Not so much a guide, more a 'how to'. Strip away the fact that you've earned your entitlement and at a basic level it is a case of exchanging your bonus from one currency in to another. How do you do it at the moment? Is the rate/spread at which you sell your USD, EUR, JPY or HKD bonus as competitive as it can be. The chances are that if you use your bank you're leaving money on the table. Chances are also that you hold a personal or business account denominated in the currency your bonus is paid in. This helps you to chose when to sell, but, unless you're focussed on pushing your bank as tight as they're prepared to go, holding a foreign currency account has little effect on the spread you get. You're still a retail customer. Our brokers often hear about how your bank gives you a 'tight spread'. In a couple of instances traders and brokers alike have informed us they get 'two points' from the mid. On closer inspection we identify that 'two points' actually means two cent (on cable) which is over 200 points from the market. Hence, what you think you're getting may not be what it could/should be. So, the first thing it seems incumbent upon us to suggest is that you talk with a currency broker well versed in deciphering what rate you actually and usually receive. Once we have established the margin by which we can undercut your bank (or even your current currency broker) we can simply sell your bonus, dividends or incentive pot in to the currency of your choice at a price that is more competitive. We may ask you to lodge funds on account with us. We ask this because it means we can be more precise on when the currency you buy will clear with you by way of our onward transmission. It is rarely something we will insist on, but, if suggested you should be assured that funds are held in FCA compliant segregated trust facilities and are therefore ring fenced and protected for however long they remain with us. On receipt of your settlement sum we simply release the currency you've bought at the price agreed. You won't be in any doubt as to how much you'll receive or when it will be credited to you. What's more, if you instruct us so, all you have to do is send us the settlement. We can operate at a set spread and just flip the currency into the tender of your choosing without delay and using whichever contract gets funds to you as quickly as possible. Those with deferred liquidity arrangements (by that we mean staff who are told their bonus before it is paid to you) can talk to us about hedging exposure to the risk of the rate moving against you between the day of pricing the amount and the day on which it is released. Such discussions are always and simply part of the service, and our spread needn't change based on the contract selected. We've carved a niche across a number of trading rooms/floors precisely because the language we use is direct and yet familiar, we undercut when we say we will and we do not compromise on service quality based on client interaction. Whether imminent or due at a date in the future, give us a ring on 0203 172 8193 or send an email to brokers@primecappayments.com.

Whilst it is not necessarily a trend per se, we have noticed an increase in the flow of capital coming in to the UK from abroad for the specific purpose of familial support for property purchases. This might be a reflection of the ability of the baby-boomer generation to borrow for longer against less main-stream assets and a willingness on the part of family members to support buyers at the bottom of the property ladder. A recent example of the this was presented to us and, noticing that it was not the first example of such a payment, we thought it not wholly irrelevant to touch some of the issues relatives commonly face when trying to support you from abroad. Our client are a millenial couple looking to buy a property in London. One of their grandmother's lives in Germany and wanted to help by sending money for a deposit. The amount offered by the grandmother was EUR 75,000. The first question asked by our client, the recipients, was 'what does that equate to in sterling'. Understandably the recipient wanted to know the GBP value of the euro amount because that would help them assess what money they needed to provide themselves for the purchase. One thing to note is that, if you have not yet had an offer accepted and your relative offers a certain foreign currency amount, you won't know the exact and definite GBP equivalent until you actually lock in an exchange rate. It might be easier for our client to work out what they can contribute in GBP and then ask their grandmother to fill in the short fall to the tune of whatever euro figure needs to be exchanged. It is a little bit of a chicken and egg scenario we suppose. Before being introduced to us, by an existing client, the couple were simply going to provide their GBP bank account details to the aforementioned grandmother. The euro amount sent would then equate to whatever sum their bank chose to credit. Their bank, Santander, is notoriously uncompetitive on rates of exchange for personal customers. We surmised that, worst case scenario, the couple might receive up to 5% fewer pounds than the current commercial rate, our rate, would have given them. Simply by asking their grandmother to send her euros to our euro segregated account the couple could increase their buying power by that margin, or 5%, at best. When we are trying to give comparisons and illustrations as to how much more competitive we are than a high street bank we aren't simply licking our finger, sticking in the air and guessing as to what their margin might be. Our staff are in fact customers of a range of high street banking institutions. On any given day we call any of the big banks and ask them directly what rate of exchange we could expect as one of their customers, which we are. These are the rates and figures we use for our illustrations. It is totally fair to say that certain banks are more competitive than others, however, none are equipped to advise on the best contract or the terms of certain contracts and it is always the case that we can shave valuable percentage points off the rate to provide better value for our customers. It just so happens that, in this example, this couple use one of the least competitive high street institutions - for personal currency exchange - for their day to day banking. We provided the couple with our EUR client account details and asked them to provide these to the aforementioned grandmother. All granny has to do is visit her bank, as she would were we not involved, and ask them to electronically send the euros to the account provided. Granny needed to remember to tell her bank that she did not want the euro amount to arrive as sterling. She was simply sending euros as euros. In this example our client is the couple receiving the funds from their grandmother. The eagle eyed among you will recognise the fact that this actually means we've not necessarily done any checks or 'due diligence' on the grandmother sending funds to us. This is true, she is not our registered client and she has not gone through our on-boarding registration process. However, this does not matter in this instance because we are in a position to receive money in from 'third parties' when