There are a number of international payment options for you to take advantage of through our dealing service. Our experts can help you to choose a service that ensures you get maximum value when sending or receiving money from abroad, manages your risk and meets your payment requirements.
Here’s how some of our currency dealing services work and how you can benefit from them.
Regular payment plans
Sending money abroad on a regular basis can usually be time consuming and stressful but our regular payment plans make life easier and save you money.
There are 2 types of regular payment plans:
1) Monthly Variable: You set up a standing order for a fixed amount to be transferred to us each month, eg. £500 per month. We then exchange this amount into your desired currency at the current exchange rate and make the onward transfer to your beneficiary account. This would mean that the amount transferred each month would vary depending on the current exchange rates.
Regular payments are great for:
- Transferring pension payments to an overseas bank account
- Overseas mortgages
- Paying utility bills abroad
- Maintaining a property abroad
- Supporting a child’s education
- Working abroad or sending money back home
A forward contract allows you to lock in a current rate for transactions up to one year in advance and draw from the agreed amount to make transactions throughout the year at the set rate.
There are two main types of Forward Contract:
1) Fixed Forward Contract: A fixed forward defines a single future date to transact the full amount of currency bought or sold
2) Open Forward Contract: An open forward allows you to ‘draw down’ any increment/s of the full amount of funds bought or sold up until the expiry date of the booking
Once the forward is agreed, the rate does not change even if the market moves in your favour. A 10% deposit is usually required for all forward contracts.
Forward contracts are great for:
- Locking in an existing rate to be used at a later date hedges any risk of market downturn, avoiding potential losses that can occur within the time frame of the forward contract
- An Open Forward Contract allows you more flexibility and control with your money through incremental draw downs
- Mitigating risk
A Stop Loss is a payment order that limits your loss if you’re aiming for a higher rate, and the market takes a downturn instead. It allows you to mitigate risk if the market goes against you, without having to constantly watch the market as the Stop Loss engages automatically.
Stop Loss is great for:
- Minimising any potential losses without having to watch the market the whole day
Limit orders allow you to agree a ‘target’ exchange rate that will automatically buy/sell the agreed amount if the rate is achievable with the agreed time frame.
Exchange rates cannot be guaranteed due to unpredictable market behaviour.
Limit orders are great for:
- Allowing you to focus on your core business while an automated trigger tracks rate movements 24/7
- Giving you flexibility when it comes to finding the best rate
Spot transfers (also called spot contracts) allow you to lock in a rate immediately or ‘on the spot’ via telephone or email. The currency is bought or sold for delivery within two days of the deal being agreed.
Full payment is required before the transaction is processed.
Spot transfers are great for:
- Locking in a rate for immediate use
- Usually the fastest way of booking a currency transfer
- No deposit usually required
A pair of orders stipulating that if one order is executed, then the other order is automatically cancelled. An OCO combines a stop loss with a limit order, when either the collar (stop) or cap (limit) is reached and the order executed, the other order will be automatically cancelled.
An OCO is great for:
- Giving you ultimate control over your money and putting in rigid safeguards to protect you against any losses
Give our dealing team a call on 020 7778 9350 to find out more about how we can help you get maximum value out of money transfers and help manage your risk.
Don’t choose between security and speed when transferring money overseas. Move money in real time, wherever you are.
FairFX Money Transfers