When buying a property abroad the currency transaction is a small part of the overall process but there are hidden risks that can end up costing you a lot of money. Any movement in the exchange rate will directly affect the cost of the property. You could end up having to pay substantially more than you anticipated.
For example, you need 100,000 Euros to buy your dream home. You are transferring from sterling to euros.
- Company 1: the exchange rate is 1.20 you would need to transfer £83,334
- Company 2: the exchange rate is 1.21, you would need to transfer £82,644
- Company 3: the exchange rate is 1.22, you would need to transfer £81,967
So as you can see small fluctuations can make a difference, both positively and negatively.
The best advice is:
- do your homework with your local bank and currency brokers as they don't all offer the same service or exchange rate.
- give yourself adequate time to make the transfer. If you use a currency brokerage company, you will need a little time to become familiar with how they work and to set up your account.
- at the end of the day, use a company that you feel confident with or has been recommended to you.
Below are list of currency brokerage companies that have been recommended by several of our customers.
- FSA authorised under the Payment Services Directive
- Free telegraphic transfers to anywhere in the world on any amount of currency
- Superior exchange rates
- Quicker international delivery of funds via SWIFT transfer.
- Same day Transfers
- Fixed Exchange rates for up to 2 years
- 24 hour market coverage
- 24 hour Limit Orders and Stop loss orders available
- 24 hour help line.
HIFX plc offer a personal friendly service in plain English, good rates and free transfer. The benefits of working with HIFX are:
- The highest levels of customer service for both you and your customers.
- No bank receipt charges for clients sending funds overseas.
- Excellent exchange rates.
- Automated processing and faster, more secure payments via SWIFT for complete peace of mind.
- Guaranteed prices for up to two years (useful for staged payments).
- No fees, commission charges or UK based currency transfer costs.
- Regular Payments Abroad (RPA) to facilitate monthly pension or overseas mortgage payments.
- A simple, transparent commission structure.
- Payment confirmations - helping you to monitor your client's progress.
- Same day transfer
- HIFX plc are the only broker to use the SWIFT payment system so your transfers are sent instantly
For more information talk to Jody Cracknell on 01753 859 159 Ext 7223. E-mail: jody.cracknell@hifx.co.uk
Moneycorp Ltd, click here to go to their website for more information. They do charge £15 for every transfer but the rates and services are good. Contact: Roslin Ossanloo. Email: Roslin.Ossanloo@moneycorp.com , Tel: +34 951 319 700, Mob: +34 661 316 698
Currency Solutions Ltd. You can go to their site by clicking here. They offer simple and efficient service, no commission or transfer fee, facilities to trade 24 hours a day.
Currencies Direct Limited. You can go to their site by clicking here. Strives to exceed expectations and going the extra mile.
Excel Currencies. You can go to their site by clicking here. One service that they offer that the others don't appear to, is same day transfer. No transfer costs, no hidden charges, guarenteed unbeatable exchange rates.
If you want to use your bank, make sure they arrange to exchange the money in Spain, not in the UK as you will get a better exchange rate. Your bank will not volunteer this information as they lose out on a commission, so you may have to press for the information.
