How to Minimise Risk When Transferring Foreign Currency

There are many reasons you may have to transfer foreign currency abroad, whether it is to pay a supplier as part of a business or you are sending a gift to a friend or family member. Either way, you don’t want to be ripped off or discover that your transfer hasn’t made it and end up out of pocket. There are a number of ways that you can minimise the risk involved with transferring foreign currency, whether you’re making regular payments or a one-off.  

Regular Payments

People who are living abroad but still have a UK bank account, or businesses using foreign suppliers, will find themselves transferring money abroad on a regular basis. To get the best deal it is worth using forex brokers who will be willing to set up regular transfers, usually for amounts over £250 at least.

Otherwise if you make such payments as one-offs each time you will have to pay the separate charges again and again. This can quickly add up, especially if it is only a small amount being transferred. Avoid the risk of still spending too much by comparing the rates brokers and banks offer on regular foreign currency transfers.   

One-off Transfers

For individuals or businesses who are only transferring foreign currency as a one-off, the best option will depend on your needs. If you need to send the money as quickly as possible then using a high street transfer firm such as Western Union will get it out almost immediately with little risk from such a well-established company.

However, for a better rate your bank or building society is a good choice. While if you need to send a large amount then forex brokers often have the lowest rates when sending amounts over £3000 or thereabouts. Those who can wait should do so until exchange rates are in your favour.   

Buying Foreign Currency

Whether you’re buying foreign currency for personal use on holiday or for trading purposes with Hantec Markets, there is various risk involved. Forex brokers usually a low margin for either purpose, so should be the first place you go to.

They are not able to give financial advice though, so if this is needed then going to a bank is a better idea. With a bank the exchange rate is set at the start of each day and not changed until the next, unlike with brokers where it will continuously change. Bear this all in mind when transferring foreign currency.

from Finance Girl http://www.financegirl.co.uk/how-to-minimise-risk-when-transferring-foreign-currency/