Working in residential property...what reaction would you expect were you to inform your international or non-dom landlords that your 2% fee could be returned to them when they receive their rent payment? Sure, you might not find yourself in a position to ask a question like that all too often, but, for independent property management companies, structuring the way you send funds to your clients can have immediate and long term benefits for both you and them. You don't have to be an expert in currencies to incorporate simple, transparent services into your pitch in such a way as to prompt such discussions and beef up the value of your management systems. If you currently credit GBP rental income to the UK held account of your customer then aligning yourself with a currency specialist as a service provider designated to assist those customers will aid them in improving their return. Equally, if you electronically transmit rental income to your overseas client then they currently bear the brunt of whatever rate of exchange their bank chose to apply. This needn't be the case and, with some deft positioning, you can add to your service range and improve your landlord's yield without increasing any exposure of outlay on your part. Here's how... Option 1: If you feel uncomfortable throwing partners or affiliates at your precious customer, but, as a forward thinking marketeer you do electronically communicate with you customer base, peak their interest; allude to the trusted connection; inform them of your keenness to protect their interest and their returns. Include details, a blog post, an expose or a biography on the FX partner you chose to work with into your periodical electronic updates and email communications. By issuing a simple release on the 'Updates' or 'News' section of your website you put the ball in their court as to whether or not contact is made. Giving your chosen FX partner a voice and a profile, allowing your customer to form an image of them in their minds, means you can be removed from the sales structure but still enhance the value added aspects of your work by way showing you're thinking about this area of your customers' activity. A number of Prime Cap's affiliate/partners will include our contact details on or in the footer of statements or invoices sent out to clients. This usually prompts further discussion, but doesn't apply any pressure and removes the need for your staff to overtly state or engage in talks about the nature of terms. Prime Cap sits there as a dormant but relevant service, able to speak on our own behalf and contextualise the uses your client may have for us in a way personal to them, as and when called upon. You're not a seller of currencies, but, in dealing with a global spread of customers you are providing them with a channel through which to engage with a business, trusted partner, that you know and who knows you; it is a risk, but, with that comes rewards. Option 2: If you are tasked with rent collection and disbursement for your landlords...sending them monthly or quarterly monies...then, by incorporating the rate saving capabilities of a specialist non-bank broker you are ensuring your client receives at least 1% (and in some cases up to 5%) more of the GBP you're sending to them. Our simple model means that more foreign currency is credited to your client simply by improving the rate of conversion. As both a payments company and an FX broker, Prime Cap can reduce the cost of sending GBP, or a foreign currency, internationally. Your UK bank may charge you up to £32 to send money to an account abroad. As well as being able to reduce this cost by over 65%, a firm like Prime Cap enables you to offer your client the ability to receive in the foreign currency of their choosing and without the need for you to hold foreign currency accounts or for them to hold a GBP account is they'd rather not. Integrating a payments specialist in to the way you pay your clients removes payment processing activities from your monthly task sheet and, depending on the terms and arrangement struck with Prime Cap, can serve as an additional revenue stream for you too. When we're talking to a prospective private client, or a prospective referrer, our overriding message is one of improvement and refinement of an existing activity. If your client or you are using a bank to do this then you are giving money away to institutions that provide a one dimensional service. Tailoring the message to your audience means you control the discussion, enhance your value and tie a client to you for more than just the monthly payment you make for them. New property businesses launch on a monthly basis in London. More and more are pre-emptively establishing workable and revenue generating relationships with specialist service companies like Prime Cap. Cash flow and revenue generation are the single most worrisome concern for new independent businesses and we want to encourage those operating and venturing in to the sectors we already know to be the early adopter, learn and understand the practises of the more established brands in the space and avoid having to retro fit this type of union after the race has begun and the horse has bolted. If you would like to find out more about the different structures we craft and the terms and arrangements we have in place with a number of Prime Central London's fledgling and established property portal and management businesses, give us a ring on 02031728193. The Prime Cap team are ready and waiting. #rent #foreignlandlord #rentalportfolio #rentalyield #foreigncurrencyearnings #Londonproperty #Londonrenting #monthlypayment #rentalproperties

Whether it is something as simple as buying equipment from abroad, paying your stars in the currency of their choice, collecting investments pre-production or commissioning an overseas CGI specialist to make those pyrotechnics really pop...currencies, payments and a sensible way of dealing with the two are important moving parts of an industry that is evermore global. At the moment Film & TV is supporting the banking sector more than the other way round. Let's take a look at how that can be changed. Given that we are private client broker first and foremost, we won't dwell on how our corporate clients make use of the tailored services we carry just yet. The more interesting and glamorous side of foreign exchange in the movies is the earnings of actors, directors, production designers and post-production operatives. The individuals who work for large multi-nationals. These are a target for Prime Cap and are, in fact, drivers of our private client portfolio. When it comes to working with private clients we spend a lot of our time pointing out to would be clients and their advisers just how it is that they could benefit from what we do. If your doctor told you that 70% of head aches were caused by dehydration, you might drink more fluids. Terrible analogy, but, it is no exaggeration to say that around 70% of individuals whose sphere even grazes the world of currencies do not know that they could improve their lot by working with a specialist currency company. We are not doctors, but we can remove the head ache caused by bad rates, lousy service and pouring one's hard earned kopeks down the drain for want of a simply positioned alternative. Many astute individuals has turned their celebrity into brands. They structure their professional activities in such a way as to maximise revenue generation through a variety of tie-ins, buy-ins and unions. Now, we find newer stars who have taken to, before their name is necessarily established, bedding in structures that would allow them to scale their persona's far quicker and to greater effect than their pioneering peers. Social media profiles are as much a part of a starlet's CV as their non-speaking part in Holby City. It will always be the case that the gatekeepers of the industry will take those who could be global across the line, but, in the gig economy, B listers and bit parters have taken to structuring their professional personas as businesses with many activities in multiple territories...and this prompts us to ask about the currency concerns - think Dwayne Johnson's role in 'Ballers' - he recommend a currency broker! Back when we started we might encounter a footballer moving to the continent, negotiating his contract in one currency and his club leaning on our services to realise a bigger sum in their home currency. This was vanilla work and happily done. Now though, with countries like the UK and the US able to devalue their currency almost at will, we have a greater input in the FX dealings of our high paid clients. A former national player might go on to coach a team in the far east whilst at the same time living in the US and trying to establish a number of training facilities from which they take a stipend in the UAE. Does your client do this? If so we can assist. For some lucky actors the journey across the pond for roles is shorter than for others. UK made films funded by US studios. UK made programmes being filmed in EU countries. Stars of the show with personal financial activities in sterling, living in Ireland for 9 months and awards related bonuses paid in US dollars. UK production companies paying Irish set hands and production staff in EUR. Whilst individuals and businesses in this space all have the need to convert currencies it is arguably the case that the corporate side of this type of work has a better understanding of the benefits of a broker, but, that understanding is not filtering down to the staff...and this is where our approach becomes all the more intelligible. Using a 'forward contract' allows both employees and/or employers to fix the amount of foreign currency they're paid or are paying. The ability to fix a rate for up to 18 months means that costs need spiral in the face of an exchange rate that could drop. Whilst the rate of exchange could improve, making sure that costs do not rise is as much a priority for a production company as it is for any business dealing in multiple territories. Furthermore, fixing the cost of a proportion of the foreign currency costs means that any remainder could benefit for that increase in rate...so you're making sure you have an upside window but also have a clear foundation from which to work out your fundraising requirements. It should go without saying that if 'the talent' are paid in the currency of production, they will face the same poor rates and lousy service when repatriating those earnings. Aside from being celebrated for their acting or sporting ability, they are much the same as any individual needing to convert funds and we treat them accordingly. Prime Cap is particularly fortunate that we are the exclusively referred broker for a number of London based management agencies and are called on purely to assist their clients with the conversion and movement of funds. Likewise, we enjoy a rare position as broker to some of the capital's foremost private office and legal firms. You'll notice from PrimeCap.com that we yammer on about our 'referral only' approach to business development. One of the main reasons we take this approach is because it allows us to, in many cases, absorb any margin that would otherwise be paid to an introducer and thereby undercut our competitors. Dealing exclusively with a lawyer...which means we are the only firm they recommend to their clients, is a way for the law firm to curate whom their client deals with. We share the most intimate details about our structure, exposure and liabilities so as to demonstrate our commitment to competitive pricing for the referred. Furthermore, we are bound by NDA's in a number of instances. Not that this is essential, but it does serve to bind us to those who refer us. We are happy with this, as are they. If you would like to discuss what we do in more detail and, most importantly, if you would like an assessment as to how we might enhance the way you or your client go about dealing with international earnings, payments and transactions...please do give us a call. #celebrityfees #transferwindow #transactionwindow #footballtransfer #GameofThronesearnings #FilmProductionIreland #FilmProductionUK #ProductionCosts #UKCGI #CGILondon #GBP #USD