the transaction is for things like the purpose of this transaction. We might ask the couple to provide us with one or two details for their grandmother, for instance details of her address, copy of and ID and paperwork associated with this type of loan; but this is all done well in advance. If the person sending money to us is in fact going to do more than one payment to/through us we will invite them to register as a customer in their own right. At the end of the day, provided we can gather sufficient information to satisfy our 'know your client' policies, we are very open and willing to engage with anyone who might benefit from what we do. If our clients want us to we can credit the agreed sterling amount, once we have locked in a rate, to their solicitor. Whilst it does not matter much to us who you would like your funds sent to, when time is of the essence, it can be a very useful feature to send money directly to an institution or stakeholder. We will always tell you what information we require when sending money onwards for you. We will also check and verify that the information you have provided is correct and we can include a custom reference for you so that the recipient can identify your money when it arrives with them. Once the euro figure arrives in our EUR client account (which is actually very similar in use to the accounts that a solicitor might hold) we immediately notify our client. To identify the money as being for that client, given that the source is not registered with us, we will have already confirmed who is sending money to us and from which institution we should expect funds. An automatic email goes to our client telling them that we have taken receive of 'x' amount of funds. This amount is then immediately visible on our client's online system with us. It sits neatly in the EUR balance box because, at this stage, we have not exchanged the money in to sterling. In some cases we do actually lock in the exchange and the exchange rate before the euros have arrived with us. We tend to do this in instances where the recipient (our client in this case) wants to realise a specific sterling amount. As mentioned earlier, only by locking in the rate of exchange can we then determine the euro amount that needs to be sent to us. Prior to the euros arriving with us the 'balance' page of our online platform shows a negative foreign currency value. This becomes a positive value the moment we identify the euros, and the sterling equivalent is then visible in the GBP balance box and it is ready for release. Our client can either login in themselves and input the details of who they want to pay, or, they can ask one of our team to do it. Service Wrappers like our 'Fully Managed', if selected, will tell us that the client wants us to input the information and release the funds; hence, you can leave any and all particular instructions with your broker if you wish. The main point of this post is to reference the increase in 'third party' funds we see coming in to the UK for things like property purchases and to convey the ease and efficiency with which we can aid these types of clients. All too often a client won't think to suggest us to their relative of family member and money literally gets left on the table because of the poor rates the arbitrarily selected bank applies. This needn't be the case and we are always happy to discuss options with customers - preferably well before any deadline, please. #deposit #firsttimebuyer #germany #euros #solcitor #completion #santander #highstreetbank

We were recently asked to advise the client of a London based Independent Financial Adviser from who we regularly receive referrals. The client of this referrer lives in the UK but has assets in India. Whilst this is a somewhat complex and changeable area, one of our brokers came across the below information and thought it concise and pertinent enough to simply re-blog it. As this is not our own work we happily reference the information source and, whilst we can introduce clients who may have an interest in these activities to the appropriately experienced regulated advisers, we would counsel you to make your own enquiries too. This information may not be the most up to date information out there. If you have more current advice or guidance for our clients and reader,s hopefully informed by your own experiences, then we invite you to post links or get in touch with us directly that we might update this post. Here we go: The Reserve Bank of India (RBI) in its monetary policy review enhanced the limit under Liberalized Remittance Scheme (LRS) to $250,000 per person per year from existing limit of 125,000 USD. RBI had reduced the eligibility limit for foreign exchange remittances under LRS to $75,000 in 2013 as a macro-prudential measure. With stability in the foreign exchange market, this limit was enhanced to $125,000 in June 2014 without end-use restrictions, except for prohibited foreign exchange transactions such as margin trading, lotteries and the like. It was in 2004 that the Reserve Bank of India (RBI) announced the Liberalized Remittance Scheme to facilitate the Indian Residents to transfer funds abroad without its prior permission. Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 250,000 (or its equivalent freely convertible foreign currency) per financial year (April – March). This scheme is applicable to people like you and me; not for NRIs. If you wish to send money abroad for the following purposes, you can do so without the prior approval of RBI Purpose of remittance: For travel, studies, medical treatment etc. To acquire shares or debt instruments in listed or unlisted companies or any other assets including acquisition of immovable property directly or indirectly outside India To invest in Mutual funds, Venture funds, unrated debt securities, promissory notes, etc To gift or to give donations To acquire ESOPs in overseas companies (in addition to acquisition of ESOPs linked to ADR/GDR) Repayment of loan taken while an individual was a Non Resident Indian To open, maintain and hold foreign currency accounts with banks outside India for carrying out any permitted transactions Prohibited transactions: Some of them are – Purchase of lottery tickets/sweep stakes! To use as margin money for trading in overseas stock exchanges To use for trading in overseas stock exchanges To purchase Foreign Currency Convertible Bonds (FCCB) issued by Indian Companies abroad For setting up a company abroad ( however, with effect from August, 2013, to set up a Joint Venture or a Wholly Owned Subsidiary outside India is permitted) Remittance directly or indirectly to Bhutan, Nepal, Mauritius and Pakistan As mentioned, the above is not the work of Prime Cap, but rather comment from a site called: http://www.simplifiedlaws.com/liberalised-remittance-money-transfer-out-of-india/ We tend to advise all clients to speak with the appropriately experienced professionals, however, we can confirm that if a client is able to send USD from India then we are in a position to receive these funds and trade them as we would any other exchange. Equally, although it is difficult to accurately forecast when money might arrive with an Indian beneficiary, we can exchange currencies in to INR if you are making payments there.

