‘Flight to safety’ and natty little phrases like it are bandied around frequently as a useful way of deflecting a question and as a means of not having to justify, at least at any micro level, what has caused a currency to move in a particular direction. Remember that FX dealers generally have no formal qualifications or ongoing regulatory oversight when it comes to whats in their heads. They are not chartered analysts and do not hold diplomas that grant them any authority when it comes to assessing or commenting on market movements. Yes, an FX broker can advise you on the merits of a contract useful in achieving your objectives, but, they are no better placed than you to answer questions about where a rate of exchange may or may not move to. For that reason terms like ‘safe haven’, ‘risk aversion’ and ‘window dressing’ are excellent foils by which a dealer might, when questioned, appear more insightful that they are. It sounds so very cynical, but, that doesn’t make it false. Without much understanding of the broader concept, dealers use these phrases and others as a form of conversational padding. In the same way that using acronyms suggests one knows one’s onions, these broad terms in relation to the market are, if unchallenged, designed to put a distance between the dealers understanding and that of their client, even though it is more than likely that no such distance exists. So it is with the term ‘safe haven’. In a purely investmenty sense a 'safe haven' is an investment that is expected to remain stable even at a time of particular volatility elsewhere in the market(s). It is predictable. It is worth noting though that safe haven is a relative notion. What is stable at worst and appreciating at best in one trading environment, may well be one’s undoing if the winds of sentiment change. It is not a sedentary vehicle per say, but it is a go-to and consistent instrument/asset depending on the market conditions. If an entire economic sector is performing poorly but one company within that sector is performing well, it's stock wouldn;t necessarily be considered a safe haven, because being a safe haven is about predictability rather than performance. In the context of currency it is about liquidity and the ability to spend that currency anywhere. A 'safe haven currency' is by definition a currency which investors want to buy into and hold during periods of economic and political uncertainty. Gold is typically considered a safe haven asset when currency markets are volatile (in fact when most markets are volatile or unpredictable). United States Treasury Bills are also considered a safe haven even in a tumultuous economic climate because they are backed by the full faith and credit of the U.S. government. In the FX market, the Swiss franc is considered a safe haven currency. Liquidity is also a key issue when it comes to identifying a safe haven because you want to be able to buy and sell the currency with ease. This is arguably why USD is so appealing too. Holding US dollar gives you access to a supremely broad array of other assets by virtue of its status as the global reserve currency; it is in demand the world over and can be used the world over to boot. Consider, if you will, it's appreciation following the global credit crunch and market shock in 2008. GBP/USD was trading at 2 to 1 for quite some time prior to 2008 and throughout the United States’s middle eastern military engagements. Come 2016, USD trades at 1.50-/+ vs the pound even though that military deployment continues. The notion of war in this context has not actually dampened demand for the dollar because it is so widely used, if not prized, globally. Liquidity is an expression of the ease with which an asset or a currency can be moved, bought or sold. A ‘liquid’ asset is one that can be speedily exchanged and/or traded. There is demand and supply to such an extent that the owner of the asset can sell it easily if needs be. An 'illiquid' asset or currency is one with limited demand and supply. There is only a small market in which such an asset can be bought and sold; the term 'market' in this context should be imagined in the way that the word implies…literally a place to buy and sell goods, assets and services. The liquidity inherent to the US dollar affords countries with limited market access the ability to buy and sell things quickly and easily. These countries genuinely prize the dollar precisely because it affords them the freedom to engage with other global entities, whether corporate or sovereign. So, a safe haven currency is a predictable one. It is one with a stable government and somewhat predictable values. A growing and diversified economy is also characteristic of a safe haven currency. It is that diversification which gives the currency stability during times that might prove volatile for other currencies whose domestic economies are more singularly weighted. Whilst the vast majority of Prime Cap's clients need to convert and transmit a currency for a particular purpose, to pay for something or to move the currency back into the territory of their ongoing business/trading expenses, some private clients do not need to move or spend their currency and so elect to hold their money in currencies that have a lazier relationship with the wider global economy. We recently had a client who lived in Hong Kong. He moved back to the UK for work, but, has personal and family interests in Europe. Hence, the currencies on his radar were and are Hong Kong Dollar (HKD), GBP sterling and EUR euro. Our client had no immediate use for sterling. He was considering selling his HKD in to EUR in order to capitalise on what he thought might be a rise in the value of EUR denominate property in certain european cities whilst the UK negotiated is extraction from the EU. Given the strength of the US dollar and its tied/pegged relationship with the Hong Kong Dollar our client felt he had further incentive to sell HKD (notionally USD) into EUR because EUR was weak. Whilst Prime Cap's traders will never ever attempt to call the market, we do have opinions and are in a position to present commentary on the relative state of one currency against another and one economy against another. We identified that sterling was in fact weaker vs HKD than EUR. Brexit negotiations means the GBP could in fact weaken further in the near term which would advantage our client. Furthermore, should the UK emerge more attractive as a result of said negotiations...and, let's face it, the only way for GBP was up in the longer term, then the client could benefit for a stronger position against EUR. Yes, he might miss a gap in the Parisian property sector...a gap he thought he could take advantage of because individuals, investors and institutions were troubleshooting the outcome of Brexit...however, GBP was still weak against EUR...so those he thought might rally property prices were struggling to liquidate their GBP denominated assets, meaning he hadn't necessarily missed the crest of a wave as yet. It is also worth looking at the yield our client could expect were he to park his HKD in sterling or EUR. With interest rates supposedly due to rise in the UK (which in turn would bolster the value of the pound) it seemed likely he would get a more favourable savings return from GBP denominated instruments than he would from those of the Eurozone. Sterling is a safe haven despite political and economic uncertainty. An asset manager might have advised our client to do something all together different with his funds. Prime Cap's role is not to advise our client as to what instrument or vehicle might improve their wealth, however, we have partners who do this. In the instance above, the overriding concern of our client was liquidity...not just in terms of asset class, but in terms of currency. Many of the indicators we look at suggested that taking advantage of HKD's strength against the pound would achieve the desired liquidity and also leave him well placed to operate in a rising GBP market. Like so many in his position, particularly in the private equity space, our client is keeping his 'powder dry'. He is biding his time before popping his money into a longer term more illiquid (but higher yielding) vehicle and he is choosing to use sterling as his 'waiting room' precisely because it is a stable, in demand, liquid 'safe haven'. #economy #liquid #illiquid #liquidity #currency #US #USD #USDollar #safehaven #GBP #CHF #SwissFranc #powerdry #PrivateEquity #PrimeCap