A physical oil trader based in Dubai who, despite knowing many things about many things, was at a loss as to how to easily, quickly and competitively send their earnings back to the UK inspired us to clarify the process and reassure those living or working, or living and working, in UAE that there is a better way to move your money to and from the UK. This is a common concern for expats living and working in the Emirates. The issue can seem to be the differences between the local banking structure and that of the country to which funds are due to be sent. However, we would argue that these differences needn't have any material bearing on the practicalities of moving funds or the rate at which a conversion might be executed. Anecdotally, sending money from the UAE electronically is expensive and the rates of exchange offered by domestic banking operators are as bad as you would expect from the retail sector. What many overlook is the fact that, if you are not converting your currency 'in country', then all you are really doing is sending AED as an international payment. The UAE has no control over who converts the funds and expats are at liberty to use whichever third party banking or non-banking partner they wish. Assumptions about the ease with which you can bank locally are wrong in so far as you're not prohibited from using a firm like Prime Cap. If you can get your AED to Prime Cap's segregated AED account, then you can use us to convert your money. This is the bottom line. Linguistically and stylistically, Prime Cap's team will talk you through the process in a way that differs to that of our bank (your bank in the UK or in the UAE). Our clients need to be able to relate to our team, the analogies and examples we use and give. Whilst you'll find our online system easy to navigate, sending your salary 'virtually', as it were, is a big deal and we do not make light of the factors which will guide you to arriving at your decision to engage us. One of the main practical issues you will face is verifying your identity and your physical residential address to the satisfaction of our compliance team. As you don't reside in the UK, it is harder to electronically verify the address information you provide. It can be done, but, as you may have already found, many addresses in UAE are served by Post Office Boxes, rather than physical block or house numbers. If you cannot provide a utility bill or bank statement for you physical address, how do you prove where you live? Here are a list of acceptable documents than satisfactorily answer that question: Whomsoever you appoint as your broker will request at least one of these forms of verification. When you register as our client we will run through and check all the information submit. You can input the initial information through our website (or by CLICKING HERE) but, be assured, we will check what you input and if it falls short of what is needed we hop on the blower and ask you to provide what is required to progress the application. Guiding you through the application process not only helps us get to know you, but it is your initial introduction to the quick and clean way our teams operate. No extraneous jargon or waffle. We want the process to be simple so that you can get on and do what you want as quickly as possible. At most, registration will take a few days, but, typically you should receive a copy of our Private or Corporate Client Collection directory and your login information within 24 hours. Initially we recommend our clients 'pre-fund' their facility with us. We suggest this particularly for those sending funds in to the UK only because it allows us to precisely calculate time frames in terms of onward flow of funds. If we already have the AED you want to sell 'on account', then we can simply broker the exchange (or you can if you're dealing through our 'View Only' setting) and have you credited the same day in GBP. The main variable when it comes to how long it takes to get money to the UK from UAE is the length of time it takes your Emirati bank to get your AED to us. We would like to think that it takes no longer than 3 days, however, the proclivities of the working week (allowing from the week beginning on a Sunday for instance) mean the ETA is a moveable feast. Pre-funding an account enables us to set a bench mark time frame on which we can base future clearing times. Many expats who working between territories and retain residences in more than one country elect to us their UK address to register under. We impress that the address you use needs to be the one at which you consider yourself primarily resident, but, it is fair to say that the UK address (what with the accessibility of supporting 'anti-money laundering' documents) tends to be easier to electronically verify. Once you're registered, visit the branch of your local bank and ask them to electronically send your AED to our segregated AED account. This is, simply, all that is required. We notify you the moment your funds are visible and actionable and, depending on your preference, you can have the currency in to your UK account as GBP within a matter of hours. If you'd like to discuss you needs in more detail then drop our dealing team and email via dealers@primecappayments.com or give us a ring. #UAE #sendmoneyhome #convertsalary #USD #Dubai #Dubaibanking #LivinginDubai #sendcurrency

Some clients see the differences between these two methods of broker engagement as being like analogue vs. digital, old vs. new, telephone vs. carrier pigeon...and yet, given the way some of the brokers in London operate you'd get a faster response if you did use 'Speckled Jim' to issue your instructions. What do we mean, specifically and in the context of this post, by these two terms and why do we have them listed separately on PrimeCap.com? DEALING BY PHONE: If we're teaching you to suck eggs then do bear with us...you may stumble across something you'd not considered. Yes, dealing by phone means picking up the telephone, calling Prime Cap on 02031728193 and asking your dealer to provide a rate of exchange. We like this way of working because it means we can inform on noteworthy details about the countries and currencies involved in the transaction. We cannot take payment from a client over the telephone. Debit cards are not a settlement method we accept. Likewise, we cannot extract funds from your account. You will still need to electronically transmit the base currency amount to us to 'settle' a booking. When Prime Cap refers to 'dealing by phone' we also like to include emailing about rates and transactions, largely because they too are real-time ways of communicating with your dealer. If you're on PrimeCap.com, maybe visiting our data centre to see what your currency pair is up to, then you can pick up the phone and ask our team to provide you with a live rate too, every one of our brokers is here to explain what you are looking at. TRANSACTING ONLINE: We're not sure if it was online banking per se, or just some bright spark who thought that removing the need for an operative at the end of the telephone could save time and no doubt money (for his employer), but, conducting an international transfer online is pretty straight forward nower days... Many businesses like it because it means that, provided the activity is straight foward, it can be repeated without external input by finance teams the world over. This is precisely why Prime Cap's online platform is styled in the way that it is; however, these platforms do come in different shapes and sizes and you often find that technology focused foreign exchange businesses focus more on style rather than function. We've attempted to keep things simple and offset any short fall in stylistic merit with capable and articulate guides at the end of the telephone for you. One of the more innovative features of ours is that you can very easily and immediately see the currency specific balances you're holding. Our system will tell you when someone has credited funds to you and from there you can login to do something with/about it. Companies with expenses in more than one currency (those with an office abroad for instance) can then conduct either a conversion or a payment...payments and conversions are technically separate functions. Aside from liking talking to our clients and therefore knowing that things are done correctly, conversing with you over the phone serves some other useful purposes. For one thing it is acts as a level of security. If we can hear your voice and get a feel for why a payment is being made then fewer erroneous or fraudulent payments slip through the net. We're not saying someone logging in to your platform is in any better a position to send your money overseas (they'd have to be able to login to your bank account too in order to send us the money - and if they're going to do that then why not just do an international payment there?), but, people genuinely take comfort from having a friendly experienced voice over the phone. We like email communication and so do you (it seems). We like it because it means we can put all necessary information in one communication, plus, on busy days we do not need to free up our lines for other deals. You seem to like emailing us for quotes because you have something visual and you have as close to a real time chat as you can get without having to be verbally polite. As you might imagine, we get asked a lot whether or not now is the right/best time to convert. Our team love to hear themselves speak. For one thing they can hone their rhetorical skills. It is a training tool of sorts. But, the reason why we prefer to answer this question over the phone is because the data and detail that goes in to form some of our analysis can be long, varied and detailed. Does it get read? That is not a concern of ours...but it's whether or not we can successfully keep your interest that matters. One of the reasons we chose to define three operating settings for our private client activity is because we wanted to publicise an internal tracking and service tiering system. Presenting 'Fully Managed', 'Execution Only' and 'View Only' as packages clients can opt for was a strategic move. No other FX company presents their services in that way and it was in an attempt to communicate a little bit about our approach to matters or briefs. The client has an idea about what to expect from us. We can unify our approach to certain clients across our entire dealing team and we have now, we believe, set a precedent whereby we can add other facets in to the packages and wrappers. Why couldn't there by a private client 'View Only insurance' wrapper? One where, in partnership with strategic referrers and service providers, information like renewal schedule is shared between providers at the client invitation. We're just brain storming out-loud now (but if we see that idea anywhere else then...well, y'know). At the end of the day, the payments and foreign currency space has gone down a particular path. It is far cheaper to ship all of your clients onto an online system and simply employ a call centre of people to trouble shoot usability than it is to employ a room full or experienced currency dealers. The technology appeals to a sufficient number of people that those who struggle with it can be considered collateral damage - or at least that is what we see as the mentality of a number of our online, do-it-yourself competitors. The alternative though is not to shun an online system and stick with the old manual way of working. Why can't the two be married? Well, in fact, the two can be married and it is called Prime Cap. Interestingly, our unique commitment to integration with our partners and referrers is one of the main reasons why we can afford to keep our costs (to our client) as low as they are. Many FX companies court the open market. Marketing and advertising, investing in every changing gimmickry to try and broaden their appeal, but, their use remains distinctly currency focussed. The cost of diversification is competition - at least in the world of FX. The steady flow of consistent referrals we receive from are partners means that changes we want to introduce do not get paid for by an increase to our top-line. Many FX firms win awards for being high growth. That is worn as a badge of achievement. But, anyone who's watched a BBC Attenborough programme knows that it is in the nutrient rich waters of cold and frozen regions that, slowly, organisms reach tremendous size. So, at Prime Cap we like talking to our clients. We see the value of giving them online access because it means they can chose what they want to do and when, but, we will always advocate verbally discussing requirements because that, in union with our online visibility, is the very very best way to get the most out of the sort of services we provide. Marrying online with old school talking is what makes Prime Cap different; that and the ways in which we have spun the presentation of foreign exchange on it's head. We are proud to essentially ned 'not on the high street'. So many specialists in their field pride themselves on letting their strengthening reputation do the business development leg work and we are no different. #transact #online #phone #dealing #currency #international #business #personal #PrimeCap #primecap #website #FX

