Foreign Exchange

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

Each business client has a dedicated foreign exchange 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 exchange 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 foreign exchange rate.

However, in almost all cases, our business-to-business foreign exchange 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 foreign currency rate because currency conversion is all we do.

In addition to the considerable savings a business can make by using our foreign exchange 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.

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 foreign 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 foreign 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 foreign 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 foreign exchange rate and make a foreign 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 Foreifn Exchange Contracts plus Accruals:

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

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 foreign 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 foreign  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 foreign  currency over a given time period. This enables a company to accumulate foreign  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

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 foreign 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 foreign 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 foreign exchange 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.