In recent weeks we have seen the pound rock against EUR from a low 1.10 in September to a welcome but pretty lack lustre high of 1.1450 in early October; and now back. These moves may not seem like much when you look at them on a screen or hear about them at the end of News Night, but, for businesses on the ground who are forecasting their costs and trying to make payments, these movements can be both costly and very unsettling. So, what can a forward contract do to help you? Are they right for your business and what do you need to know before using one? Let's set the scene: Over the last few weeks or we've been discussing on The Prime Cap Daily that sterling had risen against the euro and subsequently dropped back somewhat. In early October (18) it had climbed from a resolute 1.12 to a high of 1.1450. This literally means that for a business buying $150,000 worth of stock for the Christmas season, the GBP cost went from £133,928 to £131,004 almost overnight. YAY. A business could make a saving of literally £2924 just from the movements in the rate of exchange over the past few weeks. Now, neither Prime Cap nor the company in our example could have confidently predicted that the pound would move higher. For one thing, the move was on the back of, at the time, unforeseeable confidence about the proximity of the UK government to a deal with the EU. The reason why the rate went up isn't really the point of the matter...it is rather that GBP moved up by sufficient a margin as to afford the business in question a meaningful saving. Generally, when we talk to business clients we emphasise the point... ...'GBP moved up by sufficient a margin as to afford the business in question a meaningful saving...' ...to the exclusive of almost everything else. We are not speculators and, whether you're a client or not, familiar with our technique and rhetorical style or not, you will find that we focus on the change in the rate - the margin by which it has moved - rather than the reason behind the move itself. So, the business that has saved this near £3000 amount...what can they do? The way to approach making use of the move up in the currency you hold (therefore the currency in which you're spending your money) depends rather on a few key things: 1) cash flow/liquidity 2) lead time 3) the terms of your contract 3) settlement risk/protection 1 :: Do you have the money sat in the bank already to pay for your $150k of stock? 2 :: How long is the lead time between when you are invoice for the stock and when you have to pay it? 3 :: Do you have to pay in instalments - ie. 50% now, 50% on delivery? 4 :: What protection do you have should your customer default (or indeed your supplier)? Do you take a deposit from your customer? One thing that is sometimes overlooked by both currency brokers and clients is that the rate offered for a forward contract is not the same rate offered for a spot or same day contract. When we go to 'the market' to ask our counter-parties to give us a trade price on a forward contract, our counter-parties will look at a couple of things that wouldn't be factors were we asking for a rate on a simple vanilla spot contract. Interest rate differentials is one thing. Would the counter-party be making money holding a foreign currency with a higher rate of interest, than not? Clients also have to consider that because forward contracts are not available to smaller businesses (or individuals) the broker is inclined to, and probably entitled to, incorporate a premium into their margin. The supply of these contracts is essentially limited to brokers and the demand increases at times of distinct turbulence or volatility in the markets. We recommend that you do not let the difference between a spot rate and a forward rate put you off considering a forward contract in earnest. The rate is not really the point of a forward. What you are buying is protection from costs going up from where they are today. If you have a firm order and have been invoiced by your supplier, then perhaps it makes sense to fix your sterling costs now? If you have a UK supplier whose lead time is 90 days and the suppliers tells you that the cost of the order may go up or down by as much as 10% before they ship to you (due to possibly fluctuations in the cost of oil, freight, their raw materials etc. etc. etc), but you can firmly fix the GBP cost today by paying 1% extra on top of the invoiced sum...what would you do? 9 times out of 10 we thinks businesses would rather do without the uncertainty that goes with waiting 90 days. This is the approach we always urge business clients to adopt. A forward contract, although fractionally more expensive that a spot contract and although requiring of a nominal deposit, means you can totally and absolutely rely on the fact that you will not have to pay more when you actually settle the invoice. With a UK supplier, you might choose to delay paying them until closer to that 90 days deadline because you have cash in an interest bearing vehicle...or because you're waiting for someone further up the chain to pay you. Those considerations can be factored into your use of a forward contract too...in fact, they work far better when coupled with a forward contract. The entire reason and nature of a forward is that you fix the rate now, pay a nominal deposit, and then settle the contract at a time in the future. We invite you to give us a ring to chat through what has been going on across the currency markets of late. If you still don't understand how you might use a forward contract, or you think your business should consider hedging their exposure, then we would be delighted to hear from you...if you'd rather not speak with us, then do subscribe to The Prime Cap Daily. www.primecappayments.com | 0203 172 8193 | brokers@primecappayments.com #forward #hedge #euro #USD #sendmoney #payments #brexit

One of our distinguished private clients shared with us an interesting experience t'other day. He lives in UAE (Abu Dhabi to be precise). He was posted there with work and he and his wife upped sticks and relocated there fully for a matter of years. At the time he accepted the post his now wife was his then girlfriend. On their return to the UK they were wed. Whilst there are a number of topics we could cover relating to the exchange of his salary (he was being paid in USD) and the repatriation of UK earned income (he retained a property in London), this post focusses on something all together more personal. Although a number of his contacts had jewellers and ring specialists they could have recommended to him, whilst researching channels through which he might acquire an engagement ring for the person he hoped might become his wife, he came to the realisation that gems, in this case diamonds, we not in short supply locally (in the UAE). For a fraction of the price he might pay were he commissioning someone in London to produce a bespoke ring, he could consult with artisan craftsfolk in Dubai to create something special, unique, made to order and with a whopper of a stone thrown in for good measure. We are not writing to advocate the view that price is the only focus when considering what to ask one's significant other to wear on 'that finger', but, given he had settled on sourcing said ring locally, in UAE, he needed to exchange either his GBP savings or his USD accumulated salary in to UAE Dirham (AED) to 'pay the man'. Hence, he was able to call on our services to facilitate not only the swift exchange of currency, but the more competitive exchange of currency too. His USD earnings were held offshore. This meant he would need to electronically transmit them to us in the UK as US dollar and ask us to exchange them into Dirham for him and send them back to his Abu Dhabi AED account. To illustrate why this was an appealing solution for our client - and for the sake of the innocent, names and amounts have been augmented for illustrative purposes - our chum would, ordinarily, buy a ring priced in pounds sterling. This is because this is the currency in which he always mentally did his calculations. Therefore, not wishing to dip into the rental income accrued in GBP from the letting of his UK flat, he needed to calculate the equivalent US dollar value of the sterling amount he would otherwise have spent - as USD is the currency he earned in. Furthermore, he needed then to exchange that USD sum in to AED to pay his 'supplier' (if you will). So, with a GBP budget set at £15,000 we took a look at the market for him. No wishing to tie our illustration or calculations to a specific time (as you may be reading this some days, weeks or month's after it has been posted), we will suppose that the rate of exchange this client saw online (through the likes of XE.com) was 1.50. Were he to try and calculate the USD equivalent of this £15,000 using a rate of 1.50 he would have found that, in real terms, the USD sum it equated to was in fact more than would actually have been the case were he physically exchanging GBP for USD. Remember, he has set his budget in GBP, but wanted to exchange USD into AED to pay whomever he commissioned to produce the piece. There would be no physical exchange between GBP and USD. The rate he was looking at and hoping to use to arrive at an accurate representation of the USD equivalent was purely useful for calculations, and this is common practise amongst particularly business clients. When working out how to charge their UK clients (paying them in GBP), many businesses look online at the market rate, divide the foreign currency cost of what they're buying by that sum, to arrive at the GBP cost of the unit. For the client in question, we are perfectly content that he should use the mid-rate for his estimate as to the USD equivalent of the GBP he wants to spend. Were he a business though, we would have advised them to consult with us as to the actual commercial rate they should use for their conversion. Furthermore, we would recommend they incorporate a buffer margin into that commercial rate because they need to remember that no cost is fixed necessarily until their customer has paid them the appropriate sum or, at the very least, agreed to buy the item from them. Using a rate of 1.50 to work out the USD equivalent of the GBP sum he wished to spend, our client found himself with a USD budget of $22,500. Now, to work out what he had to spend in AED - so, to work out what he could afford to buy - our client would need to exchange that USD sum into AED (Dirham). With a fixed USD budget, were our client to ask someone to start work on a ring without having his USD in AED already, he might find that, by the time he actually came to pay the supplier, the USD sum he holds buys him fewer, or of course more, AED. So, our client has a choice. Leave the price he can afford to pay in AED up to fate (or indeed the markets), or, exchange in advance, thereby cementing the AED amount he has to spend. It is speculating vs certainty...and it is the age old currency dilemma. Whilst you might think there is a rather simple decision here, you would be surprised to learn that the vast (if not