The Euro…

So, is it all doom and gloom? Winners or losers, good fortune or misfortune, everyone is affected!

As with everything in life, our prosperity depends on the decisions me make. Whatever our decisions, we all need to be happy we are achieving the most, and getting best value for our money.
With this in mind, today we will look at foreign exchange…Which, what, when, where, how, who and why? These are all questions, which many of us have probably asked ourselves…Correct?

Correct! Let’s take a look.

So how do we assess which method is best? No doubt we have all asked ourselves these questions…Are we fed up with bank receipt charges and the commissions applied by banks? Probably yes! Does our money take a long time to arrive in our account? Depends which method we choose! How and when do we know when it has arrived in our account? Again, depends which service we have used. Do we continually phone our bank, go to our bank or even check our on-line banking or try using phone banking, just to see if it’s arrived yet? Well, if the experiences of many amongst us are the same, then we’re all probably doing the same things…how frustrating! But are we all conducting our transfers in the same way? It seems not! Some amongst us have found a better way.
 
We basically have two options; use a Bank or a Currency Broker. So let’s do a little comparison. It is well known that banks actually give very poor exchange rates which are day rates quoted Gross (before commissions and fees are applied, which reduces the exchange rate quoted), they charge for receiving our funds and apply commissions, which can be as much as 1% (Cyprus) (Spain can be as much as 3%) of the amount transferred. The service is not exactly the best, but obviously we all have different experiences, and for some, this may not be the case.

We can transfer our currency through a Currency Broker (this doesn't mean a Bureau de Change), of which there are many. Great, so how does this help us? Well, let’s start at the beginning. Currency Brokers trade very large volumes of currency and have access to commercial rates, which as individuals we do not. Their rates are based on live inter-bank rates which are up to the second. They have specialist knowledge to help guide us when is the best time to trade and the key point is they’re not greedy. They provide us with the best exchange rate they can achieve, don’t charge us commission and offer free transfers over a certain amount for lump sums and regular payment transfers, which mean we get more for our money and more in our pockets. The service they provide is fast, reliable and funds are totally secure.

The above points only look at a few areas. In summary, I would put it like this…Banks sell many different products and a lot of what they provide as a service, is good. However, when it comes to foreign exchange we are much better served and guided using a specialist Currency Broker.

So whether it is the Euro, US dollar, Sterling or any other currency we are transferring from and to, we need to make sure we are talking with the right person, which means those with specialist knowledge to help us.

For those of us wishing to transfer from Sterling to Euros, as we all know, Sterling against the Euro has dropped approximately 17% since January 2007. However, those of us who wish to sell Euros and buy Sterling are getting 17% more. So as with everything, there are people and companies who prosper and some who do not. The swings and roundabouts which surround the fortunes or misfortunes of any currency are controlled by many factors outside of our control!

We do however have control over our decisions relating to our choice of service provider. So if we want to have more in our pockets then it maybe more prudent to use a currency broker.

Use a company that is registered – not only with *companies house* but also with Anti-money laundering government bodies. Ask for recommendations or referrals from someone using that company already. Using a company that has an office in a town near you gives you the opportunity to meet your broker and ensure you are dealing with Bona Fide Currency Brokers.

There are differences in the services offered by brokers even though they might all seem the same in the beginning. Receive charges or fees might vary – ensure you know all costs which may apply to your exchange. To ensure you are getting best possible service and genuine quotes, register with your chosen broker first. This is free of charge, but now ties the broker to deliver the quote given to you. You do not need to make a deposit or bond prior to being able to trade, so there’s no risk or financial commitment involved. An experienced broker can give you additional tips and hints on how to avoid charges outside their control – don’t be afraid to ask for more than just the best rate!

There is one very important element to remember when managing our currency transfers. Banks or currency brokers do not control whether rates of a given currency go down or up! However, the right service providers have tools at their disposal which can help us manage our currency risk, so this is where we would be better served speaking to a specialist currency broker.

No, the Euro exchange rate may not be at its best, so we would probably be better served speaking to a specialist sooner rather than later, as it’s definitely not advisable playing roulette with our money. Exchange rates could go up or down, but there is one thing for sure…A bank will not phone us when the rates are in our favour.

We trust this article has been informative and useful, providing an insight in to an alternative method. As individuals we now have a choice and it’s down to each of us to maybe re-evaluate which is more suitable and cost effective.

More information?
YellowPagesCyprus.com.cy can recommend you Currency Solutions.

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