Avoid losing money with a Forward Contract
Last month we provided you with a summary of the major events that could impact the currency markets in 2017, to help you plan ahead with your transfers. I’m sure you’ve heard enough about Donald Trump and Brexit to last a lifetime, so here is a quick reminder of the key dates for your diary.
Now you know some of the key dates that could affect the exchange rate, it’s time to talk to your personal trader about securing a rate and with it the cost of sending your funds overseas. They can explain the specialist tools designed to help protect you from negative rate movements, such as a Forward Contract
A Forward Contract enables you to:
- Fix the prevailing exchange rate for a transfer that happens up to 12 months in the future.
- Know what exchange rate you will be getting, regardless of what the currency market has been doing in the meantime.
- Remove the element of risk associated with making an international currency transfers.
This could be useful when making large transfers such as for an overseas property purchase, where market movements have the potential to increase the cost of your dream home; or smaller regular payments such as pension and salary transfers, which are constantly at the mercy of fluctuating exchange rates.
Linda Ramshaw saved £7,000 by securing the exchange rate for her property purchase with a Forward Contract
“Our trader explained a tool called a Forward Contract, which allowed us to book a transfer in advance for payment at a later date. When we sent all the funds over, it transpired that the Forward Contract had allowed us to save almost the complete cost of our legal fees.
This useful tool also meant we had the security of knowing exactly how much sterling we needed to spend on our euros when it came to sending the money over – it was a really simple process, and absolutely hassle free.”