It occurs to us that a basic explanation as to how customers of an estate agency might use 'us', when they might find us useful, and what information an estate agent can use to contextualise the relevance of our work, mightn't go amiss. We work with both high street estate agents with the more traditional shop window and with arguably more modern outfits whose presence is purely online. One man bands and multiple offices alike. Almost all of our relationships with the sector are with independents or boutiques or ,sometimes, niche operations whose activities stray in to property dealings. Working with smaller outfits keeps things personal and means teams can really get to grips with the why of a referral and whom they are referring to. Personal plays to our strengths as a boutique and means we can really get to know negotiators and agency owners and explain the benefits of truly integrating our services into the buying process. Typical clients we assist are foreign UK-resident and international vendors or buyers as well as UK nationals selling and looking to move funds abroad. We also help executors administering estates and transmitting bequests to beneficiaries overseas. One of the most common instructions we receive is to assist foreign nationals renting in London and then looking to purchase a property in the capital. Individuals and families bringing capital in to the UK can use our foreign currency denominated segregated client accounts (which serve the same purpose as a segregated account a solicitor might use) to extract their funds from their home country and enter the UK banking system. One of the most common things we are told by estate agents is that their client 'doesn't ask' about currency matters and, because they 'don't ask', many agents assume the client is catered for in that area. We can assure you that clients tend not to be catered for in that area, so, whilst we will field it politely, we will make every effort to explain how unlikely it is that your client even knows about the level of sophistication and the distinct value the work of a specialist currency broker represents. They are not asking about currency because it doesn't occur to them that you know someone who could help them; it is not because they do not require advice. We have three different service wrappers the nuances of which tend to encapsulate the practical preferences of clients with varying degrees of confidence and understanding of exchange rates and international payment mechanisms. View Only Execution Only Fully Managed Even though we have identified some common threads which are catered for within these three 'service wrappers', each matter is treated individually and so our brokers may draw on some of the features of one wrapper and tailor other aspects of the service, thereby arriving at a bespoke solution uniquely applicable to and actionable for your client. Our 'blended' approach to the actual booking of a rate and execution of a transaction will tick both the box for convenience and ease, and the boxes for unparalleled rate competition and customer care. Please do not just take our word for it. The reason we are the broker for some of London's most discerning professional services businesses is because we deliver exactly what you would expect from a best in class operation. For want of a better expression - 'we speak the language of our target markets'. As we have mentioned many times before, it is never too early to suggest making use of a currency broker to a foreign buyer or your vendor. Given that rates of exchange change constantly, your buyer and your vendor's foreign currency return will be constantly changing too and this can have very really effects on their appetites and their willingness to consider or deliver offers at certain levels. Prior to a client actually instructing us to buy and sell a currency we charge nothing for our pricing and consultancy services. At the referral stage we are sitting behind our screens and beside our phones exclusively to troubleshoot and quote rates of exchange and to guide on which contract might best achieve the timing or cash flow sensitivities of your client. One of the overriding things we ask you to remember is that if your client would otherwise leave their transaction to their bank, their budget will be literally up to 4% less because of marginal losses on the rate of exchange. Your client is leaving money on the table if they exchange their funds through their everyday banking provider. Introducing Prime Cap can have a significant and positive effect on the completion of a deal especially during periods of rate volatility when the slightest move in the pound can spook a buyer or put off a vendor. By way of an example: We have been referred to an American looking to add to his Buy to Let portfolio. He already has one property in London. Completion on his second purchase is not for three months so he is speaking with us daily to weigh up the benefits of waiting on an improved rate. We won't tell him to wait because the rate will be better. That is not something we or anyone can do, but, we can model for him the cost implications of certain rates. For this investor cash flow is a consideration. It is not a concern, but we know that being able to keep his capital in an interest bearing vehicle until the last moment is his preference. Hence, we have explained the virtues of using a forward contract. If the numbers add up he is in a position of buy the £1.5million he requires, now. He can buy them at today's rate, but, such are the terms of a forward that he can delay paying for the GBP until the day of completion, if he wishes. Having conducted various transactions for this client we know that his US bank will credit our US client account the same day, so, we can ensure that his solicitor receives his balance in good time. Daily we find ourselves asking why a currency broker isn't referred by an estate agent in the same way a mortgage broker is. Sure, there is consistent demand for mortgages and, admittedly, currency services are still a touch niche outside the M25, but, when a mortgage broker gets you a rate of 2.5% as opposed to 4.5% and Prime Cap can slash your margin from 4.5% to 0.45%, the numbers are no less compelling. The number of private office, property search and buy-side property concierge businesses referencing their services for international clients has noticeably increased in the past five years. You might think this is because the number of buyers has increased, but, that has been the case over the last 20 rather than the last 5 years so something else is surely the catalyst. We think it is because services tailored to the international market and the ability to market oneself outside of one's own domestic markets are now mainstream. You need to be just as prepared for a potential buyer from China, Singapore or Australia to be looking at your stock as you are for someone from a more local locale; and our service means wherever they are they can check the live, like for like, foreign currency price whilst browsing. We have not enjoyed glibbly telling businesses we've spoken with recently that their competitors have multiple references to international markets on their website and they have none. We are not marketeers. If you already work with international clients or aspire to, what do you say to them when they ask you about currency? If they don't ask about currency then why aren't you? You need to do your AML when they offer, so you do know if funds are coming in from abroad...why not add another string to your bow? How can your service be turn-key without that aspect represented? Contact us. Let us sit down with you over a coffee or a cocktail and explain in person how we can sit discretely but effectively alongside your brand and your staff, and make both a positive impression on your service offering as well as your conversion ratio and revenue. What have you got to loose? #London #PrimeCentral #PrimeCentralLondon #PrimeResi #PrimeProperty #Londonbuyingagent #PropertySearchAgent #propertyinvestor #foreignmoney #foreigninvestor

A relatively short post, but powerful in our view. Our clients are a couple buying a house in the UK. Until our introduction to them they were speaking with a different currency transfer business. Their exchange was rather time specific and they were sending money from Italy to the UK. In the week before they were due to complete they took the plunge and registered with the currency company they had been speaking with. So wildly different to the indicative rate they had been tempted with was the actual tradable rate of exchange they were being offered after their registration was completed, they were seriously considering just using their Italian bank for the exchange. We were suggested to them at a dinner party. We registered them as a client within the day and began providing quotes immediately. Our margins were in line with what they had expected from the company they had previously considered. From the point of referral to the moment of execution and the arrival/clearance of funds with their solicitor was no more than 72 hours. The money being moved was just over €400,000. We provided them with £16,636 more than their bank would and around £3000 more than their previous broker had been quoting them. Thankfully the clients bank acted promptly and the receipt of funds was not delayed - which it can very well be depending on the location of the institution in Italy. In discussion with the client we decided to apply out 'fully managed model', which meant the client agreed to us offering a 'set margin' on receipt of their euros. The moment funds arrived with us they were sold at the agreed margin and transmitted onwards without delay. It just goes to show that if you have a motivated broker who knows what they are competing against you can get value, speed and efficiency in a matter of hours. #Italy #currencytransfer #buyingprocess #UKproperty #SRA #solicitorsregulatoryauthority #Italian #moneytransfer

Like the UK, Australia has it's own domestic market for personal foreign exchange services. A number of the businesses operating in this space are in fact subsidiaries or off-shoots of UK businesses and, like Prime Cap, they aim to cater for the needs of those moving to the United Kingdom, repatriating money earned in sterling or simply holding your pounds in either AUD or GBP as part of your personal banking. In this post we will look at how someone already present in the UK can maximise their rate of exchange as well as convert and transmit currencies even in the face of obstacles like the sizeable time difference between the two territories. 1. Keep your dollars as dollars. Many Australian banks actually have arrangements with wholesale foreign exchange businesses like Prime Cap. Certain banks will rely on the sophistication and processing power of a non-bank company to get money from Oz to the UK. If you are talking with your bank directly, the main thing often overlooked by your Australian bank is the fact that, when using a currency broker, you do not want the bank to convert your dollars in to sterling. You want your bank to electronically transmit your Australian dollars as to Australian dollars. You do not want them to conduct the exchange. You need to be precise and specific when filling in the relevant form or providing the instruction to electronically send your money. If you are not specific your bank will usually just convert the funds in to sterling because they assume that you want the money in the currency of the country you are sending funds to. 2. With a currency broker like Prime Cap, the time difference doesn't make a difference to when you can lock in the rate. Many Australian banks will require you to speak with them directly when instructing an international payment. This usually means you staying up to an ungodly hour in order to catch the bank when they are open during the Australian working day. Given that you can login to the Prime Cap system around the clock, regardless of whether you are in Oz or the UK, you can lock in a rate of exchange and begin the transaction even whilst you Oz bank sleeps. If you are sending money to the UK from within Australia then you can communicate with your bank to send the funds during waking hours. You can also simultaneously lock in a rate of exchange over the Prime Cap online platform even though the UK may not be open for business. 