How do I get the Best Exchange Rates?

Discussion in 'New to import/export? Read these before posting' started by MRam, Mar 26, 2013.

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  1. MRam

    MRam UKBF Newcomer Full Member

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    The likelihood is that when you've been on overseas trips in the past, you probably haven't been too concerned about the exchange rate you received. Obviously it's great if you do happen to pocket a little extra spending money, but the difference the exchange rate makes on a few hundred pounds of business expenses or holiday money is likely to be minimal. In brief; you're unlikely to be having long, sleepless nights fretting about whether you exchanged your funds at the right time.

    However, if you are regularly making foreign exchange transactions or you need to transfer larger amounts then it can be worthwhile to consider your options.

    Firstly, forget moving money through high street banks; the best exchange rates and the most comprehensive service is available through currency exchange specialists. These companies can move your international payments just as quickly as banks. And, in addition to immediate payments, they can arrange 'forward contracts', allowing you to secure an attractive exchange rate up to two years in advance. A specialist will also be able to deliver rates that the banks will not or cannot offer.

    So just how much difference can it make?

    Well, take this as an example. Let's say you were importing goods from America or the Far East at the end of December 2012 and had to settle the invoice in US Dollars on 90 days credit (1st March for example). If you left the currency purchase until the last minute, you might have received 1.5065 US Dollars to the Pound (mid-range on 1st March 2013). However, if you had started looking into the process at the time of import or earlier still, when the order was placed a year ago, by instructing a specialist foreign exchange company to help you secure the best possible rate, then there were several opportunities in December to buy at 1.6300 or slightly better.

    Okay, so a difference of around 12.5 cents may not sound like an awful lot, but if you're exchanging, say, £100,000 then that 12.5 cents suddenly turns into a saving of more than £8,000 or gives you an 8 percent price advantage over your competitors. Whichever way you account for it, it is a very attractive addition to your bottom line.

    What's more, the foreign exchange markets are constantly moving; so that volatility throws up these sorts of opportunities on a more regular basis than you might imagine.

    Sadly, there is no crystal ball that allows you to predict just when it is the right time to exchange your funds but there are undoubtedly clear opportunities to transact at the right time. These are governed by a number of factors including a countries' economics, geo political conditions, market psychology and international investors' attitude to risk. And, just as your buyers and procurement staff understand your market and know when a price is right, a good foreign exchange specialist will understand currency movement chart the market and provide guidance to help you make informed choices on your currency management.

    So what next?

    Your next step should probably be to contact a foreign exchange company who can help to analyse where there may be cost savings to be had on your foreign exchange needs and where the application of appropriate tools would help you boost income, aid competitiveness and ensure your currency payments an aid to growth and not a hurdle.

    If you have any further exchange rate/forex related questions feel free to either add them to this post or private message me.
     
    Last edited: Mar 26, 2013
    Posted: Mar 26, 2013 By: MRam Member since: Feb 20, 2013
    #1
  2. MRam

    MRam UKBF Newcomer Full Member

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    Hi
    The rate you see on the website is not the exact rate you will receive but an indicative rate - we are very transparent and will provide you with an accurate figure when you contact us by phone - or we call you back. As you can imagine the markets change on a very frequent basis but we can help you achieve your preferred rate and work with you to monitor the markets and give advice. If you would like a quote or further information - feel free to private message me. thanks
     
    Posted: Apr 5, 2013 By: MRam Member since: Feb 20, 2013
    #2
  3. djake224

    djake224 UKBF Newcomer Free Member

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    well there are no transparencies in open exchange ( according to my observation ). so the figures you can see were not actual . most of time it is changed . in my opinion first make sure about these rates and then consider them into you calculations .
     
    Posted: Apr 28, 2013 By: djake224 Member since: Apr 25, 2013
    #3
  4. MooToTheMax

    MooToTheMax UKBF Newcomer Free Member

    Posts: 65 Likes: 19
    At the small scale - consultancy invoices of, say, $5k - $10k - using a service like CurrencyFair has worked out quite well for me.

    Definitely advise using a dedicated currency exchange company for larger-scale payments though.
     
    Posted: May 5, 2013 By: MooToTheMax Member since: May 5, 2013
    #4
  5. Akos Vagvolgyi

    Akos Vagvolgyi UKBF Newcomer Free Member

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    I think You see it well the whole package in this business. :) but In my view and experience, the most biggest mistakes in those tradings, that the companies have no clear view into the foreign exchange market of the hosting country. If You have a professional analysis before the transaction, you can reduce your risk, which save you money, or maybe generates plus incomes(if you are lucky). We create type of analysis and I know it well, the most biggest problem, that companies, do not do any market analysis before the transaction. Not because they don't like it, but they do not think it is necessary. Unfortunately it makes a huge risk on trade, and many trading companies goes bankrupt, because of this. I know many foreign exchange companies, who creates analysis with designed background, but they do not give so good informations from the current market. They do mostly technical analysis not fundamental. Both are recommanded!!!! Anyway, you have always risks but this is the life. GET FRESH AND PERFECR ANALYSIS, and your risk will be lower. Much lower
     
    Posted: May 8, 2013 By: Akos Vagvolgyi Member since: Apr 25, 2013
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  6. djake224

    djake224 UKBF Newcomer Free Member

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    can any one share the links which shows the exact and current exchanging rates from around the world ???
     
    Posted: May 9, 2013 By: djake224 Member since: Apr 25, 2013
    #6
  7. ANye

    ANye UKBF Contributor Full Member

    Posts: 36 Likes: 6
    Hi djake224,

    You can find a live exchange rates board showing most currencies against the pound via the following link... http://www.halofinancial.com/currency-market-updates/rates.aspx
     
    Posted: May 9, 2013 By: ANye Member since: Mar 8, 2013
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  8. djake224

    djake224 UKBF Newcomer Free Member

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    Thanks anye
    you reduce my searching problem. let i use these links for exacting rates.
    Thanks again dear !
     
