Rather than just sitting down and writing what we think a 'Spot' contract is and how you might go about using one to best effect, as you might expect and in an attempt to flesh out our more colloquial references to them, we have done some research. We've looked at how others describe them... What regulators think of spot contracts and what they think are it's associated risks and benefits; and we have also looked at how our current clients implement it/them in the course of their day to day currency activities. So, in tried and tested GCSE fashion, let's begin with the online definition: "A spot contract, spot transaction, or simply 'spot', is a contract of buying or selling a commodity, security or currency for immediate settlement (payment and delivery) on the spot date, which is normally two business days after the trade date." The spot rate, or spot price, is the current price of the asset quoted for the immediate settlement of the spot contract, so it differs marginally from the price for other settlement terms and contracts. For example, say it's the month of August and a wholesale company wanted immediate delivery of orange juice, it will pay the spot price to the seller and have orange juice delivered within 2 days. However, if the company needs orange juice to be available at its stores in late December, but believes the commodity will be more expensive during this winter period due to a higher demand than supply, it cannot make a spot purchase for this commodity since the risk of spoilage is high. Since the commodity wouldn't be needed until December, a forward contract is a better fit for the investment - and we talk more about that in our next 'CONTRACTS' post in the series which focusses specifically on forward buying. Threaded throughout PrimeCap.com are links through to explanations and definitions of the contracts we commonly work with. We talk about contracts and sometimes we give broad outlines as to how or when a contract might be used, but, such are the multitude of ways in which you can combine contracts that it really and truly is a case of arriving at a bespoke, if not unique, solution based on a couple of different things that we identify as important. One of the most useful things about a spot contract, and one of the main misconceptions about their use, is that you need to have money with us on the very day the contract is struck. As the above definitions state, spot contracts generally include the provision that delivery of the currency you're buying is two days from the booking date ('T+2'). This is so precisely in order to assist both you and us with the readying, organisation and timely provision of the currencies involved in the exchange. If you'd simply used your bank's online banking system to send money to Italy, for instance, then you might login and click for the relevant payment to go to the relevant place. This is still firmly and very much the case when using a spot contract. You just login and put us as the recipient of the GBP sterling amount. Nowerdays though, such are the improvements to the domestic sending of money, the funds tend to arrive with us immediately. Yes, this can mean we are not in a position to release your bought currency until the value date of the contract because we have told the institution we're buying your money from that we will pay them in two day's time. This is perhaps as you would expect? but, in certain circumstances we are able to tweak the contract so as to release your bought currency on the day your sold currency arrives with us - so you dont have to worry about any delay at all. Over time and on the basis that we become more familiar with how long it takes for your bank to send us funds, we might change the terms of your spot/typical booking or simply look to use a contract that reflects or better suits the transaction pattern we come to identify. The bottom line though is that with a spot contract you are locking in the rate as it is right now, but you're not putting yourself under too much pressure to pay for that purchase because you have 48 hours to get things squared away in terms of paying us. Our suspicion is that spot contracts allow two days because people used to have to go to their bank in person to instruct settlement and you mightn't be able to go to the back the very same day...that has of course all changed. When might you use a spot contract? It is the most commonly used foreign exchange contract because of the certainty it gives on rate and the flexibility it gives on settlement. You might use a forward contract to simply exchange a foreign currency you have liquid and want realised in a different currency. We find clients who just want to send living expenses for second homes abroad or to friends and family and businesses paying an invoice they need to settle quickly find spot contracts most useful. If a client has asked us to watch for a rate, or they hold currency with us and would like us to use our discretion as to when the funds should be exchanged, we might engage the market using a spot contract even though we have funds on account already. Owing to the fact that it is, by and large, the default contract used in retail currency, the rate of exchange is ever so slightly more competitive on a spot contract than on any other contract. This is because it is the default. Any other contract carries a tiny tiny premium at a wholesale level. The premium carried isn't sufficiently large to prompt clients to object to using these other contracts, but, when we are left instruction by a client and when settlement timing is not really an issue, we opt to use the default and more competitive spot because...well, why not? It is better/best value for our clients. If you considering how to exchange a currency and would like some direct verbal advice and guidance then do please get in touch. It's what we're here for. 020 3172 8193 | brokers@primecappayments.com | www.primecappayments.com @primecapbrokers #Spot #spotcontract #currencyexchange #forwardcontract #settlement

Inspired by a post we noticed on the 'Expat Arrivals' service platform we thought it valuable to pen our thoughts on those aspects of buying UK property that can sometimes be overlooked by foreign buyers unfamiliar with UK financial systems. The UK market and the. UK buying system is different to others and therefore things like currency feature in a different way. http://www.expatarrivals.com/the-united-kingdom/buying-property-in-the-united-kingdom For agents reading this we ask you to consider the fact that in London there are approximately 250+ 'specialist non-bank foreign currency companies'. In the EU one could count on two hands the number of brands in this space marketed to specifically to private clients; most folks rely solely on their bank and this is to their distinct cost. Conclude from that what you will, but if this is the case with our near neighbours, it is not a stretch to suggest that would-be buyers from further afield are tremendously unlikely to know about the sort of services the UK private client market can offer them unless of course they have had dealings in this area already. So, when your client doesn't ask you about currency and who you would recommend, you can rest assured that it is probably because they have no idea that the sort of personal service we offer even exists. Frankly, you do your due diligence on your customer, therefore you will know whether or not a currency exchange is likely to take place... ...one of the most valuable things you can do (and we mean that literally, in terms of tangible monetary value/savings) is to suggest your client look into the services of a UK based FX (foreign exchange) specialist like Prime Cap. "For foreign buyers considering a purchase in the UK, our first recommendation would be to plan your currency and international payments schedule well in advance" Does the country you hold your money at the moment impose a limit on how much you can transmit in one go or over a certain time period? - For instance, a family of four holding their capital in Indian Rupee is permitted to extract no more than $1mil annually. What currency does your central bank allow to be withdrawn from your current domestic banking system? - Many countries that impose currency controls insist that capital leaving the country be converted to USD at a fixed rate of exchange. This means you have to account for conversion from your local currency to USD and then from US Dollar to Sterling. Whether instructing your local bank (overseas) to withdraw the domestic currency equivalent of the sterling amount you require, or, hoping that the foreign currency amount you elect to send will equate to the amount to require, you will be paying more than you need to simply because the rate of exchange applied will be a retail one rather than a more competitive commercial one. Whilst you may be able to estimate what GBP amount you need to achieve based on your own online research into exchange rates before speaking with a listing agent, bear in mind that in 'prime' London neighbourhoods properties might well exceed their listed asking price; plus, you are very unlikely to get the rate you see online when it comes to actually exchanging your money. Take this in to account and incorporate extra funds into your exchanges calculations so as to ensure you've accounted for associated buying fees and sundry expenses. If the rate is favourable you can speak with your chosen broker about fixing a rate of exchange for your entire purchase, not just the initial deposit, so as to ensure your balance payment can be conducted at the same rate of exchange - this is relevant in cases where you're not bringing all your capital into GBP 'in one go'. Offers accepted on UK properties tend to be implicitly 'subject to survey' and you may see the acronym 'STC' (Subject to Contract) on listings