If you earn a foreign currency, you may well need to convert funds to your home currency on a regular basis. Follow the five top tips below to answer the most common questions below when it comes to exchanging currency!
1. Speak To An Independent Currency Specialist
Their services are normally completely free of charge and they will take time to understand your specific requirements and priorities. They can then provide bespoke solutions, saving you money and time while reducing your risk.
2. Utilise Trading Tools
An independent currency broker will give you access to tools normally only made available to large corporates. For example; Market Orders can be used to automate an exchange of currency and Forward Contracts can help you reserve a rate of exchange for a future date. A currency specialist can help you use these tools to help you save money and reduce your risk
3. Be Aware of Relevant News & Events
Exchange rates are constantly fluctuating with global news events and data releases having a constant impact. Being aware of major news items that might impact your situation can help you avoid risk, or in some cases embrace opportunities.
4. Understand Exchange Rates & Fees
It is often difficult to see what a bank or broker is actually charging for a transaction. Some banks and brokers charge by marking-up or marking-down from the interbank rate. Others will make a separate charge based on the volume of currency being transferred. It is important to focus on the final outcome of the transaction rather than just the exchange rate or just the fee.
5. Avoid The Weekend!
The currency market closes over the weekend as no country is open to trade. If you instruct an exchange on a Saturday, the bank or broker cannot cover the position till Monday morning by which time the market could have moved. To offset this risk most banks and brokers will charge more (i.e. offer a worse exchange rate) over the weekend.
Get in touch with us!
Following these basic tips can save you time, money and stress.
It is a common misconception that speaking with a broker for additional help and guidance will end up costing more money but this is not the case. There are a few independent brokers out there who will help you navigate the currency market and ensure you follow all the tips laid out above with no cost or obligation.
If you’re a CrewFO member, and would like further support, log in and reach out!
If you are not a member, below are our contact details:
Email us at: hello@crewfo.com 📧
Call us on: +44 203 538 8622 📲
At Crew Family Office, we are here to help Superyacht crew navigate their finances and make the right decisions.
For more of our financial services, designed for Superyacht crew, take a look here.