Some frequently asked questions about opening an account or transferring money to Spain.
How do I send money to the currency exchange company?
The quickest way to send your fund is by Chaps transfer at your bank which is instantaneous but chargeable.
Alternatively you can use internet banking – BAC’s transfer, or you can send a cheque. You obviously need to wait for your funds to clear before the transfer of your funds.
How do I know that my money is safe?
Funds are usually placed into a Segregated Client Account, similar to ones used by Solicitors when handling a property sale. In addition each transaction should be backed up by indemnity Insurance.
I do not need the currency yet but I would like to book the rate now?
If you do not need the currency now, but the current rate of exchange is favourable, the rate can be fixed for up to 18 months in advance, taking away the risk of the rate fluctuating against you and helping you plan for the future a little easier.
How long will it take to receive my new currency?
Once the funds have been received the transfer to your new currency can be effected by Urgent International Money Transfer. This can show as cleared funds within a matter of hours but can also take up to 48 hours, which is all dependent upon the receiving banks clearing system.
Currency exchange commissions
If currency exchange companies do not charge commission how do they make money and remain competitive?
The large volume of business handled by the currency exchange companies allows clients to access wholesale exchange rates. The currency company makes money on the margins between the buy and sell rate which often still beats the rates offered by banks by up to 5%.
So are there no additional charges?
The only extra charge you will have is £15.00 to transfer the currency to the receiving bank. But if you transfer over £20,000 of currency, transfers can be completely free!
I only need to transfer a small amount of money to pay bills each month.
ROPS – The Regular Overseas Payment Scheme is designed for any one needing to transfer a small amount monthly bi-monthly or quarterly. You can still make a saving on the exchange rate, fix the rate for 12 months and each transfer is reduced from £15 to £5. All you need to do is decide how much you need to transfer, set up a standing order with your bank and then let the currency company know where you would like to transfer the funds.
Currency exchange rates
I don’t need to buy the currency yet and I am hoping to achieve a better rate than is available now, what should I do?
Decide what you hope to achieve and a Limit Order can be put in place. If the markets go in the right direction and the rate you targeted becomes available, the limit order will be automatically executed and the currency bought.
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