Ever changing rates of exchange mean that the foreign currency value of one-off pieces, collectables and entire portfolios rise and fall with the currency markets. In an environment animated by volatility, working with an institution that can bring clarity to costs and speed and efficiency to prices and process can be worth it's weight. Working with our partners in the HNW and UHNW insurance space, Prime Cap has established an innovative approach to the valuation of purchases and the application of protection strategies that cap downside exposure as well as making the payment for items more efficient, timely and competitive. Prime Cap's online platform can sit beside your virtual salesroom platform when you are bidding on live auctions. The repeat live quoting functionality allows clients and institutions to calculate their foreign currency costs in real time and to lock in and lock out foreign exchange rates and risk at the touch of a button. Standard contract terms enable you to settle a purchase within a matter of days or longer if you wish, and to structure payment for pieces when off-market negotiations are required. With your broker at the end of the telephone you can get both a live direct quotation as to rates of exchange as well as advice and commentary on the current state of currency rates. In the same way as our point of sale services can inform buyers of property, for live auctions and longer term sales strategy, our role is to provide the tightest currency spreads every time and make is easier and quicker to settle with international auction houses and vendors. Allocation funds for a foreign currency budget becomes easier when you know how far from the wholesale market you can expect your rate to be. Being able to buy currency and then sit on it until you need to pay it away in whatever foreign currency you need means that you have the flexibility to engage in negotiations without monies actually leaving your current investment or savings vehicle. When buyers premiums can be as much as 3%, the improvement Prime Cap offers in the rate can completing compensate you for that expense. The ability to track a payment from the point of purchase right the way through to it's release and clearance, allows finance team and private individuals to monitor the flow of funds and communicate with confidence and authority with the receiving party. Furthermore, automated transaction confirms mean that you do not have to worry about your recipient/vendor being notified that your payment is on it's way...it happens for you automatically the moment funds leave our segregated client account for you. In addition to which you can tailor the message and reference on the payment so that your recipient can identify incoming funds by your invoice number or personal identification details. For selling institutions the Prime Cap platform can be seamlessly integrated in to the payment options provided to your buyers. We can white label our platform so that your client's engagement with you is uninterrupted. This capability means that your brand remains forefront for your buyer. Not only do they save on costs, but, your vendor or finance team are included in the passage of payment remotely. Each of our solutions for the art, art dealing and valuation platforms space are tailored and customisable. Where additional support is needed by either buy or sell side parties, telephones are manned by polite and relatable experts whose style and gate is reflective of the highest standards and meeting the expectations of sophisticated stakeholders. Give us a call if you would like to find out more. #art #auction #artdealing #onlineauction #oneoff #valuation #foreigncurrencyvalue #buyingart #settlement

A recent enquirer with Prime Cap was keen to understand how our services might improve the rate of exchange and the ease of execution for payments related to the collection of sterling denominated rent on their London property, and the transmission of that rent to their US account, where they now live (and rent). The enquirer currently banks with a reputable, if not venerable, UK based private bank, but, as is so often the case they had suspicions that the rate of exchange could be improved on the basis that the amount being transmitted was 'small', although regular. When addressing matters of this type and without having delved any deeper with the enquirer than to establish the basic terms of the matter, we need to assume certain things, however, it is worth noting that the particulars of the collection of funds will generally determine the best way to maximise rate and process efficiency. Is rent paid to you by an appointed managing agent? If your tenant pays your rent to an agent managing your property then you are at liberty to instruct the agent to credit those pounds to whichever account you chose. Prime Cap works directly with a number of managing agents who send GBP to their overseas landlords. We work with them in a couple of ways. 1. If the landlord has stipulated that the GBP amount should simply be paid directly to their foreign currency account, then the agent can elect to instruct a currency broker like Prime Cap to facilitate the transmission. In doing so, the agent is ensuring that the landlord receives as much as 5% more of the foreign currency amount than the landlord would receive were the agent to simply send an international sterling payment to them. The agent is acting conscientiously and is ensuring that his client receives the optimum amount of foreign currency achievable. Process wise, the client need do nothing as Prime Cap engages directly with the managing agent to receive the sterling and send the foreign currency amount onwards. This is a particularly useful service for lettings and management businesses in the UK with a number of overseas landlords who just want to receive as much as they can, directly. 2. Prime Cap's partnering with managing and lettings agents as a third party 'preferred' broker means that it is the receiving client who elects, or not, to engage our services. It is a referral structure, plain and simple. The client receives the same high quality service, unparalleled rates and easy to use tools, and the managing agent has a trusted partner to present to their international and overseas customer(s). Does the tenant pay directly to your GBP account? If your tenant pays directly to your UK sterling bank account then, simply by advising them (the tenant) to pay funds to Prime Cap, you, as the landlord, can make use of the same expert private client offering that all our customers enjoy. The tenant sends us the monthly amount either by standing order or by manual online payment. Their obligations do not change, only the bank account to which they are paying your rent does. Prime Cap's accounts are fully segregated, which provides you with the comfort of FCA authorisation. On arrival of the monies we notify you and invite you either to manually exchange funds over our online transaction platform, or leave instruction with our broking team to exchange and credit funds immediately to you. Both processes benefit from the same compelling rates of exchange. Do you have a standing order to send a set GBP amount to your overseas account? As above, collecting your rent in to your UK sterling account leaves you at the mercy of your bank when it comes to the rate of exchange used for the conversion of your funds. All private clients are welcome to set up a standing order to credit Prime Cap's GBP segregated client account on a monthly basis and on the understanding that Prime Cap's team will exchange funds at the optimum rate and as rapidly as possible. You simply receive the appropriate statements and confirmations detailing the rate achieved and the date on which funds will clear with you abroad. Do you convert all the rent on a monthly basis, or only enough to cover your foreign currency expenses? Whether you chose to send the full rental income to us or not, we can buy the foreign currency amount you need and hold or return any excess. A changing rate of exchange means that month-by-month the foreign currency equivalent of the GBP you receive will vary. By asking us to hold the GBP amount left over once the foreign currency amount is bought, you are building up a buffer that can offset an drop in the rate in subsequent