Our client works for a company located in East Africa. He retains a residential address in the UK and yet his family split their time between EA and London. Said client is paid monthly in US dollars. He has financial obligations in the UK, but also in his country of work too. How should he approach the whens and hows of sending money back to the UK, the time difference between where he works and where he banks and the particulars of holding more than one currency at a time? On the face of it this is quite simply a case of someone receiving a foreign currency on a regular basis. Like many businesses selling in foreign markets and repatriating the revenue, our client is an employee who is remunerated in the currency of his employer, rather than the currency of his expenses. C'est la vie. He needs a way to confidently send USD 'home' at a good rate and with minimal fuss. So, we have set him up with our 'View Only' default service setting. Initially this setting simply means that we, Prime Cap, only watch what he does through our online platform. We do not interfere or provide point of sale advice, as such. We know when he has uploaded things like beneficiary details and we check them. We can see when he has lodged USD with us (which he now does automatically when he is paid each month) but we do not venture our opinions on timing, contract or execution method; 'View Only' is as the name suggests. It was only after a few months of trading with us that the client fed back something interesting. We were very happy with his understanding of our platform, having taken him through it's use over the telephone after his application had been processed. In fact, so content was he that he has referred us on to a number of colleagues in a similar position. Anyway, we noticed a distinct pattern emerge in our client's trading habits. He tended to login to our system before the working day began (given that his working day began some hours before ours in the UK, we found this noteworthy). Noticing this told us something about both the information he might be exposed to (in terms of rates and news etc.) and that, were he presented with different information he might think differently about when he converts his currency. Given that he is selling US dollar and buying sterling (for the most part) the US markets wouldn't usually open until much later in his working day. Not until he was very much and firmly offline. Furthermore, actually, he was waking up in East Africa and considering his options...this was before the UK market was even open. We note this because weekends can be pretty crucial when it comes to the market's digestion of political news and discourse. Transacting before markets open can very well mean you're executing before information has had a chance to move rates. The View Only setting is a tacit agreement between the Prime Cap team and our clients to leave them alone. From experience we know that sending emailers with updates or daily digests of markets movements can be tedious. They are invariably inbox garbage. Hence, methodologically, our team will only contact a client if we have something actionable to share. Yes, good customer service and customer experience development dictates that we touch in from time to time, but, our team have to include something useful in the communication. An explanation as to our thoughts on our client's trading patterns is an example of the useful insight we are striving to offer. We explained to the client that because he is transacting when he is (timing wise), executing trades in this arbitrary fashion, although unremarkable, is tantamount whimsical dealing. He is benefitting not one jot from the time at which he is electing to transact. Undoubtedly he is choosing this time of day because it is convenient for him. Our mission is to provide him with the same level of convenience, but execute his trades in such a way as to maximise the buying power of the currency he is selling (in as far as we are able without exposing him to undue risk of rates moving against him). One of the unique aspects of the Prime Cap offering is the clever and flexible use of structured product/service wrappers. Devised by our team these operating packages are designed to enable both us and our clients to execute payments at the optimum moment and in the most convenient and efficient way. We have advised our client to make use of our 'Execution Only' service. Now, we are aware that when one starts using words like 'packaged' clients can hear alarm bells and wonder whether a broker is looking to pigeon hole them into a particular way of working. In one sense we are doing this, because the structures and protocols we use are there to achieve the broadest level of success, but electing to make use of one of these wrappers is entirely subjective. If the client's interests are best served by labelling their dealing habits then we will advocate so doing. If not then we will not...there is no compromising of our core purpose or values. The 'Execution Only' wrapper basically means that the client can ask our team to buy or sell currency at any time - at a time, for instance, when the client is unable to login to their platform. We might receive and email asking us to sell 'x' number of USD. We will do so and then hand the reigns back over the client to populate all the relevant details like beneficiary information or when the payment should be sent to the recipient. Much like with the difference between 'discretionary' and 'execution only' in a fund or asset management set ups, on this setting we will only execute the transaction for the client. We are not using our discretion to determine when the best time to transact is. Now, what 'Execution Only' does enable us to do is engage in a dialogue with the client at the point of sale. We will often be asked about what the market is doing...has all the day's data been released? What does our economic calendars show will be coming to market? Short of handling every aspect of the transaction from start to finish, Execution Only is an extremely effective way of working to a strategy, but in such a way that our client does not feel she has relinquished control. So, advising on the use of this off-the-shelf wrapper we are trying to move the client away from dealing first thing in their morning. Doing so was actually a bit more of a disadvantage than anything else. There was no benefit to it. Whereas with the EO setting, the client can rest assured that a) he has done everything correctly (largely because we are doing it for him) and b) he has maximised his chances of the rate being best. Interestingly, our client recently suggested that he instruct his employer to send his salary to us directly. This is eminently possible and we simply ask for something outlining the relationship between his employer (considered a 'third party') and him in order to authenticate certain due diligence concerns we have to satisfy. Tax, given that our client is earning offshore, is a consideration in a scenario like this. Prime Cap works very closely with a number of international tax specialists, many of whom work only with the expatriate community. Whilst it is not our core business, introducing our clients to such professionals is all part of the value chain we look to create. As it happens, tax specialists of the type we might refer do in fact send work our way too. If you would like any more information about any of our off-the-shelf or bespoke payment solutions, or you would like us to assist with the sourcing of new contacts able to advise you on the intricacies of multi-currency exposure on and offshore, please do give us a ring on 02031728193.

Preliminary research will inform you that in order to buy property, whether residential, investment or commercial, you must have a permit/license and be compliant. Swiss regions are known as 'cantons' and each has its own rule about foreigners and their ability to legitimately buy property. Broadly though, if you already live in Switzerland and have a permit so to do as well as being an EU national, or you hold a Swiss C Permit (permanent residence permit), you can buy property. The same is true of a Swiss B permit (initial residence permit), however you are restricted in that you must live in the purchased dwelling. Buying in Switzerland can be rather a drawn out process and you should expect to pay around 5% of the sale price in additional fees. All this being said and even if you fall into one of the above categories, the vast majority of the Swiss population rent. Whilst it is a very small country, 70% of folks do not own their own homes, plus, there are many urbanised global cities in Switzerland, which essentially means competition is fierce both in terms of the rental market and in terms of residential sales. So, why the pre-amble? Well, we want to establish the fact that as brokers we are far less likely to encounter non-Swiss nationals buying in Switzerland than we are professionals relocating there and renting. The treatment for FX activities is different depending on why you are there and what you want to achieve...so, this post, fuelled by the nuances of the Swiss property market (rental and sales), seeks to explore how to minimise your FX risk and maximise both your disposable income and potential return should you elect to come back to the UK, or anywhere else for that matter. Yes, we are focussing on UK nationals, but this is simply as a means of framing the discussion. Tourism and investment from China and other South East Asian and pan-pacific territories is on the constant increase for the Swiss. Whilst the relationship between Japanese Yen (JPY) and Swiss Franc (CHF) is neither as volatile nor as cyclical as that of Sterling (GBP) to CHF, the factors that move markets and rates are broadly the same the world over. The figures might be different, as might be the margin of movement as a result of 'x' or 'y' coming to bear, but, a young professional from Hong Kong would do just as well to approach their FX risk in the way we will go into as someone moving to Geneva from London. RENTING: Who pays? Unless you're an avid base jumper or a late teen on a gap year you're unlikely to find yourself seeking longer term accommodation without your employer having a part to play. No, key to how to deal with foreign currencies when it comes to your placement, secondment or relocation to Switzerland is whom will be paying the rent each month (or upfront for a specific period) and how will those funds be paid? 1. You are paying your rental costs directly from your CHF salary. 