About Us

• Currency Solutions
• Why choose us
• How it works
• Testimonials
• FAQs

Please click on the questions below and the links will jump down the page to the answer:

• Why use Currency Solutions and not my bank?
  
  
• How much money can I save by using Currency Solutions?
  
  
• How long does it take to transfer my funds abroad?
  
  
• Can I fix my exchange rate now for a future purchase?
  
  
• How does Currency Solutions make their money?
  
  
• How do I avoid foreign bank receive costs?
  
  
• What will the exchange rate be tomorrow/next week?
  
  
• What affects currency exchange rates?
  
  
• How can you minimise currency risk?

Why use Currency Solutions and not my bank?

Simple, Currency Solutions will save you money and provide you with a more personal and efficient service than your bank for currency transfer.

Currency Solutions solely deals with foreign exchange. This means that our high volume of currency trades and low operating costs allow us to pass significant savings onto our customers.

A personal and efficient service is something many people overlook without appreciating its importance until afterwards. How many times have you contacted your bank but are left frustrated on the phone as you are passed from one person to the next? With Currency Solutions each client is assigned a personal dealer as their main contact who will guide you through the whole process from start to finish.

To get the best exchange rate, it is essential to trade your currency at the right time. Your personal currency broker will keep you up-to-date with currency market information that may affect your situation. This allows you to buy currency when the exchange rates are in your favour.

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How much money can I save by using Currency Solutions?

The larger the amount of currency you need to transfer, the greater the potential savings. Currency Solutions will save you money in three ways:

1. Through providing the best exchange rates. The table below shows exchange rates given on the 25 February 2004 for GBP to EUR. Similar savings can be gained for other currency pairs.

2. Through ensuring you exchange your currency at the optimum time. Your personal currency broker will keep you informed of movements in the currency markets, ensuring you exchange currency when the exchange rate is in your favour.

3. Through eliminating unnecessary charges and bank transfer fees. At Currency Solutions, we charge no commission or fees for our service and transfer for amounts above £10,000 is free.

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How long does it take to transfer my funds abroad?

For the major currencies (GBP, EUR, USD, CAD) same day and next day currency transfers are the norm. Currency Solutions uses priority SWIFT technology for all transfers, which is the fastest and safest way to transfer funds bank-to-bank anywhere in the world.

As with all bank-to-bank transfers the time it takes to receive cleared funds in your beneficiary account is also dependent on the foreign bank and any intermediary banks to forward credit the funds. However, we have procedures that will help alleviate these delays should they occur.

We solely specialise in currency exchange and bank-to-bank transfer, and the sheer volume of transactions from both corporate and private clients that are dealt each working day means that accuracy and efficiency is our trademark.

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Can I fix my exchange rate now for a future purchase?

Yes, an exchange rate can be fixed for up to 12 months in the future. This means that you can determine exactly how much you need to spend on a future purchase without having to worry about fluctuations in exchange rates.

This type of currency buying is called a forward contract as opposed to a spot trade. With a forward contract 10% of the trading amount is required on the trade date with the remaining 90%, required on the value date of the trade (i.e. the future date when the funds are required).

If you do not know the exact date of when your funds are required then a flexible forward contract can be requested. This allows you to take early delivery of your funds or draw out part of the full amount before the value date if required.

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How does Currency Solutions make their money?

It all sounds too good to be true – the best exchange rates, personal dealers, no commission, free transfer fee – many people naturally will be sceptical of the service we are offering.

Currency Solutions makes its money by offsetting the market exchange rate (the Interbank rate) by a nominal margin which is given to a client ("client rate"). This margin is much less than what you would get from your bank, meaning that our clients get better exchange rates. Due to the high volume of currency we trade, and our low operating costs, everyone benefits – apart from the banks.

Banks deal with hundreds of different financial products and the complexity of their operation means they are bound to fall short in how cost-effectively and efficiently they can manage their operations. At Currency Solutions, our business is solely foreign exchange. This allows us to operate in the most efficient manner.

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How do I avoid foreign bank receive costs?

Some foreign banks, especially those in Spain, charge a premium to receive funds from abroad. This can be as much as 3% of the amount to be transferred, which is considerable.

There are several ways that receive costs can be avoided. If the funds are sent to a notaire account or a resident account in that country then there will be no receive charges, i.e. ask if you can send your funds directly to your foreign solicitor or estate agent account.

You may be able to negotiate with your bank to reduce these charges. But make sure you get written confirmation from them before you send out your funds.

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What will the exchange rate be tomorrow/next week?

This really is a 100 million dollar question. If we knew, we would all be millionaires!

A specialist cannot advise you of what future rates will be or when to buy currency, but they can give you the facts, such as trends from current and past historical data and the latest market information, with which you can make an informed decision. More importantly, a specialist acts as your eyes and ears and will contact you when the currency rates are in your favour.

The currency market is one of the most fluid financial markets in the world. The most traded currencies, which include the EUR, USD and GBP have seen huge fluctuations in recent times due to instabilities in the global economies. Even when historical trends are strong, there is no guarantee that future trends will follow the same pattern. Speculating on future exchange rates is an extreme risk – one which is not recommended. If someone says they can guarantee what the exchange rate will be next week – would you trust them?

A specialist will try and minimise currency risk through trading options such as forward contracts and stop loss orders to guard against adverse currency fluctuations.

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What affects currency exchange rates?

Generally speaking, exchange rate movement relies on macroeconomic factors – “big picture” issues and concepts. Significant movements in exchange rate can be attributed to three main factors:

Interest Rates

Each currency has a central bank, and this central bank issues an overnight lending rate. This is a prime gauge of a currency’s value. In recent history, low interest rates have resulted in the devaluation of a currency.

Unemployment Rate

The unemployment rate is a strong indicator of a country’s economic strength. When unemployment is high, the economy may be weak – and hence its currency may fall in value.

Geopolitical Events

Like all markets, the currency market is affected by what is going on in the world. Key political events around the world can have a big impact on an economy and the value of its respective currency.

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How can you minimise currency risk?

There are several ways where we can protect your investment against adverse movements in the exchange rate.

Your personal currency broker will keep you informed of any significant changes in the exchange rates so that you can make an informed decision of when you wish to exchange your currency. For total security, forward contracts, stop loss and limit orders can also be placed.

A forward contract allows you to fix today’s exchange rate for a future time when you will need the currency. This allows you to budget without worrying about future fluctuations in the currency market. 

A flexible forward contract is like a forward contract with the flexibility for you to draw down the full amount or part amounts before the maturity date.

Stop loss and limit orders are agreements for us to automatically transfer currency when the exchange rate reaches pre-defined thresholds. A limit order is placed above the current exchange rate to take a profit while a stop loss order is placed below the current exchange rate to minimise losses. Used in combination, these will protect your investment from adverse currency movements whilst taking advantage of positive movements in the market.

Forward contracts and limit orders can also be used in combination. For example when the exchange rate reaches a defined value, automatically fix the exchange rate at that point for a payment to be made in three months time.

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Currency Solutions Ltd is registered in England, Company No. 4864491. © 2003 - 2012
Registered address is Hobbs Court, 2 Jacob Street, London SE1 2BG. HM Revenue & Customs, No. 12162570 Regulated and authorised by the Financial Services Authority, as a Payment Institution, No. 512130