Ablestoke have formed some very positive alliances during 2010 and we are delighted to be working in partnership with Currency Solutions, FSA authorised Currency Specialists.
Currency Solutions have just launched a guide to maximising the efficiency of foreign currency transactions entitled:
If you or your company transfers funds internationally, this is an essential guide. It reveals the 7 most costly mistakes people make when transferring and receiving funds across borders. For more information contact Ablestoke
7 Costly mistakes to avoid when transferring currency
1. Using the bank to make your transfer
Many people leave foreign exchange in the hands of their bank. Ablestoke & Currency Solutions beleive this is a big mistake. It’s not a widely known fact but it’s certainly a costly one; currency exchange is one of the easiest ways for the bank to pick your pocket; and for larger transactions the losses can amount to hundreds, even thousands of pounds. A specialist broker is much better placed to look after your interests when making a currency transfer. Although they trade currency in exactly the same way as the bank, with smaller overheads you will be able to achieve more for your money. Ablestoke recommend Currency Solutions
2. Not getting the best rate
As we know at Ablestoke the exchange rate you achieve will have an impact on the cost of any foreign investment you make. Even a small change in the rate will affect your profits so it is vital that you get the best rate at the time you make your transfer. Unlike a bank who will often set a rate for the day (with a wide profit to allow for fluctuations), a specialist currency broker will work from a "live market" meaning the rate you get will be up to date at the second you do the deal. This will ensure you get the most for your money.
3. Not protecting your profit margins from adverse movements in the rates
Exchange rates can move as much as 5% in a week or 10% over a month. If you haven’t accounted for this volatility, an adverse movement in the exchange rate could severely impact your costs or profit margin. Understanding the different options available to you for buying currency will help you ensure your profits are safe from being wiped out by an exchange rate movement. Currency Solutions have helped many Ablestoke Clients with this.
What options are available for Ablestoke Clients?
Spot trade
A Spot Trade is when you buy the currency now and pay for it now; perfect when you need to make a payment quickly
Forward Contract
This is when you buy the currency now with a 10% deposit but pay the remainder when you need the money. Once you have fixed a rate you are protected from currency risk, meaning you won’t have any nasty surprises when you eventually make the payment. A Forward Contract can be fixed for up to 24 months and can be flexible should your time scales change.
4. Paying commission or charges
Bank commissions for making or receiving payments abroad can range (some foreign banks will take as much as 1.5% just to receive funds) and fees for making international payments are often up to £40 per trade.
On top of this, a hidden cost comes from the large profit a bank will make on the spread of the rate they offer; this can be as much as 4% which on a £50,000 transfer equates to £2,000!
5. Choosing a bad broker
Not all brokers are the same. Ablestoke suggest you should always choose a company which is FSA authorised, HMRC regulated and which holds client funds in segregated client account for total security
of funds.
Be aware of brokers that quote Interbank exchange rates and in some cases better than market rates. All businesses need to generate a profit so if the rate sounds too good to be true, it probably is. These brokers are likely to offer you an exchange rate different to that advertised closer to the time of transaction or they are speculating on the market.
In order to save yourself time, stress and money, choose a currency specialist which offers you a dedicated broker who will be your single point of contact, and will help you make an educated decision about how and when to make a transfer.
6. Leave your transfers to the last minute
Ablestoke suggest the longer you have to arrange your currency transfer, the more flexibility you will have to ensure you get the best deal. Although your broker will be able to offer you a same day transfer, the longer you have to manage your exposure the more options are available to you.
7. Think that using a specialist broker
will be more difficult than using your bank
Ablestoke recommend using a specialist broker such as Currency solutions:
Step 1
Registration
Registration with Currency Solutions is simple, free and can be done in minutes.
The easiest way is to register online at www.currencysolutions.com Once registered, you’ll be under no obligation to make a transaction and you can buy or sell any major currency pair. Alternatively please contact Ablestoke
Step 2
Buy Currency
When your account is open, you can agree an exchange rate over the phone. Once you have agreed the trade your broker will email you a Confirmation Note with details of the trade you ave completed and a secure link for you to tell us where to send the funds.
Step 3
Make Payment
Once you have sent funds to our segregated client trust account, we transfer your purchased currency into your nominated account straight away. Depending on the currency you are buying (and where you are sending it) this will take from 3 to 48 hours. Ablestoke do not handle clients money - all payments are between you and Currency Solutions.
Working with Currency Solutions you will receive:
• The best exchange rates save up to 4% compared to a high street bank
• No commission meaning a totally transparent service
• Friendly, personal account managers to help you make an educated decision as to when and how to transfer funds
• Flexible trading options to protect against adverse currency fluctuations
• Fast efficient payments
• Total Security of funds with all funds being held in a segregated client account
• Authorised by the FSA and regulated by HM Revenue and Customs
Ablestoke & Currency Solutions advise: Don’t make a costly mistake when transferring currency. With a dedicated service, superb rates and the knowledge to guide you safely through foreign exchange, Currency Solutions have helped over 22,000 clients save time and money.
Currency Solutions Ltd is registered in England, Company No. 4864491. Regulated by HM Revenue & Customs, No. 12162570
and authorised by the Financial Services Authority, No. 512130.
Contact us via communications@ablestoke.com
Ablestoke will be delighted to put you in touch with Currency Solutions
