Useful Tips To Get Better Exchange Rates

Do you need to change currencies in 2012? Perhaps you run a business and plan to set up regular international payments. Perhaps you just bought a second home in the south of France and plan to emigrate. Either way it’s absolutely crucial to get the best possible exchange rate, and hence maximise your foreign exchange cost. This can make the difference between starting your new life abroad feeling on top of the world, or plain down in the dumps. So how do you do it? Well, to give you a helping hand we’ve put together 2 of our most useful tips. Read through them, and you should find changing currencies a breeze!

1. Plan in advance

Perhaps the most important thing you can do to get better exchange rates is to plan in advance. This means not leaving your currency exchange to the last minute, such as calling a currency broker the night before you emigrate. This problem with this is it means you have no choice but to accept the available rate, regardless of whether it’s good or bad. It’s a little like planning a foreign trip, and accepting whatever price is available for flights on the day you leave! Instead, get in touch with a foreign exchange specialist as far in advance as you can. They should be able to set you up with a forward contract, which is a brilliant way to protect yourself against unexpected declines in the rate. For instance, if you’re planning to close on a foreign mortgage in about six months, you can use a forward contract to lock in the rates, and so fix it regardless of what happens in the meantime. In other words, you don’t have to worry about instability on the foreign exchange market!

2. Beware the high street banks

One other great tip to get better exchange rates is to beware the high street banks. Though banks provide a range of financial services, most are non-specialists in foreign exchange and so provide neither expert assistance nor the best exchange rates. For instance, high street banks can provide exchange rates up to 4-5% worse than a foreign exchange broker. On a large transfer that can add up to thousands of pounds! Instead then, get in contact with a foreign exchange broker registered with the Financial Services Authority. You can expect both superior exchange rates, and answers to all your questions throughout the transaction.

Good luck!

To find out more great tips about improving your exchange rates, visit the foreign exchange specialists Pure FX.