Global Currency Exchange deals

Is now a good time to buy foreign exchange?

For month’s now, the foreign exchange market has been a little nervous. With the right, professional, advice from a currency exchange expert, you can weather the storm.

As the whole Global foreign currency market is interlinked, an economic downturn in the United States can, and does, have an effect on the currency exchange rates between the US and wherever it does trade. As this is virtually every Country, the current economic downturn in the States has had detrimental effects on the Global economy. Equally, if the major lending bank in Europe hints that it will lower interest rates, as it just has hinted, then the Euro could weaken against the Pound.

While Global Currency Exchange Network don’t have a crystal ball, they can help to guide you through the maze and help to reduce the potential losses you make otherwise.

Is now a good time to buy?

Well, it depends on when you want the money available in another currency, and how much you can spare at the moment that the best foreign exchange rates are available.

Global Currency Exchange Network have a team of experienced currency dealers on hand to guide you through the process. In order to do this professionally, they will need some information. Particularly, the date when you need the foreign currency as they may be able to advise holding off buying the currency today. Sometimes, it’s better to buy currency at today’s price, but keep that price for a date at some time in the future.

This is particularly useful if you’re buying a property overseas and it won’t be built for another year, when you will have to make a large final payment. If you waited until the completion day to change your money, the foreign exchange rates may have gone against you, and in effect, the price will have risen by as much as
£10,000 when you make a comparison to the exchange rates from the previous year.
This system is just as useful to businesses. When a company decides to buy goods from abroad, they agree to pay in the currency that is local to the supplier. The rates on that day may give the business a potential gross profit on those goods of a fixed amount. If the exchange rates change in a negative way, between the date of ordering and when the business has to pay for them, the potential gross profit could be wiped out.

Most businesses hedge their bets by ordering the goods and fixing the exchange rate by asking Global Currency Exchange Network to ‘forward buy’ the foreign exchange for them at a fixed price. That way, they have peace of mind and relax, safe in the knowledge that the one thing that can’t change now is the exchange rate.

currency conversion by professionals

Global Currency Exchange Network are a commercial currency brokerage, based in the UK. We care for other people’s money and save clients vast amounts of money daily by offering competitive exchange rates, with no commission attached. In some cases, transfers abroad are free.
For a fast, safe, service go to our site and first open a free account. We will then contact you to discuss how we can help. Alternatively, call +44 (0) 1480 406080.

More articles on Foreign currency terms explained, currency exchange for businesses

Case studies of types of currency exchange transactions.

Before we show the examples, you may wonder why you would want to buy your currency in different ways. Every person, and each business, has different needs, Our function is to best match those needs to the best type of transaction that gives our clients the best value from the currency exchange.

Some people just want to buy the foreign exchange NOW. That one is easy, just call us, we’ll quote you a great FX rate and you do the deal straight away. However, some people ( or businesses) would prefer to fix rates for some time ahead. Well, Global Currency Exchange Network can do that as well. It gives the client peace of mind, that the rate is fixed and they can’t lose on a difference of exchange rates between now and the time set for the future deal.

There are various types of foreign exchange transaction. To help you through the maze a little, here are some examples of various different types of deals our currency exchange dealers can do for you.

Spot Contract: Mr Craven has just bought a property in Spain for EUR 145,950. His high street bank offered him an exchange rate of 1.245 Euros to £1GBP. We were able to offer Mr Craven a better exchange rate at 1.253. Mr Craven saved a vast £1167.60 just by using Global Currency Exchange Network.

Regular Monthly Payments: Mr and Mrs Williams have retired to their villa in Lanzarote, but they need to pay a small mortgage payment of 500 Euro’s per month and they have a regular monthly pension paid to them in the Uk, but they need it in Lanzarote. The total of the two amounts is £767 GBP.

The High street bank offered to make the regular money transfer, but advised them that some payments could take up to 10 days. And, as it was a relatively small amount, they would charge for the transfer payment together. Couple this with the additional charge that the local bank would make for just receiving the money, regular monthly payments were not looking like a sensible way to make transfers.

Global Currency Exchange Network don’t charge for the transfers, we have arrangements with most banks abroad so that the receiving charges are waived and, in this case we were able to offer a much better exchange rate. During the course of a year, Mr and Mrs Williams were able to save over £900.

Limit order: John has already bought his dream villa in Barbados. He loves it so much, he lives there most of the time! In order to sustain his lifestyle, he wants to exchange some Euro’s into US Dollars. However, the current rate of $1.585 to EUR 1 isn’t good enough. John isn’t in a rush to transfer the money, so he has asked Global Currency Exchange Network to put in a limit order to buy $25,000 when the exchange rate hits $1.61. John can now relax by his pool, secure in the knowledge that he will get the best deal and ‘Global’ will secure it for him as soon as the desired rate is achieved.

Forward contract: Jacqui has decided to have a new villa built in France. The total amount of money that she needs to transfer from the uk is €456,000 for the day of the villa completion. However, completion isn’t due for another 12 months and Jacqui is concerned that the exchange rates between the GBPound and the Euro will not change in her favour over the next 12 months.

In order to protect herself from fluctuations in the exchange rate, Jacqui has us to place a Forward Contract for her. This involved Global Currency Exchange Network buying her Euros for her at the price on that day, as a forward contract, at 1.278 EUR to 1 GBP. The price subsequently dropped to 1.234 EUR when she would have needed to exchange the money on the completion day.

Jacqui saved €18,240 ! Enough to buy a new car when she got to her new villa.

Stop Loss Order: Simon regularly imports goods from America for his Ebay business at about $25,000 each time. The exchange rate at the time of placing his last order was $1.935 to £1 GBP. This equated to £12,920. However, Simon was convinced that the dollar would weaken. He wanted to limit the cost of his goods to £13,000 and still have the flexibility of possibly buying his Dollars at a much better rate.

Simon instructed Global Currency Exchange Network to put in a Stop Loss Order to buy €25,000 at the exchange rate of $1.923 / £1 GBP to fix the worst price he will pay to £13,000. If Simon is right and the rate changes to $1.96 / £1 GBP, he will have saved a great deal of anxiety by fixing the worst price to him, but also gained around $925 on the exchange rate.

currency conversion by professionals

Global Currency Exchange Network are a commercial currency brokerage, based in the UK. We care for other people’s money and save clients vast amounts of money daily by offering competitive exchange rates, with no commission attached. In some cases, transfers abroad are free.
For a fast, safe, service go to our site and first open a free account. We will then contact you to discuss how we can help. Alternatively, call +44 (0) 1480 458400.

More articles on Foreign currency terms explained, currency exchange for businesses