The foreign exchange markets can change from minute to minute, resulting in exchange rates altering throughout the day, and making transferring funds seem like a complicated minefield.
In addition, many banks, and non-banks for that matter, claim to be commission or fee-free yet fail to be transparent in how much they actually charge, adjusting the exchange rate to make up for their “no-fee” or “no-commission” loss.
With so many factors to consider, how do you get the best foreign exchange rates for your business when making an international transfer? Let us explain…
The Difference in Rates
To start with, there are two main rates to consider; the fee, and the exchange rate.
The Fee
This is considered to be the more obvious charge. Such fees, or charges can apply to both the sender and the recipient.
The Exchange Rate
This is the hidden charge. The promise of a “commission-free” service can often result in companies dampening the exchange rate, so you get less.
5 Tips to Gaining the Best Exchange Rates
There are many benefits to shopping around when it comes to your currency exchange needs. The opportunity to save on rates being one of them but gaining access to the best money exchange rates isn’t always easy. Take a look at our 5 tips for guidance:
- Research the particular rate trends you want
- Understand foreign exchange jargon; sell rate, buy rate and more
- Consider a market order
- Plan ahead, avoid exchanging money at the last minute
- Use a currency specialist; they are always more competitive than the main banking providers
How an FX Specialist Can Help Secure you the Right Rate:
Market Orders
If you don’t have a deadline for your money transfer, you could also put in a market order. This means that you tell your chosen FX broker or specialist the rate you would be happy with and they will enter into a deal on your behalf, if the exchange rate hits your target rate.
Forward Contracts
If you know you must send money to the US and want to get the best exchange rate for Pounds to Dollars, you could fix the exchange rate for up to two years using what is commonly known as a forward contract. This can also be done with most currencies including the Euro, the Swiss Franc, the Turkish Lira, and the Canadian, Australian or Hong Kong Dollar.
CentralFX Can Help
If you’re looking to get bank beating exchange rates when making international money transfers, CentralFX can help. Based in the heart of London’s financial district, we’re one of the leading foreign exchange businesses in the UK. We offer tailored solutions to businesses, guiding them through every step of making their international payment.
To discuss how we can help you or your business, contact us today.