2. You are paying your rental costs directly, but your salary remains in GBP. 3. Your employer is paying your rental costs directly and in CHF. 4. Your employer pays rental costs direct from the UK (if we suppose this is the location of the parent company). We could list more variants as to how your arrangement might be set-up, but, it is worth disconnecting your actual salary from your rental costs, so we'll jut stick with these 4. We advise separating your rental liability like this because rental costs are a fixed sum that will always need to be paid. Interestingly though, we are going to look at longer term rental scenarios too which could involve securing tenure before the expiring of an existing contract or you having to renegotiate your rent and how rates of exchange can on the one hand improve your negotiating position, but also pose a risk to you if not properly considered. 1. YOU ARE PAYING RENTAL COSTS FROM YOUR OWN CHF SALARY. So, you receive you salary in CHF and from that you need to pay your rent. Fair enough, it is the common format. In this scenario your interest should be making the most of the excess disposable income you have net of your rental outgoings. If you ongoing GBP expenses, for instance UK mortgage, then this is an area you way wish to look at. In discussion with one of Prime Cap's highly experienced, startlingly handsome and notably modest traders you can establish whether or not the rate of exchange from CHF to GBP is favourable, what a favourable rate might look like, and a rough time frame as to how long you might have to wait (supposing the rate is presently unfavourable) before the time is optimum time to restock your GBP coughers. On the basis that the rate could be worse and, supposing that you're not planning on leaving or losing your job for anywhere between 6 to 12 months, locking in a rate of exchange using a forward contract would be an excellent way to maximise what you're getting whilst living where you do. We're also, of course, supposing that you CHF expenses are not going to sky rocket in the near term whilst you salary will remain the same. One obstacle often raised - what happens if i want the money i have already committed to a forward contract? Well, entering into this type of arrangement should be done with eyes wide open and only if you are committed to converting/moving a definite amount over a regular period at a fixed price. Forward contracts do also mean that you can keep your funds in CHF if you wish and then settle the contract in one go at the end of the contract period...in fact (and this is where we make our bang) if the domestic savings structures/instruments you're able to access allow you to achieve higher returns that you might get were your funds in the UK, locking in a rate and sending the full amount saved in one go a year hence would maximise the rate of exchange as well as how hard you're earnings are working for you. 2. YOU ARE PAYING YOUR RENTAL COSTS DIRECTLY, BUT, YOUR SALARY REMAINS IN GBP. For those on secondment, placement or simply stationed in Switzerland for a period of time, your contract or package may yet be remunerated in sterling. This is not uncommon and presents an interesting set of issues relating to your living costs whilst abroad. Once again, Prime Cap's team can assist. First we isolate those CHF costs your know will not change (or can reasonably expect not to change for a certain period). We then buy these forward at the prevailing forward market rate to the tune of that isolated sum. Doing so means that you're not paying a variable sterling amount each month with the changing rate of exchange. Failing to lock in a rate would leave you at the mercy of the markets. Sure, you might pay less one month and more then next, but a) do you want the worry of the being the case and b) what happens if the rate moves to such an extent that you cannot actually affordably meet your commitments? You will not find Prime Cap's team telling when they think the market will rally or fall or the extent to which either might happen. What we can and will do though is talk you through more general trends, the typical effects of certain data related releases to the markets and the seasonal or cyclical characteristics of certain currencies. All of these feed in to you deciding whether or not you want to convert currencies. On the one hand we are a shop from which you can procure the most favourable tools to aid you in your FX undertakings and on the other hand we are a source of information, accessible and willing to provide context to clients who feel they need a devil's advocate or the experience of an entity whose purpose is to interpret movements, subtle or overt, across an array of data sources. Next, we overlay forward buying with assessments as to the merits of other FX related products. In August our 'Emerging tech' sub-team wrote up a piece on 'Cash Access Solutions', what they are and how one might use them. Basically these are various ways of accessing your funds as cash rather than moving them around electronically. Well, we find that many of our clients living abroad but salaried in GBP prefer to us one or more such tools to a) eliminate their exposure, b) keep track of their foreign currency spending and c) obviate the need for local currency bank accounts during their stay. 3. YOUR EMPLOYER IS PAYING YOUR RENTAL COSTS DIRECTLY AND IN CHF. This is the creme de la creme of scenarios! If you can avoid having to fiddle with the markets, losing margin and time to rates and brokers, then you find yourself a fortunate person. Have you ever asked your employer whether they'll pay direct? Having said that though, there are those within the financial services sector who would rather take their chances and elect to try and out-manoeuvre the system. Does it seem like we're trying to talk you out of becoming a client? May be we are! Or may be we are sticking to our mission...as a provider of solutions. Asking you employer to handle your accommodation costs, whether near or long term, is a solution to an FX conundrum; arguably the optimum one. 4. YOUR EMPLOYER PAYS RENTAL COSTS DIRECT FROM THE UK. Any international payment made by a body corporate is a source of great interest to the Prime Cap team. On the basis that 65% of Ltd companies engaged in international business rely solely on their bank to facilitate international payments and an even greater proportion of Prime Cap's target market, LLPs mind, do the same, we salivate at the prospect of being connected to such firms and bringing what could well be an enlightened approach to their global payments activity, saving them sizeable margin and generally ensuring their bottom line is in the best shape it can. A business incorporated in the UK and sending funds from it, or incorporated outside the UK and sending money in - whether the employee controls the FX exposure, or it is carried by the business - this is our bread and butter and has been since Lehman's was still trading. For more information on any of the topics discussed or simply to chew the fat on the markets, how to approach making the most out of a need to convert funds or how to prolong a rate honeymoon by use of simple over-the-counter instruments, give our team a ring. It won't cost you a bean and may save you much more than that. +44 (0)20 3172 8193 #switzerland #zermat #geneva #rental #rent #CHF #sterling #legal #Mountain #secondment #sabaticle #payments #lockin

Europe tends to take a holiday during August and it takes the work force about four weeks to get back into their groove once it is over. Maybe this is why the final quarter of each year is, anecdotally, perhaps the most unpredictable and informative with regards to commentary on the relative health of economies like that of the United Kingdom. Generally speaking, the pound rises as the year enters Q4. Whether this is because the markets are getting excited about the potential lucrative trading that the holiday season promises, or because circumstance tends towards speculation as to the monetary policy for the year to come, being prepared to buy your currency when clouds part should be the least a business does relative to their FX strategy - whether that be forward or from the spot market. What can you do to take advantage of positive movements in the rate and how should you approach trading currencies during the festive period? 1. Does the current rate of exchange allow you to operate at the margin you want? If so then prolonging the use of that rate should be your priority. Too often we see businesses who can afford to buy forward and lock in a rate for up to a year because the current market affords them that option, but they chose not to do so because they would rather wait and see if the rate moves in their favour more. We take the view that a sure thing is better than a maybe. So, on entering a busy period, when payments to your suppliers will no doubt increase but certainty over what rates might do will not, ready yourself to lock in at least a proportion of your FX exposure. At the very least give us a call so we can emphatically explain to you why you'd be foolish not to (our number is littered across our site!). 2. If cash-flow is a concern at this time of year then you can try negotiating with your supplier to elongate your payment terms. Many businesses do not buy forward because they are worried about having the cash needed to settle a contract. What happens if sales don't go the way you expected? Depending on your industry, what happens if your client takes longer than you thought to pay you? Well, Prime Cap does everything it can to remain flexible in these types of scenarios. Whether it means 'rolling on' a booking to give you longer to settle, or it may mean reducing the amount of currency you do buy forward so that you're not put under too much pressure. 3. Make use of our unique alert triggering wrappers so that you don't miss the rate you need. Hand in hand with the idea of the year's final quarter being bubblier and potentially a time for increases in the value of currencies like sterling goes the assumption that the rate you have been waiting for will miraculously materialise at some point before New Year's Eve. Ironically though, with all the bank holidays in the UK and national holidays in some of the main markets serving the global currency clearing high-ways, Q4 has fewer working days that most of the rest of the year. What happens if the rate you want appears, but your broker is closed or it only materialises for a fraction of a second before you realise you need to be online buying some currency? Well, as well as the round the clock access you get with our free-to-use online platform our fully managed, bespoke and execution only packages mean you can pop one of our team on round the clock alert exclusively for you. Using simple yet relatively inaccessible (on the high street) mechanism we can structure a system whereby currency is bought for you when the rate you want becomes available, regardless of when it appears. If the rate never materialises then your currency remains as it is - however, should the all important break-even mark be breached we can either execute a booking and notify you of the cost, or simply give you a ring and ask you for an instruction. These tools also work in conjunction with the aforementioned forward contracts, so you can make the entire process water tight, sit back and let our traders deal with everything. 4. Limit any potential loss... In the same way that we can put in place tools to make sure you dont miss out on the rate you want, depending on your appetite for risk we can devise some simple protocols that mean you dont have to deal at a rate of exchange below a certain level. Whilst we initially referenced certain rate movements as the relate to GBP sterling...with every increase in the value of one currency we see sellers of the other who are worse off. So, if we suppose that the company selling UK made GBP manufactured goods in the US are earning in USD, then, at a time of year when the pound typically strengthens, they are going to see margin take a knock when bringing those earnings back into their land of operation. We advise you to lock in your rates 'forward' the moment your desired margin is achieved. By the same token, for sellers we advise buying GBP forward the moment your margin is threatened; and, because has been very strong for the majority of 2017, you USD sellers out there should have been jumping from forward contract to forward contract, making hey whilst the sun shineth. Helpfully plucked from the Prime Cap DATA Centre this '5yr' chart shows the relationship between the pound and the US dollar since late 2013. You will notice something of a peak in recent trading which in fact occurred as 2016 drew to a close. This is a fine example of why anecdotal evidence should never be relied on over empirical. GBP was punished by global markets as Europe returned to work following its annual month off. Bucking typical trends, GBP struggled to make the same gains as it might usually upon entering the final quarter of the year. However, companies earning in USD were in for a windfall. It is fair to say that due to import costs increasingly since the pound weakened, margins have been squeezed, however, this has been offset to a certain extent by both increase affordability in previously unattainable markets and also fortification of margin for certain sectors because of improvements in the value of the global reserve currency. Now, Prime Cap can use all the skill we possess (enormous, bone crunching, chin quivering skill) to make sure that when/if/should rates of exchange approach a level you feel threatens your margin to an unsatisfactory extent, our system triggers and we buy forward the currency you want. Your exposure is immediately eliminated and yet, you've remained in the market for as long as possible, enjoying a better rate, but with a protective strategy in place. Call us...and we shall tell you more...02031728193. #dollar #october #Holidays #Christmas #FX #payments #exposure #Singapore #Skill #convert #risk

