You probably already know (or can guess) that using your domestic bank to change money in order to fund a house purchase in another country is not going to be the most cost-effective way to go.
Save by using an FX broker
Say you wanted to transfer £250,000 into euros. The High Street bank rate (for example at 9.30am on 23 June 2010) was 1.14, with a £20 transfer fee. Broker HiFX’s rate, on the other hand, was 1.194 with no transfer fees.
So for your £250,000 you would have got €286,025 from a High Street bank, but €298,375 from HiFX – a saving of €12,350!
It’s more than just the best rates
However, you may not have considered what else a foreign exhange company can do for you. What about, for instance, the implications of exchange rate changes as you’re in the process of buying a property?
For instance, if you pay a deposit, followed by a private purchase contract a little later, then legal fees, mortgage commission etc at other times, how will you be affected if there’s a jump or slump in the exchange rate in the meantime?
What if you end up paying more than you have available because the exchange rate has moved against you in the process, for instance?
Know your options and hedge your bets
A good foreign exchange company can not only give you better rates than a bank, but can suggest options to help you make an informed decision as to the best way to buy with no surprises. For instance, they can often “reserve” an exchange rate for you, effectively fixing your important payments in advance.
HiFX is one of the most popular foreign exchange brokers, and has helped many of our clients to buy abroad. Established and reliable, its corporate client list includes the Post Office, Ventna and the Fia World Rally Championship. We have absolutely no hesitation in recommending HiFX to you.