months. Keeping the excess/remainder in GBP means that you have a UK based GBP denominated sinking funds which can be credited back to your GBP account if you wish, or paid out to third parties if expenses are incurred with the management and maintenance of your property. In this instance Prime Cap serves as both your currency broker and a competitive and speedy payments platform. None of the services offered to managing agents and landlords restrict the broader use of our day-to-day services, so, by registering with us for these transactions you are also possessing yourself of a trusted, quick and competitive payment services provider for other random or day-to-day payment activities. An alternative to the more conventional 'rent collection' model is the application of our services for those who have a second home abroad. Some clients charge their guests, tenants or customers in the currency of the country in which their property is located. So, someone with a villa in France can accept payments in euros from guests from around the world. Providing Prime Cap's appropriately denominated currency account details to your guests means you can easily and quickly pay monies directly to your own foreign currency account, or back in to GBP if you wish, and, all this can be done over a simple and recognisable online platform, accessible around the clock. Every arrangement is unique and we do not take a prospective client's understanding of the terms and tools we offer for granted. Each solution is tailored to your goals and, where possible and appropriate, we will make suggestions and recommendations that best suit your preferences even if you weren't aware that such tools were available. Whether managing agent, tenant or landlord, do ring us to find out more. www.primecappayments.com | 02034175781 | brokers@primecappayments.com #renting #managingagent #lettings #internationallandlord #overseaslandlord

When you look on your internet banking you will probably notice some sort of tab for 'international payments'. Clicking on this will generally take you through to a page where you input the IBAN or BIC (International bank account number and Bank Identification Code, respectively) which tells your bank which country you want to send to and which currency you want your sterling converted to. When we did this with our own bank (one of our brokers logged in to his internet banking facility to conduct a tester session) we were met with this notice: The first thing to say is that your bank will not tell you when their system is back up and running, so you just have to keep trying. Anyway, logging like this and inputting those details should present you with an indicative rate of exchange that tells you what the GBP cost of the currency you want to buy is. Alternatively, if you input a sterling amount, the calculator will tell you what foreign currency amount your bank will send. The first thing to say is that our online currency 'platform' does exactly the same thing. So why would I use Prime Cap, might be your first question? Well, our rate of exchange will be tailored to you and what we know about the exchange you want to conduct. The rate we present you with will always be a commercial rate of exchange, which means it reflects the rates we can achieve as a professional broker of currencies. Generally speaking our rates will be up to 5% 'better' than your bank would offer you. This means you pay 5% fewer pounds for the same foreign currency amount, or, you get 5% more of the foreign currency for the sterling amount you wish to exchange. 5% can be a sizeable saving or yield from a process which is the same as what you might currently do. Provided you are registered with us you can elect to lock in and 'accept' the rate we quote. The moment you've clicked the relevant button you will be furnished with an electronic confirmation which details that amount we would like you to send us for completion or 'settlement' of the exchange. On this confirmation are the details of our segregated client trust account. Simply by inputting these GBP mainland bank account details in to your standard online banking payment function, you can send us this amount instantly. On it's arrival we notify you and we then invite you to tell us where you want the foreign currency amount to be sent. You can provide us with that information in advance. For those who prefer to speak with someone over the telephone to conduct and exchange, your Prime Cap broker will ask you for the details of who you want paid. You do not need to do anything else other than sit back and wait for us to confirm your sterling has arrived and your foreign currency sum has been sent. If you are a business, the confirmation we send you is akin to an invoice. If you are an individual conducting an exchange for personal reasons then the confirmations serves as a receipt. The process of conducting an exchange is all but identical to the way you would make a payment through your bank, except it comes with the added benefit of a better rate of exchange and the insight and guidance of an experienced broker to talk and take you through the process. You do not need to wait in line at your local branch. You do not need to waste precious minutes on hold with your bank to confirm a rate. We are accessible via a number of channels and every one of our staff are well versed in the minutiae of sending a payment, minutiae that you don't need to worry yourself about because we will anticipate questions and prompts for you. Registering to use a service like ours take not time at all and can be done online via a simple form. You can click the 'Register as a Client' tab on our website, or simply follow the link HERE. This process is completed well before you actually need to exchange funds, but, if you need to conduct an exchange immediately then we can have the whole process completed within a matter of hours. We will ask you to confirm your current address, why you want to use our services, how often and where you want to send funds. It is not a drawn out procedure which is one of the main queries or misconceptions people have. Equally, because we will only release money for you once we have receive the currency you wish to convert, we do not need to credit check you. We simply conduct an electronic verification search of publicly available and verifiable information. Furthermore, when you register you are not committing to buying currency from us. We are simply collecting the information that allows us to demonstrate to our regulator that we know who we are transacting for. If you never progress to buying currency from us then we will not push you. Once you have submitted the online form we send you a short email asking you to confirm the email address you submitted in the registration. This is the email will use to send you transaction confirmations and other communications relevant to setting your online password and the various stages of a transaction. You are welcome and encouraged to speak to our brokers and collect as many rates of exchange as you would like via our online system or directly over the telephone. We will try and splice in information about the best contract that optimises your exchange activities and we will also include insight and info on the currencies you're using, the state of the rates across the global currency markets and the various terms that may or may not help you to achieve what you want. We remain humbly at your service. #onlinepayment #FX #onlinebanking #currencyexchange #internationalpayment

