Foreign Exchange

In an increasingly mobile world, our use of the word "foreign" is becoming ever more domestic and we need to think about our increasing exposure to the vagaries of the foreign exchange market and what this means.

• Overseas property purchase
• Overseas mortgage payments
• Fees for property management, agents, building work
• Buying a yacht or car
• Working abroad or retiring
• Emigrating
• Educational fees
• Commercial

All this activity should make people more aware of the implications of currency movements but this doesn't happen, in fact people are becoming less aware of how big an impact the movements of a particular currency can have on their investment decisions.

A touch of forward planning can make thousands of pounds difference - the international currency markets move every second of every day and this movement impacts on the power of your pound overseas!

Spot Contract
The exchange is done immediately, either because your transaction needs completing or you think the rate is a good one and want to secure it.

Forward Contract
Used when a transaction is not due for completion until some time in the future and you would like to fix the rate, to avoid risk or because you think it is a good one. It can be ordered to a fixed date or left open giving flexibility, eg in case of building delays. This is an option that clients should always consider; even those unsure of their total requirements often hedge, by securing a proportion of the total with a forward contract.

Next Step
Although there are many companies that specialise in providing clients with commercial exchange rates and vital market information, most people continue to use their banks. This despite the fact that banks generally provide poor service, poor exchange rates, high charges and no forward contracts. They are relying on our unwillingness to shop around!
Through overseaspropertowners.com you can access Moneycorp and Baydonhill Plc, two of the UK's leading independent FX dealers, selected for their reputation, integrity and expertise. Follow the links, explain your requirements, ask for a quote.