Pound/Euro exchange rates have fallen below 1.15 today following news that Prime Minister Theresa May will be outlining her next steps for Brexit and taking her new plans to the vote in June. The vote – which will take place when MPs return from half-term recess – would bring the withdrawal agreement into UK law via the Withdrawal Agreement Bill.
In response to this news Labour party members were quick to state that they would vote against the the new plans as cross party tensions remain. As a result sterling exchange rates have fallen to their lowest levels against the single currency since February and fallen to nearly 1.28 against the US dollar. This all comes following news that UK unemployment had fallen to its lowest level in 45 years, just showing Brexit will dominate movement for the pound and highlighting how vulnerable the pound is.
How do you get the best exchange rate?
The first port of call for many clients that need to exchange currency is to approach their bank. Clients will often lose out by doing this, as bank rates are usually quite poor. By using the service of a specialist currency broker, you can often save in excess of 2 to 3%. When converting a large sum, this can save you thousands. When choosing a broker, ensure you are working with one that is fully authorised by the FCA. Registration usually takes a few minutes by completing a short online application. When the account is activated, you are then in a position to get a quote
I would recommend registering with two companies in order to guarantee you are getting the best price. There is very little point in registering with 4-5 companies, as by the time you call round and decide the best price, you may actually be in worse position than when you started as the market has moved! Many brokers will simply quote you the ‘mid-market’ rate, so make sure you are quoted an actual trading price. It might even be worth seeing if they can guarantee you a ‘fixed spread’. This way you will always know at what margin you will trade.
There are many benefits of using a broker other than just the exchange rate. By using a specialist currency broker, you gain access to multiple contract types. This can help safeguard your money transfer from adverse market movement. You will also find the process to be efficient and far less time-consuming than the banks.