'...a transaction executed by a firm upon the specific instructions of a client where the firm does not give advice on investments relating to the merits of the transaction...' The first thing to say is that Prime Cap's work is not useful for those investing in currencies. We do not provide clients with a means of investing in a currency and nor do we advise clients on the performance or movement of currencies for the purposes of investment or speculation. We have simply taken the terminology used within the broader financial services sector and applied it to the execution of foreign exchange transactions. If you consider that we are engaged by individuals and businesses with varying degrees of understanding about the process and purpose of currency exchange, the 'Prime Execution' service wrapper that we reference is one which relies solely on our broker booking a transaction for the client and refraining from any closer or more detailed scrutiny of the strategy and motivation behind the exchange. A managing director who might rather not login to our online platform to begin an exchange can call or email his broker with a view to her, or him, buying or selling the currency amount. The broker executes the exchange and the bought currency is applied to the balance frame-work within our systems, ready and waiting for further action by the client. This is an excellent capability for time poor but rate savvy clients who want immediate execution but are unable or unwilling to login to our systems. At Prime Cap we consider the booking of an exchange and the release of a payment as two separate actions. When you login to our system you can simultaneously input details of the payment you would like to make which relates to the exchange you conduct, but, if you just want to take advantage of a favourable rate and come back to the mechanics of the currencies' release, 'Execution Only' enables you so to do. Those in control of budgets are intimately familiar with rates that need to be achieved and the overall annualised currency spends of their firm. They may be less au fait with the inputting of beneficiary information and the release of a payment to more than one beneficiary. This is why our online system suits businesses of varying sizes because you can grant access to certain individuals to perform certain functions. Our brokers are sat behind their screens and beside their phones specifically to order take and consult on product selection etc. They are there between the hours of 0730 and 1830 to execute transactions and to discuss the right way to approach the transmission of funds. If that is all you want them for and you would prefer not to talk with them, then, informing us of your preference when it comes to the 'Execution Only' wrapper is all you need to do. As it happens, our wrappers serve as a useful profile management map for our brokers. In the absence of your usual broker, the broking team can quickly identify both the broader wrapper you operate within and the finer points of our bespoke solutions packages. Knowing you wish to work in a certain way is something we look to establish for the very first discussion we have with you. The three distinct 'Service Wrappers' we promote are not pigeon holes for our clients. They are published to serve as reference tools for you so that you know what to expect at a basic level, but, they are also illustrative of both the flexibility of our approach and our deep understanding of preference and trends across client verticals. You will not see these three distinctions listed with any other currency broker. Over a decade working with private clients and businesses have taught us that a currency transaction should not be considered based on the proclivities of the client's demographic. We can apply the same skill and strategy to a corporate matter as we would a transaction for a personal payment. The service you receive should not be defined by which category you fit in to. We should be serving you based on the needs established in consultation with you. This is what we mean by personalised currency solutions and this is how we can confidently compete with more generalist currency transfer companies. #servicewrapper #wrappers #onlinebanking #onlinetransfer #emailinstruction #voicebroker #onlinepayment #executiononly

Certain countries and territories have yet to develop stable and consistent internal banking processes. This can make it difficult to confidently send and receive money from these countries. In particular clients face problems 'getting their money out' of countries that do not have as sophisticated a payment services frame work as somewhere like the UK...although, having said that we recently encountered a customer struggling to get their money out of rural France (but that may be for another post). Whilst the banking system in some countries might not be sophisticated, many emerging and developing economies will likely have an established (although perhaps fledgling) remittance and non-bank payments industry. If a lot of your nationals work abroad, it stands to reason that you might allow companies that enable those nationals to 'send money home' a presence on your high street. We were recently presented with an interesting scenario. A private client was certain that her bank would not act swiftly or consistently when asked to transmit money from her country of residence to the UK. However, she had used a remittance/foreign exchange business on a number of occasions. This remittance business did not provide competitive rates of exchange. The client was aware of this, but, more important to her was the ability to get her money out of the country she lives and works in...so, she was prepared to sacrifice rate competition in favour of a solid and dependable process. We established that this remittance business was perfectly capable of sending a foreign currency payment to our segregated client account for this client. Therefore, the client has a way of extracting capital from her homeland, and we represented a mechanism whereby she could then access a far more favourable rate of exchange. From a security point of view it was important that we understood the relationship between our client and the business sending the money to us. It was not lost on us that the business she was using was not a bank, however, assessing the merits of the transaction as it was put to us, we were able to request sufficient information to satisfy even our stringent Know You Client and due diligence requirements. In the fullness of time this client may be able to use her bank to send her currency to us, but, at present she just doesn't feel confident they will execute her instructions in a timely manner... The 'system' has evolved to such an extent that she can make use of the various companies out there to ensure she has both timely execution and competitive rates of conversion. You might be in the same position, or, you might be faced with other obstacles and issues. There are few things our brokers have not dealt with, so, give us a ring and we can see whether what you're doing is the best way of going about your exchanges. #online #remittance #UAE #AED #USD

The growing chorus of fund managers lending weight to a belief that emerging market equities are the only ones able to deliver over a 4.5% return over the next decade means an increase in the demand for exotic currency settlement capabilities. Taking examples of work done with boutique stock brokers whose clients need to clear USD for dollar denominated investments, we take a look at those currencies that are already ready for open market proliferation, those that aren't and how you can make use of existing structures to maximise your FX position. The first thing to say is that we won't be venturing our thoughts on which currencies will appreciate or devalue over the next 10 years. What we will be doing is explaining some of the obstacles you already face when trying to settle exotic or even ND currencies and discussing the common treatments for matters that rely on as yet undeveloped domestic financial and banking systems in emerging markets, particularly those with existing currency controls. At present the vast majority of retail and professional investors, no matter where around the world they are located, rely on banks, third party brokers/intermediaries or prime brokers to handle the currency concern associated with investing in an asset class denominated in a currency other than their core operating tender. Professional and institutional investors are not our focus. Their FX turnover means they will achieve similar rates to those we buy at. Our focus are those retail investors or micro-funds holding positions, maybe large or maybe small, in other currencies and whose own proprietary FX activity does not permit them access to the same rate competition as a currency broker like us. These are where we can positively impact and undercut on margin and provide a clearer and more efficient payment processing mechanism. Niche brokers in small-cap non-GBP denominated stocks handle significant foreign exchange traffic. Whether they