overwhelming) majority of private clients, when faced with a decision like this, opt to wait an see whether the rate will improve. Arguably, were the rate between USD and AED to move favourably for our client then he would have more AED to spend and might be able to buy and even bigger rock, but, we think that it is always preferable to make sure that you're not going to be paying more than you expected...hence, our recommendation would tend to be for him to exchange well in advance of commissioning a ring and then to negotiate in the local currency. Our client could pay his ring maker using a credit card, we suppose. So his US bank is debited to the tune of the USD equivalent of the AED cost of the ring. Alternatively he could simply use his bank to exchange USD to AED. The reason he used Prime Cap is because, implicit in our proposition is the fact that he will be buying more AED with the USD he holds because our rate of exchange is more favourable. When pitted against a UK high Street bank we can usually confidently give an improvement of anywhere up to 3.5% - this means his AED spend can/could increase by that amount...as it happens, we did a live 'like for like' comparison against his Emirati bank and found that the improvement was a whopping 6% versus the rate they would have given him. The rate of exchange between US dollar and UAE Dirham is a stable one - fixed at 3.67250. For that reason our client didn't have to worry too much about a shift in the rate either for or agains him. That being the case, the overriding issue was the mark up or deduction he might otherwise have faced had he simply used his bank. With our help he was able increase his AED buying power...we have no doubt his now wife's left hand is grateful for the added weight it now has to bear. If one piece of information not in your possession can save you money and bring you piece of mind, then, talking to the person who can provide you with that information is not only sensible for necessary to achieve the best result. We're available for a no obligation discussion on 0203 172 8193. #Diamonds #USD #AED #Dubai #UAE #Antwerp #gems #Jewelery

In our work as a financial services supplier to businesses and corporate clients we have achieved notable penetration in the interior design and lifestyle furnishings space. Our success stems from the perception, amongst our peers, that the sector at large does not deal in sufficient volume (in terms of payments activity) to warrant more vigorous courtship. This is of course a spurious notion and one we are the beneficiaries of. Payments systems, margins on purchases from abroad and strategies as to how to offset the effects of undesirable movements in rates of exchange all feed in to the tailored offering to owner managed and larger interior design studios and brands dealing in overseas markets and procuring pieces, collections and lines from wholesale brands located outside the UK. We already make payments to suppliers like Eicholtz, La Fibule, Interni Editions, Monpas and more. Here we take a look at the process from invoice to settlement and shipment. What advantages do we offer interior designers, their suppliers and their clients and why do we feel we have been able to establish a notable presence as go to payment services supplier for one of London's more salubrious sectors? Observations: Like so many sectors, interior design - whether dealing direct with clients on the scheme side of things, or supplying to the sector - relies on relationships. These might be relationships with private bankers, estate agents and private offices dealing with the demands of private and corporate clients, or they may be relationships with suppliers to the trade - lighting, carpets, furniture, wall and window treatments. Interior designers tend to work with suppliers and brand known for quality, timeliness and reliability. Solutions: Because clients briefs and budgets can vary quite wildly, interior design studios rely on a little black books and preferred supplier list. Partners that can not only accommodate the schedule of the project and it's budgetary specifics, but also their mark ups (should they apply them). Lead times on items vary regardless of whether or not they are made to order. This is one of the main areas where a broker like Prime Cap can have a measurable effect on cost. From the date on which a pro forma invoice is issued, to the date of payment for the item(s), rates of exchange will change either in favour of the buyer or not. Strategy relating to the mitigation of unfavourable movements in that rate of exchange tend to be reserved for large scale wholesalers importing collections, but, in the world of high-end interior design the benefit of such strategies are no less valuable and feed directly into the margins achievable by design studios. Smaller design outfits tend to shy away from directly handling client funds. They prefer to present the client with an invoice from the selected supplier. If a project relies on numerous suppliers to deliver for instalment and if multiple suppliers are being used then the client bears the brunt of not only the payments costs but oversight of more than one rate of exchange used for the myriad of different payments than need executing. The trade relationships interior designers have with the suppliers tend to, in our experience, leave room for the incorporation of a mark up of goods. By this we mean that the design studio can buy from the supplier at cost, but often the designer will ask the supplier to incorporate|apply a mark up. The client will oft be able to buy the item at better than the retail cost so the client is benefitting from the relationship their designer has with the supplier, but, given the designer tends to be receive that market up in a foreign currency, their margin on the purchase fluctuates to the same extent and the clients costs and this is something that we can help of mitigate for both parties. Many suppliers will not release product, or even begin the production of product, until they have received at least a deposit amount. An extension of the point above is to acknowledge the fact that, if paying a foreign currency amount, the cost of the item might in fact increase between the date of the deposit payment and the final balance - why not fix that price from the off? It may not seem like much, but, Prime Cap can have a supplier paid the same day. If we are introduced as a payment service directly to a client by the interior designer then our ability to update stakeholders as to the progress and completion of a payment means the designer knows precisely when the product is paid and, importantly, when that payment is received. This can shave valuable time off the dialogue between the designer, the client and the supplier. Being able to shave a few percent off the total foreign currency cost of procurement may not seem like much, but we doubt it is a saving the client would turn down, especially when their ability to use our services is quicker and simpler than paying the supplier direct. In collaboration with accounts teams we are able to provide project delivery teams with itemised statements as to what has been paid for and when. Notably, either in their own right as a corporate client of ours or as a client introduced to our services, a ledger of all payments associated with a project can be created and disseminated to all relevant stake holders. For Interiors firms who pay suppliers themselves - if they hold stock or if they are paying on behalf of their clients - we are able to incorporate a margin into our calculations too. So, making sure we exchange currency at a better rate than the client or the designer can achieve by using their bank, a percentage of mark up can allocated to the design studio and the associated costs come in lower than retail - it is an extension of the same principle many firms already use. Cost is one thing, but the quality of the service and an understanding of the demands and concerns of our design clients tends to be a truly important aspect of our offering. Businesses dealing with a new overseas supplier may worry about the bank details they should be using. They might have questions or concerns over how quickly a payment might arrive and how they can be assured that the money has cleared in the right place. Our brokers are on hand precisely to address these questions and to clarify, correct and reassure when necessary. If an item needs to be returned then, again, the improvement we offer on our margin means that refunds will be greater than they would be were firms simply providing their own sterling bank account details to the supplier. Systems for dealing with international suppliers are rarely the same across this sector. We find that this is because, with respect, many interior design businesses begin as lifestyle businesses. The mechanics, innovations and efficiencies of a more mature or established business can often be overlooked which results in hard won margin and revenue being left on the table. We know the space. Our staff are equipped to deal with clients, suppliers and studios sensitively, patiently and in the language, context and subtext of the matter. If you would like discuss our work in this area in more detail then do pick up the telephone. Many of our corporate clients in this industry are minded to refer and introduce us to their contacts and peers so you may find that someone suggests you speak with us in the fullness of time and, with that in mind, we look forward to hearing from you on 02031728193 or via enquiry by email: brokers@primecappayments.com #buyingabroad #overseassupplier #suppliers #import #interiordesign #luxurydesign #purchasing #supplychain #Primeresidential #Designservices

