Whether emigrating, sending savings back home or purchasing goods from overseas, you can make very significant savings on your transfers by taking some simple steps to make sure you are getting the best deal and managing your exchange rate risk effectively.
Buy now, transfer later
The most common and effective way to minimise currency risk is to use a Forward Exchange Contracts (FECs). These contracts simply allow you to lock in exchange rates today for future transfers and OFX allow contracts up to 12 months in advance protecting you against exchange rate movements.
Set your target rates
Another useful tool is the limit order. Placement of a limit order means you specify your desired exchange rate and should the market price fluctuate to that level, then OFX will automatically purchase the currency for you – no matter what the time of day or night. By planning ahead and targeting a specific exchange rate in this manner you can lock in an advantageous, but short lived, rate improvement. While it is common for share brokers to offer limit orders, it is harder to find amongst currency brokers. OFX do offer this service for private and business client transactions above $30,000 AUD and is valid for up to 6 months.
Our FX Option gives you the right, but not the obligation, to transfer at a certain time and rate, in exchange for an up-front premium. This provides you with protection against adverse exchange rate shifts while also allowing you to take advantage if the rate moves in your favour. It really is the best of both worlds.
Getting the Best Deal
Most people are not aware there is an alternative to their bank for international money transfers and that such risk management tools even exist. Shopping around can not only save people 2-3% on the exchange rate for each of their transfers but potentially a lot more with an appropriate risk management solution.
OFX is a foreign exchange company which helps thousands of clients both individual and corporate clients with their international payments every year. Offering sharper exchange rates than the high street banks and has lower transfer fees. The service is simple to use with 24 hour online access and phone based dedicated dealing desk support 7 days a week.
To get the process started simply click to ‘REGISTER OBGLIGATION FREE HERE’ & COMPARE JUST HOW MUCH YOU CAN SAVE.
Mention ‘CXC Global’ to receive 2 FEE FREE TRANSFERS above $1,000 AUD as a CXC contractor.