You may be familiar with the idea of 'discretionary' and 'execution only' within the context of stock trading and asset management. Yes, we have appropriated the terms and rather crudely shoe horned in foreign exchange; however, we do believe both in the strength of these packages as easily understandable service wrappers and in the idea that demonstrating our familiarity with the terminology of our target market (as far as referral business is concerned) a la the wealth management sector is something of a mandatory minimum if we want to keep our coveted position as it's go to FX platform. To offer what we call a 'Prime Managed' package, in the context of FX, we have to be confident that when presented with a given objective and a particular client profile, we can foresee and anticipate both the way in which the client might prefer for us to handle the pricing, booking and paraphernalia (banking details and clearance times etc.) that go into getting money from one place to another as well as how we, as a solutions provider dealing with just what might be one aspect of a larger transaction, fit into the wider context of a matter. A firm that prides itself and relies so heavily on its sensitivity to the sectors from which it courts business cannot afford to misjudge, overlook or slow up the holistic progress of a matter. Therefore, Prime Managed client dealing is as much about assuring our partners that we have worked out precisely what needs to be done and are certain we can deliver, as it is about making things easier and less stressful for the registered client. If one's client is buying a property funded from a foreign currency then the conversion (essentially, the calculation of a margin, the receipt and onward transmission of funds) is quite straightforward...what is difficult is influencing and pushing through the moving parts - for instance, making sure the client pays funds by the appropriate cut off times or ensuring the receiving solicitor has access to and in fact understands the use of an MT103 message so that, should funds not appear when expected, the solicitor is in a position to chase effortlessly because we have thought ahead. Many FX firms do not take into account the bigger picture. They are purely focussed on securing the deal and therefore overlook the hassle the client might have to go to to fund a transaction and consider it the problem of the recipient if funds do not appear when expected...and this is what separates not only Prime Cap from our competitors, but, our Fully Managed offering from any of the other bespoke solutions or off-the-shelf wrappers we carry. Identifying a client as a beneficiary of a Prime Managed service makes it easier for our teams to quickly and confidently apply the necessary approach. It truly is a service offering that relieves the client of arduous question asking. We guide and instruct in a far more forensic way, but, motivated by a commitment to divest the client of any of the mundane concerns, practical and conceptual, that tend to animate a foreign currency transaction. PRACTICALITIES: what do you get as a Prime managed client? Whether it's during our initial consultations with you or as a result of you expressly alluding to a preference we can usually work out whether or not what we have to do could be called full management of your matter. A day in the life of a fully managed client basically involves you emailing, texting or calling our dedicated trading team (or indeed directly messaging you selected trader) on dealers@primecappayment.com with something akin to the below: 'J' is a Prime Managed client and periodically transmits funds to Ireland where one of his businesses has an office. On receipt of a message like this Ben, or another one of the team, will immediately buy €10,000. 'J' trusts us to provide him with the same competition on the rate so much so that he doesn't even want us to quote for him. He Knows that within a matter of minutes he will receive an email from Ben confirming the GBP cost and re-confirming the details of the segregated client account he has paid into before. We have already pre-populated J's preferred bank details in line with a pre-defined list of transactions he asks us to execute. Were his email to have deviated materially from his usual pattern then our team would see this and seek to confirm the authenticity of the request by calling J. Our dealers are the first line of defence against unscrupulous high jacking of an individuals email, but it is also important to stress that J has not lodged any money with us. Therefore, no money will be released to the usual beneficiary until such a time as GBP appears from a recognised account to fund the transaction. J's accountant can login to Prime Cap Online and access statements for things like J's self assessment tax return; alternatively we can simply provide these on request. So, in a very real sense, the clients role in this type of package is purely one dimensional - making sure settlement reaches us promptly. Furthermore, clients like J are very welcome to hold money 'on account' with us. They can pre-fund a regular transaction if they wish. In this instance J wouldn't even need to send us funds...we would simply deduct from his standing balance. HAVE YOU RECENTLY SOLD A UK BASED PROPERTY? OUR TEAM ARE WELL VERSED IN APPLYING THE PRINCIPLES OF OUR FULLY MANAGED OFFERING TO REPATRIATION OF PROCEEDS. - To find out more call us on 02031728193 or our LIBRARY page has more info. #wealthmanagement #fullymanaged #executiononly #wrappers #product #turnkey #worldfirst #currency #CurrenciesDirect #BrewinDolphin #KleinwortBenson #privateclient #managed

You are a company incorporated and predominantly working in the UK. All but a few of your more niche suppliers are located overseas in countries ranging from China and the Middle East to Continental Europe and Ireland. What you buy tends to be priced in either US Dollar or Euro. The question is, what difference can a specialist foreign exchange company make to the way you make payments and the rates of exchange at which you have to calculate your GBP outgoings? Many people associate being an 'importer' with buying in bulk abroad and selling to retail customers in the UK. The truth is though, any business buying anything from abroad is importing it. They may use that item as a component part of something they manufacture, like a ball bearing, but, as a business they have access to the vast array of specialist tools and techniques that more cliched import enterprises make use of. Sectors which are commonly overlooked in terms of their import activity are: - Construction & property development - Cabling, Lighting & Glazing - Interior Design - Cycling & vehicle maintenance - Electronic components & robotics - Healthcare A specialist FX (foreign exchange) business, by definition, buys more currency than the clients they sell it on to. Also, they mark up that currency by much less than the conventional suppliers to the commercial market - banks. Therefore, by buying your euros or dollars from a currency company (a foreign currency wholesaler if you prefer) you are paying fewer pounds for precisely the same product. Broadly speaking, you could expect to spend as much as 5% less on you international payments by using a broker. That is the top end (if you're simply using your bank to do such payments at the moment) and it must be acknowledged that the improvement tends to be around the 1.5% mark. Where the real value is added is in the strategy applied to assessing your exposure to movements in FX rates and the measures take to limit the effects of those movements. Simply, such guidance is not available through an app or in branch at your bank. Buying currency at the right time and extending the use of a favourable rate can save you thousands across you business and not just on the FX side of your dealings. HERE COMES THE SELL: Whilst we do not actively court corporate business, PRIME CAP's particular set of skills can be applied just as beneficial to the dealings of a business as they can an individual. We present ourselves as private client brokers precisely because doing so means we do not need to precisely delineate between the sectors those individuals might personally operate in. Were we to begin listing the businesses we work with we might find a prospective client inferring that, because we have not listed their sector, we cannot assist them. Every business needs a private client; not every private client is involved with a business. So, business operations and our approach to the FX dealings of businesses revolve around rules. Principles. Guidelines that can be put down by one person and easily picked up and replicated by another. This characterises the beginnings of our approach to corporate FX structuring. Again, we appreciate that many businesses with either consider themselves too small or their FX dealings one-dimensional to such an extent that the way we refer to their uses for us can seem unrecognisable. At the end of the day we have developed a suite of tools and wrappers for FX treatments that work just as well with sole traders as they do with global businesses. If you would like to learn more about our in house strategies and exclusive product wrappers then give our team a call (02031728193) or contact us on dealers@primecappayments.com. #construction #property #propertydevelopment #cabling #lighting #glazing #FX #foreigncurrency #EUR #cycling #vehiclemaintenance #electronics #robotics #PrimeCap