realise it or not, leaving their client to settle purchases directly with a clearing house put the client on the back foot both in terms of their FX exposure for the position and in terms of added expense when an exchange is required. It could not be simpler for a private client or professional investor to avail themselves of either a dedicated foreign currency account with their bankers, or to begin transacting and exchanging through a dedicated FX broker like Prime Cap. Currency controls can make certain investment territories risky or uncertain in terms of clearing times and settlement currency, but, increasingly investors can settle in USD. Given that USD is such a common currency for such settlements, the exchange and spread between GBP and USD (Cable) is often overlooked one deserving of a closer look or benefiting from a pricing exercise. On the one hand, we find ourselves increasingly attractive to private clients called on to settle in USD for their capital markets activity, and, on the other, we have seen a distinct increase in the number of intermediaries incorporating our white-label FX platform capabilities in to their service offering to clients. As a simple example: Our private client invested in certain USD denominated assets over 18 months ago. Prior to our involvement dividends and coupons, or simply USD following liquidation of any part of his portfolio in fact, would come back to his singular GBP brokerage account. On realising he was at liberty to take receipt of funds through a personally source solution he began providing our USD client account details as the collection beneficiary for these monies. The first thing we had feedback on was his appreciation of the automated alerts that tell him USD have arrived with us. These funds are then immediately applied to his USD balance facility with us. Each time he logs in in to our online system he can see the USD accruing. It is then his choice whether to pay away from that balance as USD for another purchase, or for any other payment reason including sundry USD expenses for his Florida condo, or, he can flip USD directly in to GBP through the system. The GBP he might buy sits on his GBP balance within the facility until he inputs the GBP bank details he wishes it to be paid to. Sure, our brokers are on hand to talk him through the USD to GBP rate or to place an order to be worked through the market, but, he does not need us. Furthermore, his equities broker has now inserted links to Prime Cap on their site so that other would-be DIY USD sellers and buyers can register directly. In this instance, whilst we are on hand to guide and advise, we are simply the execution platform for this particular client and his bespoke requirements. The level traffic put through our systems keeps us busy and we are always at the end of the phone to aid and assist. The limitations of currency controls notwithstanding, as emerging markets ramp up their courtship of niche brokers in their wears we will see the ability to clear directly in to their domestic banking structures improve and grow. At the moment conditions relating to the ownership of property and applications to operate within territories are stifling the broader proliferation of alternative and direct investment initiatives, but, light is beginning to work it's way through the clouds. The recent changes to the inter-bank treatment of Nigerian Naira serves as a positive reminder that, whilst the western economies wrestle with ever more extreme ideological divisions, the effect of an uptick in global economic fortunes should see eggs being taken form certain emerging markets baskets and spread more widely in to as yet untapped domains. Changes to the Common Wealth structure and what we hope will be increased openness post 2020/21 for the UK means that previously overlooked operators should gain more airtime. Simple things like the ability to check and verify beneficiary bank details before the release of a payment will serve to ensure that fewer errors are made when sending funds to ever more exotic locations. In instances where funds can not be directly extracted in local currency from countries like Brazil or countries in Central Africa, we find ourselves more assured in what information to ask for so we can receive third party USD funds in.. Local settlement networks are ever increasing in their breadth and sophistication. This brings with it new avenues for institutions to credit locally. Day traders and retail investors alike can swiftly and simply register for the Prime Cap online trading system and position it along side their existing execution platforms for a truly integrated experience. The Prime Cap Data Centre is packed with case studies on usage and treatments for certain transaction activities and we invite each would be client to discuss the finer points of their activities with our team over the telephone. Our bottom line is that size should not inhibit function. Just because for portfolio is denominated in a different currency does not mean that you should be limited in the services and tools available to you. Prime Cap's spreads are as close to institutional as a retail operator can hope to get so why, when you wouldn't settle for anything less than the most precise and real-time reporting and pricing tools, would you sell yourself short on your clearing capabilities and FX spreads? #BRICcurrencies #currencycontrols #emergingmarkets #localsettlement #smallcap #USdenominated #stocks #shares #investments #daytrading #daytrader #stockbroker

We recently conducted a rate comparison for a company that already uses a non-bank foreign exchange company for their international payments. By using a very simply historical rate comparison protocol we were able to establish the high and the low for the GBP to EUR rate of exchange on the day the prospective corporate client conducted their last transaction. Using this methodology is the best way to provide the worst and best case savings comparison for the client without them needing to reveal what rate they actually got. If their rate was worse than the lowest mid-market rate for that day, even when taking in to account whatever margin we might provide, then the client knows they could be saving by switching. As it happened, the client in question actually forwarded their latest 'deal confirmation' on which was detailed the time of their most recent booking. We identified that their current currency providing was one who cent less competitive than they could or should have been. We do not give currency away ourselves, so our rates are always realistically priced, which made it all the more satisfying to demonstrate the savings this small business could make over the course of the year. We calculated, conservatively, that they were leaving £150 'on the table' every time their exchanged with our competitor. Whilst they might only buy and sell £300,000 a year, the saving of £1500 is a compelling figure and pays for their accountant, a month's rent, a holiday for someone, or the Christmas party. Like individuals, companies get settled with one provider, however, the ability to quickly switch providers has emerged as a desirable characteristic of the challenger foreign exchange boutique, like Prime Cap. You're most welcome to call or email us to compare in the same way outlined above. It may not change your life, but, for a business it can be a tempting efficiency and cost reduction and it is easily done. Call our broking team on 02031728193. #businesspayment #bottomline #budget #switchingservice #utilities