A huge number of people use their bank to send an international payment. Whilst this is totally unsurprising, we'd like to give you some reasons why using a company like Prime Cap might be better, cheaper and easier. The rate you'll get: For a couple of reasons, your bank isn't minded to improve a rate of exchange when pushed to do so. A lot of time and money was no doubt spent on your bank improving and refining their online banking offering to their customers. Sending an international payment from that online banking platform, although an increasingly desirable feature, was never at the heart of such developments...and this is largely because, actually, of all the customers a bank may have, relatively few of them will ever need to send money to someone abroad. Therefore, whilst it cost the bank to develop and implement the ability to send and receive a payment, bank's include this feature as a default measure, rather than as one designed to tempt customers to move to the bank and to use their services. We tend not to hear about someone changing their bank because the rate of exchange is better, or moving from a bank because the cost of sending a payment is high. These elements tend to be secondary to lending, savings and current account products on offer...unless of course you are a business for whom expense is key. So, as a default feature of an online banking platform, international payment capabilities are priced at something of a premium; hence why you pay more. You use these features infrequently and as a result you get a less competitive pricing and cost structure. Prime Cap and our institutional partners deal far more regularly with our bank when it comes to international payments, than you do with yours. For that reason we are able to command a lower cost of engagement. It costs us less to send a payment than it does you. So, for as long as we are prepared to pass on some or all of that saving to you, you are able to reduce your own associated costs. Additionally, we exchange far larger amounts of currency with our bank. Being in the business of exchange currency, professionally, means we know how to push our banking and currency providers to give us better rates. Just as you might say to your currency broker that you are getting a better rate elsewhere, so can we say the same to our bankers. Our bankers want us to place our many hundreds of thousands of pounds worth of foreign currency activity with them...and this is precisely how we can offer something more competitive and attractive to you. Usually we can reduce the transaction cost of a payment by between 50 and 80%. Also, we can increase your buying power by between 1.5 and 2.5% by providing you with a more competitive rate of exchange. We do this by making less money ourselves on an exchange. Our fees and costs for exchanging currency and sending a payment are akin to a wholesale transacting structure, and, as our retail customers, provided our mark up is less than a bank or another broker, you get more for your money. The 'How' of sending a payment: Did you know that there is more than one way to send a payment? There are a few contracts made available to companies like Prime Cap which are not directly accessible to retail bank customers. Even though you may be aware of the useful contracts and tools available to you through companies like us, are you fully versed in how to use those contracts to best effect? We suppose not and this is why we place emphasis on the value of speaking with our team about 'the how'. Currency brokers, whether purely online systems like TransferWise or Revolut, or more comprehensive like Prime Cap, will provide you with a better rate, but, unlike those aforementioned brands we can add to that underlying price improvement and cost reduction by coupling those benefits with expertise on timing and strategy, for free and uniquely applicable to what matters to you. Our Audio content has been developed specifically to talk you through the use of some of these contracts and tools and to elaborate on the key differences between purely online and the more blended brokers out there. CLICK HERE to view our audio content. Let someone else take care of it for you: In pursuit of the easiest way for topping up your account abroad, once you've established that price and product are appealing, the execution of a transaction can be looked at. Prime Cap refers to three different 'Service Wrappers' within our solutions based approach. You do not need to 'select' a service wrapper that you wish to work within. We do this for you. What you want to achieve and what we can identify as core to the way you might like to work with us will mean that your activities fall within one of the three categories we outline across our FAQs and Data Centre pages. If you want us to we can do everything for you. Our Fully Managed service wrapper means that you simply need to electronically send us the money you want to exchange. You do not need to worry about what rate you will get, where the funds are going or how long they will take to arrive. This is because we will, throughout the course of our initial fact find, have confirmed all of these details with you, and we will have set the relevant permissions and preferences for you in line with achieving your desired outcome as quickly and cheaply as possible. 'Prime Managed' relates to a very much more hands on role for our front of house team. We liaise with your solicitor, accountant or wealth manager directly and confirm the exchange, receipt and release of funds with both them and you at each stage, but, crucially you do not need to feed this information backwards or forwards. We do this for you. Our other services wrappers, whilst reflective of your demands and needs, are characterised by your involvement in the processes above. Some clients want to take of everything, start to finish, and simply want to login to our online system, get a rate and deal without any direct action on our part. This is something we happily facilitate, but, you can take absolute confidence from the fact that we will be watching your online activities to make sure that you're doing what you want and we will only engage directly should we spot something that might have been overlooked or is not in keeping with what you've suggested you're trying to do. No one wants to feel like they are being micro-managed, and our facilities mean you can be totally in control, but, we are committed to the belief that you get the utmost in value for money when we are behind the scenes guiding you on request. We do not want our clients to feel they have no one to call. We've all tried to call our bank because their systems don't seem to be playing ball. A huge amount of effort has gone in to anticipating these issues on our part, but also, you will have the name and contact number for your broker, so, unlike with bank you will always be speaking with someone familiar with your activity and able to action assistance immediately should it be required. Using a currency broker is a quicker, cheaper and better value way of getting your money from one account to another. If you are in any doubt as to the validity of that statement, then we can happily connect you with happy existing clients who have made the change to their practises and not looked back. www.primecappayments.com | 0203 172 8193 | brokers@primecappayments.com #online #payments #foreignexchange #currenyexchange #currenciees #transferwise

As a membership club PCD Club provides a number of touch points between guests, some unique, which are essential for meaningful long term business development. The Club has developed over the years to a point where it now has a global footprint and an enviably diverse calendar in London and further afield. We wanted to know more about The PCD Club events, who attends and how small or medium sized private client practises can stand out, what they can expect, and what is to come from The Private Client Dining Club. We sat down with David Bell, founder of 'The Club'. Finding himself in a similar position to many of The Club's members, David wanted to engage with professional contacts he knew, liked and trusted and, more than that, he wanted to expand his network and develop his relationships with key contacts through his connections with existing contacts. The ultimate peer to peer network(ing). For a company like Prime Cap, the idea of one's trusted contact propagating one's business by word of mouth is a very strong attraction. The key feature of many of the PCD Club events is personal exposure. Sitting down with fellow attendees over dinner gives you access that is second only to a personal introduction from a friend or client and, like many of our fellow members, we believe that is worth paying for. David, you’ve been in the position of many of your members - personally nurturing a network in pursuit of solid and qualified private client contacts and, ultimately, 'referrals'. What advice would you give members arriving at a PCD Club event? The only way to network with professionals is with a relaxed and open mind. Try and learn and understand the business of those you are speaking to. I always try and work out if there is anyone in my network already that I should connect them with. Very few people actually seek to help someone else before pursing their own agenda, and doing so helps you stand out. When you have built rapport and 'capital' in a relationship you can ask for something in return, when the time is right. Now turned ‘game keeper’, what do you look for in a PCD Club member and how do you ensure the standards across the network in terms of applicants for membership? My ideal member is good company, gets involved with our events in other jurisdictions and has a relevant product or service to provide. The group has grown organically from a base of quality people. Now