Investors have continued to take the Pound higher today, with the Pound/Euro level now above €1.18. That’s nearly 8 cents higher from the lows of €1.1050 earlier this month. The markets have taken the autumn statement positively for the UK, and Sterling is higher as a result.
It’s not just strength in the Pound however; the Euro is also weaker due to political concerns in Europe, making the Euro cheaper to buy. It’s a good time to remind our regular readers of the contract types that we offer, which are outlined below. The rates of exchange we offer are very close to the published interbank level, and significantly better than you would get simply using your bank or even another currency broker. Click here to get a free quote and find out more about the foreign exchange services we offer.
Contract Types that we offer for Foreign Exchange
Spot Contract (Buy your currency today) – This is the most popular way to buy currency. You fix a rate over the telephone, settle within 2 days, and your currency is transferred by priority transfer to the account of your choice. The rate varies throughout the day as we buy live from the market, and can be up to 5% better than your bank or existing broker may offer.
Forward Contract (Fix into the Future) –You can fix today’s rate of exchange for up to 2 years, protecting you against volatility and helping you to budget. You lodge 10% of the total to be converted within 2 days, with the remaining balance due when you want your currency transferred. This type of contract really helps budgeting for business’s and those buying or selling property abroad.
Limit order (Hold out for a better rate) – Secure your currency when your desired rate becomes available; particularly useful if time is on your side and you think the rate may get better. This allows you to aim for a higher rate in the hope that things will get better.
Stop loss order (Protect against rates dropping) – Your currency is exchanged if the rate goes below a pre-determined level. Combined with a limit order, you can hold out for a better rate while protecting yourself from a sudden fall in the market. This gives you a worst case scenario so you don’t end up paying more than necessary for your currency.
So that’s a brief overview of the main contracts we offer. We also provide a free consultative service for any clients who need the best exchange rates in order to explain what may move the rate, to help you decide when to fix a rate and what contract type to use. Using these types of contract give you control over your currency purchase. The alternative is simply sitting back and hoping the exchange rate will move in your favour. In my experience, hope is not a reliable economic tool.
To discuss our contract types in more detail and take the first step to taking control of your currency needs, contact us today by clicking here or completing the form below, and I will get in touch personally to discuss your requirements.