3. Your money will not arrive in the UK instantly. The time of day at which you request the electronic transfer from your Australian bank determines the date on which your money will arrive in the UK. In the international banking framework there are set 'cut-off' times for the instruction, debit and release of an international payment. Unfortunately not all Australian banks clear international payments in the same way or at the same time. When you instruct your bank they can provide you with what is called a 'value date'. This is the date on which your Australian dollars will leave Australia. This is not necessarily the date on which those funds will clear with us in the UK. The speed with which funds clear with our bank in the UK depends on the relationship your Australian banks has with our bank. Given that we use one of the world's largest clearers of currency to host our segregated accounts, we can reasonably expect there will be a strong dialogue|relationship between our bank and your source bank, but, it is nearly impossible to assess the strength of this relationship. Therefore we approach answering questions over how long it will take for funds to arrive in one of two ways: a) we advise you to instruct your bank to send us your AUD before the actual date|day on which you intend on exchanging or the day on which you need to exchange. This is akin to 'pre-funding' a transaction. Our automated system will immediately inform you when your AUD clears with us and it is usually, but not always, the very same working day that you've requested the electronic payment from Oz. Given you're funds are already with us, and we have confirmed their arrival with you, all you need to do is talk to one of our brokers or login to your online facility with us, accept a rate and in put the details of the UK bank you want us to pay. We advise that you give us a call because it means our brokers can manually select a 'same day' currency contract for you. This ensures that your sterling will clear with you the same day, provided you book before the same day cut-off time - again, that is a time we will confirm with you. b) we use our standard 'spot' contract and lock in a rate for your before you have instructed your Australian bank to send funds. Such are the terms of the spot contract that we do not actually expect you to pay for the currency until up to two days after the booking date (this is referred to in the finance world as 'T+2'). Again, because of the size and reach of our banking arrangements we can reasonably expect that your dollars arrive with us before this settlement date and we will immediately notify you when your money arrives and simply take care of finishing off the exchange and getting your sterling to you. 4. Charges. Your Australian bank will charge you to send your Australian dollars to the UK. This is because, for them, it is still an international payment. Whilst you can take steps to ensure they do not conduct the conversion to sterling, they will charge you between $15 and $35 dollars to send the funds. This fee should be made known to you at the time of the instruction. You can either ask for this fee to be deducted from the amount to you are sending. Or, you can ask for it to be applied as an upfront fee that you pay on top of the money you are sending, debited directly from your Australian bank account. If you are simply clearing all the money out fo your Australian bank account and this is the figure you input as what you want to send, it is extremely likely your Australian bank will deduct the fee from this amount...this is because there isn't anything else in your AUD account from which they can deduct it. In this case you should not be alarmed to see that the AUD amount we receive is fractionally less than what you asked to be sent. Now, what does it mean for you and us if you have already locked in a rate and an amount through the Prime Cap system? Once we receive your Australian dollar amount and, seeing that it is short by the amount of your bank's international payment fee, we can rejig our figures to enable us to release to you the precise sterling equivalent of the AUD we have received. So, you don't need to worry about the amount coming in a little short. One way to offset the effects of this deduction by your bank is to wait to lock in a rate with us until you know what we have received. The whole process is a bit easier if you do it that way, but, as we say, we don't mind if that isn't the option you've selected and please rest assured that your broker will talk you through all of these elements even before you register as a client of Prime Cap. When using a company like Prime Cap the only practical thing you need to do to exchange your money is to instruct you Australian bank to make that international payment. Our experienced team will talk you through everything and our automated system is on your side to make sure that you have a responsive and real-time method for tracking things. From us you will get a better rate of exchange, clearer processes and the visibility that is often lacking from a bank's involvement in this sort of process. Please do give us a ring if you would like to discuss your matter in more detail and, to conclude, in our experience the margin by which we can improve the rate of exchange can be as much as 4.5% when compared to an Australian bank. You may be in the UK and so using a UK located business may suit your preferences. If you are not in the UK then our online platform gives you all the access and functionality you could want, even if you're 12 hours ahead. #australia #sendmoneytotheUK #AUDtoGBP #moneytransfer #transferozdollars #ozidollartransfer #sendingmoney #Australianbanks

Google 'Pound to Euro exchange rate' now and click on the first search result to appear. We're going to use that search result to frame our explanation of what you see when you look online for an exchange rate and it will also frame our explanation as to how what you see isn't necessarily what you're going to get. The first thing to say is that the website you're looking at is not faceless. It has not come top in your search by coincidence. If it is the same one that appeared at the top of our search, it is in fact an online currency transfer business. Like us, this company assists people who want to exchange currency between bank accounts; as you can imagine, they pay a lot to be top of your search. What you will also see just below their representation of 'the rate' is a little disclaimer stating: "All figures are based on live mid-market rates. These rates are not available to consumer clients." This begs the questions: 'what are 'live mid-market rates?' and 'what rates are available to consumer clients?' If you are showing me a rate of exchange, why is it not available to me as a 'consumer client' and what is? Forgive us if we're teaching you something you already know. If we are then great, but, this post might not be for you. For those unfamiliar with the jargon being used, let us set the scene with regards to currencies, 'markets' and the exchange of money around the world: Globally the sales and purchase of businesses, currencies, securities and all manner of other things private capital can buy and sell, takes place within a sort of virtual 'network' which is commonly referred to as a 'market'. Imagine a real 'market'. Like a farmers market, except rather than twee little candy cain awnings shielding cheeses, bread and fresh veg, the vendors in these markets are selling a euro, or debt in a company, or a share in a listed business, or a house. Amazon is considered an online 'market place' and certain big financial institutions might even be considered the financial equivalent of a super market as they have a huge variety of products, financial instruments and so on under one roof. We appreciate that this may seem an overly simplistic analogy, but, a 'market' in the context of financial services really can be understood in this way as the old traditional markets, with a buyer, a seller and potential for negotiation based on volume, demand and payment in cash (for instance). At the moment the UK runs on a free-market economic model. We aren't economists, so we won't go into the alternatives, but, in a nut-shell this means that the state, other than through regulation of certain markets, is not directly intervening in the prices set by the vendors within these markets. Prices are, for the most part, determined by the market and what it's participants are willing to pay. So, when you hear someone refer to the 'currency markets' you could and should quite understandably visualise a series of market stalls all over the world selling euros, dollars, sterling, yen. Some stalls will only sell the wears of the territory they operate in. Some very rich market participants can and do stockpile the currencies of other stall holders. All of this happens above our heads down here on the high-street, but, it all has an affect on what rates of exchange filter down to you and I. Generally speaking the main purveyors of currencies in this virtual market place are banks. We could go in to more detail, but, let's say that banks are the sellers in this market place and everyone else is the buyer; if we accept that then the premise is easier to extrapolate. So, a big market place with many stall holders all of which are banks. How then do you and I or anyone else 'looking-in' know what a country's currency is worth relative to another currency elsewhere in the market? With so many different vendors and purveyors of currencies, how do we know what the actual rate of exchange is given that all these banks might be asking you to pay a different price for the currency they're selling...? Well, certain financial and news focussed organisations will publish a feed of the average rate offered by a selection of these banks. It is a snap shot of the average of all these rates to buy and sell currencies offered and made by banks. Some of these outlets update their feeds and averages in real time, so it is rolling ever climbing and falling average. You could liken bank exchange rates to your facebook or twitter feed, and organisations like Bloomberg or the BBC are publishing the 'trending' numbers across that feed, providing you with an average or an overview of what banks are talking about between themselves. Other outlets update their published rate every 15 minutes or just twice daily. Most daily news papers will only publish this average in their morning run. How often the feed or averaged rate is updated does not matter unless you're trying to use that middle-market for an actual calculation. So, when you search the web for a rate of exchange, the results you are met with are not actually the rates that one bank will offer you...they are, more often than not, the average rate being presented to 'the market' by a variety of these banks. The average rate is also known as the 'mid market' rate. So, bringing us back to your initial search...the rate you see is a reflection of the mid-market average and, as per their disclaimer, this is not available to you as a consumer. So, what is? Minute by minute, second by second, sophisticated electronic systems are matching up someone at a bank who wants to buy a currency, with someone at a different bank who wants to sell one. Were I a bank and if I am 'in the market' to buy a currency then I can tell the other participants in the market what I am prepared to pay for a currency. I can place a 'bid' of what I am prepared to pay and software used by all those banks operating at an 'inter-bank' level will match my bid with what someone else is asking for...their 'ask'. When these sophisticated electronic systems match my 'bid' with the price that an institution might 'ask' the deal/exchange is automatically executed. Now, you and I as individuals sadly don't exchange enough currency for us to have access to the market place used by banks and other big institutions. We are not banks, so we cannot expect to achieve this rate. Our (yours and my as individuals) route to buy currency is either through our bank directly...which is what you may be doing already, or it is through another institution who can broker for us a better rate than our bank will give us direct...someone like Prime Cap for instance. Because the 'bid' prices and the 'ask' prices within the global virtual market place that is the 'interbank market' are triggering and matching second by second, the rate you and I see online 'published' changes with mind boggling speed. You may have seen those cliched images on the news of 'traders' sitting in front of screens covered in numbers changing between red and green. That is quite literally