Competitive Pricing
At Currency Solutions we believe every customer deserves the right to transparent and market leading pricing. Compare our rates to find out why 99% of customers recommend our business.
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First Class Customer Service
Currency Solutions has been consistently voted as one of the most trusted and efficient FX providers within the UK. Why? We believe in going the extra mile for our customers. Each client has their very own state of the art online platform and a dedicated team that will work around the clock to ensure the entire process is as effortless and seamless as possible for you.
Safe, Secure and Regulated
When transferring money, we understand security is everything. Over the last 12 years we’ve helped over 140,000 people transfer funds securely all over the world. For further information on our security credentials please see the links below.
Extensive Product Range
We take the time to understand the needs of all our clients. Your business is unique which is why Currency Solutions offers one of the most extensive range of corporate hedging products in the industry. Our tailored approach to currency lets us create solutions that are just right for your organisation’s circumstances and requirements.
Spot trades are instant, allowing you to take advantage of market movements at that particular time. With currency markets constantly changing, our experienced dealers will be able to guide and advise you on when they feel is the optimum time to transact.
Whenever you do decide to transact, you’ll be able to benefit from being able to settle transactions on the very same day. We offer one of the fastest transfer times in the industry, and guarantee complete security of funds to all our clients.
*Same day service is dependent on funds arriving before 2pm and is only available for 'same day value' currencies.
Our Forward Contracts allow you to buy or sell one currency against another at a fixed rate for settlement at a later date (typically between 3 days to 2 years). Forward Contracts are generally used by individuals who would like to fix the exchange rate for a future date. This allows you to manage your exposure to any unfavourable currency movements and protect those hard earned savings!
The significant benefits of Forward Contracts are:
- A simple way of managing future currency exchange risk and negating any unfavourable movements in exchange rates.
- The ability to fix an exchange rate now for delivery of currency in the future. This means that you know what you will have to pay on a future date.
- If you are not sure of the exact date that you will need the funds, you will still be able to specify a special delivery period. This means you will be able to draw down on the funds within an agreed period of time.
Hedging with currency options allows you to protect your bottom line against fluctuations in exchange rates. Even better, you can also benefit if rates start to move in your favour. There are two basic kinds - one where you pay a premium, or fee and one where you don't.
Pay a premium up front and you can fix an exchange rate for a point in the future. You'll benefit up to 100% if the rates move in your favour. The higher the premium, the more flexibility and freedom you'll have. If you choose not to pay a premium, the cost will be built into your exchange rate. Still, you'll be able to benefit 100% if the rates move in your favour.
We offer a bespoke service to thousands of businesses every year, offering tailored solutions that have been created specifically for your company’s circumstances. To find out more, get in touch to arrange a consultation with a member of our Corporate structuring team.
To speak to our Corporate team call us today
+44 (0)20 7740 0000Forward Extra
A Forward Extra is a structured option that provides you with full protection against the depreciation of the GBP/USD spot rate, whilst at the same time allowing you to benefit from the appreciation of the GBP/USD spot rate up to a pre-determined barrier level. If this barrier rate is hit, you are obligated to transact at the strike rate.
In this example, by entering into a forward extra, you are guaranteed a minimum rate of 1.4000 and you are able to fully participate in an GBP/USD spot rate appreciation up to the 1.5000 barrier rate. If this barrier rate is hit, your are obliged to transact at the minimum rate of 1.4000.
Contract terms
| Forward Rate | 1.4200 |
|---|---|
| Strike Rate | 1.4000 |
| Barrier Rate | 1.5000 |
| Expiry Date | 180 days |
| Notional Amount | $1,000,000 |
Possible Scenarios
-
1.
GBP/USD spot strengthens to 1.4700, without hitting the barrier at 1.5000.
You buy $1,000,000 at 1.4700. -
2.
GBP/USD spot weakens to 1.3700, without hitting the barrier at 1.5000.
You buy $1,000,000 at 1.4000. -
3.
GBP/USD spot strengthens to 1.5200, hitting the barrier at 1.5000.
You buy $1,000,000 at 1.4000.
Graphical Overview
| Advantages | Disadvantages |
|---|---|
| Provides you with full protection against a depreciation of the GBP/USD rate below 1.4000. | Your hedged rate is lower than the prevailing forward rate. |
| You are able to benefit from an appreciation of the GBP/USD rate above 1.4000. | If the GBP/USD rate hits the barrier rate at any time, you may be obliged to transact at 1.4200. |
| No Premium | You may be Margin Called |
Knock-Out Forward
A Knock-out forward is a structured option that provides you with an enhanced exchange rate better than the prevailing GBP/USD forward rate. it provides you with protection against the depreciation of the GBP/USD rate, up to a pre-determined barrier level that if hit, may remove your ability to transact at the strike rate. In this example. by entering into a knock-out forward, you receive a rate of 1.4400, and you are hedged as long as the GBP/USD spot rate does not drop as low as the barrier rate of 1.3400. If this rate is hit, you will have to buy your USD requirement at the lower spot rate. In the event the GBP/USD spot rate appreciates, you are obliged to transact at the strike rate of 1.4400.
Contract terms
| Forward Rate | 1.4200 |
|---|---|
| Strike Rate | 1.4400 |
| Barrier Rate | 1.3400 |
| Expiry Date | 180 days |
| Notional Amount | $1,000,000 |
Possible Scenarios
-
1.
GBP/USD spot strengthens to 1.4700.
You buy $1,000,000 at 1.4400. -
2.
GBP/USD spot weakens to 1.3700, without hitting the barrier at 1.3400.
You buy $1,000,000 at 1.4400. -
3.
GBP/USD spot weakens to 1.3200, hitting the barrier at 1.3400.
$1,000,000 at 1.3200.
Graphical Overview
| Advantages | Disadvantages |
|---|---|
| Your receive a strike rate better than the prevailing GBP/USD forward rate. | You are unable to benefit from an appreciation of the GBP/USD rate above 1.4400. |
| Provides you with some protection against a depreciation of the GBP/USD rate below 1.4400. | If the GBP/USD rate hits the barrier rate at any time, your 1.4200 hedged rate may be lost. |
| No Premium | You may be Margin Called |
Ratio Forward
A Ratio forward is a structured option that provides you with an enhanced exchange rate better than the prevailing GBP/USD forward rate. It provides you with full protection against the depreciation of the GBP/USD rate. However in the event that at the expiry of the option the GBP/USD spot rate is higher than the strike rate, you will be obligated to transact a ratio amount.
In this example. by entering into a ratio forward, you are guaranteed a minimum rate of 1.4400, this is 200 tics better than the prevailing GBP/USD forward rate. However in the event that at expiry GBP/USD spot is above this 1.4400 strike rate, you will be obligated to transact a ratio amount.
Contract terms
| Forward Rate | 1.4200 |
|---|---|
| Strike Rate | 1.4400 |
| Expiry Date | 180 days |
| Notional Amount | $1,000,000 |
| Ratio Amount | $2,000,000 |
Possible Scenarios
-
1.
GBP/USD spot strengthens to 1.4700.
You buy $2,000,000 at 1.4400. -
2.
GBP/USD spot weakens to 1.3700.
You buy $1,000,000 at 1.4400.
Graphical Overview
| Advantages | Disadvantages |
|---|---|
| Provides you with full protection against a depreciation of the GBP/USD rate below 1.4400. | You are unable to benefit from an appreciation of the GBP/USD rate above 1.4400. |
| Your strike rate is better than the prevailing GBP/USD forward rate. | If the GBP/USD rate is above the strike rate on expiry, you'll obliged to trade the ratio amount. |
| No Premium | You may be Margin Called |