When moving money internationally there are a number of key things to be aware of, below I have listed a few of the major ones:
- Do I simply contact the bank to arrange the currency transfer?
You can, however this is normally a very expensive method to buy foreign currency. A cheaper method is to use a Currency Broker which is normally far more efficient and saves you money. Simply put if they could not the industry would not exist. Industries use their service a lot and it is available to personal individuals too. currency Broker adds value by undercutting the exchange rate on offer by the banking industry PLUS helping you make an educated decision on when to press the go button and complete your trade. This timing aspect is hugely important and makes a significant difference to the costs. For example; GBPAUD rates have moved by over 4 within the last month making a AUD $15,500 difference on a £200,000 purchase.
There is a difference between brokers however; make sure that you approach one that is fully regulated, with a long trading history and is focused on customer service as well as just the exchange rate on offer.
- When do I start thinking about the exchange rate?
Once you are mentally committed to buying abroad or emigrating you must accept the fact that as part of this move you will need to move money internationally through the currency market. You fundamentally will always want to buy the required currency at the best price which means you want to both use the best provider and at trade at the best time. Many clients will wait until the legal aspects (property contracts or visas) are accepted as this is when your financial obligation is set but that is not always the best route, as by that point the best exchange rate may have already passed you by. I would suggest consulting a currency expert/broker like ourselves ASAP so that they can keep you up to date with any currency opportunities as early as possible.
- What financial options do I have when I need to move money internationally?
You would not buy a property domestically without knowing how expensive it is, and this is kind of what you are doing when you agree to buy a property internationally without locking in your exchange rate. This is due to the fact that as the currency market moves, the cost of the move will change. As a result many clients like the reassurance of locking in exchange rates before they are requested to avoid the risk of rates moving against them. This is an option available to everyone, even if you don’t have the full access to your funds. This option is called a Forward Contract and is available using just a small deposit.
If you have been reading this blog regularly I hope you can see a value and we welcome the chance to introduce ourselves more formally and provide you with a live quotation on your transfer. Please contact the author – STEVE EAKINS – via email at [email protected] or by calling +0044 (0)1494 787 478 and ask for STEVE EAKINS.