what it is like, but, what those panic inducing images don't tell you is that most of the work is done by computer. It does make sense that all these hundreds of sellers selling all these hundreds of currencies have the rates at which they're selling them condensed down in to one average. It is really the only way you and I or anyone else could make head or tail of the value of our currency. You won't see much difference between what you see on Google and what you might see on Bloomberg or the BBC websites or in a newspaper. They all rely on much the same sources for these rates and there are only minuscule differences between one bid and one ask rate. This renders the question of where is the best place to follow the rates a bit moot. Prime Cap's Data Centre has it's own interbank feed, so please do put that in a bookmark on your web browser. It will also show you whether the pound has gained or lost in recent trading and by how much - useful stuff, but, still not what you would receive were you to exchange currency with us. Now, the reason why the rate you get when you try to exchange currencies differs to that which you see online when you're researching is because the institution or business you're using to conduct the exchange applies a very small mark up to the rate. As an individual I might see an exchange rate online of 1.50 if I am researching the exchange between Sterling (GBP) and US dollars (USD). However, when I login to my online banking and go to the 'international payments' tab and get a rate I am actually presented with a rate of 1.47. This is because my bank's mark up is 0.03 of a dollar. So, for every one pound I am exchanging/selling, my bank pockets 0.03 of the dollar amount they are selling me. Every mark up is different. So, just because your bank offers you what they do doesn't mean another bank with do the same. Likewise, not all brokers' margins are the same. All I need to do is to find someone who applies less of a mark up than the next institution and I will be saving money...because, I will be getting more USD for my one pound the less of a margin that institution applies. If my bank gives me a rate of 1.47 and I want to exchange £1000, then, with my bank I can buy $1470. If the 'inter-bank rate' is 1.50 then, of the 1500 my bank can buy, they keep $30 and sell me the remaining $1470. If my currency broker applies a mark up of 0.02 then I get a rate of exchange of 1.48 and I receive $1480 - so $10 more. If I was exchanging a larger amount - maybe £10,000, then, by the same metric, I would be receiving £100 more through my broker and were it £100,000 I would receive $1000 more. So, the 'mark-up' or margin applied by the company or institution I am exchanging with is what determines the rate of exchange I get. That is the only thing. The problem for you and I is that no institution or company publishes the mark up they apply to their rate of exchange. This is because their own margins will vary depending on a number of different factors, but, interestingly, the won't know the rate on to which they apply their margin because institutions like Prime Cap get that base or wholesale rate when they ask the bank. Someone just researching the rate of exchange can't account for how the company or institution they're getting a rate from is going to perceive that quote in terms of how competitive they need to be. One of the interesting things we like to note is that some of these purely online transfer platforms (like the one in our initial search) - the one's where you just sign up and input the amount you want to convert etc. - some of them do not tweak or change their rates to reflect the specifics of the transaction you want to conduct. A bit like you're bank...you get what you are given. Sure, you're given a better rate than your bank, but, if someone were assessing your exchange personally, it stands to reason they might give you something even more attractive, especially if they knew you were comparing them elsewhere. Therefore, it is very easy for a business like Prime Cap to, when pitted against an online platform, tailor our mark-up to undercut the other platform. This is why we emphasise the fact that all our rates are bespoke and unique to the transaction at hand. We think it always pays to call us. If you are converting £1000 in to US dollar then a mark up of 0.02 might seem quite reasonable. It might not seem so reasonable if you were converting £5,000,000 as it would equate to £100,000. Your App based transfer system won't allow for that difference. That is why the talking through of the transaction with our team and the making use of our blended online and voice broking approach is the best way to get the best value on a case by case basis. When companies refer to the 'live' rate of exchange, essentially what we mean is that we are getting a real-time rate from our source institution. Some banks will set the retail rate of exchange they offer their clients in the morning. If the general inter-bank rate of exchange does not move over the course of the day then that bank will continue to conduct exchanges at this pre-determined rate. This is why, when you call the customer service line of your high street bank, the person who tells you the rate might be giving you a figure completely different to what you see online. That person is simply telling you what rate the bank set that morning. A live rate is simply one that is bespoke to the current conditions of the currency market at the moment the market is looked at. Live rates do move continually, so, when you 'get rate' through our platform, for instance, you will see a 10 second timer appear. This is because one could reasonably assume that the rate will have changed in 10 seconds, so, a live rate would, were there a move, need to be requoted higher or lower depending on the direction in which the mid-market rate has moved. The idea of a 'live' rate doesn't really mean much to you or me when it comes to whether or not the rate is better or worse for us. Yes, it does have an effect on what your currency will achieve, but, the actual thing of importance is the margin your chosen institution will apply. Many brokers use the term 'live' to give a sense of energy or preference to what can be a rather drab subject, so, if someone doesn't expressly reference a 'live' rate then do not think less of them. We use the term 'live' rate to express how frequently the market moves. Quoting you a 'live' rate means we a giving you the most accurate quotation as to what your currency is worth. So, if you get a rate from us in the morning time you should expect that rate to be different in the afternoon, simply because the interbank rate will likely have moved. At the end of the day it is important to remember that the rate you see broadly expressed online or across a public platform is not the rate you will get. This is for definite. Institutions and companies, like Prime Cap, will be closer or further from that published rate depending on a number of factors, the most prominent of which is the size of the mark-up they apply to the rate at which they can negotiate currency from a wholesaler of it. When we say that our rates are unique to the relationships we have with institutions, we mean that the mark-up applied by someone who sells currency to Prime Cap might be more or less than the mark-up applied to the rate when that same institution is selling to one of our competitors. The rate we get from our banks and market-counter parties is unique and tailored to our relationship with them in exactly the same way as the rate we quote you is unique to our relationship with you. And, one of the fundamentals of our 'reason for being' is the belief that our customers get better value by talking to us and us understanding their requirements...much like the local bank managers of old, but, all served up using the most cutting edge, innovative and efficient mechanisms for execution. If you would like to find our more then some common questions are answered on our FAQs page but, as you might expect, we would be delighted to hear from you by telephone. #onlinebanking #Google #exchangerate #Sterlingtoeuro #moneyexchange #currencyconverter #foreignexchange #bid #ask #midmarket #XEcom

As an independent broker we are very proud of our ability to shine a light on some of the businesses we work for, some of the partners who refer to us and some of the forums from which we receive referrals. Being a boutique means we know our clients in a different way to some of the 'factory firms' in our sector. It is worth asking yourself 'how can an FX company with thousands of clients reasonably give back to their partners?'. In our experience they cannot, and this is where we think we have an edge. It is fair to say that currency exchange is somewhat niche. Although a huge number of businesses engage in the exchange of currency and, particularly in London, a large number of individuals send, receive, hold and exchange currency, but, because competition for column inches is so fierce you don't tend to see independent companies advertise across mainstream channels. In the context of Prime Cap, being an independent broker means that we are wholly privately owned. At least that is what we consider to be the important part of being independent. The mark up we apply to rates of exchange does not serve to support dividends to share holders and because we have a boutique structure we do not have to worry about any margin we make being used to compensate stakeholders in the sales process. So, by this we mean that we do not have purely business development managers or extraneous support staff who have a claim on any proportion of the margin we make. Our brokers are our sales team. They are our customer service team. They are our research team and our consultancy team. Each of our brokers has a personal relationship with her or his clients. She might have a strong relationship with the referrer of a private client. She might also have a relationship with someone working at one of the businesses we transact for. The bottom line is that the focussed way we work with our clients and our partners means that we can do a little more to give back and our collaborations are not just based on pounds and pence, but rather the value our clients will get from those we promote. Being a niche business means we get on well with other niche businesses. One such business is called Dingo Recruitment. Dingo Recruitment was the brain child of David Field. As well as linking qualified and diligent Australians and New Zealanders arriving in the UK with both temporary and permanent jobs, Dingo puts itself out there as a useful settling in service...providing its candidates with information and introductions for things like bank accounts, accommodation and initial tax advice. As you can imagine, sending and receiving money can have a part to play in the movements of someone coming to the UK...so we are very pleased to be considered their go to provider for payment services. More than that though, we consider ourselves a platform from which our clients and contacts can draw first hand personal recommendations. David went through many of the same experiences as his candidate base, so he knows what they expect and the common concerns or obstacles they face. Likewise, Prime Cap was incorporated precisely because we knew what our clients were asking for and they simply couldn't find it elsewhere. In one sense our referencing Dingo Recruitment is simply an endorsement of a trusted partner and peer, but, in another it is a chance for us to directly reference how we work with the relocation sector. Yes, the work of David and his team is predicated on placing Australian and New Zealand nationals in work in London, that is how they make their money, but, their outlook and values with regards to welcoming their candidates to the UK and the deepening trust placed in them by their clients reflects the sort of business we want to be perceived as. Another cord Dingo hits on for us is the assumption by many that a currency broker only deals with the movement and exchange of large sums of money. Someone moving to the UK with plans to stay for the longer term (anything over a year) might well look to self fund from savings they have back home. Initially their expenses won't be much, just rent, travel etc. This type of payment activity won't excite the interest of large foreign exchange firms many of whom have a minimum margin their need to make on a transaction. However, for Prime Cap this is precisely the type of payments activity we relish. Our online platform allows individuals to send their Australian or New Zealand dollars to us as that currency. They can then chose when to convert their money in to sterling and pay directly to their UK bank account. One of the more interesting things to note is that they do not need to speak with us to exchange this money. Yes, we want to answer questions and we are the first port of call for gathering information when it comes to registering a new client, but, customers can simply login in to the system and be assured of a good rate of exchange whenever they do. The process doesn't have to be drawn out of convoluted. It is much like using an online banking system but you have the benefit of an improved rate and knowing precisely when you're money will arrive where you want it. If you would like to talk through our work with the likes of Dingo, or you would like us to make an introduction directly to David and his team either for you as a candidate or as a client looking to hire, then please do just let us know. It would be our pleasure to connect you. #DingoRecruitment #Recruitment #Australia #NewZealand #AUD #NZD #relocating #AustraliansinLondon #MovingtoLondon #MovingtotheUK

