INVESTMENTS & PENSIONS
4 . Don ’ t be afraid to get some expert guidance
At Moneycorp , our FX experts work with you to understand your exposure and suggest the most appropriate currency tools that will enable you to save money on your exchange transactions . An experienced currency management professional can help build an appropriate plan using currency tools in line with their risk appetite , timeline or investment objectives .
We know it ’ s not always easy to see the true cost of foreign exchange , so at Moneycorp , we start every client relationship with a free consultation .
For an individual , this would include understanding their exposure , timeline , where the funds are coming from and where they will be going to . Their market specialist will also make sure they are aware of the tools available to them to protect their funds from negative market fluctuations .
For a business , by looking at up to 12 months of data , including the times and dates of your transactions , the exchange rates , the type of products your business uses , and what currencies you trade , we help paint a clear picture . This allows us to understand your foreign exchange history and the needs of your business to show you accurately how and where we can save you money .
5 . Use FX tools to help protect yourself against volatility
In 2023 the GBP / USD rate fluctuated between 1.31 and 1.17 during the year ; this represented a difference of more than 10 %. The impact of these fluctuations can have a major effect on an individual ’ s currency exposure , depending on the currency pair and potentially fatal for a business with considerable FX flow .
Here a few tools available to your clients to help plan their transactions and to make the most of their money :
Currency updates - your clients will receive daily updates on the rates and even rate alerts to make sure they do not miss any opportunity . We monitor the markets , so they can focus on what matters .
Watch order - Their dedicated market specialist will monitor the markets on their behalf and notify them if a preferential rate is triggered .
Market order - They could target a rate of exchange and if the rate moves to that level , their funds will be bought automatically so they never miss an opportunity . With the same principle they can set up a limit order to protect their funds in case the rate falls below a certain level .
Forward contract - This allows your client to fix a rate of exchange in advance of a payment – up to 2 years . This tool is very popular among property buyers as allows them to fix the whole price of the property ahead of completion giving them the peace of mind and the certainty of how much they are going to pay for the property . Also it can be a great way to take advantage of a positive rate movement , and for future mortgage payments . ( Forward contracts may require a deposit )
Options - these are bespoke tailored products that align with a business ’ s objective / outlook . These offer the right but not the obligation to buy . As these are regulated products and so if further information is required , please do get in touch .
PARTNERING WITH MONEYCORP
If you have a client that is regularly making international payments or exposed to an upcoming large transaction , the earlier they are receiving some guidance the better , especially in these extremely volatile times . If you have a currency specialist within your service offering , it is an additional service you offer your clients to ensure you are adding value to their wealth , whilst also ring fencing them within your network .
GET IN TOUCH If you have clients with ties overseas , whether this be property , pension , inheritance or any other matter that requires overseas currency exchange , please contact our specialised team at Moneycorp on 02078287000 or email us on Simplybiz @ moneycorp . com
TTT Moneycorp Limited ( company number 738837 ) is registered in England . Its registered office is at Floor 5 , Zig Zag Building , 70 Victoria Street , London , SW1E 6SQ . Moneycorp is a trading name of TTT Moneycorp Limited which is authorised and regulated by the Financial Conduct Authority for the provision of payment services ( firm reference number 308919 ).
JANUARY 2024 | 19