Savings through Foreign Exchange
The fractional ownership market is fast becoming the smartest way for individuals to live the millionaire lifestyle at a fraction of the cost.
With the global economic markets in turmoil it is more important than ever to use your money wisely and efficiently, and in this cash conscious climate it is worth drawing your attention to a much overlooked aspect of purchasing a fractional investment - foreign exchange. By being smart with your foreign exchange transaction, fractional savvy consumers are able to save significant amounts of money on their purchase; in some case thousands of pounds.
How can a foreign exchange specialist save me money?
Most people wrongly assume that their bank will give them the best rate possible on converting their money. However this is simply not the case.
“Banks are very often not the best place to go when you need to transfer your money overseas. In many cases people overpay by between 2-4% of the transaction amount. This can mean that on a £100,000 transfer they are spending up to £4,000 needlessly, just because they don’t take the time to speak to a specialist provider”
- Mark O’Sullivan – Head of Trading at Currencies Direct
Because banks set a fixed rate of exchange each day whilst the markets are moving constantly behind the scenes they have to build in a healthy margin between the real rate of exchange (often referred to as the interbank rate – the rate at which banks buy and sell currency from each other) and the rate they offer their clients. Therefore the rate they offer is significantly in the banks’ favour. Specialist Foreign Exchange companies are able to offer their private clients access to the live interbank rate and can therefore undercut the banks whilst passing on the resulting savings to their clients.
How safe is it to use a specialist foreign exchange company as opposed to my bank?
It is advised that you seek out a reputable company when entrusting them to make your transaction.
Particular things to look out for are that the company is regulated by HM Customs and Excise. In addition the company should be working under the HM Customs and Excise Money Laundering Regulations and should be able to provide you with their MLR number.
Lastly you should make sure that your money will be held by a 3rd party banking partner in a segregated account and not by the exchange company directly.
What are the next steps?
First you would need to open an account. This is completely free and easy to do and puts you under no obligation to trade. Once your account is open you will have access to live rates, allowing you to compare the rates offered by the specialists compared to those offered by your bank.
Currencies Direct are one of the largest and oldest foreign exchange specialists and a good starting point for you to understand the savings you could make. To find out more about opening a no obligation account or to discuss your international payments please contact James Shattock on 020 7847 9414