Years of working with businesses and personal customers has taught us a couple of useful things. We pride ourselves on being able to personalise a rather niche service, and yet, we know that an individual at the end of the telephone is not always appealing to some customers. So, when we detect that our involvement, our personal involvement, is more of a turn off than a lure, our brokers take a step back. So confident are we in the ease and sophistication of the tools we provide, we can extract ourselves from the operation of sending a payment. We will always ensure that a customer can pick up the telephone if needed and our 'View Only' service wrapper ensures that even if you do not want to talk directly with us we can see where improvements could be made and oversee you payments activities from afar. Humility in this regard - essentially the acceptance that human intervention can be a turn off for some clients - is essential when dealing in a service focussed sector live payments and currency exchange. Here is an example of what we mean: An accountant with whom we work might not want to introduce or include our brokers in their recommendation to an SME that exchange currencies when paying suppliers. We will explain and demonstrate our online platform to our accountancy partner and then, with their consent and on their instruction, we will simply sit back and facilitate the engagement of our services but without the direct advocacy of a voice broking overlay. Our accountancy partner can then happily and without impediment, subtly introduce their client to our platform. They do not need to introduce their client to our broker. This is an interesting and perhaps new way of bringing tailored currency services to SMEs. It removes concerns our partners might have about the part personality and the personal connection their client might form with us. So simple is our system that the accountant can answer questions if needs be. We can always be on speed dial, but, this approach allows the technology we use to do the talking. It is a way of avoiding pressure selling. The client engages with an intuitive process, rather than with an overly chatty sales person. Like any business we want to talk directly to our clients. For one thing, initially, it helps us assess how suitable a resource we are for the client, plus it helps us feel confident in the quality of the service, but, many businesses just want the tech. Someone in the finance team of a referred client might not give two hoots about the personality we can bring to the matter. Personality and insight may not be in the least bit important to the individual settling an invoice; they want, ease, speed and function. We are totally confident that someone can, may be only with measured guidance initially, pick up how to execute a transaction. They can be left to their own devices without what some might deem interference from our front end broking staff. An extrapolation of this premise is to suggest that certain businesses can use us to compliment the other platform based services they provide. An accountant may already recommend Quick Books or Sage. They could now recommend Prime Cap as a payment platform. The expertise of a broker will always be there and we will always act to make sure that errors or oversight is mitigated, but, intuitive clients do not need to rely on us to conduct their own payments, settlements and transactions. We have discussed the differences between Prime Cap and other purely online transfer platforms in other posts . - see 'related posts' to the right for more on this. In a nut shell we feel that because we can compete on a like for like basis on price|rate and because our platform can outperform the functionality of many of the more main stream transfer systems online, we have the edge. Other solutions platforms, like your bank (with the international payment section of their online banking), will not notify you of favourable conditions for your exchange. Transferwise (as one example) will not call you to inform you that the rate you were looking at yesterday has now improved and consequently reduced the amount you thought you might have to pay. We won't tell you to wait because we think the rate will improve, but we can inform you of such an improvement and we can give you the benefit of our experience when it comes to advising on simple and free ways to remove the risk of the rate going against you. DIY currency transfer systems will not detail the benefits of using something like a forward contract. They will not inform you that you have missed the cut off for today's payment clearing abroad. You have to login in to see whether your money has arrived. They will not clarify the effect currency controls and less developed banking infrastructure might have on your ability to send and receive money to and from certain countries. Using and providing cutting edge and yet familiar online systems, ones that look and feel and work the same as online banking systems you might already use, does not mean you lose any of the advantages of having an expert at the end of the telephone. Having said that, if you are recommending someone revise the way they make payments with a view to improving efficiency and lowering costs, Prime Cap does not mean you're risking your client falling out with a salesman. Laissez-faire or directly managed, our suite of tools are there for everyone. We already know there is an appetite for this blended approach, but we are also in the market to cater for those who want both more and less personalisation of these activities. If you would like to discuss this further, get some real examples of the many different ways we work with a variety of businesses and individuals, or simply want to try the system for yourself, then we invite you to get in touch. #onlinebanking #onlinepayments #financedirector #accountant #clientlogin #sendmoney #receivemoney #exchangemoney #paysupplier #supplychain #remotecontrol #remotelogin

We were recently engaged in what, on the face of it, seemed like a complicated refinancing matter. Our client in the matter was a trust administrator in the Channel Islands. Their client, the UBO (ultimate beneficial owner) had to redeem one mortgage denominated in euros. They elected to refinance in sterling, so needed the skills of a currency broker to ensure the GBP released from their new arrangement achieved at least the EUR amount they needed to pay back. The complexity of the matter, at least on first glance, was to do with the parties involved and the fact that the UBO was not directly the seller or buyer of currencies. Prime Cap received funds from the appointed solicitor. The release of funds due to be exchanged had to tie in precisely with the date on which the mortgage needed to be redeemed. Therefore, we needed to have all AML in place to proceed once the newly arranged borrowing was liquid; in addition to which we needed to ensure that the euro amount intended to complete the redemption was cleared with the receiver on the very same day, before the cut-off times associated with the payment processing of the issuing institution. Regulations required us to know and understand not only the details of the UBO, but also those parties involved in the transmission and receipt of funds. In this matter, our close relationship with the instructed solicitor ensured that all our data gathering was handled with extreme efficiency. We were able to rely on the expediency and efficiency of the trust administrator, in whose possession was all the information we required to satisfy our AML and KYC obligations. One of the particular issues in this matter was the time it took/takes for the solicitor's bank to transmit the GBP amount to us. It was imperative that we received the GBP in time to release the EUR amount bought. Advising the use of a 'same day' contract, rather than the standard 'spot' contract meant that, in conjunction with the application of the necessary pressure to our clearing partner, we were able to release the euros before the 14:30 cut off. Which, in turn, ensured that euros arrived at the appropriate destination before the close of business on the day of redemption. Matters such as this, where stakeholders are galvanised to act swiftly and diligently, and where precise actions are required to ensure deadlines are met, simply cannot be achieved through a purely online exchange platform. The personal relationship we have with the instructing solicitor, supported by the strength of their relationship with the trust administrator, ensured every moving part in the process performed it's function on point. Yes, receiving GBP and exchanging in to EUR to meet the specifics of the redemption deadline is one thing, but, by virtue of the rate improvement we provided, the EUR amount was bought comfortably with the GBP released by the new lender. This in turn meant that less was in fact required to refinance the borrowing. Whilst we cannot be sure, it is not unreasonable for us to assert that our involvement actually lessened the borrowing of the UBO. When the vast majority of banks, lenders in this instance, work at 150 basis points from the market, our spreads of between 1 and 50 basis points mean a measurable saving. In instances like this solicitors, trust administrators and the underlying client are not necessarily focussed on a saving being made. Their focus is the execution of the refinancing process...so, to be able to tell one's client and their representatives that they have saved in excess of £45,000 simply by working with us, is a delight. This entire matter is yet another example of a client sleep walking in to increased expense...or rather, how we are able to help clients avoid such expense. The entire matter, from referral to clearance of funds, happened within a 4 day window. Were it not for the action taken by the appointed solicitor, by introducing us to the scenario, costs would have been higher and there would have been no guarantee that the various players in the processing of funds would have met their time sensitive objectives. We were able to report back to each stakeholder in real time and provide pin point accuracy as to the clearance of funds. Furthermore, through our online platform the various stake holders were able to monitor and track the progress of the exchange without needing to chase...they simply needed to 'refresh' their browser. To conclude, we feel the need to emphasise the fact that, just because currency does not leave one country for another, does not mean that a broker is without use. Yes, in most instances of currency exchange there is a foreign or domestic recipient, but, fiduciary managers moving money between their own nostro accounts stand to gain by precisely the same margins of improvement when it comes to rate and efficiency. We have one client who uses us to electronically transmit sterling overseas without any exchange involved. The reason he uses us is because the online tracking and reporting we offer is more sophisticated, plus we charge him £10 where his high street bank charges him £27. It goes without saying that we invite you to contact us if you would like further information, or, in fact, if you would like to be introduced to a firm of solicitors excellent in the provision of the services outlined above. It would be out pleasure. brokers@primecappayments.com | 0203 172 8193 | www.primecappayments.com #refinance #mortgage #offshore #ChannelIslands #solicitor #trustadministrator #offshoretrust #familyoffice

