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Posted October 13th, 2010 by Charles Purdy

Insuring yourself against Currency Movements

What does insurance give you? It should ensure that you are left no worse off after an event – for example a fire or a theft – than before. It should remove the stress and strain of having to worry both before and after a traumatic event and you should be able to relax in the certain knowledge that someone else is taking care of things for you, with your best interests at heart.

And that’s exactly what we try and achieve for our clients. One of the ways we do this is to give you far better exchange rates than the high street banks, sometimes saving you a considerable sum of money – money that would be far better spent buying white goods for your lovely new home or, better still, an even nicer property! 

We can also save you the hidden costs – such as receiving charges levied by banks. Overseas banks are known to charge anywhere from £5 to £200 just for receiving your money – thanks very much for nothing! We can often get these charges reduced – or sometimes eliminated altogether.

We will also ensure you get the best possible exchange rate so you don’t have to find say, an extra £2,000 or £5,000 when you come to buy the €250,000 needed to pay for your new property.

Exchange rates change by the minute. When dealing with your request, we will phone and obtain a rate for you, there and then. With banks, however, the rate is fixed early on in the day and remains constant. What this effectively means is that they get the rate and then, to make sure they are covered against any unexpected rises during the day, they add a considerable amount on top – after all, there’s no way they are going to lose money is there? 

There is another aspect to this too. You may have budgeted an exchange rate of €1.12/£1, based on the exchange rate on the day you decided to buy your property – but what if, on the day you need to transfer the funds, the exchange rate is €1.09/£1? Ouch!

What will hurt even more is the knowledge that you may have been able to “insure” a rate of €1.12 a month earlier. You can do this through an ‘insurance policy’, known as a forward contract, which we can easily arrange for you. For a deposit of up to 10%, you could have fixed the exchange rate and removed all the worry, stress and strain of finding extra money. In fact, you could have saved against your budget…which is great news!

One of the best ‘insurance policies’ I ever wrote saved a client over £20,000. As he was emigrating abroad, this paid for all those hidden extras and meant he started his new life in his new country on a happy – and profitable – note.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

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Posted April 28th, 2010 by Charles Purdy

Stop Banks from Cashing in on Your Overseas Transfers – Part Four

By Charles Purdy, Smart Currency Exchange Many British ex-pats overseas send or receive money to or from the UK and in the process they unintentionally lose money. In some cases, losses can be up to tens of thousands! This is part 4 of a special 4-part series that has been written to outline how the  Continue Reading…

Posted April 21st, 2010 by Charles Purdy

Stop Banks from Cashing in on Your Overseas Transfers – Part Three

By Charles Purdy, Smart Currency Exchange Many British ex-pats overseas send or receive money to or from the UK and in the process they unintentionally lose money. In some cases, losses can be up to tens of thousands! This is part 3 of a special 4-part series that has been written to outline how the  Continue Reading…

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