Currency Exchange Advice

Q. What are the costs involved using a foreign exchange specialist?

Foreign exchange specialist or Brokers do not charge commission as they make a margin on your money from the high-volume rates they obtain in the money markets.  The company I work for, OmnisFX ,does not charge any additional fees at all, some companies do charge a one off fee for each transfer of around £15 to pay for their bank charges.

Q. What information is required to do a currency exchange with a foreign exchange specialist ?

First off you will need to register with the Broker, the majority of brokers do not charge a fee to open an account, and opening an account does not mean that you are obliged to do anything ,it just gives you the option if you do decide to.

The majority of good foreign currency exchange specialists have online application forms that can be filled in within 5 minutes, the information provided is used to confirm your identity in order  to comply with their anti-money laundering regulations.

It is possible that you may be required to supply  additional information such as two forms of identification e.g. a copy of your passport plus a recent utility bill or bank statement.

Your account is normally opened the same working day or sooner if your payment is urgent.

Q. Once I open an account what do I do?

Once your  account is open you will be able to buy currency over the telephone.  You should give your foreign exchange specialist / broker a call and talk about your options .  Once you have received currency exchange advice and are happy with a rate of exchange and the time scale involved you can enter into a verbal agreement  over the telephone to book a transaction.

Once the transaction is agreed over the telephone good Brokers will send out what is called a contract note, this confirms the agreed trade the time scales involved, it has the bank account details the funds should be sent to and a section for fill in with the destination accounts details. This contract note should be completed, signed and returned as soon as possible to ensure the transaction runs smoothly.

Q. If the rate of exchange is not what I want, what are my options?

Everything depends on your timescale, as time is one of the most valuable assets when doing currency transactions.  As if it is essential to complete the transaction immediately you will have no choice to take the rate as it is on the day.

If it not essential that you get the exchanged funds immediately there are a number of options  available to you.

Any good broker will immediately find out the timescale on your transaction and provide you with information on the current market trends of the currency you are looking to exchange as well giving you some currency exchange advice such as keeping you informed of any considerable moves in the rates within your timeframe.

If you have a particular rate in mind you can instruct the foreign exchange specialist / broker to contact you the moment the rates change to your desired level.

Some brokers  can place an order into the market for you to exchange the currency automatically when it touches your desired exchange rate. This is called a Limit order .

Just make sure you are being realistic about the rate you are looking for and be prepared to wait!

Q. What if the current rate is good, but I do not need to make the payment for 4 months?

Some brokers are able to fix an exchange rate for up to two years to make it easier to plan the cost of your currency payments.  This is called a forward contract . All you need to do is book an exchange rate and send your broker a deposit, usually 10% of the contract value. The 90% balance of your currency contract is payable when you wish to have funds transferred overseas.

Q. Will foreign exchange brokers offer advice about market conditions and rates?

Currency brokers are not regulated to give out advice but many will provide you with information about prevailing market trends and currency movements. However, it is important to remember that no-one can predict the markets with any real certainty.You have to make your own decision about when to buy currency, but market knowledge and experience imparted by your currency dealer will hopefully make that decision easier! Further and daily information is usual offered by good foreign exchange specialists / brokers. If you are interested in receiving daily updates of come currencies please contact me .

Q. How do I pay of my currency?

Following booking the rate of exchange with the broker, you will need to transfer the required funds into their client account. The easiest and quickest way is by bank transfer, either by CHAP or BACS depending on what you agreed with the broker. Once the foreign exchange specialist / broker receives in your cleared funds, they will transfer your exchanged currency to your nominated account.

Q. How long will my funds take to transfer to a foreign bank account?

Most foreign exchange brokers use Electronic Funds Transfer which can get the funds into the nominated account a lot quicker than a high street bank. Some brokers have a same-day transfer service to most European countries and North America, and next working day for all other destinations. Bear in mind that there is sometimes a short delay in the receiving bank before your account is credited, this can usually be overcome with a “proof of payment” document that your currency dealer can provide on request.

If you have any other questions which you think that other people would kind of use answered please get in CONTACT.