INVESTMENTS & PENSIONS
THINGS YOUR CLIENTS SHOULD BE CONSIDERING WHEN EXCHANGING CURRENCIES ;
1 . Your client might not be getting the most competitive rates from their bank .
When you ’ re exchanging large amounts of money , a small difference in rate can make a big impact . At Moneycorp , we source our rates through our panel of 18 liquidity providers , but many banks are bound by a single rate . Depending on how much you ’ re exchanging , small differences in rates can significantly affect your final figure , these savings can be the difference between keeping a business afloat or affording that dream property .
2 . Ensure they are aware of hidden costs and unnecessary transaction fees
Watch out for hidden costs – some foreign exchange providers charge clients to open an account and to hold various currencies , while others charge fixed fees on transfers . It is free to open and hold an account with Moneycorp with zero transactional fees .
3 . 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 .
4 . Use FX tools to help protect yourself against volatility .
For example , in 2022 the GBP / EUR rate fluctuated between 1.21 and 1.07 during the year ; this represented a difference of more than 12 %.
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 couple tools available to your clients to help plan their transactions and to make the most of their money :
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 )
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 . 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 ).
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