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Your international payment options

There are a number of international payment options for you to take advantage of through our sister brand – Equals Money’s money transfer service. Their 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 their international payments options 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 Equals Money’s regular payment plans make life easier and save you money.

There are two types of regular payment plans:
1) Monthly Variable: You set up a standing order for a fixed amount to be transferred to Equals Money each month. They 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.

2) Monthly Fixed: By using a forward contract you are able to fix the rate for up to one year, so you can maintain a great exchange rate and you know each month how much will be transferred overseas. Let Equals Money know the exact amount of currency that you would like to transfer each month and they will quote you the monthly cost. You then just set up a standing order for this amount which means your cost and transferred amount will be the same each month.

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

 

Forward Contracts

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

 

Stop Loss

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

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

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

 

OCO: One-Cancels-The-Other

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 the Equals Money payments team a call on 020 7778 9350 to find out more about how they 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.

Equals Money Transfers

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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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