online for properties. If you are borrowing money from a financial institution in order to form part of your purchase payment then a valuation is likely to be scheduled before contracts are exchange between appointed conveyancing solicitors. Some UK lenders offer valuations and survey's free of charge, but, in cases where that is not so or you would prefer a more comprehensive survey of condition, you may need to pay these third parties directly; Prime Cap can send funds directly to the parties involved for you. You can use us to save money on initial smaller payments. so, for instance, Prime Cap can transmit the full cost of the survey directly to the surveyor for you. Furthermore, with strong roots in the London property community, we are well place to introduce a would-be buyer to a qualified and recommended surveyor on request. If purchasing for investment, rental yield from your new UK property will likely be denominated in GBP Sterling. Hence, where you do not have outgoing GBP expenses and therefore have no need to hold a GBP float, Prime Cap can assist in the timely, speedy and highly competitive transmission of this income to you abroad, using a commercial rate of exchange. Estate agents on the UK high street tend to request payment of their fees at the point of 'exchange of contracts'. This is the point at which both buyer and seller become financially committed to the purchase. On average Prime Cap can improve rates of exchange by no less than 1.75%*. We have been known to improve a rate by 7% depending on the banking institutions involved. High Street estate agency fees tend to be between 1 and 3% for residential purchases. Therefore, not only can Prime Cap save buyers this expense from within our improved rate, but, we can pay that fee directly to your estate agent as part of disbursements from your deposit exchange. We're never afraid to share good content. Websites like Expat Arrivals are valuable channels through which globally mobile individuals and families can gain an understanding of what to expect from an intended move. That being said, we pride ourselves on the fact that our currency solutions are always and entirely bespoke, unique to the objective, priorities and preferences of our client. We invite would-be and existing expats, whether in the UK or abroad, to call our broking team on 0203 172 8193, visit the Prime Cap library, bookmark the Prime Cap Data Centre and reach out if they would like specific advice, guidance and/or comment on a particular matter or concern. *Average margin of improvement vs. UK retail banking institution on 12 transactions in 2018 averaging over £1.5mil in FX value. #expat #expatproperty #currencyexchange #foreignexchange #foreignbuyer

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. 3| CURRENCY CARDS Don't be fooled by so called 'Currency Cards'. These are pieces of plastic onto which you can load 'X' amount of sterling's worth of foreign currency or (putting it another way) 'X' amount of a foreign currency. Whilst they mean you don't need to carry cash around they aren't necessarily any more secure than carrying bank notes if you plan on spending cash...this is because you'll be visiting an ATM anyway, won't you? One of the first things we should say is that this is not a critique on a particular/specific currency card product, brand or company. Any images or references to a specific provider should be interpreted as sentiments expressed towards and about this product as a whole. Our issue is not with those who offer these cards - it is with the notion of these cards as a competitive product in the first place. We're looking at the traditional loadable single currency cards offered by the likes to Travelex, FairFX, the Post Office etc. We will look at the merits of companies like Revolut in another post. Their product differs somewhat. One of the other reasons we dislike these instruments is because often the rate of exchange you get is the one at the precise time you load the card with currency. So, "I am going away for a long weekend... On Thursday I load £300 worth of euros on to my card at a rate of 1.09, meaning I have €327 to spend. What do I do with those euros on my card if I do not spend the whole €327?" It just sits there. Going to waste? If I contact the card provider and ask them to credit me back the GBP equivalent of what I have not spent they will do one of two things... Remember that I got a rate of 1.09 when I loaded the card? The card provider will look at the current rate - let's say it's three weeks after my return by the time it occurs to me to exchange back my remaining money - they will then work out if the rate (3 weeks on) is higher or lower than when I loaded the card. For the sake of illustration let's suppose we didn't go on our long weekend at all and therefore spent none of the €327 we loaded on to the card. We would like to get our £300 back, given that nothing equivalent to it was spent. Right? If we ask the card provider to exchange back to sterling and the pound has risen in value (so moved from 1.09 to 1.12) then the provider will apply their usual extortionate margin to the current exchange rate - 1.12. So, not only has the rate got worse for us to exchange back our EUR, but, we are suffering that socking great margin too. The other thing they will do, if the pound has lost value (so moved to 1.02), is use the initial rate we loaded the currency in at (1.09) as their floor and then simply apply that huge margin again. So, even if the rate of exchange is more favourable to us, we will never be able to exchange euros back to GBP at a better rate than when we bought. This means that my €327 will never rebuy me £300. I mean, we understand that this card company need's to make a living, but their margin remains the same, so why, at the very least, can't they give us the benefit of an improvement in the rate of exchange? Add to this the fact that we have probably already paid an upfront fee to procure the card in the first place. When it comes to you and me exchanging our money, we are considered 'retail' customers - as you might expect. We are not exchanging enough money to benefit from wholesale economies of scale. And yet, the issuer of your currency card is and does. They exchange colossal amounts of money daily and, as a result, they get a preferential rate of exchange. When doing the sort of currency exchange that Prime Cap offers (so not cash or card, but, bank to bank) our sole purpose is to give you the benefit of the better rate we get...in the form or a rate that undercuts 'retail'. One of our main issues with these currency cards is that, often, you are in fact getting a rate worse than you would 'retail'. Sure, you have what you consider to be a convenient and secure way of taking your money abroad, but you are paying a socking great premium for that piece of plastic, and we think you needn't. Think for a second about the fact that you already have a product in your wallet that is secure, non-cash and even insured should someone use it without your consent - it is called a credit card. Yes, your credit card might have a less than competitive rate of exchange associated with payments in a foreign currency, but, their rate is still better than the majority of these currency card providers. We use our credit card abroad - it gives us a rate of exchange that more or less reflect the market at the time of our payment and we are not committing to loading a bulk amount in one go...so, it is real time access to your own money without committing to rates that might prove unfavourable in due course. An extensions of the above theory is the use of other card and personal payment products... Tune in to Episode 4 for hear more about 'The Challengers'. #currencycard #cash #travelmoney #creditcard #AMEX #TRAVELEX #MONEYCORP

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. 2| ATMs -Foreign and Domestic Whether you're visiting the UK or taking cash out of an ATM overseas, just because it is perceived as more direct access or debit from your current account doesn't necessarily result in a better rate of exchange or fewer costs. Most banks charge a foreign transaction fee for just using your card abroad. Many charge you an unreasonable percentage for withdrawing funds directly from an ATM. And, even those who advertise no overseas transaction charges or ATM charges are covering themselves and applying charges out of kilter with what most people would consider good value. Please do not be fooled in to thinking that these|any charges in some way mean you're going to get a better rate of conversion. These charges are on top of a woefully poor rate of conversion. Lloyds for instance charge you 3% to withdraw funds from an overseas ATM. Now, they specifically tell you that they charge either 3% or £3 'whichever is greater', so, if you are withdrawing £100 worth of euros then 3% = £3, but, anything more than this and your cost goes up. If you withdraw £20 of euros then the fee is in excess of 10%. By anyone's standards that can't be justified - and that is before one even considers the rate at which they exchange the currency you're withdrawing. If you must take money out of an ATM and you're travelling with others who need to do the same, offer to withdraw their money too and then ask them to settle up with you in GBP when you get back home. That way there is only one exchange rate hit even though the fees will still be 3% of the total sum withdrawn. There are certain banks, challenger banks, who do not charge you to withdraw funds or use a debit card abroad. Banks like Starling. Given these institutions are growing and trying to attract business, plus, because their business model is geared more towards borrowing and lending rather than money exchange, you will likely get a better rate of exchange from them than you would the more established high street banking brands. In fact, more than one of our team have accounts set up with Starling purely to use the debit card abroad for free - it is not about moving one's banking activities over to them (although that hasn't been ruled out)...but, it is about supporting a challenger who has created a pricing model that treats/reflects one's use of their systems fairly and appropriately. Our team have no formal tie-in with any banking institution, but we are all consumers and, given the line of work we're in we may have greater exposure to this area than you. So, by all means call us if you would like to some advice on this subject. #ATM #Banks #HighStreet #Cash #Travel #Currency #Currencycard

