Question and answer with John Kinghorn from FairFX
Currency markets have experienced considerable volatility in recent years. Therefore, if you need to transfer money overseas, you will be aware of the movements in the exchange rates.
Hoxton Capital spoke to John Kinghorn from FairFX about the benefits of using a specialist foreign exchange company, as opposed to using your bank.
What makes using an FX company better than my bank?
If you are buying a property abroad, emigrating or are already based outside the UK, you can typically get a better deal by using a specialist company to transfer your money. Most people tend to use their bank when transferring money overseas.
Specialist companies can offer better exchange rates so you can save money. You can also avoid high street bank’s fees and charges. Importantly, you can receive expert guidance on your transactions too – This is especially important when currency rates are particularly volatile.
Is it a complicated process to register with a currency company?
It’s a really easy and quick process. The first step is to register for a free account. Like any financial institution, normal Anti Money Laundering checks take place before the account is opened and active. Once the account is set up, you will have access to a dedicated Account Manager who can provide guidance and information relating to your overseas currency transfers.
Is it secure to use a specialist money transfer company?
Always do your research. Ensure the company you are dealing with have the relevant regulations.
If you want to check whether a company is regulated by the Financial Conduct Authority, you can find out at: https://register.fca.org.uk/
Ensure you have complete peace of mind that the company you are dealing with has a sound track record and is secure financially.
How long will it take for the money to transfer?
This can depend on the currency and destination – generally, funds should be received on the same day or within no more than two working days for more exotic destinations.
My bank offers a free international transfer every month, will I still save money using a 3rd party company?
The main factors to consider when making an international money transfer are as follows: exchange rates, transfer fees, commission charges, timing of when you can make your money transfer.
Specialist foreign exchange companies, unlike banks, focus on providing competitive rates and low (or no) transfer fees. This means they can provide a better deal when transferring your money overseas.
What fees are involved?
Typically, using a foreign exchange company like FairFX will mean no transfer fees or commission charges. Therefore, there is no cost to make a money transfer.
You can also check out the FairFX blog which has some great content and tools for expats and frequent travelers.