Forward trades – buy or sell currency now, pay later
✔ Currency exchange
available in the majority of freely tradable currencies
Set the exchange rate now; settle the currency trade up to a year in advance
Protect against moving exchange rates during your chosen time frame
Ideal for sending money abroad
Good way to protect against negative exchange rate movements for future payments
✔ Money transfer
services, delivered professionally
How can you use a Forward trade?
Plan now for future currency exchange and protect your international payments
Forward trades are an ideal tool for currency exchange
. These types of trade differentiate from Spot currency trades
and regular money trades
A Forward trade is a ‘buy now, pay later’ type of trade and is the most effective way of managing the risk of ever-moving exchange rates, giving you the ability to plan and budget for your overseas payments.
A Forward trade is useful if you are buying an overseas property, for example, and need to pay different amounts on fixed instalment dates. By setting the exchange rate in advance, you can guarantee the amount you will need to pay each time and budget more effectively, protecting the trades against currency risk.
Example: Buying a property abroad
Exchange rates fluctuate all the time. The rate you get when you first agree to buy a property internationally will be different to the rate you get when you pay your deposit. It’ll be a different price again when you sign the final deeds of sale and – if you’re buying off-plan - each time you make a scheduled payment during construction.
In the current political climate, any currency movements can be considerable. When it comes to buying property overseas, the difference these exchange rate fluctuations make can add up to thousands of Pounds.
A Forward trade lets you set the exchange rate when it is favourable, at a time that suits you in the property purchase process, so the price of your property will not change by the time you come to pay for it; and any investment is protected.
Price of a €975,000 four-bedroom
French apartment in Sterling
|April 19 2017
||February 14 2018
||August 28 2018
|£1 = €1.195
||£1 = €1.124
||£1 = €1.079