A short anecdote has prompted us to consider whether or not 'readiness' to buy a specific property necessarily affects your ability to take advantage of weakness in the pound. Our client is a Swiss national living|renting in London. Having sourced, of their own volition, the property they wished to buy, our client quickly realised that the investment structures across which their capital had been spread were working against them when it came to demonstrating their commitment to the purchase. The speed with which they were able to liquidate their CHF denominated assets caused all the stakeholders in their purchase to pause, eventually resulting in their vendor accepting a different mortgage backed offer. Our client would be 75% cash, true liquid cash - a rare thing in the fast paced marketing driven miasma that is the London property market; submitting an offer can sometimes be as much about PR as cash readiness. Our client was informed that from the point of portfolio pricing (no less than 48hrs after receipt of the verified instruction to liquidate) it would be as many as 14 working days before funds would be credited to his personal Swiss account. Given that that funds were not visibly liquid (in his UK GBP account) and due to the vagueness and intransigence of his EAM with regards to a precise date they would be credited, our client lost out on their intended purchase. However, the ball had started to roll. It is obvious to say, but, our client was not aware of this lengthy liquidation time frame prior to instructing their EAM so to do. So, an important part of their buying process was not considered until rather the last minute. Understanding that some purchases never actually come to fruition, but, knowing that our client had a fixed foreign currency amount they intended to exchange regardless of the asset into which they might invest the capital, a forward contract was the obvious instrument to recommend. By buying GBP forward (for the sale of Swiss Franc) our client could confidently work off a definite GBP sum for their negotiations. Taking a bridging loan to satisfy the deposit conditions would have meant the vendor gets the show of willingness that was lacking in this instance. Forward buying enables clients to be precise. Tailoring the forward terms to more than cater for any potential delays to the conveyancing process meant that our client wouldn't have been under undue pressure even if the EAM did not meet their own deadline for liquidation. As it happened|happens and at our introduction|recommendation the client went on to engage a specialist sourcing agent for their subsequent purchase. If the client had in fact elected to, the terms and duration of a forward contract would have assisted them in keeping their capital in their Swiss structure until such a time as they needed to push the button and liquidate. Locking in the rate of exchange using a forward means that our client needn't settle their contract with us until they knew the deadlines of the purchase. A weakened pound meant that, having already instructed their EAM to liquidate their portfolio, they did not mind exchanging their CHF for GBP at the prevailing spot value, but, the option would have been their to extend access to that favourable rate had the client wanted it. The moral of this story is that it is never too soon to introduce a specialist broker to your client who has capital overseas. High street banks do not offer over-the-counter products like forward to their private customers. Therefore, it is unlikely that a would-be buyer is familiar with the concept let alone the flexibility of such contracts. To introduce yourself or your client to our broking team, simply visit the 'Contact Us' page of the Prime Cap website. brokers@primecappayments.com | 0203 172 8193 | www.primecappayments.com #residentialproperty #PrimeResi #London #UK #buyingagent #Sourcingproperty

Undeniably a post aimed at the un-inducted first time currency exchanger - whether a business convinced there must be a cheaper way to manage currencies, or an individual seduced by the idea of challenging banking norms - here we will look at a couple of simple tips on acquitting yourself positively before engaging in discussions with a specialist. As with all our posts we will weave in references to first hand case studies, but, in a different approach to our usual patter, we will also reference some of the businesses we work with who can aide you in arriving at an understanding of your position and how best to proceed with a broker, Prime Cap. We were recently told that we need to do more to link our articles and posts back to our partners and to informations sources useful to our readers. Hence, if you see reference to a third party please be assured that, unless otherwise specified, we work along side them to greater or lesser extent and, where third party links are included/embedded, they are so because we think the content they provide ties directly to the topic being discussed. If you would like introductions to qualified regulated third parties on matter relating to ta, accounting, law and wealth advisory then we would ask you to contact our broking team directly either by telephone on 0203 172 8193 or by email on brokers@primecappayments.com. It hopefully goes without saying that there is a lot more detail available to you on the Prime Cap website and more specifically on the Prime Cap Library (www.primecappayments.com/library) So, where should you begin your research in to the type of transaction you may need to conduct and where should you be looking to make sure you have the appropriate advice and guidance as to the suitability of the broker you may be considering? The first thing we would suggest is that you talk with the professional services business that might be, no matter how tangentially or directly, advising you to make an international payment. So, common reasons for an individual engaging in an international transaction are: 1+ . Bringing capital in to the UK for the purchase of a property. 2+ . Sending money from the UK following the sale of an asset (perhaps a property). 3+ . Receiving a bequest from a deceased third party. 4+ . Paying a bill you owe to someone based in a different country. 5+ . Receiving a payment from a company of business outside the UK. 6+ . Paying for a holiday. 7+ . Arranging payment for a wedding abroad. A+ . Usually someone is recommended to speak with us by their financial adviser or their solicitor (the party involved in the conveyancing for a property purchase). You may have a relative who is providing you with the deposit amount or larger capital contribution. Indeed, for those buying in London you may well have stacked up foreign currency savings in your home country or in the region you've been working in prior to relocation to the UK. The things that we are concerned with in this instance is the 'source of the funds' and the 'source of your wealth'. These are two different things. The former, the source of funds, is essentially detail about the account this money is coming from. Where is it held? Is it held in your name of the name of someone else. If held in the name of someone else, who is that person? Why are they sending you the funds and what is you relationship to them? And, why are you not able to send these funds from your own account to us? We're not trying to catch a client out with these questions and answering them ties in precisely to our due diligence and the extent to which we 'know our client'. The latter of the two - the 'source of your wealth' - relates to how you came by what might well be a sizeable amount of money. Have you saved up? If the amount you exchanging is large, how have you been able to save up this sum? Have you sold a property abroad? Are you a dependant of someone who is paying these funds to you? Have you divorced and this is part of your settlement? Unlike the source of funds, the question over source of wealth is a more personal series of questions designed, in a sense, to test the extent to which you are prepared to be forthcoming about the money you wish to exchange. One of the main questions posed by clients when faced with these types of questions from our compliance team, prior to your engagement of our services, is that other financial institutions do not ask for this level of detail. Well, in fact they do. If you are making a sizeable deposit in to your personal currency account, you bank is going to have this information to hand and if they do not they will ask you to clarify it. Generally banks can communicate between themselves anyway, so they immediately have more of this crucial context than a firm like Prime Cap would. One way we encourage clients to look at it is: if you have documentary evidence in support of the questions being asked of you, then, in order to benefit from the sizeable improvements out services can offer you (through our rates etc.) you simply need to share this information with us. If you would rather keep your matter to yourself, then, exchanging currencies with a broker like us might not be for you. Our hope is that we can make sufficiently compelling a case in favour of our suitability