The distinct majority of our corporate clients convert currency as and when an invoice arrives on their desks. Whilst we do understand why this is the case, with some very simple changes to the way you approach dealing in other currencies you can make a meaningful difference to not only your bottom line, but your cash flow and your supply chain payments management. Few businesses set out to engage with currencies when they are conceiving of their position in their market. Many know they will be dealing with overseas suppliers even before they begin trading, but, very few address how best to protect themselves from movements in rates of exchange. We draw this conclusion from more than a decade's work with a variety of businesses. If you are, as a business, approaching making payments 'as and when' you are compelled to, you will face a different rate of exchange every time you transact. Rates of exchange will change far quicker than you can amend your selling price, this means that your margin will change with the rate of exchange. It is unlikely you're foreign currency costs will ever move in line with rates of exchange. It has to be conceded that if there is a distinct and prolonged drop in the value of your operating currency, your supplier may tweak their own prices to offset what could be a drop in sales for them, but, this will only bleed in to their pricing over time and, because rates are so volatile at the moment, it is just as likely they will keep their prices the same and it is you that has to take the hit on your margin. So, what can you do? As we approach year end and, because you probably can't remember the time at which you started converting currency, now is as good a time as any to reassess your currency activities and the rates you use for your underlying product or service pricing. When you wrap up your financial year your sales cycle could, conceivably and understandably, be set back to zero. Maybe the cycle begins again with new sales. Let's put your sales pipeline to one side for a moment and focus on how to approach currency strategy for new business you are courting. Ask yourself - How do I allow for movements in exchange rates when it comes to pitching for work or setting my prices? Do I look at the exchange rates when I am negotiating with my customer and, most importantly, does the rate of exchange I see affect the way I price for that client? Usually the answer is no. If you were looking at a rate of exchange, on whatever platform or by whatever means, when pricing for your client then you could, in theory, take steps to remove any risk you face of the rate of exchange moving adversely against you, but, simply looking at the rate and tweaking what you quote your customer does not leave you in any less vulnerable a position than not looking at the rate at all. If you have not taken steps to lock out your risk of a fall in the rate of exchange then the 'looking at the rate' when pricing is simply an exercise in record keeping, nothing more. It is useful to every business to work out what rate of exchange you can afford to transact at in order to forecast your profit margin on sales that have a foreign currency aspect to them - that aspect being the buying in of product from abroad. Here's an example of what we mean: I am a furniture retailer. A chair costs me $25 to buy from my supplier/manufacturer in China. I sell this chair to my customer at a cost of £100. Where the rate of exchange is when I pay my supplier determines my profit margin, not the markup I place on the chair - this is because the GBP unit cost of the chair is determined by how many USD I paid for it (or should be). If the rate of exchange is at 1.50 then a $25 chairs costs me £16.66. Therefore I am making £83.34 gross profit. If the rate of exchange is at 1.25 then the $25 costs me £20, so my gross profit is £80. It is not a huge difference, but, I cannot accurately forecast my gross profit unless I have fixed that rate of exchange. Each time I buy chairs from my supplier my margin is higher or lower. This is not a good way of approaching forecasts. If I want to ensure that I always have a consistent margin and, supposing that my supplier isn't going to change their USD price for me, then I have to change my GBP selling price with each order I place to my supplier. This means inconsistencies for my customers as my prices have to change every so often to ensure I make the same profit. If I am competing again another business for my customers and this other business has addressed their currency activity, then, on a like for like basis, I cannot confidently hope to secure the sale, because my price is constantly changing and their's is not. Furthermore, if I have no strategy in place for reviewing and assessing my rates of exchange I will not actually know my gross profit until after I have concluded the sales cycle at my year end. How can I borrow or arrange financing if I cannot accurately report my profit margin? So, let's return to our initial premise: Year end is as good a time as any for a business without a plan or a strategy to set one in place. View year end as 'day dot'. It is the first day of the rest of your business's currency life (yep...we said it...urghhh). From the year end you put in place a strategy and process for addressing issues with the ways you manage your currencies. There are a couple of things that you have to agree and set before proceeding. These are red lines that you agree your operation must work within. Look at this like you would a change in your supplier. If they hike their prices and you're not happy, you look for another supplier that allows you to protect your margin, don't you? Currencies for importers (whether you think you are an importer or not) should be viewed in the same way. In consultation with a specialist third party like Prime Cap, you establish what you want to sell your product for in Sterling. At the year end we look at what the rate of exchange is doing. From that we extrapolate what the current live GBP unit cost to you is of the USD priced product you buy. Like we say, you can take any point in time for establishing this GBP unit price. You can take the low for the rate of exchange...and maybe that was 6 weeks ago. You can take the average rate you achieved for last year's trading. You can take a rate that is in fact far lower than where the current market is. The bottom line is that we want to establish the rate we should use to make sure your margin is consistent in the face of an unchanging USD unit price. Once we have established the 'budget rate' of exchange we can apply a strategy for ensuring your have access to this rate of exchange for as long as possible. Strategy like this depends on things like your cash flow. What money do you have in the bank? How long is your production lead time? Do you take a deposit from your customer? Does you supplier ask for a deposit? Is the rate of exchange right now better or worse than the budget rate you have set? When we say each solution is bespoke, we mean it. Questions like the above are just some of those we might ask and they are truly dependent on the specifics of your relationships with your suppliers and your sales activity with your customer base. This is why we don't think it evasive to ask you to call us before we set out our stall. We could not possibly hope to cover all of this material in a one-stop-shop 'how to' post, because your activities are as different, diverse and particular as your business is. Yes, we might recommend things that we know work for other businesses in the same space, but, we cannot tell you that until we have collected other information and have built up a picture of the broader influences on your trading pattern. One thing we do always tend to recommend is that you incorporate a 'buffer' in to the rate you use for calculations going forward. This could be done in as simple a way as taking the current budget rate we establish and adding in a further margin. Only you can tell us what your customer will weather and we are conscious that any contingency margin might well have an effect on your GBP selling price. However, in an age where anything from marmite to chicken breast is changing price because of exchange rates, provided it doesn't make you unappealing to your target market, price revision is simply part and parcel of the times in which we live when dealing with suppliers in other territories. One of the very hardest things to do, for us as a broker, if to get our would-be clients out of the 'wait and see' mentality. This is why we talk about rules, principles and templates. In the same way that you may have a mission statement for your customers, you should have one in place for your internal operations. Prime Cap believes that our margin (the mark-up we apply to the currency we sell to our clients) should not be greater than the saving we are giving our client when we undercut another currency vendor. This is our mantra and it means not only that we can be confident of the value we deliver for clients, but, we can sleep easy knowing we have not gone to bed