Thursday 13th May, 2010. Global Currency Market Comment

With the global currency exchange prices as volatile as they have been, you may wish to buy a forward currency contract today. It takes just 10% deposit to secure your exchange rate and will give you peace of mind.

Yesterday, we saw a much improved day for the currency markets. There was a widespread recovery in share prices and the generally positive economic data did much to improve the Pound rate, particularly against the US Dollar and the Euro.

EUR: GBP. Today, we have seen the Euro gain a little against the pound, but most people believe that the Pound will continue to gain against the Euro. So Now could be a good time to call or email a currency dealer to discuss buying a forward currency contract if you have Euros to sell and pounds to buy.

In the UK, the new Government has announced that it will cut public spending by £6bn in this fiscal year as an immediate step in a broader commitment to tackle the budget deficit. This was well received by the markets and gained the Bank of England’s support.

AED: AUD. If you have AED, UAE Dirhams, and are looking to buy Australian Dollars, now could be a good time to buy. The aed has gained about 10% over the last year and seems to be peaking.

USD: EUR. The USD has moved considerably against the Euro to about 1.26 from a peak of 1.5 in just a matter of months. The value dropped to about 1.25, so we may have seen the bottom of the dip. If you have AED, or USD, and you want Euros, this could be the time to buy Euros.

Talk to us about placing just a 10% deposit down, and fixing your currency deal at the best exchange rates today. It could save you thousands.

Call: 0044 1480 458 400 (International) or 01480 458 400 (if inside UK) for the best currency exchange rates. If you prefer, contact us by email here

Open a Free Currency Exchange account with us to make your Bank-to-Bank transfers much better value. Sorry, we don’t handle cash in any way.

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Tags: buy aed, buy aud australian dollars, buy euros, buy gbp pounds, buy usd dollars, dhms, dirhams, forward currency contract, sell euros

Managing financial risk with hedging, and use of foreign exchange fluctuations to mitigate likely losses when trading abroad.

If you’re in business, then you are involved risk management. An often overlooked area of risk management is the skill of managing your supplier payments when purchasing other currencies.

Most CEO’s, Finance directors, or MD’s simply pick the phone up and call their bank for a spot price on a currency exchange rate and make one comparison. Inevitably, they choose their own bank for one of the following reasons,

• It’s faster
• They quoted a cheaper rate
• They could book the currency conversion over the phone

However, some Finance Directors who use us already have benefited in fiscal savings and time.

ALL of the above can be performed better by a currency conversion specialist, and the Client / Company can make considerable savings.

It’s faster:

Well, it isn’t really. Once cleared funds are in our account, we make the exchange and send the currency straight out, unless we have instructions to the contrary.

They quoted a cheaper rate:

Of course they did! If you just ring for a rate, most banks will quote the “Inter-bank” rate until you ask them to specifically quote you. This leaves you with the impression that you can buy, or sell, at the rate they quote. No-one can buy at that rate. When you call them back to deal at that rate, they will tell you the ACTUAL rate you can deal at which could be significantly different.

Banks will charge for the overseas money transfer. In most cases, we don’t

Banks charge a commission. We don’t.

They could book the currency conversion over the phone:

So do we! Once you have registered online, you will be given a client number and security information. You can call our head office and book your currency over the phone, no paperwork.

How we can help

Our Corporate team will provide suggestions to mitigate your Company’s risk when exposed to fluctuations in currency exchange rates.

Here are some ways that we can help to mitigate your financial risk when trading overseas:

Spot Contracts:

This is simply a contract to buy, or sell, currency at a rate of exchange that is fixed at that moment, and is for delivery in two working days’ time.

More on spot contracts…

Forward Currency Contracts:

A “Forward” allows you to fix the exchange rate and make a currency exchange payment, or receipt, at some given point in the future. This is ideal for importers and exporters as this allows them to fix the price of their goods and know a fixed margin that they can sell their goods at.

More on Forward Currency Contracts.. 

Forward Currency Contracts plus Accruals:

Known as a “Forward plus”. It’s a subtle alternative to a “Forward”. It allows you to drip-feed the currency exchange.

Ideal if you have good cash flow and wish to take advantage of a great rate of exchange. This is perfect for overseas payroll payments.

More on Forward Currency Contracts plus Accruals..

Contact fx-foreignexchange for more information on how we can help. Our advice is free of charge.

Other articles on currency exchange services for businesses.

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Tags: best foreign exchange rates, conversion, currency exchange, forward currency contracts, spot rates

Types of Contracts in Foreign Exchange

There are many methods of performing currency exchange. Fx-foreignexchange provide currency conversion services for corporations and private clients.

The types of currency contracts mentioned here apply to both business and private clients.

