Buying Property Abroad 
Purchasing a home abroad can mean that the foreign exchange markets impact on the actual cost of your purchase. If you are not prepared for this you could end up losing out.
First Rate FX can help to protect you against the adverse effects of movements in these markets.
For example, First Rate FX offer superior rates of exchange to the High Street banks – in fact, our rates are very rarely matched by any of our competitors. Dealing with a High Street bank can cost you up to 4% more on your total home price than if you use First Rate FX. We will also not charge you any transfer fees or commission charges!
How First Rate FX could save you money
Example One
As an example, Mr. Harrison is buying a house in Spain that costs 200,000 Euros. He rings his bank and asks for an exchange rate. The bank advises him that the exchange rate will be 1.4390. If Mr. Harrison uses his bank to complete his transaction he will need to pay £138,985.40 in order to get his 200,000 Euros. The bank will also charge him commission (with some banks this is up to 2%) and a transfer fee to send the funds.
When Mr. Harrison rings First Rate FX he is quoted a far more attractive rate of 1.4560. This means that his 200,000 Euros will only cost him £137,362.63 (a saving of £1,622.77). He will also not be charged any commission or any transfer fees to send the funds.
Example Two
Mr. Harrison decides to buy his new property in May, but does not need to exchange his sterling to euros until November when the property is finished. He therefore decides to wait until this time to purchase his Euros. During these 7 months the exchange rate fluctuates to 1.412 this means that when Mr. Harrison eventually needs to purchase his currency it will now cost him 3% more than it would have done in May.
In May Mr. Harrison could have purchased a ‘forward contract' from First Rate FX. This contract would have ‘fixed' the rate of exchange at 1.4560 (the rate at the time) and allowed for his payment to have been deferred until November. Mr. Harrison would only have needed to pay a 10% deposit at the time of the trade, in order to secure his funds.
* Please note that exchange rates can go up as well as down after the point of order confirmation and First Rate FX is not liable for any currency fluctuations between the order confirmation and the contract maturity date.
Foreign Exchange FAQ's
- Q. Why use a foreign exchange broker?
You can easily change money at your local bank or bureau de change for your holidays, but when it comes to larger sums of money the savings made in using a currency specialist (broker) such as First Rate FX can be very substantial. They will offer much more competitive rates than the banks because they deal in high volume transfers on a daily basis.
First Rate FX will not charge you to open up a trading facility, purchase currency, or send funds abroad. In fact you will also avoid the receiving charges from the beneficiary bank as well. Just contact First Rate FX to see what the available rates are and make a comparison with your bank to see the saving for yourself. Generally the more money you wish to trade the better rate you will receive. Some brokers and most banks apply a charge to send or receive funds. First Rate FX does not.
- Q . What do I need to do to open a trading facility?
You can open up a trading facility free of charge without any obligation to trade. Simply log on to our website at www.firstratefx.com/privateclients/openanaccount to register and then fax/scan or e-mail/ post one form of photographic identification (such as passport or driving licence) and one form of proof of address (such as a utility bill or bank statement) to First Rate FX on F: +44 (0) 20 7345 5304. Your account will be opened within one hour.
For more information call the Client Service Team on +44 (0) 20 7345 5303
- Q. How do I purchase a currency?
Once your trading facility is open you will be allocated a currency specialist who will be your personal dealer. You can then buy your chosen currency over the telephone with your dealer any time during office hours.
- Q. What if I need to make a payment in 4 months and the rate is good now?
You can actually secure the rate for up to two years in advance which will help you to fix your costs and plan your finances. This is really useful when purchasing off-plan property and staged payments are required. Your dealer will buy all the requested currency for as many payments as you wish. You simply send a 10% deposit for each forward purchase. The remaining 90% balance which you are holding is required on the date you want the funds to be sent abroad.
- Q. Can I wait for a higher rate if the market is weak?
Yes you can instruct your personal currency specialist to either call you when the market moves to the desired rate of exchange, or an order can be made which will prompt an automatic purchase even if this is outside of trading hours.
- Q. Can currency brokers give advice about the condition of the market and the rates of exchange?
Currency brokers are not regulated to give “advice” on the market but can inform you of market trends and movements. No one is able to predict the market with any certainty so your broker will give you the options on your situation and help you to make an informed decision about your currency purchase. If general market news becomes of interest to you can read the daily market information on the First Rate FX website at www.firstratefx.com .
- Q. How can I find out what the current exchange rate is?
The inter bank rate is easily found on the internet, but remember this will not be the rate you will get for your own transactions. Inter bank is the rate at which Banks buy and sell currency between each other and they are trading billions every hour. To get a live rate at which you can trade just contact a currency specialist on T: +44 (0) 207 345 5303.
- Q. How do I pay for my currency?
Once you have fixed a rate of exchange with your broker for the transaction you will need to transfer your money to the First Rate FX Client Account at Barclays Bank. The details of this account will be given to you when you have traded. Once the monies have cleared in the First Rate FX account your currency will be sent out. (Cheques are accepted, but remember they take longer to clear).
- Q. How long does it take to transfer the funds overseas to the beneficiary account?
First Rate FX sends all Client funds via the world's fastest messaging network SWIFT. They can even provide a same day transfer to North America and most European countries. Remember you will also avoid all bank receiving fees with First Rate FX. Payment confirmations (SWIFT MT103s) can also be provided at no extra cost.
For more details call David Foster on T: 0207 345 5303 quoting Haven Overseas
Web: www.firstratefx.com
Email:
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First Rate FX is a member of the AIPP (Association of International Property Professionals) and are regulated by HM Revenue & Customs (MLR No: 12223022)