Our last BREXIT commentary was back in August 2017 and it is fair to say that the political discourse on the matter, aside from making rather repetitive reading, has done a fair bit to reassure the markets that something is happening in the halls of power. It remains unclear what precisely what that something is, but, Mrs May's government is now committing at least to the pretense that it is unified, which is an improvement on six months ago. One theory running around the Prime Cap offices is that the stories in the press are part of a socialist conspiracy peddled by the tabloid press and designed to force the government to move further to the centre. At a very basic level that isn't a rediculous notion especially if you consider that it is the man on the street in the UK who wants safety in numbers, however, all of the talk is doing damage to this idea of a 'good deal' for the UK. The term 'fudged' was used to describe the agreement between the EU and the government over the three areas that Mr Barnier said needed to be addressed before discussions on trade could be tackled in earnest. It is rather fair to say that how the UK treats EU citizens, what form the divide between Norther and Southern Ireland might take and who governs disputes during a transition are all areas that the UK would have had a better handle on negotiating were we any clearer on what trade relationship might be tables with the EU, but, it is also fair to say that the dragging of feet on those issues would have, and a bit did, erode confidence in the good will and decency both sides suggest underpins their approach; but hey, isn't that just all part of negotiation? 'Britain' has a point about saying that trade was the key to unlocking their plans for the other points, but, restricting discussions would have done more harm to Mr May's position and suggested to her global audience that she had few other pillars propping up her approach. Anyway, with the new year we see a bit more vim and vigour from the pound against a basket of currencies. Consumer confidence in the UK is high and it could be argued, and no doubt will be by euro-skeptics, that the public are softening to the idea of a 'free' and independent UK. It has to be acknowledged though that sterling's current price, against EUR and USD particularly, is a weak one. GBP has risen in value probably as a result of weakening of the other two currencies and not as a result of any particular underlying confidence in UK economic fundamentals. One thing to quickly say is that you can't account for corporate mismanagement and what effect that might have on confidence or risk appetite. So, things like the demise of Carillion and other likely damaging releases of the same ilk cannot be forecast. It is interesting to note that main street, although alarmed, has not reacted in any measurable way to this information. The left demonises PFI, but, someone who owns their own house and likes the fact that is the aspirational status quo is not laying the fault of Carillion's collapse at the door of a conservative idealogy per se. This is a welcome shift. One thing we observe is that BREXIT is still firmly in the political phase of its effects. Yes, UK growth has been downgraded and yes the government has suffered a number of embarrassments over its preparedness and modelling on the effects of our withdrawal, but, many of the corporate clients we talk to are actually and genuinely excited about what the future holds and where their next client might come from. They want the conversation to progress and, rather than being resigned to a worse state of affairs, they are all interested in engaged in what may come their way. This is one of the main differences between 2018 than 2017. Real people are bored of the politics, but, so complex is it that they still feel that Mrs May, for all her faults and for all her short comings as a party leader, is still a sincere operator committed to the improvement of the lot of those she governs. We don't think the same could be said for her opponents on the other side of the chamber. When it comes to matters of international representation, Mrs May is still seen as more capable than the alternative and that is true of those in the UK and those looking at the UK from an investment point of view. This is a good thing for her and for us. It is terribly difficult at the moment to have any type of assured view on where GBP might go over the coming months. Yes, we can draw on fundementals and we can, as many in the capital markets do, look at performance, purchasing managers' orders, unemployment and public sector spending, but, we surmise that the most damaging story for the pound is yet to play out. Renowned the world over from the stability of our democracy, it would be tremendously naive to think that what is going on in the Conservative and Labour party won't have a significant effect on our ability to focus on replacing the EU as a trade partner. Mr Corbyn, on principle, dislikes what Mr Trump stands for. That is understandable given their respective political ideologies, but, given that there will be a gaping hole in the UK's balance sheet once we pin down what life on the other side of the canyon will look like, the British electorate need to be told about what a more socialist agenda will do to the silver bullet economic salvation the Tories are seeking. Prime Cap doesnt vote, but, socialism is not the way to win investment from the rest of the world. We don't think the Tories will be ousted. However, if they cannot form an orderly queue behind one leader then there is a possibility that self-sabotage will do that which the election last year could not. If a lot of those who voted in favour of BREXIT are from the political left, then it is totally counter intuitive to vote in favour of socialist policies when we need to be offering the rest of the world the benefit of our full throated capitalist expertise. The interesting this is that the Labour party seemed to have worked out where their leader is weak and they are taking steps to ensure that when questions of competancy in international statesmanship are asked Mrs May is the only one in the cross-hair. This stragegy means that Mr Corbyn looks quiet and considered, yes, but is also means the Tories are left in the headlines, neatly erecting the gallows because they cannot agree who they are. If they don't know, then how the hell are we supposed to? Most people agree that a hard Brexit will be bad for business; but, interestingly, business is, we suspect, planning for just such an eventuality and, if it is, then the modelling and sentiment which is currently floating around the market is likely to be an overestimate of the adverse effects of our withdrawal. In a weird sort of way this should give us comfort. For every report you read about a business leaving the UK you need to look at the small print and appreciate that the UK not in the EU is an opportunity for the exact same institution. Yes, they are preparing to keep the rudder steady for their european business, but, if an economy and a country were readying to go it alone, wouldn't you want it to be the world's foremost one in courting international trade and one with a peerless infrastructure and set of skills? We're starting to sound like brexiteers here. Our view is more to do with lemons and what to do with them is they're what you have. The lesser reported story, largely because it's public discussion cannot begin in earnest just yet, is about those institutions and businesses that a gearing up to enter the UK market. Yes, a bank may be planning to move it's operations to France (with all the costs and long terms legislative complications that promises) but, what about those economic rising stars who can now genuinely look to spend their money in the UK. They will no that UK Plc. has capacity. Yes, they may be able to get a bargain but do we care so long as they spend their money with us? I think not. The Great British PR machine needs to start talking up the BRIC countries and brands. Our Western imperial economic model needs to be dispensed with and we need to start broadening our horizons and using the platform we have to start cheer leading peers whose presence at our table had previously been restricted. London is open for business, sure, but is the UK at large and, if so keen to 'big-up' the UK why aren't messes Gove, Johnson, Fox and Rees-Mogg talking about the other markets that will undoubtedly be hammering down our door. If the tide of public opinion is shifting, then the EU doesnt need to be on our front pages...show them we have other options. It doesnt have to be a formal statutory or policy change, but our press could start working with new advertisers, our companies could publiscise who their potential new suppliers might be, we could shout about how much more money we could make if we redirected current spending in to markets where our activity had been limited...there is a great deal more we can do to fortify the consumer confidence that have surprised the markets. Sterling's climb against the USD is an interesting one. As the global reserve currency US dollar can be vulnerable to swings in sentiment that are global rather than purely domestic. For that reason one has to view weakening or strengthening of the dollar in the context of macro themes rather than pinning it's change in value to any one event or market shock. Of course, those events and markets shocks do have an effect, but those effects tend to be framed in the domestic language of the currency on the other side of the rate of exchange. As we often say, businesses need to make better use of hedging tools in order to protect themselves from increases in costs. With a 'high' pound, high relative to the rate one might have achieved last time one was exchanging, buying currency before you need it is a safe and sensible way of extending your ability to use it; but, in times of volatility, buying currency in advance or 'forward' makes sure that you dont have to pay anything more tomorrow. If businesses want certainty then these tools give it. It is not about fractional gains, it is about making sure you're cash flow is understood and being able to operate with the confidence of knowing you won't have to pay more tomorrow regardless of movements in the rate of exchange. We're of the opinion that BREXIT should have made forward contracts more popular; the trouble is that BREXIT has actually only really served to enhance the profile of a businesses bank for other aspects of financial activity. Prime Cap isn't able to penetrate new markets any more successfully because the UK is leaving the EU. If anything, uncertainty has seen a retrenchment towards the more mainstream financial institutions and it is almost as if all the energy banks have put in to their own rehabilitation after 2008-2010 was spent knowing or expecting there would be this return to the big brand. This is a shame, but it has actually meant that those banks have a clearer idea of worth they need to extract from that returning customer base. What we mean by this is that certain banks who have done well by changing their outward approach have also benefited from greater internal clarity...and, foreign exchange is one of the areas on which these institutions have come to realise they don't need to focus. We recently spoke with a commercial banking manager at a UK high street challenger bank. He knows his employer cannot compete on rate and, what is more, he is perfectly happy to refer his customers to a specialist precisely because he knows the infrastructure of his bank is not set up to service that client's needs effectively; Brexit has forced some banks to consider and consolidate where they should, can and will make the bulk of their money from...and has driven them to focus on that, which in turn benefits the likes of Prime Cap. If you would like to discuss any of the themes mentioned above or get a firmer grasp on what we think might end up moving or shaping the trajectory of the currencies you deal in, as a business or a private client, our brokers are ready and waiting to hear from you. #BREXIT #softboarder #michelebarnier #Metrobank #forwardcontract #hedging #currency #Customsunioon #singlemarket

