We retired to France but plan on visiting our daughter and family before her wedding. We need to transfer money to our UK account to fund the wedding etc., what is the best solution for this?
When transferring money overseas, the first question that springs to mind is whether the exchange rate is favourable and more importantly, what exchange rate will you get for your payment. Whether you make a large or a small lump sum payment, the timing of it is crucial as markets respond to many factors, including political events, economic data or even the weather and the exchange rates constantly fluctuate. For example, in the first quarter this year, the currency market has been very volatile, mainly due to Brexit negotiations, with the pound fluctuating as much as seven per cent.
If you were buying British pounds and selling euros during this period, you would have seen a rate as low as 1.1031 and as high as 1.1706. As an illustration, on a EUR10,000 transfer to your daughter’s wedding planner, it would mean a difference of GBP523 – or a free five-tier wedding cake. This is where a currency broker with insight, knowledge and market expertise can make a difference by not only offering you competitive exchange rates but also providing guidance on the timing of your transaction. The benefit of organising your wedding finances in advance is that you could take advantage of the exchange rate when it is favourable, even if you don’t have the funds available: you can fix the exchange rate and schedule your payments for up to 12 months, using a forward contract. It means that your rate is guaranteed, even if the market moves against you.
Moreover, a currency broker can help you even if you don’t have a sterling bank account to transfer the funds into as they can pay the beneficiaries, such as the wedding planner, on your behalf.
These options are suitable, not only for wedding related costs, but also for a variety of lump sum payments such as a renovation work, the purchase of an asset like a car, or in case of a relocation.