with more than a reasonable fee for our work. Yes, we operate in a very different market to that of many of our clients, but, we sincerely hope our clients will take our advice when it comes to sticking to predefined rules that are suggested in order to remove the stresses that come from working with currencies. What we mean by this is: If we have established that your rate of operation (budget exchange rate) was 1.50 for all of your import (foreign buying) activities, and that the current rate of exchange is 1.45 (so, about 3% lower than your last year's average) then we need to look at the outlook for the rate of exchange over a number of time frames. You may have set or defined, seasonal or cyclical buying times from your overseas supplier. You may know what GBP prices you cannot go below in order to remain competitive within your market. We can look at the swing or change in rates of exchange at various times of year and suggest various tweaks to both the product you use and when you use it. All of these factors feed into us arriving at a reasonable target rate that, should the market enable you to, you should lock in (or lock out) your currency rates. All this forms part of a series of discussions we would look to have with you and those who execute currency transactions within your business. Whilst we can strategise till the cows come home, one of the very important aspects of our work as a broker is to remove or reduce unnecessary expense from your transaction activities. This is easily done and helps us make the case for your consideration of our services. As a UK based business you have many options and tools available to you and Prime Cap is well versed in both discussion of their benefits and merits more conceptually, as well as providing them to you as a service provider directly. Our ability to do all of this comes down to a willingness on your part to get to grips with better ways of sending, receiving, holding and exchanging currencies. If that is on your agenda for the year ahead then we are open for business and would be delighted to begin a conversation. #yearend #April #salesforcast #salespipeline #currencyexposure #currencyrisk #foreignexchange #currencystrategy #fxstrategy

Whilst the bulk of our work with businesses focusses on introducing improved functions and lower margins on rates to owner managed firms where change can be actioned quickly and without disruption to day to day business, many companies overlook the simplicity with which they can incorporate our work in to their operations. The UK arm of a foreign owned business will likely benefit from our services by as much if not more than an independently owned enterprise. With your own balance sheet, currency exposure and profit and loss concerns, are you not at liberty to utilise the sophisticated tools on offer within the territory you operate? From time to time we use an example that has now been relegated to the stuff of financial services urban legend. It was one of our brokers that identified the significant expense being tolerated by one of the world's biggest hedge funds. Simply because this hedge fund hadn't forced their banker, in this instance their 'prime broker' to revise their foreign exchange margins. The accounts team of this business used to 'move' sterling in to their US dollar account on a daily basis. They might move as much as £250,000 daily. We Identified that the rate used for this conversion was some 0.35% less competitive than we, or any other broker for that matter, might have offered. This meant the business was leaving approximately £8750 'on the table' each day. The accounts team would simply login to the businesses banking accounts and move one amount in to another account denominated in US dollars. No consideration was being given to whether or not this margin could have been refined even by a fraction of a percent. The movement of money was arbitrary and the refinement of that margin was not a priority, but, in an age of necessary efficiencies and in a time of strain for the hedge fund sector, this saving, over time, would have a significant difference to the bottom line of the UK arm of this fund. Now, it is unusual to gain access to the inner working of a financial institution the size of the subject of this example. It is a belief that these types of savings are out there which drives many brokers to focus purely on 'big ticket' corporate FX mandates. Prime Cap's focus on improving process and the implied improvement that can offer on rates, means we approach work with businesses slightly differently. We are looking at how the individual conducts the movement of money, for a business, between one account and another. If we can compete on process and improve it on a like for like or efficiency basis, then the improvement we can bring to the rate is cream that will float to the top and cement our position as the broker for that business. The reason so many subsidiaries still use out dated settlement and strategy models is because many of their processes are hang overs from pre-take over or merger. Yes, there is a belief that changing the way the UK arm does something could have broader detrimental effects on the reporting throughout a group. Our belief is that this is a fallacy that can actually undermine both the autonomy and the performance of an overseas arm or subsidiary. One of the most important things to emphasise is that when you register as a client of a currency company, you are not signing up to a defined contract of business. You are not pledging to put a certain amount of activity through the currency broker, so, in theory, short of some calamitous error, your risk in considering a broker and truly understanding how they can be used, is negligible. If you are in the finance or accounts team at a medium size business, perhaps you are unlisted perhaps you are listed, but, you will receive calls from currency companies on a weekly if not daily basis. You will receive these calls because the staff at these 'factory firms' have taken a cursory look at your website and have convinced themselves not only that you engage in currency activities, but that the margins you receive are worse than they can offer, and that you, the person sitting in the accounts department running payroll or settling invoices, are in a position to consider and change the provider you work with. In our experience no more than two of these conclusions are ever true. Some times none of them are. Rarely are all of them true. So, a factory firm hunts around calling businesses of similar size and activity and tries to find the one business where all these assumptions are true. It is far cheaper and quicker to employ a sales team (a sales team and not a broking team) to call 100 businesses a day than it is to hire qualified, robust and experience professionals to nurture a relationship with the management of that business. This is why you are inundated with calls. You are a number on a call sheet. A call sheet that gets recycled every time a graduate runs out of steam or when their employer concludes their time is up and they've not generated enough traction. Your banking and payments systems should be there to support the ease with which you conduct your day to day business. Whether you are repatriating the company's UK earnings periodically (and we've not forgotten that year end is moment away) or you are simply paying for purchases or stock from the UK operation. Integrating services like ours is designed to be a simple process. We have spent a long time stripping out the cliches and making sure that the function of the platform is just as appealing, relatable, teachable and compelling at the sharpness of our margins. If you currently use an accountancy software for your ledger, or expense software, then platforms like ours sit nicely and recognisably along side those. Bottom and top line cost efficiencies are built in not just to the platform, but the product...so you're getting an easier way to engage with your currency needs as well as getting the currency for less. Try it...put it to the board. Compare the costs with the current process and we feel confident you won't be chastised for so doing. #subsidiary #SME #ownermanaged #familybusiness #global #overseas #profitandloss #PL #onlinebanking #currencypayment #repatriating #foreignearnings