna- tional payment, you must be confident that you are sending funds to a reputable and secure organisation, whether that be a bank or foreign exchange brokerage. When choosing your cur- rency provider, always check that they are authorised and regu- lated by the Financial Conduct Authority (the official UK financial regulator). In addition, always check with your provider that all funds are held in segregated client designated trust ac- counts with a regulated bank.
Frances Chisholm is the Relationship Manager at Argentex, a leading FCA regulated provider of foreign exchange services. She can be reached at +44 (0) 203 772 0266
frances.chisholm@
argentex.com
www.focus-info.org FOCUS The Magazine 31
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