International payments: benefits of using a currency specialist over your bank
Look beyond your bank when making international payments to an option that offers a more personal, cost-effective and expeditious service: a currency specialist.
Currency market risk is the threat of political and economic variables triggering exchange rate fluctuations that drive up the cost of your international payments. The potential impact of these unpredictable movements on the cost of sending money overseas highlights the importance of seeking expert currency market guidance and insight.
Whether you’re sending a small financial gift to a family member or buying a property overseas, you should shop around for the most specialised and cost-effective option on the market. If you were taking out a mortgage or buying insurance, for example, you wouldn’t hesitate to adopt a prudent approach to your finances – and making international payments should be no different.
This leaves you with a big question to answer: should I use my bank or a currency specialist?
Don’t default to your bank
Banks offer a wide range of services and have traditionally been the default option when managing money, making them appear the obvious choice when transferring funds overseas. However, when it comes to exchanging currencies and executing international payments, they can’t always deliver the same level of currency market insight and support as a specialist provider. Their diverse offering means their resources aren’t solely focused on helping you obtain the best possible exchange rate or ensuring your funds are sent as quickly as possible. Plus, they charge higher fees, which can add up when making regular international payments.
Choose the experts
Don’t let the cost of sending your money overseas spiral out of control because you haven’t considered the benefits of using a currency specialist over your bank.
Personal service
At the core of their offering is the personal service you’ll receive from your account manager. This dedicated professional understands that timing is crucial when making international payments, allowing them to provide invaluable currency market guidance and insight. You’ll benefit from the reassurance of knowing you have a trusted point of contact who cares about guiding you through the unpredictable currency market landscape.
Plan with confidence
Your dedicated account manager can introduce the range of tools that are designed to help you manage the cost of your international payments by planning head, including:
· Forward contract: This allows you to fix an exchange rate at the current level for a transfer that happens in the future. You can then relax, safe in the knowledge that the price of your international payment is protected from adverse rate fluctuations.
· Market order: This allows you to choose a trigger rate you want to make your international payment at – either above (limit order) or below (stop-loss order) the currency market level. Once the market hits your desired level, your payment will be executed at that rate, eliminating the need to monitor the currency markets.
· Regular Payments Plan: If you’re making the same international payments each week, month or quarter, a Regular Payment Plan (RPP) offers confidence, efficiency and cost-effectiveness. An RPP automates the payment process to occur in line with your required schedule, either using the current market rate or a rate you have fixed using a forward contract.
Competitive exchange rates
A currency specialist is typically able to offer exchange rates that are more competitive than the banks, who make the bulk of their profit by adding a hefty margin. Even a seemingly small variation in the exchange rate can make a big difference to the cost of large transactions like funding an emigration or buying a holiday home in the sun.
Transparent fees
Some high street banks charge fees of up to £40 when making an international payment and might also charge a receiving fee on your transfer. A currency specialist, on the other hand, will only charge a nominal transaction fee, which might be waived when making a payment over a certain value or when using their regular payment service. If you need to send money overseas frequently, these additional savings will be most welcome.
Speedy transfers
Amid rapid technological innovation, consumers demand convenience in everything they do – and international payments are no exception. If you’re sending money overseas, you’ll want it to happen as quickly as possible. Unlike high street banks, which typically take 2-5 business days to complete international transactions, currency specialists typically offer a next working day service for all major currencies to anywhere in the world and between one and two days for most others.