Prime Cap recently attended a panel discussion of relocation, tax and legal experts held by The Private Client Dining Club (PCD Club) at the Rosewood over breakfast. The subject of the event was HNW relocation and global mobility. Whist conversation tended to focus on tax and structuring for both resident non-doms and non residents, a number of trends were touched on which we think bear closer inspection given their proximity to matters of foreign exchange, movement of capital and inward investment into various stall-wart sectors of the UK HNW and UHNW purview. Stability and the very real threat of a lefter leaning political agenda seemed to weigh heavy on the minds of the talking heads comprising the panel. Whilst it was agreed that it was unlikely Mr Corbyn would make it to No. 10, it was acknowledged that noises from main street with regards to imaginative, let alone aggressive, tax planning and structuring were filtering in to political rhetoric which, in turn, was translating in to second thoughts being given as to whether England was the right place to relocate to. It was the general consensus that no government would do away with things like the UK's non-dom regime, but, The Channel Islands in particular seem to be benefitting from uncertainty. One thing not talked about in much detail was the emergence of residency by investment programmes and their future. Did the panel think that the programmes of Malta and Austria, to name but two, would have any meaningful effect on the economies of those countries (thereby increasing the veracity with which agents and mobility advisers might push them as post-Brexit alternatives) and has the peddling of these programmes made any sort of impression on where the rich were relocating to...was a question we regret not asking. Another interesting point to note was the consensus that the UK's AML and KYC policies and directives mean that we stand amongst the most revered when it comes to questions over legitimate placement of capital. Of course, Prime Cap is concerned with the exchange of currencies, so it was reassuring to learn that Hong Kong is beginning to emerge as a source of relocation planning uptake. The value of the pound was discussed little, however, this was on the morning that the Bank of England emitted some strongly bullish sentiment. At the time of composition GBP remains largely unchanged vs. EUR, but a fraction down against USD from a near 1.40 top at the time of the MPC meeting. We're left to conclude that the market had firmly and confidently priced in such sentiments on the back of the heavy sell of in US equities earlier in the week. So, growth forecast revised upwards and rates due to increase sooner and higher to prevent overheating of the UK economy. This is potentially positive for GBP which puts those holders of USD on the back foot. We suppose that aside from interest rate 'specking', there is an inherent fragility to the pound and the political mud slinging going on in Westminster is serving only erode what confidence tentatively remains. Any correction across the UK capital markets, one greater or more organic that that which rippled across the pond from the US, could well see GBP drop back below 1.35. Mrs May is hanging on tooth and nail and we're wondering whether she is the only thing in the way of a more sizeable sell off. An increase in the exchange of money is a symptom rather than a source. We've often seen the lag between shifts in investment appetite and increases or decreases in frequency and volume of currencies exchanged. The panel in today's discussion did not seem phased by the headwinds facing the the UK in the face of Brexit, so, it would be wrong to conclude that any noticeable increase in the number of people converting money means necessarily that Brexit is to blame. It is also fair to say that diversified family offices are not going to liquidate all their holdings in one currency just because interest rates might go up in one jurisdiction. Sure, their bottom line might be pinched, but, as economies are growing, 'getting out of dodge' isn't the logical reaction to price volatility in the retail foreign exchange space. If you would like to discuss the markets and what shapes and changes the value of global currencies then we invite you to get in touch and talk it through with our broking team. We can assure you the conversation will be lively, if caveated to the fullest extent. #MPC #BankofEngland #interestrates #ratehike #ratespeculation #overheating #inflation #inflationreport #MarkCarney #Relocation #Globalmobility #ChannelIslands

The first thing we should say is that when it comes to someone's money, no amount is a small amount. Consumers hunt around to save and get the best deal on insurance, utilities and bank accounts; the savings you can get on an exchange of currency should be viewed in exactly the same way and the company that overlooks the needs of someone converting what they (the company or the customer) consider a 'small amount' is limiting customer choice, pigeon holing the consumer and deviating from the very reason why challenger companies came in to being in this sector. We will look at the costs of sending a payment, the ways you can send a payment, the reasons you might send a payment and how you can approach all of the above in pursuit of the best value for money 1. How much should it cost to send and receive your money? It always costs something to send a payment. You may have noticed your bank charges anywhere between £3 and £35. Your bank may offer you a couple of different ways to send a payment too. You can call them and ask for a CHAPS payments which, provided you request it before 14:00 should arrive at it's destination the same day. Most 'online' domestic payments can be sent by FPS (Faster payment system). The cost for this is usually covered in the account fee you pay monthly. Faster payments incur no up front cost, but that doesn't mean they are free. An international transfer can cost more. This is because international payments cannot be sent using the FPS network. FPS only exists within the UK domestic banking network. Other countries may have similar domestic settlement formats, but these tend not to extend to international payments. Currency companies will also charge you for sending a payment. They do this because they rely on the UK banking system to send and receive money. Therefore, the currency company does incur a cost. This cost can vary depending on the format in which the currency company sends your payment and also depending on the amount of payments the currency company makes collectively. If the currency company makes a lot of payments then they can usually get a discount on that cost from their bank. However, the currency company does not necessarily pass on the saving to you. So, if currency companies suggest they do not charge you for sending payments, this can mean a couple of different things. Some companies use the domestic banking networks of the country you're sending the payment to in order to avoid any international payment costs. This is very clever, but it does rely on that company having a presence in the country you're sending funds to and it invariably means you cannot send one currency to a country that does not deal in that currency as it's domestic tender. Hence, you would not be able to use these sorts of companies to send euros to the United States. You can only send those euros to a country whose domestic tender is euros because that is the only way these companies can ensure there is no domestic transfer costs arise. They basically transmit your euros domestically from their euro located entity; they are not making an international payment at all. Currency companies like Prime Cap rely on the relationship their bank has globally with banking institutions in the countries we are sending to. If our bank is big enough then they will likely have a branch, license or presence in the country you are sending to, and we can make use of that network. This enables us to keep costs to a minimum. When you are sending to rare and wonderful countries with unusual or restricted currencies the costs climb. At most we will charge £10 for an international payment, however, wherever possible we will pay for this cost ourselves from the margin we apply to the rate of exchange we offer you. So, in theory, we are paying for the cost of the transfer for you. You have no upfront costs added to the amount you are exchanging or deducted from the amounts you are sending. We prefer it this way because it means what you see is what you get and, in the case of smaller payments, where the difference in price can be fractional, we know that the only thing we have to get right is the rate and the additional service. On smaller payments the cost of an international transmission can make up quite a sizeable chunk of the expenses you incur. It seems a little ridiculous that you are charged £25 to send £250 to France, for instance. In fact, it seems absurd that a business is charged to move euros to their own sterling account even though both are in the UK. Some people would argue 'it does not cost your bank £25 to send the payment, so they shouldn't be charging you that', Well, the unitary cost of sending a payment is never actually the underlying reason for this sort of charge. If you buy a car you don't expect the dealer to sell it to you at the cost they paid for it, would you? That would mean they make no money. The bank is doing the same. They are marking up the cost of using their international payment service and, frankly, why shouldn't they? You do have other options that are less expensive. The problem is that many people do not feel comfortable using the other options, like Prime Cap, but, this is not your bank's fault. They are charging you what they consider to be a fair price for the service they provide. If you do not agree then you at least have to concede that they are not prohibiting you from voting with your feet and using other providers. Unless they are...in which case you should report them. Let's say you have a monthly payment to make. Maybe you need to pay your insurance costs on a house abroad. Maybe you have a child studying overseas; or you live abroad and you have expenses in the UK. One thing we advise is that, if you have the money in the bank and can pay for more than one payment upfront, do so. The first thing this will achieve is that you will only be charged once for the international payment. Secondly, the only FX risk you face (by that we mean the only risk you face of the rate being relatively good or relatively bad) is contained/limited to the one transaction you are conducting, rather than being an issue on each of the payments you make. If you do not have all the cash in the bank to make a collective payment right now, then, you might find it interesting to look at extending the use of today's rate of exchange over a longer period. Unfortunately this wouldn't necessarily reduce the cost per international transfer, because your cash flow might be such that you still make one a month, but, fixing the rate means you know what you have to pay each month and that doesn't change over the period of time you've locked it in for, and, if the rate drops you will be saving yourself more money by having fixed in a higher, better rate. This is a very useful tool for when the pound is 'high'. It basically allows you to extend your use of that high rate and protects you from having to pay more should the rate drop. Our brokers will happily talk you through the particulars of this type of transaction. It is not a standard one and it is certainly not one your bank offers. 