and the financial benefit you will get from what we do that you feel happy, comfortable and willing to share with us. Almost all of the 7 headings above will touch on the questions of source of wealth and source of funds when you initially speak with us. This is because this information is in fact core to us forming an understanding of how best you might use us, and getting to know you as our client. B+. If you have sold an asset in the UK, denominated in sterling (GBP) then, through the network of wealth managers, solicitors and accountants that we have built up over the years, you will likely be introduced to us before those funds are sent to their final or next destination. Specifically in the case of property sales, on completion your solicitor will ask you where you would like your funds transmitted. It is important to remember that, if you provide your solicitor with details of your foreign currency account, you will have to suffer whatever rate of exchange your bank apply on the arrival of those funds. You can ask your solicitor to send you the foreign currency equivalent of the GBP realised, but, please remember that this too leaves you at the mercy of your solicitor's bankers and whatever rate they chose to give you. That rate of conversion is not set by your solicitor, but rather by whomever they bank with. Many of the law firms we transact with use banks like Coutts. Whilst their name is synonymous with excellence, their rates are not bespoke and therefore fall short of the level of competition you would probably expect. C+. Personal recommendation forms the backbone of our industry. It is certainly fair to say that just because someone you know have used a company without issue does not mean that company it sound when it comes to their continued business activities. One of the main areas of concern for private and business clients alike is worries over loosing your money. Worries relating to you sending money to a currency company and nothing coming out the other end and arriving with the person you are trying to send funds to. Yes, personal recommendation is the cornerstone of Prime Cap's business development strategy and it goes a long way to reassure nervous clients and partners as to the strength of our presence and the fortitude of our health as a business, but, there are some things you can and should look out for when vetting a currency firm. Firstly, who regulates this firm? The company many be like Prime Cap, who use the regulatory frame work of a third party for the receipt and sending of client money. We use an 'Authorised Payment Institution' called Ebury to serve as the collector of our client funds. Other currency brokers may administer segregated client trust accounts directly under their own roof and so are directly subject to the conditions and policies of the Financial Conduct Authority, but whether a currency broker operates on Prime Cap's model or under their own banner, you will be able to verify, check and research them or their nominated transaction partners through the FCA register. As touched on, one of the main concerns about using a specialist currency company is this notion of sending money off in to the ether and for it never to reappear. Core to the FCA governance over our services, either directly or by agency, is the use of segregated client trust accounts. These are bank accounts held with EU regulated financial/credit institutions (high street banks to you and I) that are totally and always separate from the day to day banking accounts of the business that uses them. The sole purpose of the segregated accounts is to receive money from clients. Your funds arrive in to a segregated account and they leave the currency firm from a segregated account. This means that there are a number of fail safes at an institutional level that protect and overseas the arrival, handling and onward transmission of your money. That might not mean much to you, but, they key is to establish that the currency broker you're considering uses segregated account (held directly or by agency). If you can establish that the firm does not use segregated accounts then you should avoid using them and you should consider whether to report that business to the sector regulator. If you are able to establish that segregated accounts are used for the receipt and transmission of funds, and you can do this through the FCA register, then we encourage you to take confidence that all the power, might and weight of the UK financial services regulator are being applied to ensure that no errant behaviour is being engaged in the might jeopardise your funds and their swift and fluid transmission to their intended destination. D+. Do you know where you would like to send your money? You might be surprised to learn that a number of our private client buy currency from us before they have firmed up to whom they would like it to be paid. Again, when it comes to property (and please don't leave this post thinking property transactions is all we do) you may not have found the house you want to secure abroad but you know how many pounds you want to spend and are keep to get then in to euros. We can assist with this. It is interesting to note that when it comes to buying and selling houses in as fluid a market as London, the general rule of thumb is that if you have to sell something in order to afford to buy something, it is best to begin your onward search once you are 'under offer'. Funnily enough you can apply a similar sort of sentiment to buying property abroad...because it is totally true to say that you won't know what you have to spend in euros until you actually convert your pounds. Of course, a firm like Prime Cap can make it easier to estimate what you might have to spend, but, movements in the rate of exchange mean that trying to gauge these things purely on your own can leave you with some surprises and invariably means you end up having less than you thought to spend. Whilst we will always check and verify the onward banking details you give us, we suggest you confirm with whichever beneficiary (if you know who they are) that they have the appropriate coordinates to give you. It would be frustrating for you if you bought currency from us only to find that the supplier you're paying doesn't know the details for their own account...and, whilst it may seem silly to suggest that could be the case, it happens all too often because the international bank details of an account are not the same as the domestic bank details of an account. Take as an example your own GBP sterling account. You may be used to provide a Sort Code and an Account Number, but, if someone in France wanted to send you money you would need to provide them with something called and IBAN and SWIFT code. These are relatively easy to locate (and we can of course talk you through identifying these details) but, those terms may be alien to you and therefore finding out what you need from the person you're sending funds to if a valuable exercise. Countries with particularities to their banking details are the likes of the United States, Australia, New Zealand and Canada. It is fair to say that the mere fact that these countries have different details and the fact that you mightn't have known that were it not for the fact that we have just mentioned it, goes to illustrate the value in talking to someone who does this sort of thing on a daily basis - self important though that may sound. E+. Does your bank impose any restrictions on how much you can send each day? Within the UK most payments are settled using an inter-bank messaging system called the Faster Payment System. This is quite literally a way of one bank communicating instantly with another and informing of the transmission and application of amounts from one account to another. UK banks put a cap on what a business or an individual can move using this system. It tends to £25,000 per day for businesses and £10,000 per day for individuals...however, not all banks do the same. Some give you a limit per transaction. This means you could make 5 payments of £10,000 if you wanted to. For businesses banks might have a different restriction for international payments vs. those that are purely UK based, or, they may tailor your caps to your activity. Either way, you can ask your bank to change what they allow you to send each day and, in cases where banks are not prepared to be flexible, we can be. So, if you need to pay us £50,000 but you can only send us £10,000 a day, we will tailor our terms to ensure that you have enough time to get those funds to us. For one thing you could send them all in one go if you visit your bank in person, but, this usually carries a charge, so, as suggested, we tailor our expectations to make sure they match up with what you bank permits. All that we ask if that you let us know of your bank's stipulations and restrictions. Whilst telling us after the event (i.e. after you have asked us to buy the currency on our usual terms) is not much of an issue, it is best practise for us to know when our clients are likely to pay us. For one thing is means we can can tweak our communications with you about settlement. In summary then, the key things to you can do to prepare yourself for an exchange, whether with you bank or through a broker, focus on knowing what your bank will let you know, confirming where funds are to be sent and, in the case of using a specialist, making sure you feel comfortable that they/we are forthcoming about our regulatory set up and working/sending/receiving only with segregated accounts. It goes without saying, we hope, that picking up the phone is the best and quickest way for us to address any questions you may have on this and other issues. Please feel free to post, like, tweet and share our posts and we will also be posting a podcasting outline the bits discussed in the above.

