If you asked a currency exchange specialist to make the same transfer, their exchange rate might typically be 3 per cent better, or £1/€1.282, so the same €150,000 transfer would cost you just £117,005. That’s a saving of around £3,500 (without taking into account any fees)!
To make a transfer through a currency exchange company, clients simply agree an exchange rate with them and then transfer the necessary amount of Sterling into their segregated UK bank account. They then send the required amount of euros on to the Irish bank – it’s that simple. Using a currency exchange specialist that is authorised by the FSA and adheres to strict regulations, such as the use of segregated client accounts, means your money is as safe with them as it is with any bank.
Unlike banks, currency exchange specialists typically don’t charge any fees on Euro transfers over a certain value, for example £3,000, while UK banks will charge anything between £15 and £30 for all transfers, regardless of their value. Their transfer times are faster too, typically 48 hours compared to a bank’s 4-5 days.
Currency exchange specialists have a clever way of protecting your money – and the price in Sterling of your Irish property – from the constantly changing £/€ exchange rate. Many people forget that once they have agreed a Euro price for an Irish property, if their funds for purchasing are still in Sterling, they don’t know how much their property will cost them (in Sterling) until they come to make a transfer to Ireland. This means the Sterling price of your Irish property could fluctuate with the exchange rate, making it incredibly hard to budget. That is unless you ask a currency exchange specialist to take out a forward contract for you, which allows you to agree and fix an exchange rate that stands for up to a year, thereby getting rid of this uncertainty. You can learn more about this and other benefits of using a currency exchange specialist in Smart Currency Exchange’s free report, available at the bottom of the page.
Currency exchange specialists can also make regular transfers for you, for example if you retire to Ireland and need your UK pension sent over on a monthly basis. Again, combining a forward contract with a series of regular transfers means you would know precisely how much your Sterling pension is worth in euros each month.
It’s astounding how many people continue to ask their banks to send euros to an Irish account, not even thinking to ask what exchange rate they are getting and unaware that there is an alternative option. A recent survey by Smart Currency Exchange showed that close to a staggering 40 per cent of overseas property-buyers, not just in Ireland but other popular overseas destinations, waste money by not using a currency exchange specialist. There’s no need for you to be one of them.
For more information about how Smart Currency Exchange could save you money when sending euros to Ireland, or repatriating Sterling to the UK, download their free guide by clicking here.