Buying a holiday home or emigrating can be one of the most important decisions we ever make both in terms of lifestyle and finances. We thank Axia FX for providing the following article. We have transferred money over using Axia FX ourselves, and can attest to the savings we made.
When moving abroad, there are a number of different considerations you have to make and with so much going on all at once, it is possible to overlook the issue of gaining the best foreign currency exchange rate.
When buying abroad from the UK, you will be selling Sterling. At that point, you are exposed to currency market movements. Your future wealth will be influenced by the timing of your transfer and the price you obtain. If Sterling strengthens before you buy your local currency, In this case Euros, you will be able to buy more with your money. However, if Sterling weakens, your overseas property will now cost you more.
A typical example of how Axia Fx can save you money is the following:
• On the 16th of January 2009, a high street bank was offering an exchange rate of 1.068 for a client who was purchasing Euros and selling £100,000. Axia Fx could have offered the client an exchange rate of 1.1243. This would have increased the amount of Euros they received by €5,630 at no extra cost.
• Axia Fx can also fix the exchange rate for customers. If an overseas home buyer had agreed to purchase a property at Euro 200,000 on 7th January ’09 at an exchange rate of 1.11, it would have cost them £180,180.18 Had the customer not fixed the rate at the time, due to sterling depreciating against the Euro, the same property would have cost £187,793.42 on the 21st January 2009, costing the client an additional £7,613.24 in just 2 weeks. Well, that’s the furniture gone then.
At AxiaFx, we annually service thousands of individuals who are buying or selling property overseas or who need to make regular payments abroad. AxiaFx not only saves its customers 1000s of pounds by providing more competitive exchange rates than the high street banks, but they also offer specialist information on the most suitable currency transfers.
How can we do that? Well at AxiaFX we have direct access to financial market rates through our parent company; our overheads are much smaller than those of the banks and more importantly, we service our clients directly in contrast to a bank which quotes a price that has been derived from four stages, at which an intermediary would have taken a cut at each.
Don’t pay over the odds for your property by not utilising the competitive rates provided by alternative foreign currency providers. You do now have a choice, so don’t waste all that hard work by giving money away.
Thanks to Lee from for providing this article, which we requested having used his services ourselves. Our only regret is that we didn’t use him when we first moved out.