that we typically charge £1,200 + VAT for the year for membership, we can keep quality high more easily as those prepared to pay that amount are usually from the right firms. The tone of our events is relaxed and very sales orientated people don't find it appealing. PCD Club has a footprint in nearly every established HNW private client hub, globally. To what extent do the events differ regionally? We have developed a consistent format across locations, which is recognisable. One of the big differences is general business confidence: there is a great sense of opportunity at our events in the Middle East or Hong Kong versus events in Europe. Advisors are looking after international clients with similar challenges in their personal and business life. That similarity creates common ground for them to explore opportunities together. New international connections help advisors break out of over-broked domestic markets. What can a would-be member expect from one of your events? They can expect to meet high quality, sociable professional people actively engaged in the private wealth sector. Most guests come from private banking, legal or tax professions. We operate well organised events in nice venues that are centrally located. The evening is structured to maximise the opportunity to meet other guests in a relaxed way. Where would you like to go next? What is the frontier you would like to breach? We would like to enter the US for an event in New York and Miami next year. We are also trying to become more established in Asia. If you look at the macro economic forces and trends, any international business today has to have an answer on how to do business with the US and / or China. They are the powerhouse economies that will define the global economic agenda. Europe is a stable environment for professional services but will not yield explosive growth in any particular sector. The concept behind PCD Club is almost the antithesis of the online, avatar driven networking that characterises millennial network building at the moment, and yet, PCD Club’s growth has been incredibly strong in recent years. Why do you think that is? Ultimately people want to meet and understand each other. Online platforms like Linkedin have been great for PCD in bringing the online into the real world. We are seeking a strong online presence to support our Live events. As our network gets more international and global, we will seek to introduce more tools to connect members in distant geographic locations to help facilitate business. It is hard to establish real trust through an online or virtual connection, this comes with spending time together. As you can probably tell, we at Prime Cap are big fans of PCD Club. It is, however, just one of the channels through which we seek to nurture and develop relationships with complementary private client businesses. What David outlines above speaks strongly not just to the way we like to work, but in support of our own experiences of dealing with internationally minded advisors to private clients. Rapport is key and without it one can't really develop beyond small talk. A great many business development or salesmen and women think that product and circumstance serve as key persuaders. That somehow the fact that you're both at the same event means you share something. You simply cannot beat having an openness to remember and refer other members. Demonstrating that you are thinking about fellow members 'outside the chamber' (as it were) is a sure fire way of standing out from the crowd. Over time we have been able to demonstrate credibility. The very first person next to whom our MD sat at his first PCD Club meeting (in 2010) is still a valuable client and referrer. He was an accountant and only attended once, but, on the strength of the connection made on that one occasion, PCD Club has become a fixture in our calendar. We have found that as our commitment to things like PCD Club has gone on our reputation has grown. Now, that may just be people being polite and giving us a knowing nod when we mention the name of our company, but, we are receiving business and referrals from PCD Club members we've not actually met...and we believe it is because of the unique focus of the PCD Club evenings. Through their format we have been able to make meaningful connections that go beyond our immediate sphere - and that is worth paying for. "Engaging and inquisitive people with a common goal - to get to know industry peers in an informal setting... Thoroughly worthwhile and I will be suggesting it to my own contacts" MD | Prime Cap. #privateclient #networking #referral #PCDClub #DavidBell #international #businessdevelopment

Bored of very dry 'macro-focussed' assessments of what went on yesterday and what fathomable and unfathomable outcomes might arise from global butterfly effects across the capital markets - we have decided to bring you a short two minute overview of what we will be talking to our customers about, briefly where major rates of exchange find themselves and what could prove pivotal to the value of the pound in the coming days if not hours. We're aware that, without consistent subscribers, The Prime Cap Daily may simply end up being a video diary and little more than indulgent folly, but, customers do call us to talk through their options and what rates are doing, so it makes sense to provide you with access to our initial thoughts before the day gets going. Added to which, we will start adding in little asides about how someone (business or individual) might actually use information and our products/contracts when they're considering their currency exchanges. We have already had a number of requests for elaboration as to how an improvement in the value of the pound can be made use of for companies buying product...so, on a daily basis, we want you to come away with a sense of how we would advise you to approach your exchange. You won't find us suggesting you should wait till tomorrow because we think the rate will be better, but you may find our thoughts on the relative strengths and weaknesses of certain currencies useful whether or not to exchange them; and for something more details you just need to give us a ring. Our YouTube channel - The Prime Cap Daily - also carries 'How to...' videos on making a payment, what we use our own Data Centre for and, in due course, explanations as to how to marry data releases against the use of contracts like forwards. We'll always advocate picking up the telephone to us, especially if something we've talked about in a morning broadcasts needs to be explained further, but, at least now you can get a wee overview of some of the key talking points without having to sift through the dry broadsheets, or rolling your eyes at how little information is contained in the Metro on your commute to work. Happy hunting and CLICK to Subscribe here: #ThePrimeCapDaily #PrimeCap #Youtube #JamieLesinski #news #data #economics

Since our last commentary on the process of 'exiting the European Union' circumstances have changed a touch, but not much. The pound has certainly lost value, but, do the reasons why tell us anything about what to expect as we approach the end of the year? The potential for "hard Brexit' vs. the likelihood of a 'soft Brexit' has played out across the currency markets and seen GBP Sterling punished across the board. If the only attention you paid to exchange rates is qualified through the prism of a Brexit lens then you might think that such a drop was pure and simple condemnation of the government's strategy... We would encourage you to remember that, it tends to be the case that, the pound softens from July through to the beginning of the fourth quarter, Brexit or no Brexit. Europe was on holiday, Parliament was on recess and institutions and investors slope off to the safe haven that is the US dollar (or previously somewhat the euro) to wait until things hot up in the UK retail space. Although at a multi year low, given the broader context, you'd be forgiven for your surprise that the pound has in fact held it's current position. Things are no more certain than they were before the usual seasonal lull, in fact, many are more pessimistic following the fallout from the Chequers proposal. As brokers, what we're finding slightly annoying is that the media is using the drop in the pound as evidence of a broader global rejection of UK Plc's plan. Of course it is the case that Brexit has given many cause to pause before diving into ventures and investments in the UK, but, it would be wrong to over egg the significance of an exchange rate move given that this is a time of year when the pound always looses value anyway. EU and UK ministers have come out and suggested that a deal could be only a matter of weeks away. Pitch that against Labour stating they will vote down any deal put forward by the government, and one can understand why GBP is having rather a torrid time of it. Turbulence will continue to animate the markets. In fact, we are of the view that swings in the currency will on get sharper. On 10th oct we saw GDP figures and a swathe of sentiment released to the market. This made barely a dent in GBP's fractional rally to the dizzy heights of 1.1450...from this we conclude that, with the shortening of the days comes a narrowing of the market's appetite for 'priced in' data that is indicative of Brexit uncertainty rather than overt contraction in the UK's performance. Remember, productivity is somewhat 'up'. So, Holding a foreign currency? Selling it before the market gets more choppy would not be a silly thing to consider. With a no deal you will find GBP weaker, but, everyone seems to be attempting to move towards some sort of the deal, hence, the weight of momentum is against you for now. Forward buying wouldn't be a bad idea, but, why bother when holding GBP might very well yield you more anyway. If you would like to chat about your matter and any exchange you are considering then we humbly invite you to give us a call. We are not technically, micro (or even macro) analysts, but there is value in you understanding how a commercially priced rate of exchange differs to that of a high-street one, and in you understanding how the two are priced differently...that is what we are here for - even if our dissection of the markets is a touch rudimentary. 0203 172 8193 | brokers@primecappayments.com | www.primecappayments.com #brexit #uk #economy #sterling #euro #productivity

