foreign exchange that needs to be accounted for when purchasing and selling these shares based in the US . When purchasing or repatriating a currency for a purchase or sale of an investment , using a foreign exchange specialist , such as Moneycorp , ensures that you will receive transparent and competitive rate of exchange which is often not the case when using a local bank for currency exchanges . This is extremely important as minor changes in exchange rates can equate to considerable differences in returns , effectively this could be starting your client ' s investments at a loss or eating away their returns .
For those clients that pay into funds denominated in their local currency , there is likely an automated FX conversion imbedded within the price that likely is not competitive nor transparent , we often advise clients to investigate before investing .
And how can foreign exchange volatility can impact your investments ?
Shares an investor holds overseas could potentially be performing well , however , the currency the investment is denominated in may be falling in value , negatively impacting profits . So , when it comes to liquidating those investments and repatriating salaries , the volatility between currency pairs can dictate clients returns massively .
To emphasize the importance of this , exchanging $ 100,000 back to Sterling a year ago today would have secured £ 81,600 , and today that same repatriation would pocket only £ 74,800 . Thats a £ 7000 difference , due to volatility between the GBP / USD currency pair .
Luckily using a currency specialist opens the door to a multitude of options for you . You have access to a competitive rate of exchange and the expertise of a currency specialist whose role is to help you plan your transfer to make the most of your money . Also , several tools to protect your funds from adverse volatility movements . 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 immensely 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 . 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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