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. 1| EXCHANGING ON THE HIGH STREET First off - if you have left it too late to get some cash 'readies', do not go to a bureau de change (for instance the Post Office) in the UK on the high street. No brand is inherently worse than the other and yes you will see differences in rates of exchange between the like of M&S and your bank, but the reason to avoid rushing off to something familiar is because you're paying more than you would were you to visit a similar independent business in the country you're travelling to. The smaller the money change business the more likely it is that the person sat behind the register has a modecum of control over the mark up on the rate of exchange. Remember, the mark up placed on the rate of exchange is the charge applied by the business selling it to you. In a world where everyone claims to provide foreign currency 'without commission', the mark up is that commission embedded in the calculation used for the exchange of your money. So, we take the view that although they may not have bright shiny hoardings or be conveniently located in the depatures terminal, smaller independent bureau de change located in the country you're travelling to (or in the UK in fact) should give you a marginally better rate. Going to a bureau de change at an airport or train station is like buying sweets at the cinema. Sure, it is convenient and yes you may think it is your last chance to get cash out for the taxi from the airport when you're in a foreign land, but, even if you plan ahead and get your currency before arriving at the terminal, you're doing better than buying from one of these last-minute vendors before you fly. Do your research. There may be a forum or guide book that tells you of a local or trusted provider of currencies. Steer clear of the big brands like AMEX, Moneycorp, ICE or your bank. These institutions are capitalising on the convenience of their location to charge you more. Having said all of the above, the amount of money you're exchanging probably depends on how long you are going away? It may only be literally a fractional difference in the rate of exchange between the sort of independents we're talking about and the bigger brands. The difference between a rate of 1.08 and 1.10. On the exchange of £100 that equates to €2 difference. When we travel we simply stick to the rule that buying our currency at an airport is not an option. Therefore we're not fussed about what the rate is at the airport because we have a self imposed rule that says we won't be buying from there anyway. Plus, closing our eyes and imagining that one euro and one pound are the same thing we always find we come in under budget :) #CASH #bureaudechange #banks #exchangerate

Like so many of our case studies and examples, at the simplest level payments that involve an exchange from one currency to another between bank accounts share many of the same characteristics. The practicalities of sending, receiving, holding and exchanging money between countries and currencies are largely the same, however, the roles played by 'stakeholders' in the exchange can have an enormous effect on what those parties receive when all is said and done. In this article we look at who tends to be involved in exchanges relating to divorce and division of assets, what each party can do to maximise foreign currency amounts realised, and how you can make sure your representatives and recipients get the most and do the best by all involved. Many of the themes discussed apply to scenarios like probate and bequests too, but we'll save the specifics for another post. Let's set the scene: A recent divorcee received a sterling aware, payable to her from her solicitor in the UK. She lives in Belgium. Unfortunately she wasn't aware of our services around the time that the funds became liquid. Hence, her solicitor simply electronically transmitted the GBP amount to her personal euro account. This meant that her receiving bank exchanged the incoming GBP in to EUR without her involvement and using a retail rate of exchange. Additionally, the divorcee had not fully settled certain sterling liabilities, so, the euro amount she received needed to be allocated and exchange back in to sterling (or at least a portion of it did) and sent back to her solicitor (of all people) and one or two other stakeholders in the UK. The first point to make is that, had Prime Cap been recommended/introduced as soon as the award was formalised then we could, on the clients invitation, received the sterling sum from her solicitor on her behalf. Then we would have brokered the exchange of the sterling amount in to euros at our bespoke commercial rate of exchange. Were it then the case that the client wanted to transmit some of those realised euros back in to GBP and to UK based beneficiaries, we could conduct/execute this for her at a far more favourable rate, however, discussions with the client would have enabled us to advise her not to convert the full award in to euros, but rather to keep the amount that needed to go to the UK beneficiaries as sterling...and to pay those sums directly. By virtue of her solicitor sending the GBP to her EUR account, not only did she receive far fewer EUR than she would have done, but, she had to sell back some of those euros to cover those sterling denominated liabilities. Therefore the client was doubly stung. As it happens, we were invited to act on the matter before the client had resent the aforementioned GBP back to her solicitor et al. This means that at least she is paying fewer euros out to meet those GBP commitments. Owing to the improvement we offer in our rates, our client is paying 3% (approx.) fewer euros out. What also interested us is the fact that her receiving bank in Belgium is a private bank (or rather she is a private banking customer of this institution). You might think that this would entitle the client to some sort of preferential rate when the GBP amount arrived at the threshold of her EUR account. Not so. Even though she may be considered a valuable HNW client of this bank, their foreign exchange services arbitrarily apply a retail rate of exchange to such transactions. So, introducing a specialist currency broker early on in discussions about awards and disbursements will have a materially beneficial effect on the sum received by overseas individuals in matters such as this. In the scenario above, the solicitor of our now client is in fact the target of our focus. We feel compelled to introduce ourselves to this firm and to outline how the simple services we offer are distinctly beneficial to their international clients. Given that all our transactions are conducted through segregated client trust accounts the regulatory particulars of dealing with a business like Prime Cap do not stray from policies relating to client care that may or may not underpin this firms dealings with their customers. The firm in question may not have been aware of the further or additional GBP payments this client needs(ed) to make. Engaging a broker ensures that these questions are answered by experts motivated to consider the activities of a client in a more holistic way rather than in isolation. We would be delighted to hear from firms engaging in sending funds abroad and individuals due to receive amounts following life events like divorce, marriage or bereavement.

