| | | | | |

 

Are you subject to Curreny Risk?
If you are moving funds from one country to another then YES you are!

Lets take the example of a client transferring 100,000 GBP (Great British Pounds) into AUD (Australian Dollars) in April ‘06. If the transaction was done towards the beginning of the month (a rate of 2.3336) this would have bought 233,360 AUD, however, towards the end of the month
(at a rate of 2.4862) the same transaction would have netted 248,6200 AUD. That is a difference of 6.5% or $15,260 AUD!*
 
 
As this graph indicates, currency rates of exchange fluctuate on a minute-by-minute basis which means that if you choose the wrong time of the day, week, month or year to trade you could risk losing significant sums of money.

At HIFX we provide advisory services to assist you to minimise your currency risk, in addition to offering you highly competitive rates of exchange with no fees or charges.

When you sign up with HIFX you will be allocated your own private dealer with whom you can consult with in order to devise a strategy targeted towards getting you the best possible rate.

A standard transaction is called a spot transaction. This is essentially a “buy now, pay now, deliver now” scenario.

A second method is a forward contract - this is essentially a “buy now, pay later” scenario which allows you to lock in a rate even if all your funds aren’t available today, for delivery in the future based on today’s rate.

Third, is a method called a market order. This means that we monitor the markets on your behalf and, should the market reach your pre-determined exchange rate, your currency is bought or sold automatically. Your order is live 24 hours a day & can be ammended or cancelled free of charge any time prior to the transaction taking place.

Finally, a product just recently launched called ‘exchange rate guarantee’. For the cost of a small premium you can secure the right, but not the obligation to buy your currency at a pre-agreed exchange rate for a future date. This means that you can fix the currency exchange rate now, by paying an upfront premium (similar to an insurance premium), and decide on the expiration date whether the current market rate is better or worse than that guaranteed. If it is worse you simply exercise the contract for the rate that is guaranteed. If the market rate is better, you let the ‘exchange rate guarantee’ lapse and transact at the current market level, taking advantage of the gain.

HIFX can also assist in making regular payments abroad, whereby we will guarantee a rate of exchange for up to 12 months & take care of direct debiting the funds from your specified account on a regular basis then depositing the funds into an alternate account in your desired currency.

To contact HIFX for a free currency consultation, simply complete the registration form by clicking our Currency Converter and a currency specialist will contact you directly.