Thinking about engaging or changing the foreign exchange company you use for your personal or business payments? Here are 7 things to consider when assessing both their competency and their integrity, and why it matters. We're conscious of the fact that those who might find this post interesting will probably already know about the benefits of a broker. So, for that reason we'll go more into the whys of these questions than explaining the minutiae of the terms being used. Anything doesn't make sense or you'd like to discuss some of the points we make then do call our team on +44 (0) 2031728193. 1. Do they quote you a rate before you have formally registered with them? Your broker does not have a pot of money sitting in an account that, once you register with them, they will make available to you. They have to buy in the foreign currency you wish to send and they do this using the currency you currently hold, but, the rate at which companies 'buy-in' euros, dollars etc. varies depending on what the global FX market dictates, what their primary supplier charges and both when you need the money at its destination and the date on which you intend to settle your booking with them. A company prepared to 'quote' you a rate before they know anything about you is not a bad company, however, they should emphasise the fact that their quote it purely indicative of the sort of rate you might expect once you are in a position to accept it. There is absolutely no guarantee that you will get the rate they quote you once you are their client and this is because either the underlying market value of the currency you wish to buy has changed or they are not including their own mark up in that indicative quote. Hence, you are not getting a fair or accurate idea of how competitive they are prepared to be. The dealer you're speaking with either just wants to get you over the line as a registered client and so inflates the level of competition they offer, or, they give you a fair idea of their typical margins. Either way, depending on the size and structure of the actual company you're speaking with you will likely find a distinct difference between a pre-registered quote and a post registered quote. The reason why it is best to do the registration with a firm is because, having done so, your dealer will be aware that your trading with them is on a knife edge. He and his compliance team have done the work to make sure you are compliant, so, they don't want to be messing you around with cliched reasons as to why their margins might vary. If they quote you a rate then you can either push them to do better on it, or you accept it. Either way you will find them more motivated to price accurately. What to do then if you're yet to become a formal client but are considering a move? Take half an hour to submit applications for more than one firm - take a look at ours if you want an idea of what you'll have to submit. Ready the documentation so that you can swiftly complete the process, then, compare. For most firms you won't need to submit anything additional to the registration document itself. Requests for additional information tend to be made of those applicants resident outside the UK, but, in any case the request will be for something you will likely easily have to hand like a copy of a passport. Within a day or so you can accurately find out both whether your current mechanism is value for money or the most convenient plus you're in a position to immediately transfer your business elsewhere. If you were buying a house and went on a viewing, you make an offer, it is accepted, but you then reveal to the agent you are yet to sell your own property...the agent will advise you to come back to them when you have the money ready, but, they certainly won't guarantee you that the offer you've made will still stand. Like with so many things, with FX you need to be able to proceed before you'll be taken seriously (broadly speaking) - and only unless you've been referred to Prime Cap by one of our trusted partners. 2. What is their 'minimum' transfer amount? On the face of it this might matter little to a business or individual who knows they will consistently be doing a certain volume, however, an FX company's approach to this question tells you a huge amount about how they might treat your business 'longer term' as well as informing you of their marketing bias and what sort of margins you can expect over time. The most obvious thing to take account of is that, if they do have a minimum transfer amount, what are you going to do if you need to transmit less than that sum? Treating the smallest of transfers in the same way as the largest is a good indication that this firm will behave in one of two ways. a) they will consistently cleave to the margin they know induced you to use them in the first place because deviating from that could well lose them your business on larger sums which would offset any prior loss. Call it the 'loss leader' principle. It is less work for the broker, particularly those with an online capability, if they know they can depend on you using them at the price they've set. b) a low minimum transfer amount might be indicative of a teaser rate, particularly if, in the first instance, you indicate this is all you need to transact. Your dealer has to quickly assess whether she or he feels there is merit in taking you through all the relevant steps to transact and, because giving a consistent margin is important to a credible dealer, smaller sums as one-offs don't cover their own costs. 3. Who do they bank with? When asking who a company banks with, we may mean two things. Who does the broker holder their client accounts with, and whom do they use for their own day-to-day management accounting. These could be the same bank or different institutions. Some brokers do not hold their own client accounts, but, don't be fooled...this is not a bad thing at all!. Like Prime Cap, they may use the segregated accounts of a larger, older, regulated institution. Fundamentally, whether client accounts are held with a bank or a non-bank matters not when it comes to the security of a client's money. Having segregated accounts with a bank implies limitations on both the currencies a firm can deal with and the client's with whom they can transact. Although holding one's own currency accounts it is indicative of high currency turnover, it also suggests a bigger work force, which in itself means wider margins and higher overheads; likewise there may be more stakeholders pushing for the business to operate leaner which can have an effect on service and skill level. In roughly 2013 one of the larger providers of banking services to the the 'non-bank' deliverable currency sector chose to 'de-risk' their portfolio. They couldn't vouch necessarily for the commitment of their FX commercial clients to correct and thorough compliance verification in line with their regulators' expectations. More generally they felt they were putting themselves at risk because of their exposure to errant money remitters on their books. Of course, this had broad implications for the deliverable FX sector as a whole. It meant that many brokers who did good, compliant and consistent work, lost their ability to receive client funds for settlement of deals. Now, systems were already in place for brokers and intermediaries to buy their currency from other currency companies who had retained their client accounts with the banking institution in question and to settle, ironically, into current accounts held by that other broker with precisely the same bank; but, said bank issued notice to a huge chunk of the market. Basically, the bank was only really interested in dealing with the largest of its clients; not only did their de-risking exercise lose them significant FX business, but, it also means that the cost of remaining as a client of theirs went up to make up for the shortfall. It is worth noting that this is in fact the narrative of a number of FX firms when it comes to their 'retail' clients (you and I are retail clients). Pursuant to point #2 - those companies with a low wholesale FX turnover for their bank take up just as much time as larger clients, but offer less of a reward/revenue, and yet a portfolio made up of 1000 small clients is far more stable than one reliant on the activities of 5 big clients - especially when everyone else is the currency world is aware of whom those big 5 bank with and are eagerly trying to court them. Anyway, the fact that only the largest of FX companies now held segregated client accounts meant that they assumed the role, more or less, that the bank once occupied. There was and is nothing to stop these big FX businesses from selling the wholesale currency they buy from their bankers to other smaller FX businesses. Essentially, the smaller FX business was thereby granted use of their bigger cousin's client accounts and the bigger cousin's sales focus moved towards increasing the number of wholesale businesses they dealt with and less to do with private retail clients. This is, in fact, very much the story of Prime Cap. The vacuum left by the bigger players moving more into the wholesale space is what gives Prime Cap scope to grow. We have one less set of competitors - in our view. We rely on the diligence, compliance and competition of our wholesale partners in much the same way as we used to when we held our own client settlement accounts. We have simply offloaded that responsibility to a bigger player in the market and we pay them for use of their facilities. Our customers get cutting edge financial tools, we get a sizeable partner who maintains a whiter than white compliance profile and we simply provide the brokerage expertise as we have always done. Back when we started, when we were merely a twinkle in our founder's eye, it was unusual for a broker not to hold their own client accounts. Now though it is common place and no less secure or useful for the client...in fact, we would argue that we have stripped out clunky personnel heavy aspects of our business and refined our margins accordingly. 4. Do they have online capabilities? Online systems, if your broker has them, are indicative of a company that has taken outside investment (in our experience). Proprietary platforms are tremendously expensive. Yes, consumers are attracted to all things online, but, operationally they are cheap to run and mean fewer human moving parts needed, so the outlay ends up paying for itself when it comes to overheads. If a firm works purely online then an account manager (rather than a 'dealer') can handle the inquiries and activities of many hundreds of clients. The process becomes far more about trouble shooting issues with the platform rather than guiding and advising on strategy or product. This then results in the same competition vacuum that used to characterise the execution of transactions with your bank. In fact, the company that presents itself solely online through a platform is leveraging your distrust of your bank to persuade you to use them, even though they are providing you with almost exactly the same product/tools. It is brilliant really. Whilst we, Prime Cap, do provide online tools both in a turn-key sense and read-only, we've not lost or done away with the all important dealer. In fact, their involvement in our clients' dealing is intrinsic to our value proposition. You get an expert, well versed in your matter, and you get systems you recognise, but, at no extra cost. If a firm does not have online capabilities you might be concerned because it shows both an arrogance and an unwillingness to modernise. We dont say that to be mean...but, analogue is less efficient, more costly and less accountable. If your dentist were using 20 year old procedures you would question the quality of the care you are receiving. Why are financial services of this nature any different? Prime Cap has been the distinct beneficiary of the shift by large private equity backed foreign exchange firms moving the bulk of their dealing online. Those who refer to us want to know who is going to be taking their client through the transaction. Fine, there can be someone sat behind the scenes making sure you don't put the wrong figure in the wrong box, what we mean is a real expert who knows about clearing times, how banks treat domestic cut-off times, what days of the week tend to see a more buoyant rate... If you got the same level of convenience, but had someone you know (in the context of what we're discussing) taking you through things, would you feel more confident? Our partners certainly do. We can tell them, to the minute, when money for a purchase will clear with them - when you're buying a house in another country sometimes that can be the only difference one needs to offer and yet with us it is not. 5. How were you introduced to them? Just because your friend uses a company does not mean they or you will get a better deal. It may help you feel more confident about using a set of services you were hitherto unfamiliar with, and, it will undoubtedly save you