It goes without saying that someone who is exchanging one currency for another wants to get the most money they can or exchange as small amount as they can to get the best in exchange. That is the nature of the game. Using a specialist is the best way to improve the margin at which you can exchange, but, it might be worth thinking about some other contributing factors which on closer inspection serve as equally worthy considerations when assessing 'when' you should buy or sell a currency. The first thing to say is that the right time to exchange one currency for another is often determined by some sort of deadline. You might be buying or selling a house and so you know you need to have money with your solicitor by a certain time or date. You might be using a specialist broker to pay for a holiday abroad, so, you need to make payments before departure. Or, you may be sending funds to a friend in need, so, speed is of the essence. At the end of the day, if you need to spend money in a different currency then that is primarily why you are exchanging, but, the deadline for when you want to begin that spending tends to serve as the main factor in determining when you exchange. So, what about the time between now and that deadline? You're taking with a firm like Prime Cap, hence you want to get the best rate of exchange available...but, it is three weeks before you need to start spending the money you're exchanging into. Is there a better or worse time to exchange? What might move the market in your favour or against you between now and your deadline? You don't have your base currency liquid? (May be because it is only liquid once the property transaction completes?)...how do you make sure you're not worse off than today because the rate moved against you between now and when you complete? These are just some of the questions we hope to answer. Broadly speaking, it rather depends on what you need. What is the necessary outcome of an exchange? So, when we say that every matter is different, we don't just mean that the surname of one client is different to that of another...we genuinely mean that what motivates you to exchange your currency for another will in fact be different to what motivates someone else. Therefore, we need to work out what is most important to you. Is it that you want the money, whatever the rate may be, to arrive on a certain day? Could it be that you cannot afford for the rate of exchange to get worse? If your great-aunt undergoing her third hip operation tomorrow, and her surgeon won't act unless her first two invoices are settled? It could literally be anything, but, it has a distinct impact on when you should, could and would exchange your money as well as how. How might you 'settle' a transaction? What contract suits your needs? Whom do you need to communicate with after you have executed the exchange? What is more interesting to note is that none of these questions will be asked of you either by you bank or an online transfer platform. Now, that may be as you want it, but, what happens if your overseas supplier doesn't want to receive from an account in the name of anyone other than you? What happens if you're not sure this online transfer business has included the correct reference so that your solicitor or mortgage company can identify your money? At the end of the day, as with most industries that deal in complex matters of personal finance, having someone at the end of the telephone can make all the difference, even if their role smoothes out the seemingly most trivial of concerns... Back to the post title now...what are three things we advise you to consider when thinking about an exchange. 1. Ignore oscillations in the rate. We say this only because watching it will not make it move in your favour and a tiny fractional movement up or down is in no way indicative of a trend. Were we in a position to tell you to wait until tomorrow because we knew the rate of exchange would be better for you, we would charge you a whole heap more than we do. That kind of advice is not and should not be available to you from a company merely tasked with exchanging your funds. Please bear that in mind. Whilst you may have found a broker who is correct in his guess as to where the rate of exchange is going to go, that is purely and simply luck. You could have been as lucky yourself and, for every time this broker was lucky, he will have taken umpteen punts and been way off. What's more, he is not allowed to try and call the market for you...so, regardless of whether or not his guesses prove correct, he is acting violation of his license. 2. Because no one knows, if you're not happy doing it all in one go, then, exchanging some of your money does in fact mean that the rest might be exchangeable at a better rate. I don't think we could explain this much more clearly. However, unlike with a share or a security of any type, breaking up currency exchange in to smaller more manageable chunks do not necessarily mean you're any more likely to exchange subsequent amounts at a better rate than the initial exchange. Your not reducing your exposure to a worse rate by doing smaller transactions...because, each of those subsequent transactions face just the same risk of being exchanged at the same rate of worse than the first. True, each has the same chance of being exchanged at the same rate or better, but, you're putting no more or fewer eggs in any one basket by holding back some of your funds. 3. Have you sent money to the intended beneficiary (the ultimate beneficiary of the transaction) before? If you've not then we strongly urge you to consider the fact that your sending bank (the one transmitting your currency to us) may or may not suffer a hiccough or complication when sending funds to us, as well as the bank to which we send the currency you buy from us, if they've not received funds from you before, may or may not take longer to apply those funds to their account and progress the matter. Many of our clients in the property space wait until the very last minute to conduct their currency exchanges. They probably do this because they are waiting to see if the rate improves for them between when they engaged us and when they need to exchange. However many times out of ten, the rate has not improved by a sufficiently compelling margin to induce them to exchange, so they wait until the last day and get what they can. Doing this leaves them vulnerable not to FX risk, but rather, procedural risk. We work with phenomenally liquid bankers. They have a vast global presence and can receive funds satisfactorily from nearly anyone you care to suggest. Similarly, they can send funds to wherever. The issue is the processes and sophistication of the other banks involved in international money movement. At the end of the day, it is simply foolish to wait until the day before you completion to conduct an exchange. For one thing, you're unlikely to see the rate movement you want and also you're risking delaying the very thing you're exchanging money for. So, in discussion with our brokers we suggest you arrive at a cut-off date that gives you and us plenty of time to accommodate, investigate and work around complications that may or may not surface relating to the financial institutions at either end of the exchange process. Give yourself time; we'll handle the rates. #FX #GBP #property

This is just a quick word about what we do when confronted with a prospective client who thinks they are well equipped when it comes to their currency activities. The prospect in question is a wholesale manufacturer of garments and accessories and they supply some of the UK's best know high street fashion brands. With a 'woman on the inside' we knew before we approached that this business was relentlessly contacted by currency companies. They have factories in both China and India. Almost all of their suppliers invoice in US dollar. The business holds it's own US dollar account, from which they settle incoming invoices. Rarely do they repatriate the US surplus they carry, preferring to leave it on balance so as to ensure they're flush with USD. They do, from time to time, exchange sterling to USD to top-up this account. The usual response given to currency companies who come a-callin is that they do neither sufficient volume, nor sufficiently regular payments to be an attractive target. Knowing the set-up well, they also inform would-be suitors as to the margin/spread given to them by their bank. They had previously engaged a currency broker, but, when their bank got wind that their FX would be moving to another provider, the bank simply tightened the rate their offered the prospect. Knowing all this we still wanted to talk to this prospect. Our first step was to acknowledge the fact that the prospect had a system they were content with and, by anyone's standards, they were being offer an above average rate of competition from their bank. We swiftly identified that we could squeeze a further 0.25% out of the margin that was being offered by their bank. The overriding view of this prospect is that their exchange activities are 'too small' and infrequent to be of interest to a firm like Prime Cap. We suspect they arrived at this conclusion because previous brokers they spoke with probably lost interest once it was confirmed that payment activity was not sizeable and both ad-hoc and pitted against an already attractive margin for the client. We take a different view - if