You may have seen that a number of our recent social media posts have referenced the Rugby World Cup to be held in Japan, September 2019 and some other sporting events. So taken were we with the foresight of one of our clients - Joro Experiences - that we thought we must share the strategy we have discussed with them. For one thing, thinking about payments they have to make some 18 months before deadline is commendable, but also, penning a bit about the reason for the payments they need to make is a good way to show the diversity of the payments and transactions we are instructed on and can cater for in a corporate context. So, a luxury travel brand (introductions on request) is in discussions about a booking from an individual keen on going to the Rugby World Cup in Japan. The individual in question would like to pay for this booking in US Dollars. Our client is a UK based company, but, sensibly they have a USD account - they use one of our 'named accounts'. This serves more than one purpose. On the one hand it means they can invoice their clients in USD - yay! Their client base is a global one - truly representative of the reach of contemporary travel businesses! Also it means that they can carry a USD 'float' which enables them to happily and comfortably pay away USD expenses. So, rather than exchanging USD into GBP Sterling (the primary currency of operation) and then exchanging currency back into USD when they need to pay a supplier, they keep the USD revenue as US dollars; and just make a. same currency payment when invoiced so to do. Their customer paying them in USD can choose which currency to pay them in. In terms of convenience it is unlikely to be a deal breaker, but it is a nice touch. We, rather tongue in cheek, congratulated them on unearthing the most important thing about dealing in foreign currencies - if you're a business and you can avoid making a foreign currency exchange...do! This matter (booking well before time) presents our client with more than one issue. They're quoting their customer for a package/trip that is scheduled for 18 months from now and, as we all know, exchanges rates will move. So, what are the key concerns here...and how does our client make sure they don't lose out on margin and ensure they're not carrying undue risk? Between now and September 2019 the rate of exchange between USD (US dollar) and JPY (Japanese Yen) will go both up and down from the current point. When calculating what USD/JPY rate to use to provide their customer with their quote, our client, like many, looked at the Prime Cap Data Centre and took the prevailing 'market rate' of exchange for their numbers. The first thing to stress is that unless you actually lock in the rate you use for your calculations at the precise time you calculate your figures, you're going to find that the rate is either higher or lower within in moments of your tapping the '=' on your calculator. Rates of exchange do not stay where they are...so, the only way for our client to ensure that their costings are accurate is to fix the rate the moment the quote is produced. The trouble is that this is sometimes not realistic or practical to do so, especially if cash flow plays a part in what contract you can use for your currency booking. They're quoting on a trip. Their customer might or might not accept their quote...in which case, had they fixed the rate, they might well find themselves locked in to an exchange that is no longer going to happen. Every business wants to avoid this. So, therein lies one of the first issues for businesses with such long dated sales pipelines. What happens if the customer changes their mind? What happens if the rate moves between when you provide a quote to the client and the client gives you the 'green light' for the trip? If the rate goes up then you're making more margin, but, you're client is getting less value. If the rate goes down you're eating in to your own margin...should the client pick up that cost with a requote? These are just some of the perils that businesses face when a) they're buying well ahead of time and b) they're being paid by an individual for a specific project/matter. So, how does our client approach these issues? We suggest they incorporate a buffer or 'extended margin' in to the USD price they quote their customer. It is always favourable to revise down costs rather than have to justify a price increase. Our client is providing their customer with a convenient way of settling a transaction. Therefore, provided that the buffer is not too wildly uncompetitive - and, because we can afford them a comfortable improvement on the FX margin, they could simply price the transaction at 'retail' - their customer should be happy to acknowledge this as a welcome alternative to exchanging their USD into GBP. So, our client has applied a buffer to the USD amount they intend on invoicing their customer for, so as to ensure that their base margin is intact between quoting and formal booking. We can advise our client on what buffer to include. They do not need to call us necessarily and they can use the same 'mid-market' rates as published on the Prime Cap Data Centre to simply calculate how to quote their customer, but, our brokers are always and ever on hand. But, this is just one element of the equation. We've still not addressed how to ensure that the unit cost in JPY can be bought with the USD paid by the customer. One has to equate to the other. How does our client protect themselves against a drop in the value of the USD between now and September 2019? Well, typically we would recommend the use of a forward contract. This is an instrument which means that we say to our wholesalers "we agree to buy 'x' JPY but we would like them available for us to release 3, 6, 12, 18 months from now." This product is a means by which businesses and individuals can lock in today's cost and lock out their exposure to the rate moving over the term of the contract. "It is tremendously clever, rarely applied and wholly underrated." The use of this type of contract, particularly in this instance where our client relies on payment from an individual customer, is not risk free. Our client and we still have to take into account the chance that in 18 month's time, when the contract matures and the World Cup payment is due, his customer may not want to pay. The customer might back out for any number of reasons: The USD has strengthened against JPY and he can now pay less. He no longer wishes to go on the trip. He gets hit by a bus. So, our client needs to protect themselves from the risk of their customer not paying. The contract struck, the forward contract, is between our market principle(s) and our client. So, now the question becomes 'how do we ensure our client's costs/margin are fixed, whilst ensuring they are not unduly exposed to the chance their client might not pay for the booking? Well, because our client is a direct 'B 2 C' (Business to consumer) company, they quite rightly ask their customer for a deposit to insure their booking. So, what part could that deposit, collected by our client, play in ensuring our client is protected from the risk of the client defaulting on a forward contract taken out to cement the cost of their trip some 18 months from now? To answer this we need to explain how a forward contract works and what happens if someone does not wish to pay for it. How does one 'unwind' this instrument? When buying 'forward' one is simply saying to an institution "please can we agree a rate today for the provision of the agreed amount of currency on a date some time in the future." We are agreeing to pay the base currency amount on the agreed date, and the institution we are dealing with agrees to make the foreign currency amount on the same day. If on the day of maturity we do not have the base currency then we can either ask our counter-party to be lenient and wait for our client to settle, or we ask that institution to unwind the position. This basically means that, say we're holding €10,000 having sold £7500...we sell those EUR back in to GBP. We have to hope that at the point of sale that €10,000 can purchase back the £7500 we cannot deliver to our counter party. If the foreign currency has strengthened in value then €10,000 possibly buys more than the initial £7500 sold. However, if GBP has strengthened then €10,000 will no longer buy the same amount of sterling...€10,000 buys fewer GBP than is owed to our counter-party. In this case there is a shortfall, and it is this shortfall which our client (the entity with whom the transaction has been agreed) who is liable to pay that shortfall. This is why some currency brokers ask their clients to lodge some money with them. It is that lodged money which is used to pay any shortfall should one arise. It is worth noting that in over 10 yrs of buying and selling currency, we can count on less than three fingers how many times these types of products have been unwound at our instruction. This is because we are very very careful to make sure that our client knows the risks (of their client not paying, for instance) and very careful to ensure we are not entering in to a contract that we worry might not be settled at the point of maturity. So, back to our client the travel company - having bought all the JPY they know will be owing come September 2019, forward - what confidence can we give them that they won't be on the hook should their underlying customer back out? Our client took a deposit from their customer. This deposit is non-refundable. No doubt there would be other penalties to our client if they backed out of such a booking with the JPY supplier...but, provided they have asked for a sufficiently large deposit from their customer they should be able to cover any shortfall and pay the penalties that might or might not be levied by their suppliers. Therefore, built in to their own operating model, is the failsafe that ensures our client is not unduly exposed to the risk of settlement default. As this post no doubt illustrates, the particulars of these types of strategies and the contracts appropriate for getting rid of exposure to moving rates and consolidation of margin, are entirely specific to the matter at hand. You cannot expect this type of bespoke solution from an online transfer service like the one's animating personal foreign exchange activities across the global payments space. Give us a ring on 0203 172 8193 if you would like to talk about this or any of our services. We remain at you service. #IRD #IRB #Japan #Rugby #Forwardcontract #Currencyexchange