money for which you will obviously be grateful, but, someone recommending you to a firm like Prime Cap might not be doing so because your interests are best served, but rather because their pocket is being lined. Is that an issue? Not necessarily. It is a shame that some professionals will only refer work to companies who compensate them for so doing. However, the fact they recommend their client to a specialist in the fist place is a good thing so can we begrudge them receiving something for that act of selflessness? At the end of the day, whether or not the source which introduced you to your broker is receiving a kick back is an issue only if it affects how competitive a rate you might receive. Using knowledge of a referral agreement between your broker and your chum, or your accountant or your financial planner, to achieve a better rate for you is done thusly... Ask. Ask the referrer what they receive for introducing you. You can then work out what sum they might get and, from that, what sort of margin you might likely get on your rate. If the margin and what you are quoted don't match up (unfavorably so) then this tells you something very important about the broker. Most referral agreements tend to rely on some sort of profit share. "I will give you a percentage of my revenue for your referral if they trade with me. If they dont then neither of us is out of pocket." The trouble is there is nothing governing what the broker might offer you, the client. The broker is unlikely to want to give away hard won profit...so he may widen his margin to offset what he has to pay the introducer; thus leaving you worse off. You are in effect paying for that introducer to refer you. The question is then: 'should someone who you might already be paying for other services really be affecting the level of competition you get from a broker?" Prime Cap would love to say we do not pay commission to anyone for the referrals we receive. To do so would be to peddle an untruth. In some cases and where it is the difference between receiving a referral and not, we do pay, however, working with as many solicitors as we do means that in the majority of cases we couldn't pay a commission even if we wanted to. It would not be allowed. This means we sleep easy, those who refer to us can rest assured their client is getting a fair deal and the client doesn't have to pay what is tantamount to a tax for the referral. In instances where we do pay a commission we only engage in such a practice provided we are offered exclusivity by the referring party. If they referrer all of their international currency work through us then we can ensure a watertight process and can afford to actually tighten our margin rather than widen it. Volume of clients and currency is the key to a mutually beneficial relationship in our sector. Many currency firms offer referral fees to anyone they meet. This devalues the work we do and means customers become hostages to their advisers. If you came across your currency company through some sort of advertising (whether that be in print or in person at something like The France Show) please remember that a number of players and stakeholders will have had a hand in crafting the message that got you to engage them. This eats into how competitive they can afford to be for you on the rate. Multiple stakeholders means numerous hungry mouths taking a chunk out of the saving that could be in your pocket. Furthermore, companies that are owned by Venture Capital or Private Equity firms are very very keen on improving their own margins in order to give themselves the multiples of return they'd based their acquisition on - all of this serves as a competition killer for the customer...you. 6. Do they offer a 'set spread'? When you look online at an exchange rate you are in fact viewing a tiny snap shot of the value of one currency vs another at the precise moment of your search. You'll see a clear example of this at the top of our Data Centre. That singular figure is not a rate of exchange, but an average of what someone is prepared to pay for a currency and what someone else is prepared to sell the currency at. The rate moves so quickly because those offers and asks electronically match up with each other and cause the rate to hop up and down depending on what was offered or asked. Refresh the page and the rate will have changed. The snap shot you are looking at does not account for the market up a company or a bank will apply to the currency you want when you come to buy it from them. Online is basically showing you the cost of the raw unit without the involvement of any third party seller of the unit. Companies who talk about offering a 'set spread' mean that regardless of the amount of currency you transact through them, they pledge to apply the same mark up within their rate across the board. This is truly tempting to time poor accounts operatives who simply want to know they are getting something consistent and don't have to shop around. The trouble is that the set spread is a relative concept, tied inextricably to the rate the FX broker gets from their bank or market maker. Hence, it is actually meaningless to offer a set spread and 9 times out of ten is simply a rhetorical device - a fall back position the broker uses to protect themselves and their rate from scrutiny. Companies who offer set spreads are likely to be challenger firms; ones who are not of such scale that they need to achieve a minimum revenue on a transaction yet. Many firms instruct their dealers that they must make £20 or £50 per transaction. If they do not then it comes off the dealers figures as a loss. This is because the house wants to cover expenses and then some; the dealer himself doesn't to see any commission until he has posted 'x' amount of revenue in any given month. So you see, the incentive is firmly to transact at as wide a margin as possible so that he gets to that target quicker and the starts accumulating his commission percentage. You may have already spotted the issue with this? If a company says their dealer must achieve £50 revenue per transaction then, on a transaction of £2000, the dealer has no choice but to apply a margin in excess of 2%. This is basically the same level of competition (or lack thereof) as one's bank. So, again, we see larger more structured firms going the way of their banker rivals and providing an ever shrinking margin of improvement to the customer. Interestingly, the way firms of that size account for this lack of competition is by either suggesting that their staff and expertise makes up for it (which we've actually seen isn't the case given the calibre of staff they hire) or they repackage a low margin deal with a high margin price tag for the end user...for instance these 'Regular transfer plans' that some firms peddle. At Prime Cap we adopt a variety of approaches. Set spreads tend to be offered more to corporate clients who are totally margin focused. Part of our commitment to developing a strategy with you involves identifying what it takes, in terms of what spread we apply, to undercut your current provider. We want to beat them on insight and on price so sometimes we may be very direct and ask you what you currently receive. We would sooner win your good favour than squeeze fractions of a percent more out of the transaction on the revenue side of things. The mere possibility that you might refer us on is worth enough to incentivise us to cut our margin; furthermore, our online capabilities mean that we can handle far more than analogue brokers whose portfolio is really only optimal at about 200 clients (per dealer). The more clients we get the more competitive we can afford to be. 7. How many departments are there within their company? Understanding where you came from, in terms of your broker's sales cycle and sourcing, can tell you a lot about what you can expect from them. If the firm you're considering has a lot of referral relationships from multiple sectors as well as heavy online marketing like Google Ad Words and the cash to publicise themselves at trade shows like A Place In The Sun then you need to appreciate just how many people are involved in making that happen. There are only a limited number of people in the UK transmitting money international on the sort of scale that can support and sustain the sort of business development activities some firms engage in. Margins are shrinking because they are one of the easiest areas for small firms to challenge bigs ones over. Yes, some big firms are diversifying and you can expect certain big financial institutions - mainly those with credit based activities - to start acquiring challengers in the retail space, but, the bottom line is that a company with a lot of departments is supporting and financing them out of your margin. Literally nothing else. They would like to discredit smaller competitors of theirs, but, chasing a lean operation and returns for investors can very often mean economising on quality of staff and level of care. Why would you want to 'test' your broker? Well, for one thing you may get a further saving out of it, but, the principle of expecting more from our suppliers and providers is something that drives improvements in the market. In a sector where the notion of value differs wildly from firm to firm, only by asking questions and holding firms to account can you, the customer, an me, the broker, hope to reach an equilibrium where need is met in a cost effective way and with best practice and value for money at the heart of the engagement. PRIME CAP are always available to discuss our practices and principles. You're very welcome to pick up the telephone (02031728193) or visit www.primecappayments.com to find out more. #PrimeCap #Payments #Spread #Broker #bank #WorldFirst #Barclayscurrency #BarclaysBank #CurrenciesDirect #PrivateEq #PrivateEquity #moneyu #EUR #GBO #GBP #USdollars #APlaceInTheSun

Brits buying in the US or Americans buying in the UK. Whichever way you look at it, the property being acquired is priced in dollars. So, how can you make the most of this fact and what are the different FX treatments for these transactions whether you're buying or selling... Prime Cap does a lot of work with London based professionals who are salaried in US dollars. They may be paid in USD because their employer or parent company is located on the other side of The Pond, or, they may be dealing in instruments that generate revenue denominated in the 'Green Back'. At the end of the day, wherever their head rests, they will need, if not want, to convert funds into British Pound Sterling and the rate of exchange, the mechanism by which they convert and the institution, banking or not, they charge with facilitating such transactions can have a significant impact on the amount of money they are left with. One of our more senior traders recalls enquiry with one of Mayfair's more prominent Hedge Funds as to how they repatriate UK earned USD to NYC. It became apparent that the firm in question moved upwards of £250,000 daily into their USD account. They banked with one of the largest USD clearers in the world, and yet, their conversion was 0.35% less competitive than what the brokerage up the road could and would offer. This is a colossal margin of difference in the corporate FX world. The suggestion has been made that because the movement of this money was pure administration of funds and cash flow, and not for any particular project or purchase, looking more deeply at what was being wasted was less of a priority. If you believe that to be a sensible, rational view then one wonders what your board makes of your perspective. We digress. Minute by minute, day by day, the rate of exchange will go up and down. Therefore, two things are occurring, simultaneously; how you might be affected or how you might view one or both of these two things depends on whether you are buying or selling the currency (USD in this case). Someone with USD who is buying a house in London is effectively being told what the USD cost of this sterling priced asset is by virtue of the rate of exchange. The movement of that rate translates to the