we can offer a saving and the process and additional expertise we can offer means a measurable improvement/cost saving for the client, we will never turn away business. So long as our bottom line is covered, we are committed to on-boarding corporate clients regardless of the frequency of trade... Now we come to the strategic sales approach we take when it comes to prospective clients like this. Rather than saying 'you don't the model of a target client' and leaving at that and moving on, we have invited the prospect to get quotes from us and and when they consider their next exchange. Yes, we know they are unlikely to change provider from one comparison, but, they do compare rates to make sure their bank stick to their tighter margin, so, we want to position ourselves as one of the firms from which those comparisons are sought. Over time our hope is that the modest improvements we make, when considered as a whole, will serve as a compelling saving over the course of whatever length of time it takes. So, we are taking a step back. We are not trying to aggressively shoehorn our better rate in to discussions, nor are we arrogantly telling this prepared client that their current process is bad. It is not and we want the prospect to take something positive from the confidence we have in our position. Time in the market - by that we mean the longevity of our commitment to giving them sound advice - will hopefully mean that we reach a point whereby we can say something like 'over the past 18 months we could have saved you £2000, surely that is a compelling figure?'. It is a waiting game. Our brokers are not incentivised based on the number of new clients they register. Nor are we blindly trying to categorise this prospective client as anything other than another referral whose set up is more sophisticated than most. A less experienced set of brokers would either wash they hands of the opportunity and introduction because there isn't sufficient margin/profit in it, but, the incremental growth of our portfolio is what we are after which means we have all the time in the world to wait for the penny to drop with regards to shifting FX activity to us. Another string to our bow when it comes to strategy is that, now that a polite and useful validation of the strength of this prospect's currency arrangement has been provided, we can work to become a trusted source of additional information. We make a big deal of the fact that even though a business or individual might not have formally engaged us, our experts are always willing, eager and happy to add insight and recommendations to any discourse without fee. Every person working for the prospect in question, everyone we have cause to be in contact with, is both a prospective client and a potential source of referral in their own right. If we can fashion a position for ourselves as a go-to source of sound advice. Non-pushy and respectful of existing structures, then there is still value in the relationship with this prospect; and that is really what underpins our approach to business sourcing. We try to focus on the individual we are talking/dealing with. It strengthens our network and distinguishes us from the less experienced, less focussed 'factory firms' that will call this prospect weekly if not daily. So, moral of the story is that no referral is worthless. - There is always a silver lining - It may be a thin one, but, making sure we extract every ounce of good will that comes from a referral means we have a strong and varied pipeline that is based on more than just a cold calling MO. The churning and burning of data is not an approach we support. Many London based brokers for businesses take the view that it is a 'numbers game'. We do not share this view for a number of reasons, chief of which is that it disregards the importance of the relationship one might be able to forge with the person at the end of the telephone. Furthermore, cold calling and data churning relies heavily on experienced brokers and sales staff identifying the most profitable prospect and working them to a successful conclusion (ie. them becoming a client from whom one can make 'decent' margin). If we take the view that every single connection we make is worth the same to us and that the identification of our ability to save money for them is the goal, then we find ourselves in a far stronger long term position than many if not all of our competitors in this space. If the above sounds like you or your business, if you're getting what you think is a good rate from your bank or you believe your activity means you deserve to be relegated to the pile of UK businesses whose bottom line cannot be improved by working with a broker, then we want to hear from you. 0203 172 8193 | brokers@primecappayments.com | www.primecappayments.com | @primecapbrokers #import #export #supplier #manufacture #spread #margin #cost #dollar #USD

Between 1995 and 2010 there was a distinct boom in the number of families buying houses in France. Subsequent changes in French legislation (relating to capital gains tax on second properties), movements in the rate of exchange and concerns over consumer credit in the UK have seen shifts in the flow of money across the channel, but, the process and the specifics of the procedure remain unchanged. We look at how to do it, what are the stages to 'the buying process' and how do currency payments and exchange rates affect buyers and sellers alike? On the face of it the process is quite similar to that of the UK. You view a property and move to make an offer. The offer is agreed and then the format for buying comes into effect. Unlike in the UK though, selling properties in France is a licensed activity which usually means a more hands-on, formulaic and clear experience for all concerned. An agent receives a 'mandate' to sell a property and it is through them and the local Notaire that the process...proceeds. For what it is worth, if you are actively looking at the time you read this post, we would be quite happy to connect you to some extremely competent agents operating in Paris, the Dordogne, Provence and on the Cote D'Azur. Just ask. So, you've seen the house you want and you make an offer. If we suppose this offer is accepted, the agent then presents you with the paperwork. Within 7 days of the signing of the paperwork - the 'compromis de vente - you will be required to pay a 10% deposit. This deposit is redeemable if your buyer pulls out. If you pull out, provided there is no 'clause suspensive' (or reason undermining the sale), the deposit is forfeit. So, as the buyer, your first concern is the readying of money to pay this 10% deposit. This amount is paid directly to the notiare for the locale in which your a buying. The notaire is the local state representative. They are charged with conducting the UK equivalent of searches. They are both the collector of payment and the signer and settler of the transaction. The first rate of exchange you will have to consider, assuming you have not already availed yourself of a preferred company through which you might conduct an exchange, is the one you face for converting your sterling into euros in compliance with the 'compromis de vente'. Your notaire and the agent in France will inform you directly of the date on which the deposit needs to be paid. Delaying this payment for whatever reason may leave you liable to penalty, although this rarely happens. After your seven day 'cooling off' period after the acceptance of the offer, money needs to be in the notaire's account for the process to continue. You can use a company like Prime Cap to send your sterling to France. We can either deposit money in to your french bank account, one which we can advise and guide you on setting up by way of our relationships with third party domestic facilitators, or, you can ask us to credit the appropriate euro amount into the notaire's account directly. Specific referencing of the payment - so, what the notaire would see as the identifying marks of your incoming payment - can be included on the transmission. Furthermore, we can provide you with a direct and immediate confirmation showing where your money is going and when it will arrive. You will not know the GBP cost of the euros you want to buy until you actually explicitly instruct for the exchange to go ahead. Whilst you will always be encouraged to make use of the 7 day period between the document signing and the arrival of the deposit amount, we work with you to make sure you've not left it too late for the funds to clear on the right date. Bear in mind that your UK bank might have a daily limit on the amount of money you can move from your online banking facility. Usually you can visit your UK bank in person and instruct them to transmit the whole amount in one go, but, you need to remember that this does not necessarily mean your money will arrive with us the same day. We advise you to take this in to account during that 7 day period and please do not leave it to the last minute. Twelve weeks after the signing of the 'compromis de vente' and provided no issues are flagged by the notaire, comes the completion, which is referred to as the 'Acte de vente'. This is when you will have to pay the remaining balance to the notaire. Your agent in France will serve as your go-to point of contact for all communications with the notaire and your vendor. Unlike in the UK there is no role in this process for a solicitor or legal