Whilst the personal payments industry as a whole owes a great deal to the likes of Transferwise et al for engaging it's target audience in a dialogue about 'out-of-touch' charging, is their approach disingenuous? If you have ever tried to do an online payment through your bank then you will know that the cost of sending the payment and the rate of exchange offered and applied to the exchange itself are two different things. Your bank will show you what rate of exchange they are prepared to apply. This will include their mark-up or 'margin'. Many would argue that a bank should not be marking up this rate of exchange at all, but, in the same way that a lot is said about how we enjoy predominantly free banking in the UK, no service should be free if it is worth having and you, as the customer, are entitled to judge the worth of your bank based on their foreign exchange margin in precisely the same way you would their savings interest rate of their Standard Variable Rate on your mortgage. Let's say you hold pounds sterling (GBP). That is what you own. You do not own Euros. You can buy euros with your pounds sterling, but, you do not get to set the price or cost of those euros. You are at liberty to go to the most competitive institution to buy the euros you want... Surprising as it may seem - this is essentially a piece in defence of your bank (ish). Yes, 'tech' advances mean that the effort and expensive man-power that go into servicing a portfolio of clients over an online platform is far less than it was when the sector was young and manual, but, banks charge you what they consider a fair price for the level of investment they have put into catering not just for that, but all your day to day banking activities. Should they be demonised and mocked if someone else can do it cheaper? Whilst you reflect on that question we have a scenario for your to consider: If the restaurant up the road from you makes delicious pizza and sells it for £10 a go, but has a mandatory charge of £2 to deliver it to your door, when I come along and offer you the same £10 pizza but say I will only charge you £1 to deliver it to you, can I rightly say I am 50% cheaper than the restaurant up the road? I suppose I could, but, if I was purely telling you, blanket, that I was 50% cheaper than the restaurant up the road, you would be forgiven for thinking I was selling my pizza for £5, right? Do you see the clever technique used here? Whilst we in the personal and business international payments space owe companies like Transferwise a huge debt of gratitude - because they spent the money on advertising to engage our target market in a discussion about cross-boarder payments - does that mean that we should turn a blind eye to the small print or spin? Their newly launched multi-currency account charges a 0.5% margin or 'fee' for all currency exchanges using this new facility. They do not publish the mark-up/margin they apply to your exchanges if you do not use this multi-currency facility. Whereas they exchange you money at what they call the 'real' exchange rate, they also charge you a standalone fee for their service. These #fintech unicorns are not the Robin Hoods of international finance; they are just making use of loopholes which will be common place in years to come. We suppose the question is 'do you care?' The most critical indictment of the banking sector is to do with the unjustifiably large margin they apply to the exchange of payments, not the flat and upfront fee for the electronic transmission of funds. How, therefore, is a company like TW operating any differently and, the more pressing question, not being called out on it!? Certain high street banks offer exactly the same mark-up to their bigger corporate customers (the same mark-up as this new 0.5% TW fee), and yet, technically, Transferwise would still assert they are up to 80% cheaper than these banks because they charge £4 to transact the money as opposed to £10. Focussing on the transaction fee is focussing on one aspect of an international payment. It ignores the far more costly abuse of a client's trust that comes with taking a margin wider than one should. With a huge number of clients now on their books, this large player in the international payments space has spent the money on acquiring their client-base and have/are simply and covertly adopting the practises of their main competition now that those clients have lost faith in their banking provider. >>> . We're not totally sure that is fair . <<< The larger a company the greater their buying power and, by extension, the more competitive they could/should/would be - were it not for the fact that stakeholders in their growth and development now want their trust and investment to be rewarded. If Prime Cap said we would send your money abroad for free, with £0 charges...does that mean we are 100% cheaper than high street banks? No. That would be patently absurd; and yet, messaging like that is at the core of Transferwise's marketing rhetoric. So, we mention this not to dismiss or rubbish the competition, and not to absolve the banking sector from their obligation to provide value to the various parties invested in their monopoly (private & public), but, rather because we believe that promoting yourself at someone else's expense is a short term strategy, easily unpicked...and, the premise a customer buys into should, in our view, be about using technology, as a whole, to best effect - this cannot be done without guidance. Bring us a rate of exchange and we will be more than happy to 'quote you happy'. As all our prices, terms and solutions are bespoke, you won't be able to compare us until you call us, but, so committed at we to ensuring your time is not wasted, we will ensure our rate is better than that of the next man, regardless of how well funded they are! - RANT OVER - We look forward to your call. 0203 172 8193 #transferwise #currency #currencypayment #bank #online

The best advice we can give the would-be traveller or holidayer is to imagine that there is no rate of exchange. Imagine that the country you're visiting uses the same currency as home. £1 for €1/$1. The reason we suggest this is so that when you get home and you look at your receipts, you'll have a nice surprise when you realise you actually spent less than you thought. On the flip side you can drive yourself potty trying to find the most competitive place or mechanisms to shave fractions of a cent off the rate of exchange when in fact you'd be better off not buying that ice cream at the beach...the saving would be about the same. Now, let's put cynicism to one side for a second - in this series of posts we will look at the common mistakes of the seasoned traveller and suggest some useful hints, tips and pointers that should save you time, money and angst. 4| CHALLENGERS The current high street banking paradigm is rather a simple one. Financial institutions - those with a 'banking license - provide all things monetary. As core facets of a growing consumer capitalist model they are the go to providers of that which makes the world go round, money, and as such they have also become the purveyors of other products and services like insurance. Borrowing, lending, investing and saving. These are the key areas catered for by banks and these are the main revenue streams for them too. In a country like the UK you may think there is little, intrinsically, that separates one high street banking brand from another. You would be correct. So, where are the areas open or ripe for change and development? Presentation and engagement is probably one of the most obvious. Many of us are used to the emotive and overly produced advertisements for the sector. Within the first few moments one can guess the ad is either for a bank, a car or a mobile phone. It is all about the same imagery. They're trying to take us on much the same journey - and yet, the majority of us are bored of the stale and predictably economised service these huge organisations back their flashy ads up with. We are the one's opening the doors to challenger financial services brands. There is a service war begun. Big banks want to hold on to their monopoly. Challenger financial institutions want to find the unicorn that captures the imagination of the main stream market. Pre-amble out the way - when it comes to accessing and using your local currency, the currency in