For Individuals
Foreign Exchange for Individuals
Are you thinking of buying property abroad or starting a new life overseas? Get the most competitive exchange rates and fast transfers with a foreign exchange specialist. By sidestepping the bank, you can set up high-speed one-off or regular transfers to or from Australia at a time which is convenient to you.
Transfer Options
There are many ways to make an international transfer of funds. The only question is finding the method which is fastest and cheapest – and with the right level of security for your money.
Mainstream Bank
You can easily just pop into your nearest bank branch and request an international transfer. They should be able to organize this for you, but before you go ahead with it make sure you ask for the latest exchange rate for the currency you want to convert into from Australian dollars.
Note that the bank might add a fee on top of the transfer, and in most cases you cannot make the transfer from your online bank account.
The transfer process usually involves filling out a form, providing ID and funds should receive the recipient bank account within 5 working days.
Online Foreign Exchange Specialist
Foreign exchange specialists are currency brokers that deal directly with the currency market every day. They are constantly trading currencies and making international transfer on behalf of their private and corporate clients – but as specialists they do not have large call centers. They can also offer an online account service which is free to set up and carries no obligation to make a transaction.
Setting up an account is easy and within a short space of time you can set up your international transfer. You will be appointed a broker who can be contacted directly via the telephone or email. Transactions are never made before you have been quoted the latest exchange rate on your chosen currency.
Online Transfer Service
There are nowadays lots of firms that can offer speedy transfers online. Either by opening an account-to-account service or setting up a payment via credit card, you can send money around the world from your own home.
These types of transfer services are useful, although the exchange rates are often inferior and don't offer protection from exchange rate fluctuations. Online transfer services (sometimes known as remittance services) are great for one-off small transfers but for larger transfers they could become expensive.
Using a Foreign Exchange Specialist
There are various reasons why an individual might need the help of a specialist currency exchange service:
Setting up an Overseas Mortgage
When you buy a property abroad, you will need to pay for it in the local currency (for instance, in euros if the property is in France).
Moving Abroad
If you need to convert your money into a new currency, a foreign exchange specialist can do this at the cheapest rate available. If you plan to live abroad for a limited period, you can use your broker to transfer funds (such as your salary) into your own account.
You can also gain protection from adverse currency movements. For instance, you can fix exchange rates for between one and two years in advance – a vital tool for someone who is purchasing an overseas property.
One-off Transfers for Import/Export (of a large asset such as a car)
Even if you just want to make a one-off transfer for a large purchase (a car or even a boat!) you will need to make the currency conversion in the fastest and cheapest way.
Regular Transfers (for pensions or salary)
You might have moved abroad but still receiving pension payments from Australia – allow a specialist to make the transfer without wasting time and effort.
Hedging Strategies
Hedging strategies are offered by most good foreign exchange brokers, to both their private and corporate clients. A hedging strategy can be tailored to your personal needs, and allows you to avoid becoming too exposed to currency rate changes. Additionally, the right strategy can help you to benefit from favorable rate movements.
Cheaper than Banks
A foreign exchange specialist can offer the best rates, often by more than 3% of bank rates. They can do this because they deal directly with the foreign exchange market. Even smaller foreign exchange firms will often deal with daily transactions of millions of dollars of currency. Banks can access excellent rates, but remove a percentage of this before passing the rest on to their customers. Specialist brokers can pass on more of a great rate to you – meaning you get much more from your money.