    Posted: May 9, 2013 By: djake224 Member since: Apr 25, 2013
    #8
  9. NatalieM

    NatalieM UKBF Newcomer Free Member

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    Very useful discussion and note that you are transparent for indicative rates, however very few in the industry have live rates that you actually receive when you make a booking.

    I work with FTT Global and as soon as you check the live rate on the website and allows you to secure the rate there and then.

    Any questions on rates, fees and how we operate then just let me know.
     
    Posted: May 9, 2013 By: NatalieM Member since: Jan 14, 2013
    #9
  10. djake224

    djake224 UKBF Newcomer Free Member

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    what about exchanging predictions which is we found from news paper and other economic magazines. how % of these predictions become true. is there any myths are also include in these predictions ??
     
    Posted: May 12, 2013 By: djake224 Member since: Apr 25, 2013
    #10
  11. NatalieM

    NatalieM UKBF Newcomer Free Member

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    Transparent exchange rates and getting them guaranteed are hard to come by in the foreign exchange market. Use a provider that uses live rates, fixed fees and you know what rate you are getting.

    I'm from FTT Global and we offer all of the above if looking for a payment solution.

    Thanks,
    Natlaie
     
    Posted: May 13, 2013 By: NatalieM Member since: Jan 14, 2013
    #11
  12. ANye

    ANye UKBF Contributor Full Member

    Posts: 36 Likes: 6
    Rates are affected by numerous factors. There are no figures collected regarding accuracy of predictions & most commentators tend to make wide predictions high low predictions so as not to appear to be wrong. We offer market commentary, not advice to allow our clients to make informed decisions on deliverable trading.

    Please note that all Halo rates are live as the market moves by the second the rate is fixed when booking with a consultant.
     
    Posted: May 13, 2013 By: ANye Member since: Mar 8, 2013
    #12
  13. djake224

    djake224 UKBF Newcomer Free Member

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    thanks anye ! for sharing links let i increse my knowledge with it.
    thanks again.
     
    Posted: May 14, 2013 By: djake224 Member since: Apr 25, 2013
    #13
  14. darrentrueman

    darrentrueman UKBF Newcomer Free Member

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    Exchange rate is really a problem for im/exporters. For example, the rate of GBP/CNY was 9.46 and USD/CNY was 6.19 on 18/04/2013. But GBP/CNY is 9.35 and USD/CNY is 6.15(18/05/2013) based on the data published by Bank of China.
     
    Posted: May 18, 2013 By: darrentrueman Member since: May 18, 2013
    #14
  15. djake224

    djake224 UKBF Newcomer Free Member

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    It is realy complexed, have their any resources to find exact exchange rate?
     
    Posted: May 19, 2013 By: djake224 Member since: Apr 25, 2013
    #15
  16. ukexportsupport

    ukexportsupport UKBF Newcomer Free Member

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    Some thoughts for UK exporters.

    Many of the clients that we work with spend a lot of time worrying about exchange rates, however the majority of companies in the majority of countries will be used to dealing in GBP/USD/EUR.

    If you're a small business, or even if you're not, why not pass on the exchange risk to the buyer?

    Most of your customers will be used to working in GBP, or at least USD/EUR.

    If your customer prefers USD/EUR (particularly prominent in areas such as the French markets and the USA) and you expect to do regular business, EUR or USD accounts can be used for day-to-day business, so that larger amounts can be exchanged when the rates are most favourable.

    Buyers will understand that if you quote them in their local currencies, you will need add an exchange factor, which will increase their price - tell them this as part of your discussions, it's quite normal.

    There may of course be circumstances where you may need to deal in foreign currencies, because of the funding source, tender regulations, purchasing rules etc. This is usually the exception, and local tenders would normally be bid for by your local partner, who would then pay you in sterling.
     
    Posted: Jun 2, 2013 By: ukexportsupport Member since: May 18, 2013
    #16
  17. sallyspecial

    sallyspecial UKBF Newcomer Free Member

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    learnt much, but is the "currency exchange specialists" more credible than "high street banks"...
     
    Posted: Jun 20, 2013 By: sallyspecial Member since: Jun 19, 2013
    #17
  18. tuyetdaothi

    tuyetdaothi UKBF Newcomer Free Member

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    Thanks for your discussion. I have just cleared confusion in my mind about exchange rates
     
    Posted: Jun 26, 2013 By: tuyetdaothi Member since: Jun 26, 2013
    #18
  19. MRam

    MRam UKBF Newcomer Full Member

    Posts: 13 Likes: 1
    Currency exchange specialists are just as credible as banks - as long as you see the normal signs - eg FSA/FCA registered and Regulated by the Payment Services Regulations. Always look for this on their websites and feel free to contact these authorities for verification - especially when dealing with large sums of money or regular transactions. Also look at review sites such as Feefo or Review centre for independent user reviews.
     
    Posted: Jun 27, 2013 By: MRam Member since: Feb 20, 2013
    #19
  20. Rhuss89

    Rhuss89 UKBF Newcomer Free Member

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    Baydonhill PLC are good for business payments there rates are very good and a lot better then banks and most providers, you should try them

    160 Brompton Road
    Knightsbridge
    London
    SW3 1HW
    Uk
    02075940548
     
    Last edited: Jul 2, 2013
    Posted: Jul 2, 2013 By: Rhuss89 Member since: Jul 2, 2013
    #20
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