The pound fell against the rest of its peers on Wednesday as some softer-than-expected inflation data prompted traders to rethink their expectations of an August rate hike.
Right here, right now – Spot contracts
If you need to make a currency transfer as soon as possible then a spot contract is the best option for you – this enables a quick, easy and secure transfer of funds to your desired destination at the current exchange rate.
Plan ahead – Forward contracts
If you don’t have an urgent need to transfer currency but still want to get a good deal in the future, a forward contract might be the best option for you.
A forward contract is a good idea if you don’t need an immediate currency transfer but want to insure against any future currency market fluctuations.
This is a perfectly reasonable concern – currency markets are volatile, so while a currency like the pound might be strong today, it could weaken in the weeks and months ahead.
Forward contracts allow you to cut out this uncertainty by ‘locking in’ the current exchange rate for up to a year, thereby protecting yourself if the currency weakens.
While a forward contract does require a small deposit, this option is really useful if you need to budget for a future transfer.
Planning for the future – Regular transfers
Sometimes you’ll need to make repeated currency transfers over an extended period of time, when paying off a mortgage on an overseas home, for example.
For needs like this, a regular transfer service is an excellent option.
By automating your transfers you remove the hassle, and as they’ll be conducted fee-free you could make serious savings over the course of the year.
Waiting for the right time – Limit orders
If you’ve got time on your hands and want to wait for the exchange rate to improve, a limit order allows you to pick an exchange rate higher than the current market rate.
Your transfer will take place automatically if that level is reached.
There are lots of different ways to make a currency transfer with Currencies Direct, so if you need to move money abroad, get in touch with our friendly experts on +44 (0) 20 7847 9400 to talk through your options.