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How to build an FX strategy when moving abroad?

Published Sep 17, 2025 · Edited Nov 13, 2025 · 6 minute read

Written by

Sarah Ebrahem

Reviewed by

Matthew Andrews

Moving abroad is a life-changing decision. From organising visas and healthcare to finding the perfect home, there’s a lot to think about before you settle into your new lifestyle. Amidst all this planning, one area that often gets overlooked is how to manage your international money transfers.

Currency markets can shift dramatically in a short space of time, and those fluctuations can make your relocation more expensive than you planned.

A weaker exchange rate could raise the cost of buying property overseas, while ongoing expenses like rent, bills, or school fees can quickly add up if you’re exposed to volatility.

That’s why building a clear FX strategy is so important. By planning how and when to move your money, you can protect your budget, reduce risk and feel confident that your finances will support your new life abroad.

Understand your financial commitments

The first step in creating your FX strategy is having a clear picture of your financial needs. Consider both one-off and ongoing expenses, such as:

The cost of renting or purchasing a home abroad
Relocation fees, including shipping and legal expenses
Ongoing bills and living costs in your new country
Future commitments, such as tuition fees or pension transfers

By mapping out these expenses, you can decide whether you need flexibility for regular payments, protection against exchange rate swings for large transactions, or both.

Learn how exchange rates work

Exchange rates are influenced by multiple factors, from economic data and central bank policies to political events and market sentiment.

Because rates are constantly changing, transferring money at the ‘wrong’ moment could cost you more than expected.

For example, if you plan to move €200,000 from the UK to Spain and the pound weakens by just 2%, your property purchase could end up costing an extra €4,000.

Because exchange rates can change so quickly, having an FX strategy is crucial. It helps you avoid unnecessary expenses and gives you peace of mind when managing your finances abroad.

Learn more about how to get the best exchange rates.

Explore your transfer options

When it comes to transferring money abroad, you’re not limited to sending funds at the current market rate. At Currencies Direct, we offer a range of tools to help you manage your transfers with confidence.

Spot contracts

A spot contract allows you to exchange money at the live market rate. It’s fast and straightforward, perfect for urgent transfers or if you’re happy with the rate available today. However, it does leave you exposed to sudden market movements.

Forward contracts

A forward contract lets you lock in an exchange rate for up to two years in advance. This means you’ll know exactly how much your property purchase, mortgage payment or other commitment will cost, no matter how the market moves. The drawback is that if rates improve after you’ve locked in, you won’t benefit from the higher rate.

Limit orders and rate alerts

If you’re targeting a specific rate, a limit order can help you automatically secure it when the market reaches your chosen level. Similarly, rate alerts can notify you when a currency pair hits your preferred rate, so you don’t miss an opportunity.

Multi-currency card

We also offer a multi-currency card designed for effortless overseas spending, allowing you to store and manage multiple currencies in one account.

By combining these solutions, you can build an FX plan that balances security and flexibility.

Match your strategy to your timeline

Your FX needs will also vary depending on where you are in your relocation journey.

Before you move - If you’re buying property, a forward contract can protect your budget from sudden shifts. You might also want to use a spot contract to cover immediate expenses like deposits or legal fees.
During the move - Relocation often brings unexpected costs. Keeping some flexibility with spot transfers ensures you can cover last-minute bills without being locked in.
After you’ve settled - For regular income or pension transfers, setting up automated payments or using forward contracts for predictable expenses can give you peace of mind.

In short, the right strategy changes as your circumstances evolve, and a good plan should allow for this.

Factor in your risk appetite

Some people prefer certainty, even if it means missing out on potential gains. Others are comfortable taking on more risk in the hope of securing a better rate.

Your FX strategy should reflect your comfort level. If you value stability, locking in rates with forward contracts might be the way to go. If you’re open to market fluctuations, you may prefer spot transfers or limit orders, giving you the chance to lock in gains when the market moves your way.

The key is finding a balance that protects your essential expenses while giving you flexibility where it makes sense.

Work with an FX specialist

Managing international transfers on your own can be overwhelming, and relying on banks often means higher costs and less flexibility.

By working with a specialist like Currencies Direct, you gain access to competitive exchange rates, no transfer fees, and expert guidance tailored to your situation.

Our team can help you:

Create a personalised transfer plan aligned with your relocation timeline
Lock in rates for future expenses to protect your budget
Monitor the market so you can take advantage of favourable conditions
Simplify the process of moving your money abroad, leaving you free to focus on your new life

Planning with confidence

Building an FX strategy when moving abroad isn’t just about getting a good deal on your first transfer. It’s about planning ahead, reducing risk and ensuring your finances are as smooth and predictable as possible during one of life’s biggest transitions.

With the right mix of tools and the support of a trusted FX partner, you can make your money go further and step into your new chapter with confidence.