Quick guide to making international payments through a specialist
Many people need to make international payments – to purchase or sell property overseas, send money to family, pay overseas mortgages or convert domestic pensions to another currency.
Foreign currency is purchased or traded on the foreign exchange market and there are many participants ranging from private individuals making or receiving international payments, companies that import and export, and institutions that speculate on the movements of currency prices.
Most people head straight to the bank when they need to make an international payment, but that could prove a costly mistake. Most banks charge a fee and don’t give you any flexibility on exchange rate.
Specialist foreign exchange providers might be a better way to go. Here is a five point guide on making international payments through a Forex specialist.
1. Open an account with a specialist foreign exchange provider
This is a relatively straight forward process, and if you live in the UK you can normally do so online. The company will carry out an identity check to confirm your identity and address.
If you are domiciled overseas then you are required to provide certified proof of identity and address. The identity documents must be government-issued documents, such as a valid passport or driving licence and the proof of address can be a bank statement, utility bill or credit card statement dated within three months.
2. Speak to your foreign exchange dealer
Once you have opened an account you should be provided with a dedicated adviser who will discuss your requirements in detail and be your eyes and ears into the market. Your dealer will talk you through your options and provide the latest exchange rates and market information. Expect at least this level of service.
3. Execute and confirm your transaction
If you are happy with both the rate of exchange and the type of contract offered, you can agree and execute your contract verbally over the telephone. You will then receive a contract note, which confirms your trade and you will need to provide a beneficiary instruction which outlines the name and bank account details of the person or company receiving the payment.
4. Paying for your transaction
The contract note that you receive as confirmation of your trade will also confirm payment details. These details will enable you to send your settlement on or before the agreed date when your international payment is to be paid out.
Once your funds have cleared into the foreign exchange company’s account they will send your currency to your specified account.
Moneywise partners with Baydonhill FX. Opening an account is quick, easy and secure. To speak to a currency dealer call +44 (0) 20 7 594 0533 or open an account online.