The following are just some of the methods we use to mitigate risk when helping our clients. If you are interested in becoming a client, registration with us is free, and here is no obligation to use our service as we are so confident that you will continue to use us once you have seen the benefits of our expertise.

To find out more about our business currency exchange services

A Spot rate contract.

A Spot Fx Currency Contract is a foreign exchange transaction based on a currency exchange rate at any particular time.

The rate of exchange at that moment is decided by the International market rates.

This is the way that most Company’s buy their currency, but it’s not necessarily the best way. If you believe that the rate is at it’s most beneficial at that very moment, then this is the correct solution, but most businesses seek a more planned strategy to their cash flow.

Forward currency contracts.

A “forward” allows you to protect your business against volatile market swigns n the currency rates that you wish to exchange.

Here are some of the benefits of a “Forward”:

• Fix the currency exchange rate. You can fix the rate of exchange now for either a payment, or receipt, for some date in the future.
• Individual solutions for your business. We can help to devise a currency exchange strategy that will work with your specific needs. Usually, this combines the requirement to retain cash for cash flow against the benefit of buying as much currency forward as possible.
• Certainty. This method provides your business with precise margins. You will not have to wait to see what the exchange rate does at some future point, or lose out by buying too early.
• Flexibility. It is possible to buy your currency using a method known as a “time option” on a standard forward contract. This allows your business to range your settlement dates. This is ideal if you are an importer, for example, and you don’t yet have specific dates of arrival.

Forward Plus Contracts.

A Forward Plus Contract has all of the benefits of a Forward currency contract, but is designed to limit your foreign exchange risk, and to maximise the potential gains in spot rates of exchange.

Example: Your Company has won a contract to supply a company with goods over the next 12 months. These goods can be bought and supplied on a monthly basis.

They will have to be paid for in an alternate currency.

To safeguard your business from currency fluctuations, you have based your profit margin on a particular rate of exchange. Fix that rate with a “Forward Plus Contract” to protect your business from the fluctuations in foreign exchange rates that may erode your profits over the year.

Your profit margin is then protected from currency fluctuations. All you have to worry about now is buying, supply, installation, payroll ……….!

If you are prepared to allow some flexibility then you may wish to consider an “Accrual forward”

Accrual Forward’s offer usually better rates for corporations that prefer to accumulate currency over a given time period. This enables a company to accumulate currency on a drip-feed basis at a rate that is better than the usual Forward Contract rate.

Find out more about fx-foreignexchange.com

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Tags: accruals, aed, corporations, currency conversion, currency exchange, dirhams, dollars, euros, foreign exchange, forward currency contracts, fx, pounds, spot rates, yen

Frequently Asked Questions for those seeking providers of Corporate currency transfers in foreign exchange.

Here are some of our more commonly asked questions:

Who are fx-foreignexchange?

Fx-foreignexchange provide access to the most competitive market rates for physical currency exchange. Our dealing division, Global Currency Exchange Network, are part of us and we have been connected with for many years. See our testimonials . More about us on our website.

What currency services do we provide?

We provide a foreign exchange service for importers, exporters, managed funds, and individuals. We provide access to the best exchange rates on the market and help businesses, and individuals, Worldwide to become more profitable by saving them time and money with their foreign exchange requirements.

How long have Fx-foreignexchange been in business?

The company started trading in 2007 so this is our second year of business. However our currency dealing partner has been providing currency conversion and money transfer services for about 7 years. See our testimonials. See our lawyers and accountancy service providers.

Which bank do we use?

HSBC. We use HSBC as our foreign currency treasury providers. They are also one of our regulators.

How do I know my money is safe?

• Our foreign currency treasury provider, and regulator, is HSBC in the UK.
• We do not operate overdraft facilities or have loans or mortgages with any bank or lending institution.
• All accounts are run in credit and your payments are strictly to refund us for your foreign exchange order.
• Combine this with online settling systems and the international SWIFT system all deals are fully traceable.
• Our latest published business accounts and trading history is available for any interested party.

If you wish, some of our client testimonials can be seen here and our accountancy and legal services providers can be seen here.

How do we provide the best exchange rates?

Because of the volume of currency transactions we deliver, we have access to the best currency exchange rates. We can pass on significant savings to companies and individuals by keeping our margin narrow.

How do fx-foreignexchange make money? 

We receive a small fraction of the difference in the beneficial rate we are able to achieve. Exchange rates are provided to all clients on an equal volume basis to eliminate the shading system the banks use. Therefore a company with realtively small monthly volume can achieve the same beneficial exchange rates as if their volume was the size of a corporate conglomerate..

How do we go about changing from our current Foreign Exchange provider?

In the first instance you can do any one of 3 actions:

1. Call us and ask for the business manager. We are in the UK. 0044 (0) 1480 458400
2. e: business@fx-foreignexchange.com
3. fill in a short online registration form and we will get back to you. Your business is very important to us, so a fast response is guaranteed.

