The Argentex guide to transferring money overseas

Argentex, a leading FCA regulated provider of foreign exchange services, give their top tips on how to get the best deal on overseas money transfers.

No matter how often you transfer your money overseas, the timing of the transaction is crucial. The first step of any transfer is to go online and view the ‘interbank rate’ which will let you know approximately where the exchange rate is at any time. However, bear in mind that this is not a set rate and it moves continuously, often up or down 2% in a single day. There are many factors affecting the movement of the rate and important political events, for instance, have the potential to move the rate even more than 2%.

And this is where experts come in—it is important to speak to a foreign exchange specialist who can provide you with all of the relevant information and upcoming data releases that you should be taking into account. Although no one can predict exactly where the market is going, an expert in this field can closely monitor exchange rate fluctuations and ensure that you do not transact at the least preferable time during any particular day or week. In addition, they can alert you to any positive moves in your favour to enable you to take advantage of a particularly good rate. It is a foreign exchange specialist’s job to be as proactive as possible and monitor the rate on your behalf, freeing up your time to focus on your actual move.

No UK bank account? No problem!

Those moving into the UK will of course need to set up a UK bank account. As those who have already had to do this will know, it can be a very arduous process. It’s therefore worth knowing that you do not need to have a bank account to make payments to the UK. For example, at Argentex, we provide a facility for non-residents which allows them to send us their currency, whichever one they hold, and we will then pay their property deposit, school fees and any other UK expenses they have in pound sterling. The advantage of this is that our clients can still access excellent exchange rates but do not have to have a bank account set up in advance. This facility is especially helpful and allows you greater flexibility if your move date is subject to changes or delays at short notice.

Hedging your bets

If you are coming to the UK on a short-term basis, you may want to consider a forward contract for your currency. This is a very simple measure that ensures that there is no risk your earnings which are paid in sterling in the UK, devaluing against your own home currency. It works simply by ‘buying forward’ your currency. If you know for instance how much money you are going to earn for the next year, you can lock in some of that value for the exchange rate available today, but to be used at a date in the future. This means that you can budget effectively and rest assured that you will still be able to move your funds back home at the same rate.

Peace of mind

Security of our client’s funds is something that we are asked about a lot. It goes without saying that when making an international payment, you must be confident that you are sending funds to a reputable and secure organisation, whether that be a bank or foreign exchange brokerage. When choosing your currency provider, always check that they are authorised and regulated by the Financial Conduct Authority (the official UK financial regulator). In addition, always check with your provider that all funds are held in segregated client designated trust accounts with a regulated bank.

If you would like to discuss your foreign exchange requirements with a member of our team, please contact:

Frances Chisholm | Relationship Manager | +44 (0) 203 772 0266 |

This material has been prepared by Argentex LLP, a firm authorised and regulated by the Financial Conduct Authority and is for the use of intended recipients only and the contents may not be reproduced, redistributed, or copied in whole or in part for any purpose without Argentex’s prior express consent. No representation, warranty, or assurance of any kind, express or implied, is made as to the accuracy or completeness of the information contained in this material and no member of Argentex accepts any obligation to any recipient to update or correct any information contained herein. This material is published for information purposes only and does not constitute an analysis of all potentially material issues. Views expressed herein are not intended to be and should not be viewed as advice or as a recommendation. You should take independent advice in respect of issues that are of concern to you. This material does not constitute an offer to buy or sell, or a solicitation of an offer to buy or sell any investment, nor does it constitute an offer to provide any products or services that are capable of acceptance to form a contract. Argentex accepts no liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising in any way from the information contained in this pack.

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