Sterling to Euro Money Trade
As a foreign resident in Spain, the need to transfer money between Euros and your home country, usually the UK, is one thing that isn’t just an one-off transfer. Most expats must transfer funds from month-to-month, and generally extra regularly if special occasions demand it.
However fluctuations in currency exchange rates occur frequently, and may see the amount transferred vary as much as several percentage points, and when bank fees and commissions are added the effective rate can soar significantly, and should be factored in especially if lifestyle prices are met from monthly pensions or rental income where it is not always possible to negotiate special rates.
The British Embassy in Spain estimates that 75% of all British expats in Spain are pensioners and surviving off rental payments they receive from the UK, giving Spanish and British banks several million Euros in further fees that unwitting clients pay without question.
Yet specialist foreign money exchange experts supply charges that are more competitive than banks and probably will not charge commission for month-to-month funds exchange, this could amount to financial savings of several hundred Euros per year, so why many people blindly elect to continue using banks is not understood to say the least.
People planning to relocate to Spain, or those that own a home in Spain, or expats planning to return to the UK are all highly likely to trade bigger sums of money infrequently, and the financial savings from speaking to a specialist foreign currency agent are huge. Paying financial institution rates can inflate your prices by as much as 1000’s of Euros.
Any professional money exchange company also needs to be capable of supply the full suite of overseas exhange services such as forward transactions for individuals who anticipate making a large transfer sooner or later and want to lock in a rate instead of trust the market to supply a good rate at the time of transaction.
Moreover, a dedicated currency exchange specialist should also be able to offer you access to their own rate watch service and set off buy or sell instructions when your desired rate has been reached. Banks aren’t able to provide this unless they also offer specialist currency exchange services.
In Spain, expat residents don’t need to rely on Spanish banks to process euro, pound, or greenback transactions since the market is ably served by UK publicly listed companies such as Currencies Direct who have offices along the costas and within the major cities.
The author is a journalist who regularly comes into contact with expatriates challenged by life in Ronda, Spain. Check out his currencies direct spain expert site for more information on currency dealings between the Euro and pounds or dollars.
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