representative. That is all taken care of at a local level but the supposedly impartial notaire. Also unlike the UK, you won't have to worry about being gazzumped during this period. The french process locks in the buyer and seller which means that, provided the terms are met, far fewer purchases fall through than in the UK. There will undoubtedly be a difference between the rate of exchange you achieve for the deposit payment and the rate of exchange you can achieve for the balance of the purchase. Prime Cap can talk you through making use of contracts which fix the rate of exchange for both payments. Your UK bank does not offer you the ability to fix one rate for both payments, but it is a standardised and useful inclusion to our offering and something that, whilst not actively advocated, forms part of any discussion that should take place between you and your currency broker. Again, on the day of completion, funds need to already be with the notaire. If you choose not to fix your rate of exchange you may find that it has gotten better or worse since the day you paid your deposit. In effect, this means that the sterling cost of the property has either risen or fallen depending on the movement in the rate. We strongly advise that you acquaint yourself with what it would mean were the rate to drop sharply. Can you afford it? We have had a number of instances where a buyer is actually unable to complete because they had not accounted for the fact that the rate of exchange had dropped. This left them without enough sterling to buy the euro amount they had committed to. During the course of your relocation/integration into France, whether you are buying for a second/holiday home or relocating totally, you will need to open a french bank account. Once you have your account set up you could drip-feed funds across when the rate is good using Prime Cap's services - of course, this relies on the rate improving over the twelve week period. You will usually have to sign the 'act de vente' in person and all parties will usually need to be at the notaire's office on the day of completion, or at least appoint a proxy to be there for you. Our system will provide you with a confirmation of payment at the precise time we release your sterling to the notaire. If you want we can even copy the notaire in to the email notification of the money being sent. This means that you should be able to confirm the arrival of your deposit and subsequently your balance amount before you visit the notaire for the completion signing. The formulaic nature of the French buying process means that, in essence, the whole thing is more straight forward and predictable than that of the UK. You are not waiting around for one solicitor to respond to another. Also, the agent involved in the process is wholly committed to seeing the purchase through and they can serve as a valuable point of contact especially, if you're not too confident with your french. Planning and calling on a broker to advise you of the current rates of exchange, even when you are viewing, is highly advisable. Brokers like Prime Cap do not charge on an hourly basis like a solicitor. So, you can call, gets quotes and chat things through with us as many times as you like, even if you don\t buy your currency from us. Bear in mind: There is no sense in going to look at a series of properties only to find that the rate of exchange means they're actually beyond your reach. We had one buyer who thanked us for suggesting they use a £1 for €1 calculation when conducting their search, because, the rate of exchange is, was and likely will be ever higher than 1 for 1, so, the buyer felt as though they were receiving quite a sizeable discount. Put to one side the fact that you will get a better rate of exchange from Prime Cap than you from you bank and you begin to see that the transparency of our service and the fact that someone is there to troubleshoot, support and guide you, is a very valuable aspect to the way we work. An improvement in the rate of exchange is a 'given'. And when you accept this fact, you can begin to truly appreciate the other bits of the service. Even if we gave you the same rate as your bank, which we won't, you would be better off engaging our expertise than trying to do it all yourself during a time that is highly emotional and typically conducted in a foreign language. 0203 172 8193 brokers@primecappayments.com #france #buyinginfrance #notaire #agent #actedevente #compromisdevente #forward #stagespayment #deposit

A touch of whimsy to bolster not only your global financial education, but also your dinner party trivia! Yes - we are rocking Geek Chic with this post, but someone has to own it. + ANG - Netherlands Antilles Guilder + The Netherlands Antillean guilder (Dutch: gulden) is the currency of Curaçao and Sint Maarten, which until 2010 formed the Netherlands Antilles along with Bonaire, Saba, and Sint Eustatius. It is subdivided into 100 cents. Like many Caribbean currencies, the US dollar is the bench mark against which local currencies are pegged. We love the Antilles Guilder because of its linguistic obscurity - who d0esn't love the Dutch...and we often forget that they were big players in the region throughout the 17 and 18th Centuries. Much is made of financial imperialism and the stock-piling of reserve currencies. Our affection for ANG stems largely from the extent to which it is a reflection of a bygone era, a Pirates of the Caribeaneque tapestry of European colonial powers whose only remaining impression on these Islands tends to be random and largely globally useless currencies, customs & restrictions. ~ CHF - The Swiss Franc ~ CHF is the abbreviation for the Swiss franc, the official legal tender of Switzerland and Liechtenstein. CHF stands for Confoederatio Helvetica Franc, and Confoederatio Helvetica is the Latin name for the Swiss Confederation. It is also legal tender in the Italian exclave Campione d'Italia. The Swiss National Bank issues banknotes and the federal mint 'Swissmint' issues coins. Before 1798, about 75 entities were making coins in Switzerland, including the 25 cantons and half-cantons, 16 cities, and abbeys, resulting in about 860 different coins in circulation, with different values, denominations and monetary systems. The local Swiss currencies included the Basel thaler, Berne thaler, Fribourg gulden, Geneva thaler, Geneva genevoise, Luzern gulden, Neuchâtel gulden, St. Gallen thaler, Schwyz gulden, Solothurn thaler, Valais thaler, and Zürich thaler. In 1798, the Helvetic Republic introduced the franc, a currency based on the Berne thaler, subdivided into 10 batzen or 100 centimes. The Swiss franc was equal to ​6 3⁄4 grams of pure silver or ​1 1⁄2 French francs. So little is known about the Swiss banking structure. As a currency we find it both charming and disturbing that Switzerland, literally the home of Cockoo-clocks and watches, retains 'Franc' within the name of it's tender. Globally, Switzerland's relationship reciprocity is anything but. A point of interest - watches represented a means of transporting and moving valuable items across boarders (way back when). -USD - United States Dollar.- The United States dollar is the official currency of the United States and it's insular territories per the United States Constitution since 1792. For most practical purposes, it is divided into 100 smaller cent (¢) units, but is occasionally divided into 1000 mills (₥) for accounting purposes. The Green-Back is the most liquid currency in the world. By liquid we mean something akin to an actual liquid. Fluid, moving, mouldable and unrestricted. Pretty much anyone anywhere will accept USD... So desirable is the currency (and so prevalent can forgery of it be) that in some countries like Myanmar, banks won't accept anything less than a pristine dollar bill. Money changers across Myanmar can be seen inspecting and then ironing US Bills before taking them to their local bank to exchange int o the local currency. Other currencies that are not in such high demand are considering illiquid. Their global dissemination is limited. This is largely a reflection of the size of the economy which underpins those currencies and, by extension, the demand for and proliferation of the USD is symptomatic of the scale and reach of it's economy... We like the dollar not just because you can spend it anywhere, but also because the world macro currency soap opera tends to play out across the highs and lows of the currency and, despite being the legal tender of arguably the world's only super power, it's dissemination has served to shackle the US economy to the stock piling strategies and protectionist yet globalised approaches of other players on the world stage. - BWP - Botswana Pula - The pula is the currency of Botswana. It has the ISO 4217 code BWP and is subdivided into 100 thebe. Pula literally means "rain" in Setswana, because rain is very scarce in Botswana — home to much of the Kalahari Desert — and therefore valuable and a 'blessing'. The word also serves as the national motto of the country. The pula was introduced in 1976, replacing the South African rand at par. Despite a 12% devaluation in May 2005, the pula remains one of the strongest currencies in Africa The word Pula also serves as part of the national motto of the Kingdom of Lesotho. As in Botswana, it means "rain" in the Sotho language and is considered a synonym for blessing. #USD #CHF #BWP #ANG #currencies #trivia #global