which you earn, there are a number of clever ways that enable you to circumvent or avoid any, many and some of the issues we mentioned in parts 1 - 3 of this series on cash currency. :: Convenience. :: :: Competition. :: :: Control. :: Challengers are not just going after your spending abroad. They are trying to shift the entire conversation about how, when and where you use money and financial products. This means that when you buy-in to one of these brands, becoming an early adopter as it were, you're buying in to a business that will continually push itself to undermine the familiar in such a way as to prioritise the three elements above. Unlike the other posts in our series, this one is a bit trickier to pitch. There are no glaring shortcomings to the offering of brands like Revolut, Transferwise, Starling, Ripple, Monza etc. - and we say that both as consumers and potential competitors. Yes, Prime Cap is only a competitor of these brands in as much as these companies try to offer competitive rates of exchange, but, be assured we will never be straying concertedly into the financial services space at large. Now, what does all this have to do with getting cash out for your travels? Cripes - will you get on with it! - ha, LOL. As we have said before - finding a debit card provider that won't charge you for taking money out overseas or using the card in overseas shops etc. is something of a goal. If one can also find something that gives you a good rate of exchange to boot then happier days. Starling bank is an obvious stand out from our perspective. Because Starling do not view 'foreign exchange' and the conversion of your money as a revenue channel per se (they prefer to win you borrowing and day to day spending) they sell you the currency more cheaply than your bank would. They give a better rate of exchange. You have a debit card, but, funds are debited straight from your sterling account rather than loaded to the foreign currency you're using whilst away; so you're not committing to the exchange of a set sum you might not use and then have to sell back. This is a plus and something we think is personally appealing. The very same thing is true of Revlout. You can either load/exchange a certain amount of money as the currency of your destination or you can opt for a live exchange from the currency you hold. With both these providers you have to remember that the rate of exchange moves with the market, so, just because you see a nice rate on a Friday does not mean that by the Saturday morning you're going to be able to use the same rate. That is the nature of the live market. Frankly, we like this because it ticks the control box and is more user friendly that these currency cards which lock you in. One of the slight downsides is that you're not insured for misuse by others - someone can still pinch your card... Unlike a credit card, your activity is not protected from fraud or theft. Frankly though that is a minor concern. Plus, with both Starling and Revolut you can login to their app based platform to cut off any would-be scoundrel trying to spend your money. As said earlier in the series, the differences we're talking about in the rates of exchange may only be fractions of a percent (well, actually closer to two or three percents) so, if you're not spending much then you might not want to bother, but something like Starling is incredibly quick and easy to set up and, on the basis that you can have an overdraft bolted on from the point of application, even if you don't remember to top up the account (if you only use it for overseas spending) you can just top it up when you get home. You might also wish to avoid numerous PINS and cards etc. If that is the case then the broader day-to-day banking ability of these challengers means that you might just as easily and just as well more away from whomever you currently use. Martin Lewis constantly says that the way to get the best value from banks is to vote with your feet and keep changing to providers who offer you more. As we've said, these challenger firms are looking for volume of customers in the first instance. They're putting a whole heap of effort into attracting you with fluid and relatable usability and they are relying on your apathy towards your current bankers. Who cares whether a bank has been 'by your side for 250 years' if they're paying their share holders (a third or which are the tax payer) rather than removing the £3 fee on overseas cash withdrawals. The current construct is flawed and we reckon these challengers are you best bet for the longer term - cash currency and all. If you would like to discuss any of the topics or suggestions in this post or across the series, give us a call on 0203 172 8193. #currencycard #cash #travelmoney #creditcard #AMEX #TRAVELEX #MONEYCORP #Revolut #Starling #Transferwise

Whether a purveyor of ceramics, glass, brass, chrome or brushed steel, selling directly to retail customers or buying product wholesale, the principles of good currency practise apply across the board and #KBB is no different. You want an easy and intuitive process? Absolutely the most competitive rate of exchange? Point of sale insight and advice? Flexibility on forward buying terms? Speedy settlement that communicates with both you and your supplier? Luckily for you, Prime Cap offers all of the above as standard. But, those 'long in the market' when it comes to KBB will already have been contacted by a currency broker and, more often than not, will be using one. So, why would you consider a move? ...because businesses and services change. Sometimes, having noticed that you are happy with the way they ask you to instruct a transaction, currency companies simply widen their own margin when providing you with a rate. So familiar and comfortable are you with the requirement to email your dedicated broker, or indeed logging in to organise a payment, you may take your eye off the rate. It might only be a difference of fractions of a percent on the rate/margin, but, in your line of work you probably make payments bi-monthly, so, those fractional differences can add up. Prime Cap sets the lowest rate we can affordably conduct your exchange at as the default setting for your online platform with us. Whilst our brokers are there behind the scenes to oversee the process of inputting the transaction, our front of house team does not have the authority or permission to change that online rate. What we quote you will remain just as competitive ad infinitum - always. It is important that time is taken to explain how to get the most out of a currency company like us. We don't want value left on the table. Once a business has registered as a client with us we will dedicate our first conversations to taking you and your team through the inputting of a transaction and the other elements of our online platform that will serve to enhance your experience and optimise value. Any and all of the suppliers you work with can be uploaded and logged on our online system. So, rather than having to trawl through your invoices to find their bank details, you simply select them from a logged drop-down menu. If you'd like to you can include your supplier in the payment receipt email. This means that when your foreign currency leaves us, your supplier will also be notified - this is particularly useful when suppliers won't release a shipment until they see proof of payment; they can receive that proof of payment the moment funds are sent. Also, depending on your arrangements with your bank and the amounts you're allowed to transmit on a daily basis, you can tailor how many days you have to pay for a booking with us. Our standard terms mean that we will endeavour to release a payment as soon as we receive your settlement amount, but, if you book 'out of hours' or over the weekend, you don't have to worry about frantically running to your local branch. We can be totally flexible. Through our online platform you will have direct access to your entire transaction history. This makes it easy to provide your accountant with a formatted list of your activities. You can check on the status of a payment in real-time through the platform too. So, if you sent your base currency to us at 10am, you can login to the system to see whether we have received it. We will always email you automatically and immediately when your money has been received, so, as well as being able to login yourself, our system serves as a fail-sale and ensures you have more than one communication channel. Every action we undertake is complemented by an electronic confirmation for you. Therefore, your team cannot login and transact without your knowledge. Along with the intuitive online platform, our brokers remain ever present and ready to provide verbal and email based advice, guidance and support. The unique 'blended' approach of the Prime Cap dealing protocol means that at every point during a transaction value is being crammed in to the process. That might be in the form of overviews on the markets, use of our proprietary alert and triggering tools or advice and guidance as to which contract gets you the best rate whilst reducing your exposure to unfavourable movements in the rate. You might argue that what we offer is nothing new. To be fair, you're saying that without having tried it. We have formulated our proposition precisely in order to ensure that every element of the process is personalised to your dealings. You are never obligated to buy currency from us, but, if we can give you back margin and improve the speed of payments without increasing the time you spend conducting such transactions, then why wouldn't you CLICK HERE to find out more. We look forward to hearing from you. 0203 172 8193 #KBB #kitchens #bathrooms #bedrooms #suppliers #overseas #currency #businesses