The decision to emigrate to another country is one which is not taken lightly. Many people are attracted by the promise of a better lifestyle but the process of transferring assets to another country can be difficult and costly if it is not managed correctly. If money is moved from one country to another it will be necessary for the individual concerned to open a bank account in the local currency. This can be set up with relative ease and will enable funds to be received.
Money can be transferred in a variety of ways but it is helpful to know that although the headline foreign exchange deals may be available at high street banks, it is likely that a FCA (Financial Conduct Authority) regulated foreign exchange provider will provide more competitive rates that can save thousands of pounds. Not only can foreign exchange specialists provide competitive rates on spot rates and low or no fees that are rarely challenged by the banks, they can also provide a host of alternative services.
Anyone with a fixed date for emigration may benefit by locking into a forward exchange rate to guard against the risk of a declining exchange rate. A swing of just two per cent in the value of a currency can have substantial fluctuations that affect the value of large transactions by several thousand pounds. A forward contract guarantees a fixed rate and should be considered if you have budgeted for the cost but settlement is not due immediately.
It is also possible to create a limit order so that a target exchange rate can be set. If it is achieved then the transaction will be completed but of course there is no guarantee the market will reach your target exchange rate. This type of transaction protects a client from the sudden fluctuation of the market which they are unable to monitor 24 hours a day, but does not lock the individual into a contract unless the exchange rate was achieved.
If regular payments must be made then a foreign exchange specialist is well placed to offer a competitive arrangement and put a strategy in place to manage payments on a regular (usually monthly) basis.
Whilst emigrating can be complex with a lot of different factors to consider, many people forget to consider the foreign exchange market and how this will impact their finances.