By registering with us, there is no charge or requirement to use our foreign currency services. However, it does allow us to provide you with actual rates that you can trade rather than the commonly quoted “interbank rates”, which no business or indiviual can buy at.

Do you have a website with more information?

Yes. http://www.foreignexchange.com

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Tags: business currency transfers, corporate currency dealers, currency exchange providers, exporters, foreign exchange businesses, forward currency contracts, importers

Our Currency Conversion Services for Businesses……

Fx-foreign exchange makes currency conversions and transfers for businesses each working day.

Our aim to to save our busy business clients time and money.

Once you are registered with us (this only takes a few moments and can be done online), you can book your currency deals through us on the telephone. This makes our service considerably easier than most banks and currency dealers.

When you register with us, a dedicated business manager will contact you to discuss how we can help save you time and money. You can call the business manager prior to registering if you prefer, on 0044 (0)1480 458400. Although we are based in the UK, we have strategically placed International offices.

Our business manager will recommend methods that will suit your business model and will assist in making any foreign currency transactions a smooth process.

Here are some aspects of fx-foreign exchange that makes our business-to-business currency conversion, and money transfer services, the right choice for you:

1. Free money transfers to most worldwide destinations
2. No commission charges.
3. Access to some of the best exchange rates on the market.
4. Overnight ordering systems.
5. Telephone ordering system.
6. Managing transaction exposure.
7. Review of your banking currency conversion charges.
8. Meeting attendance to discuss currency conversion strategies that will suit your business
9. Assistance with establishing dealing lines
10. Access to a personal broker/consultant.
11. we provide pension transfers overseas and regular payroll transfers.

More about business services from fx-foreignexchange

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Tags: currency conversion, currency exchange, fx, global currency exchange, international money, money transfers

Currency conversion is all we do. We trade many millions of Pounds sterling, US / Canadian / Australian dollars, Euros, Japanese Yen, UAE AED Dirhams in every week, on behalf of our clients. Of course, these are just some of the global currencies that we exchange.

Businesses seeking complete physical currency exchange at the very best market rates, use our services and save a considerable amount of money. They also save time.

We take currency conversion bookings over the phone at our dealing head office as all trading bookings are recorded. All you need to do in the first instance is register your business with us. This is free and there is no requirement to trade. It simply allows us to provide you with actual rates that you can buy and sell at.

“Better currency management…”

We provide a bespoke currency exchange partnership with our business clients.

We strive to understand the needs of our business clients and then suggest strategies that we believe will suit their business model AND save them money.

Some of our Services:

• Best foreign exchange rates on the market, consistently.
• A smooth transfer from your foreign exchange provider to Fx-foreignexchange by using our dedicated business manager.
• Customized strategies and tailored plans to suit your company.
• Immediate access to our personal dealing lines.
• Pension and International Payroll transfers

More information on our currency exchange services for businesses

Testimonials

Our Treasury provider

Our Lawyers and accountants

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Tags: corporate, currency businesses, currency exchange, currency onversion, currency rate, exporters, importers

Fx-foreignexchange.com offer a bespoke business-to-business currency conversion and money transfer service.

Each business client has a dedicated foreign currency broker who they can call at any time during business hours to discuss any aspect of currency transfer and foreign exchange conversion.

Most businesses who use foreign currency services, use their own bankers. This is often because they already have an established business relationship and commonly believe that their bank will offer them a competitive currency exchange rate.

However, in almost all cases, our business-to-business foreign currency services will always be more competitive than a high street bank. we are faster too.

Banks will usually quote a foreign currency exchange rate that is not particularly competitive. They usually make a charge for the international money transfer and they will inevitably charge a commission.

FX-foreignexchange …..

• Make international money transfers without a transfer charge.
• We do not charge a commission.
• We inevitably offer a considerably more competitive currency rate because currency conversion is all we do.

In addition to the considerable savings a business can make by using our foreign currency services, our business relationship is paramount. This is why we dedicate a dealer to you. Our dealer can advise you on where savings can be made with rate alerts straight to your office, email or by text.

The dealer will also offer other savings that may suit your business profile. This may be by offering forward currency contracts, or spot deals when the rate becomes advantagous.

We send out daily emails with the currency rates from that morning as an advisory service. To request daily foreign exchange rates updates, just contact us.

We are confident that our business-to-business currency conversion services will make you savings. To find out how much we could save your business, call our business adviser on 0044 (0)1480 458400 or request a call-back here.

Popularity: 21% [?]

Tags: currency conversion, forward currency contracts, importers, international business, money transfers, payroll transfers abroad, spot rates, strenght of the pound, supplier payments