increase or decrease in the USD cost of that asset - self-evident perhaps? Someone selling a GBP denominated asset, for instance a little mews house in Lennox Gardens, and hoping to bring or send the proceeds to an account in the United States must accept that the USD amount they will deposit in said account depends, again, on the high or the low of the GBP/USD currency pair. We outline these two perspectives in such a simple fashion largely to flag up the fact that in any transaction like this, a transaction of both size and complexity (in that persons in other territories are executing a deal) the objectives of each party are incredibly pertinent to what is considered appropriate action by the broker involved. Add then the idea of two US based entities, corporate or private, selling and buying a GBP denominated asset to each other and hoping to pay from and repatriate to the United States respectively - how does one navigate that? Well, we had just such an instruction and we handled it thusly: both parties communicated through US based attorneys to arrive at a USD figure for the transaction. Such are the legalities of matters like this that the conveyancing would be done in London. Each party had their own solicitors to play the relevant roles. The question you might well ask is, given that the asset is priced in GBP but one party is paying in USD and the other hopes to receive in USD, how can either side feel confident that what they are converting will equate to what the other side is expecting? In short, with very great difficulty. In this instance the vendor has in fact made life far more difficult for themselves. By enabling the buyer to agree a set USD price, the vendor has himself taken on the FX exposure (a vulnerability to the rate of exchange not enabling him to realise the USD sum he wants). You would be forgiven for concluding that... On the basis that when their US binding agreement was signed, the vendor would hedge his exposure and fix the USD he might receive for a set GBP figure, the buyer did the same thing but bought the set GBP amount. The two parties then agreed to make good on each other short fall (they were evidently on good terms) so that an equitable and yet predictable outcome was reached. They made good on the shortfall domestically in USD. If you are buying a fixed price foreign currency denominated asset then you can do little better than ensuring that your cost, in the currency you hold, does not rise. This is known as 'Forward' buying and is a very simple way of fixing a rate over a longer term. It is interesting to note that, when considering 'bonus time' in The City, many of our clients working in the financial markets (and therefore rewarded in USD) will look to lock in the rate, sometimes months prior to the date of their annual windfall. Take the present market​​ conditions...or rather those of the summer of 2017...fixing the rate of exchange to convert your US bonus to sterling so that this rate is available come the New Year or the financial year end would be considered fairly wise. The only risk being that the dollar strengthen further, improving from the point at which you locked the rate. Still, you would be doing remarkably well in a broader sense as the rate reached multi-metric highs. Likewise, the London based vendor who, worried that the USD may resume its unprecedented strength against the pound in the New Year, might like to lock-in and sell a proportion of the GBP they'd take for their property. Ensuring not to lock in the whole GBP sum, unless of course contracts have been exchanged with a buyer, would be the most sensible approach. Thence, once completion has reached, you can watch as your GBP are converted to USD at a rate some points better than the market. As ever, we counsel against a purely 'wait and see' approach to converting funds when one doesn't have a date, value or rate one has to work to. This is simply because you might be waiting forever. Yes, you want the 'best' rate you can get, but, we find ourselves smug with the retort that the best rate is relative. When we talk about identifying both your objectives and your priorities we do so because they are not the same thing and, on balance, we may be able to deliver that which is important to you as well as achieving a number of other valuable elements on your wish list. If the most important this to you is that money arrives there today, then we will put a pin in giving you in depth analysis of what economic data might move the market in the near term, because, with the top priority being speed, our more macro outlook couldn't be relied upon to any great extent. Conversely, if you only have a set number of USD and you must achieve a specific GBP figure pursuant to the conversion, then either fixing the rate forward or acting the moment the market moves to your goal rate, are the two things motivating the trade...everything else is immaterial. What you want to achieve may be simple and there will certainly be obvious ways of 'doing' it, but, out niche is guiding you towards those ways of doing it that arent coined on a digital advert or poster. You will have heard of specialist lenders vs your bank, 'lawyers in a box', the 'D I YISA'; someone like Prime Cap is the specialist to the high street mass market provider - hopefully our website and other material (the referral you received maybe) will have conveyed as much...however, in an environment that plays on it's participants' ignorance of their options, sophisticated though those participants might be, taking the time to understand what is available and humanising the processes that will save and make you money is the least someone can do. If you'd like to have a chat with one of our team then please give us a call on 02031728193 or message us at dealers@primecappayments.com - you won't regret it. #houses #milliondollars #USD #GBO #GBP #pounds #PrimeCentral #buying #selling #property #london

At Prime Cap we refer to 'Currency Cards', such as they are and amongst other things, as aspects of a 'cash access' solution. We advocate their use for a variety of foreign exchange scenarios and for that reason and, because of the extensive research we have conducted into this market. So, are they worth it? It depends what you want to achieve. Their premise, in the purest form, is simple - to 'load up' a standalone card with a foreign currency. You're putting a defined amount of foreign currency 'on' the card, or you are putting the foreign currency equivalent of a GBP amount on the card. They can be used to withdraw foreign currency at ATMs and they can be used as payment method in establishments where the card's emblem is accepted. Most providers do not charge you for withdrawing cash from an ATM, however, this will depend on the card provider and the bank that operated the ATM. Some cash cards come at a cost. This fee, usually £10, doesn't benefit or disadvantage you to any great extend. One of the down sides of the classic type of loadable currency card is that the rate of exchange used to calculate the conversion prior to loading onto the card is on the one hand static and, on the other, usually no better than the rate you might receive from your credit card provider. The margin - mark-up/concealed commission - is not de facto more competitive on a currency card. You're essentially paying for the convenient of having a set and secure amount of currency digitally in the your wallet; nothing more. In fact, if you load up your card on a Monday and don't use it till pay for something until the Friday, then there is every chance that the rate might be better on the Friday. Meaning, although you know how many euros or dollars are on the card, you might have paid fewer pounds for that dinner out because the rate on Friday might be higher. Of course, it could be lower, but that is the risk you take. Furthermore, if you have loaded on a certain amount of euros to your card and you don't spend them, converting them back to sterling wont necessarily be in line with the movement of the exchange rate. Usually, if you have converted £1 to euros on Monday at 1.10 and, come your return €1 is equal to £0.95 (€1.05 = £1) then the card provider will only convert back at the initial rate offered. However, if the rate has climbed then they will often calculate the rate for converting your unspent euros at the prevailing market rate plus their margin. So, the system is not actually as transparent as you might think. You're committing a set amount and, in the event it goes unspent, you're paying more than once and at a premium to get your initial spend back in your account. Not ethical if you ask us. So, how do we avoid being stung of have to weather an unfavourable rate in the face of an improved underlying market? The answer is with one of two solutions: 1) . Use a debit card that does not charge you for use/withdrawals overseas. This solution gives you a couple of different benefits. As suggested, you wont incur a charge when using it abroad. Additionally you haven't committed a fixed sterling amount to a product which wouldn't give you a fair return. Often the rate of exchange you bank gives on debit or credit card transactions is better if not the same as that of a currency card. Sometimes it is rather improved. Furthermore, because your money remains sterling until the transaction occurs, you're working with live and changing exchange rates which stands to benefit you should the pound (or your base currency) improve. Also, when using a credit card in this scenario, you're transactions are ensure, so, even if you card is stollen and used erroneously, you are liable. Sadly the same cannot be said for debit card, however, your travel insurance would cover any elicit activity in the case of theft anyway. 2). Use a multi-currency card like Revolut (www.revolut.com). This is very very similar to using a fee free debit card, however, you move money from your bank account onto the Revolut card/facility. This way you're still in control of your budget. Revolut then draws on this balance when a payment needs to be made in a particular territory/currency. The key things to question here are the rates at which your based loaded currency is converted. Also, what happens if you are somewhere without mobile data or WIFI and your card's balance runs dry? Some info our those cards we think tick the boxes for both frequent flyers and casual tourists alike. At the risk of sounding like Martin Lewis, the 'Money Saving Expert' we are not, but, we do like good service, fair cost and added benefits. This is why you'll notice the Amex Platinum card in the above rolladex. The inclusive benefits that come with this card are worth checking out regardless of whether you're travelling abroad or not. Our treasurer receive a message on his return from some far flung place to inform him that Amex has noticed that, given he used his card to pay for his hotel, had he booked it through their travel concierge he could have saved himself a further 20%. For what it gives you it is fair value and who doesn't love an airport lounge (research the Priority Pass to see what we mean)? One of our clients uses these cash access solutions, one in particular, to pay an overseas employee. Relying as they do on certain free-lancers, in more remote parts of the world it can be difficult for individuals to acquire bank accounts; however, ATMS abound. Providing your intended recipient with a currency card and then topping that up online as and when you're inclined to pay them enables them to withdraw their funds in the local currency. Clever, quick and fair. Prime Cap has no formal arrangements with any of the providers referenced above. We make any recommendations purely from a foundation of personal experience and accept no liability for loss incurred should our recommendations be relied upon by a third party in relation to the subject of this post. If you would like to speak with one of our team about any of the ideas and explanations included in the post then please call one of our team on 02031728193. #Revolut #Starling #StarlingBank #Amex #Platinum #ATM #currency #debitcard #overseas #fees #tourism