2. What are the different ways you can send a payment? We often talk about how different banks and financial institutions send payments in different formats - as we did at the top of the post. Sadly, you and I do not get to choose or decide which format gets used. Therefore we have little control over the actual base 'unit cost' of sending a payment. We can't select a cheaper 'SEPA' format form a list. Yes, institutions that make a large number of payments can hammer down the cost of each one with their payment facilitator, but, that rarely means an improvement for you at the front end. So, we will consider this question as it relates to the physical, practical things you need to do or can choose to do in sending and receiving a payment. You'd be forgiven for thinking that it is just the difference between sending a payment online, like with online banking, or calling up to confirm a rate. There are a number of other ways you can get money to someone or a business abroad, so, we will look in a bit more detail at these various ways and provide examples of how and when they might be used. Yes, the first and increasingly common way is online. This essentially means logging in to some sort of platform with a financial institution (whether that be your bank or someone like Prime Cap), inputting the particular amount you wish to send, clicking to confirm you're happy with the rate of exchange and then sending the money you want exchanged. This way is often the cheapest and most autonomous way to get money from a to b, however, even in this instance there are differences in both cost and level of care. For one thing, an online platform that you have easily 'registered' with without providing any more detail will often impose restrictions on how much you can transmit. Should your activity exceed that limit over a certain period of time then you will be asked to provide more detail...because, based on the amount you are converting, the industry regulator insists your chosen company knows you better. This can be a bit of a bore, especially if you didn't know or weren't aware that you might have to provide something more once you've exceeded the initial limit. When it comes to things that require you to login, you will always have to electronically send the currency you want exchange to the provider exchanging it, by way of payment. So, please don't think that just because it looks like an online banking system it can extract money for you to pay for your booking. Your currency platform and your bank are separate and, for certain businesses, this is an important security feature. If someone knows your currency platform login then they will still need to pay for any booking before they can receive anything. So, they will need to know all of your financial details rather than just one set. What does it mean to deal 'by phone'? Across the Prime Cap website you will see us reference the uses of 'dealing by phone'. Our approach to booking a transaction is a blended one. This means we enable our clients to use our cutting edge online platform, but we also provide direct access to our broking team over the telephone. Depending on your preference we can handle everything from the locking in of a rate to the uploading of beneficiary information to the sending of a payment receipt to your intended beneficiary. We can do all this, but, we find that many clients like to be involved in these aspects of a transaction and prefer the flexibility that the platform gives them when it comes to providing beneficiary information. At the end of a day a blended approach is simply that. It uses the bits you find familiar, but makes room for the expertise we can offer to you over the phone. We make the distinction between 'dealing by phone' and 'transacting online' simply because many of our competitors do just one or the other; plus, by emphasising our belief in the 'value add' of using the two we can be confident we've left nothing on the table and you have the best of both worlds. How about a 'Cash Access' solution? As you can imagine, we often get asked about travel money and converting hard currency so that you can use it in your own account rather than having it as notes. Sadly we cannot take receipt of your foreign currency bank notes. For one thing there are questions about how you came by them, but, we prefer to keep what we do as simple as possible. Bank notes do not clear in to the financial system as easily as an electronic payment we might receive from someone paying us for an exchange. However, we do appreciate that you may be interested in quick an efficient ways of paying expenses to trades people, contractors etc. abroad. Providing your builder in France with a currency card, and loading that card with euros that the contractor can then withdraw from an ATM, means you get a cheap and competitive way of paying someone fast and, if the recipients preference is to be paid in cash, you can accommodate their preference with ease and without liability. We have UK based design firms who pay third parties and free lancers abroad in much the same way. Consider also the fact that free lancers in some countries might not have their own bank account or that the currency of that country is not mainstream and crediting an account is hard and drawn out. By presenting your intended recipient with a globally recognised payment/currency card, they can withdraw funds in their own local tender. You're providing them with a safe and efficient mechanism for holding their earnings. Sure, the need to use these kinds of mechanisms are not main stream per se, but we can and will advise you on their uses; likewise, if you think that something like PayPal is the only way you can be paid by customers overseas, think again and ask our team how we would approach foreign currency revenue collection. 3. How to get the best rate on a smaller payment: When it comes to exchanging smaller amounts of money, getting the best rate really comes down to two things... The first is how much it will cost the entity you're using for the conversion to actually perform the exchange. The second consideration is to do with when you exchange your currency and how often. So, someone sending a monthly payment will benefit from considering their approach to this monthly cost in a different way to someone who just needs to make a one off payment. As we have already said, it costs a currency business (and indeed a bank) to send a payment to someone. Companies that send many payments may be charged less, but, will they pass on that saving to you? In our case, Prime Cap will charge a flat fee for an international payment. If we can afford to we will cover the cost of that expense ourselves, but, if we cannot cover it from the mark up we place on the currency we sell to you, we will simply itemise the payment cost of £10 when we quote for you. For regular payments you may get better value and benefit from fixing the rate of exchange. So, you can buy the total amount of currency you need all in one go. This means you know what the GBP cost will be for an extended period - anywhere up to 18 months in fact. The rate might not be better that what you could get for one payment today, but, should the rate of exchange change over the coming months then you may be saving yourself the difference in cost between where the rate is today, on the day on which you fixed, and the rate of exchange in a month should the rate in a month we worse. Using an online platform invariably results in you receiving the same consistently competitive rate of exchange because it is easier for a firm to give you a set rate of competition than it is to negotiate that rate. As an industry we would prefer as little time spent by an expensive currency dealer on your matter and an online platform represents an operationally efficient and cheaper way of achieving that lower cost. So, our advice would be to select an online provider from the array of ones out there. Prime Cap will always include access to an expert for you because that is what differentiates us. We would rather win a client because of our value add than have you wander off to another payment platform. You are the asset we would like to secure and, from securing your business, we can afford to lower our rates because of the scale we can achieve from working with a large number of people just like you. You can then use our brokers to discuss timings, contract choice and what information might more the rate up or down in your favour, or not, between the time you engage us and the time you push the button to complete the exchange. This is all part of the service and we, unlike others, do not charge you any more for the use you make of our broking team. How can an employee avoid charges all together? If you're earning in a foreign currency and have a foreign currency account in to which that money is paid then you will incur a charge if you try and move that amount in to your preferred currency, even if it is in the same country and held with the same bank. By providing details of our currency account to your employer you can avoid the fee for moving money to us or to your own domestic/preferred currency account. A number of our private clients do this. Their salary or expenses arrive with us directly. We then broker their conversion. Alternatively you can login to do this, and, if you have same currency expenses as your salary, you can make payments out from this account directly to your supplier, landlord or utilities provider. At Prime Cap our bottom line is that no amount of money deserves less than the most attentive consideration when it comes to sending it, receiving it, exchanging it or holding it. Our door is open and we want to dispel this myth that it is only large scale transactions that we are interested in. It is a myth widely believed across the sector and one which devalues the need and undermines the confidence of customers who still require the service. If you would like a discrete and no-obligation discussion with one of our brokers then do get in touch or drop us an email to see how we can assist you. #regularpayment #mortgagepayment #monthlybill #paymonthly #foreigncurrency #currencycard #travelmoney #smallpayment #billpayment #regulartransfer #exchangerate #fixrate

We were recently referred to a couple known to our referrer as being individuals moving money for personal matters, one such being a probate matter in Austria. As it often the case, the referral came in the form of an email copying in both our broking team and the potential client. Soon after the introduction arrived in the team inbox we contacted the client electronically to ask if they might prefer to arrange a convenient time to speak with us about the matter alluded to in the introductory email sent by our referrer. A few days later, having heard nothing from the client, our senior broker picked up the telephone to introduce us directly. It is always tricky when taking such a forward step and it is contrary to most of the impulses of our team. We didn't know if the client hadn't responded simply because they don't check their emails as often as we do, or because they weren't interested in our services, or because they just hadn't gotten round to it or because their payment wasn't imminent. There were a number of potential blind spots and we find that unnerving. One of the important aspects of our service, being by referral, is the significance we place on updating the referring source of our interactions with their client. For one thing, our referrers sometimes need just as much support and reassurance that their client is being dealt with diligently and sensitively, and we like being able to provide an update as to the progress of our discussions. If a client is referred by an estate agent or a conveyancing solicitor then it can be important that we update stakeholders in the transit of funds. Likewise in matters relating to tax payments or the meeting of monthly deadlines. Sadly in this case the client that answered the telephone had not read their email messages and was a touch confused as to who we were and the reason for our call. This is not the best of starts because it means we have to quickly explain in as direct a manner as possible that we have been asked to introduce ourselves. It immediately causes us to question what other details about us and our work have been omitted or edited out of conversations between the client and the referrer. It transpired that the client does engage in international payments to and from continental Europe. However, the referring party had not explained to the client why we might be of use and how that might be so. Therefore, having received something of a random call from a heretofore unknown company, us, the client thanked us for our time but ushered us quickly to the door (figuratively). This does not happen often. The reason this does not happen often is because the referrers we work with usually inform their intended introduction of the reason for their connection to us. Spotting that a client of yours already moves money is not quite enough of a hook to warrant blindly introducing a broker like us. For one thing, if the client has not been informed of our role and specialism, they could rightly conclude that the referrer is simply providing their details to all and sundry without providing focussed context and without maybe understanding the wider context. From the language used by the client in this case we can quickly tell that they do not use a foreign exchange company to conduct the exchanges they are already engaged in. They used their bank and had done so for many years. We can therefore deduce that there