Foreign currency exchange is a fast-paced and incredibly dynamic market. Moving money around the world in seconds and investing hundreds of thousands of dollars within a near-perfect competition environment are high-level, high-skill activities, and watching the market rise and fall is key to a basic understanding of when to change money. However, there are times when simply knowing the currency exchange rates and changing some pocket change for a holiday aren’t enough; there are times when investment abroad beckons or a move to warmer climes presents itself. This is when you need specialist advice.
When travelling abroad, moving to another country, or investing in property or capital overseas, it is important to understand the foreign exchange market and currency exchange. Knowing how much foreign money you can get for your own money is vital to securing the best exchange rate, and thus the most value for your money. Currency exchange rates fluctuate on a day-to-day basis, and knowing when to buy and sell could mean a difference of hundreds of pounds.
Small amounts won’t be affected as much and can usually be taken care of by yourself. The large amounts of commissions and loaded exchange rates on offer via bureaux de change and banks do affect the final amount, but not to the same extent that large amounts of money would be affected. Significant sums need expertise, inside knowledge and the best foreign exchange rate possible, and this is where foreign currency brokers step in.
Foreign currency brokers are specialist traders who work with currencies on the foreign exchange market. They are people or institutions who handle vast quantities of money, changing it to another currency at rates better than that offered by banks or by bureaux de change. The main advantage to using a foreign currency broker is for the better currency exchange rate and for the cheaper fees to send it abroad. This type of broker handles the exchange, the transfer fee (meaning you don’t pay it) and any receiving fees, meaning you pay them the margin generated via the exchange rate; this is usually worth it, as brokers can save you an incredible amount of money. If you’re making regular large payments, such as mortgage payments for a property abroad, they can fix payments at a particular exchange rate for two years; this is great if the currency exchange rate is in your favour. However, foreign currency brokers are not regulated in the way stocks brokers are, so it pays to research before you approach any particular company or individual. Also, using foreign currency brokers really pays off for exceptionally large sums. Holiday pocket money or transfers of under £5000 can be done far cheaper and at a fairly decent rate using Internet-based organisations or specialist travel services offered by banks.
As with any significant financial decision, the more you research, the better off you and your money will be. Identify your needs, and foreign currency brokers could be what you need to get your foreign investments started.