We will be adding to this article with a new FAQ from our partner Currencies Direct every week, giving a complete knowledge base of currency information...
Week 5:
How long will it take for my funds to arrive once you receive my cleared funds?
The length of time it will take for your funds to reach you will vary depending on the currency you are sending and where the funds are going. In general payments made in Euros to a Eurozone country, payments in USD to the USA, CAD payments to Canada or GBP payments to the UK can arrive as early as the same working day that Currencies Direct send your payment. Generally payments in other currencies or to other countries take longer and may take an additional 1-2 working days to arrive. The length of time it takes for the funds to show in your account may also vary depending on how quickly the beneficiary bank act upon our instruction to credit the payment to the beneficiary account.
Week 4:
How do I know I am getting the best possible rate?
Always register as a client. Currency companies will offer you free registration and you will be under no obligation to use their services, but if you are not a registered client they can offer you a price without necessarily having to honour it. As a registered client you will get a reliable understanding of the price each company is prepared to offer. Registration will typically take no more than 5-10 minutes for any company and does not commit you to trade with them.
It has been said that it is always best to shop around and to a certain extent this is true. However, when sending money overseas always use a company you recognise and trust; using just one company is not the best way to get a competitive rate. Word of mouth is as good an indicator as any, but also look at how long the company has been in business, where they are based and rely on the responses you get when actually talking to their staff.
Get quotes from at least 2 brokers on the exact amount you wish to transfer. It is always the case that a company can improve on their first price, so be as honest and as open as possible. It is not in your interest to hold your cards close to your chest as you will find that a broker will be more than happy to improve on the price offered by the competition if they are aware of what they have to beat. .
Week 3:
Does the rate change while my funds are clearing?
When a client agrees an exchange rate and a 'deal' with a Currencies Direct dealer they do so on a recorded secure line. The rate they instruct the dealer to buy or sell currency at is then booked and guaranteed. Sterling amounts typically take 3 working days to clear with Currencies Direct, and during that time the rate is completely secure at the price agreed between the client and the dealer, even if the market has moved.
Week 2:
How do I get my money to you?
The most popular and efficient way for clients to send funds to honour a transfer is by online banking. This method enables the client to store Currencies Direct's account information making it far easier for subsequent transfers.
Alternatively, clients can also instruct their bank, in branch, to electronically transfer funds. In this instance clients can request that their bank send funds either via a BACS transfer (free - 3 working days to clear) or as a CHAPS transfer (subject to fee - 1 working day to clear).
Currencies Direct also permits clients to hounour a transfer by direct debit or by debit card. There is typically a limit applied to a debit card transfer, but we are able to accept anywhere up to £40,000 in one payment, and details can be exchanged over the phone.
Week1:
Is the published exchange rate what I’m actually going to get when I trade?
Unfortunately no. Any exchange rate you see published online, whether it be on a broker's website, BBC, Bloomberg or a 'live' trading platform, should only be used as an indication. Online sites can be anywhere up to 15 minutes behind the live market price, and they display what is called the interbank rate. The interbank rate is the rate that banks buy or sell currency at between themselves, and as such cannot be achieved by an individual. Having bought their currency at the interbank rate, your bank will then sell it to you at the 'high street' or tourist rate. The tourist rate will typically be 3 - 4% below the interbank rate. Currency companies will buy currency very close to the interbank price, and are able to do so because of the volumes of currency they are buying and selling. They will sell to you, the client, at a significantly smaller margin than the banks.
Do not use published exchange rates as anything other than an indication. Currency companies should always quote you prices live over the phone, as once you are registered the price must be tradable and they have to honour it. As an unregistered client be wary of anyone who quotes you an exchange rate that is too close to the interbank price, as it is more than likely you will find this price has changed by the time you are a fully registered client.
Tel: 0845 130 8148 | Email: london@currenciesdirect.com | www.currenciesdirect.com
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