would be a benefit to our involvement and counsel in the matter of their exchanging funds. Our pricing methodology is such that we will tailor our rates to ensure the client, at the very least, gets a more favourable rate. It is hard to accept that we could not be of use and even harder to accept that our proposition and its uses were in fact undermined by an inadequate referral policy on the part of the referrer; that is very much a sour grapes mentality, but, we want every client who we can help to be at least amenable to a discussion. So slim was the context provided by the referrer that there was no discussion to be had and, had we pressed the client, we firmly expect we would have undermined not only our own approach but the standing of the referrer. It is certainly not the job of our referrers to qualify our clients for us. However, it is polite to suggest to the person whose details you are passing on that you have, on reflection, concluded that an introduction to a partner like Prime Cap might be valuable. This is why we try to work to outline, with our retail client facing referrers, the usual and most appropriate ways of incorporating us in to their discussions with their client. We want the referrer to look good and establishing there is an appetite, however meagre, for our rates and services is one way of respecting the client and their needs. It is often the case that long standing customers of a banking institution are content with the method they use. Yes, it is our role to 'convince' them of the benefits of what we do and it is fair to say this is a difficult thing to do if they are content with their current set up. We don't want to try and sell our wears to someone who is not in the market to buy them, but, the role of an adviser is just that...to advise the client of better ways of doing things they already do. All we can hope is that the referral does not reflect badly on the referrer and that, should they find themselves in a position to give context to the introduction for their client, the client will enquire with us directly. They won't regret it. In an update to this post - the client referenced above has since been back in touch with our broking team. They apologised to us for their initial response to our approach and acknowledged that they hadn't seen the email introducing us to them. We are now looking forward to them getting back in touch with us in due course because they do in fact need to conduct an exchange and would like some advice and guidance as to how to do this most effectively. Should we have waited? Did our telephone call prompt the client to look a little deeper? Have we made a good impression by following up with an apology of our own for the imposition of our initial call? All of these are questions we may never know the answer to, but it all comes down to confidence in us, confidence in our referrers and an unflinching belief in the value of what we do both in method and in motivation. The way we engage with clients referred to us is one of the differentiating aspects of us as a business. We have been complimented on the deference we pay to the privacy of clients referred to us. Never pushy and always approaching a referral as if it were a personal introduction conducted in person. We like to think of ourselves as a friend of our partners. A friend who knows more about this niche area of personal financial services. Being friendly and soft in our approach tends to compliment the style of our referrers too. There is no pressure to engage us, just simple and sensible recommendations as to how the referred can make some changes to the way they make payments for the better. If you would like to find out more about the way we work with partners in key niche markets, or how we might approach engaging your client base then please do get in touch with our team. You will find them well mannered, diligent and personable. #referral #austria #internationalpayment #sendmoney #transfermoney #foreigncurrency #euroexchange

Rather than burrowing in to all of the minutiae of economic theory and opinion on how the current state of both the UK and the European economies are playing out and will continue to play out for these major global currencies over the course of the year to come, we thought we'd outline our observations as to the seasonal, anecdotal changes that animate this currency pair. One of the overriding concerns of businesses and individuals holding sterling and needing to pay someone in euros, or earning in euros and wanting to realise those earnings back in sterling, is the question of when to exchange. We will not be suggesting any sort of dependable or infallible approach to this per se. For one thing we can't, but also because the markets and the environment for the exchange of one currency in to another is constantly and ever changing and therefore cannot and should not be viewed in isolation. Having said that, in our experience, there are certain times of the year when one currency might be more in demand than others and there are certain signals to the market which tend to imply certain outcomes in terms of a currency's movement up or down. There are times of the month and even times of the week where, anecdotally, if the rate is going to move in one direction or the other it is likely to be on those days, during those weeks or over the course of those periods. None of our discussion means to suggest that we would bet one way or the other on a rate moving in one direction or another, but, it is perfectly reasonable to say that certain information released to the market usually and could quite possibly induce certain market participants to conclude certain future outcomes or characteristics in behaviour and these are what we will be looking at, both the potential and usual outcomes and characteristics and converse effects of expectations failing to be met. Every year we hear the phrase 'Europe goes on holiday'. This is typically during the month of August. Whether it is Parisian bankers relaxing in the Dordogne, or German financiers sunning themselves on the Western Cape, the four weeks from the end of July tends to be when production halts, industrial activity lessens and the markets become more subdued. Of course one cannot account for random acts or events and, when the markets are away, one might very well see far sharper shocks, climbs and falls, should events prompt those who are focused to react quickly and at scale at the expense of their absentee counter-parties. We normally see an increase in offers on property in the final quarter of the year. Those who have holidayed in France may return to the UK and decide they want to take the plunge and realise their dream of owning a slice of Riviera life. Alpine resorts do well in the lead up to the firm summer months probably because those passionate about owning a little chalet or apartment in a ski resort have visited during the crispness of Spring. The 12 weeks lead time between the signing of a 'compromis de vente' and the 'acte de vent' as part of the buying process in. France ties in precisely with the advent of fourth quarter in the UK; so, we can identify how rate volatility in either direction may affect those buying and selling on the continent. Almost like clock work and for as long as any of our team can recall, sterling softens during the summer months. One theory is that fund managers going away on holiday would rather maintain positions in currencies other than GBP. It is not that they dislike GBP intrinsically, but, rather that USD denominated assets are more stable and more liquid and they can rely on the fact that the state of their portfolio is less likely to be remarkably different when they comes back from holls. On the flip side, once we enter the fourth quarter of the year many businesses are gearing up to their most active trading time...the festive holidays. Depending on the weather over the summer months, retailers literally take stock. They will have placed tentative orders earlier in the year for delivery of their Christmas stock. Maybe they visited a trade show on the continent or further afield. October is a very active month for those buying and completing on property as well as for retailers looking to position themselves and their wears favourably for the trundle towards year end. What we are saying here is not particularly revelatory. Take the fact that the Spring is very much the busiest time for estate agents. Given a run of the mill conveyancing matter takes a matter of months and the fact that mortgage applications/decisions are not instant, it is perfectly obvious that completions take place over the summer, hence there is less activity as we enter autumn. So, sterling seems to become more animated as we approach the end of the year. We put this down to increased activity at a retail and consumer level. The bouyancy that tends to animate sterling after the New Year holidays can be tied more precisely to an increase in service activity, one hopes. Many companies have their year end as the first calendar quarter turns in to the second. Tax returns, insurance policies, reinsurance and a reflection on and digestion of sales over the previous frantic quarter, mean that although many business may be quieter in terms of sales, their support services are beavering away moving money, reconciling balances and accounting for 'x' or 'y'. So, the New Year tends to see the pound strengthen when data is positive. You can rightly conclude that disappointing or underwhelming information has the opposite effect, notionally. Interestingly, that strengthening of the pound does not actually, or as far as we tend to see, translate in to businesses buying currency at a better price for the year ahead. It is a dicotomy. The better value rate of exchange comes at a time when businesses are either reiling from poor performance (and should therefore be looking to make back any loss of margin) or celebrating beating expectations (and should be committing to a fixed currency spend for the seasons ahead). Not enough businesses - who can - make use of the tools available to them which can help protect profit margin. We think this is in fact because, noticing the rate has improved and bouyed by the optimisim that is palpable at the beginning of any new year, they infer this positivity will translate in to the rate for a prolonged period. Basically, many businesses think the rate will just continue to get better. We are delighted when a corporate client sets their calculative break-even currency rate at the beginning of the year, however, if that is not matched by the use of a product which hedges off exposure to any subsequent (and largely inevitable) drop in the rate, setting your currency rate is meaningless. One thing we advise is that businesses incorporate a healthy buffer in to their rate calculations. Here is an example of what we mean: A business selling Christmas decorations has, by January, a healthy bank balance. The rate of exchange is up and sterling is in their favour. They know what stock is their best seller and, at this point in the year, they may very well already know what lines they want to restock for next year. This business does not know that they can buy all the currency they will need to purchase this stock now, but not have to pay for it until the supplier invoices. By purchasing the currency, but not necessarily the stock, they have fixed their currency margin for the year head. Yes, it could well be the case that the foreign currency cost of that stock goes up or down over the course of the year depending on the whim (we suppose) of the manufacturer or supplier; but, if it does not, then this business, having fixed their rate of exchange, has increased their margin by the extent to which the rate of exchange is higher than when they bought the stock last year. Too many businesses get caught out by the mere fact that a rate which goes up quickly can go down just as quickly. These businesses are not currency speculators. We are a currency broker and we would never be drawn on speculating on the rate. So, why do these companies not fix, cement, crystalise and lock their rate when they can, when they have the cash in the bank and when they can see the rate is better? The simple answer is, in our view, they are using their bank and simply do not realise the simple contracts and tools available to them from suppliers like Prime Cap. So, we have meandered through a years' worth of peaks and troughs. Now we come to concerns facing individuals who do not have the luxury of time. Someone needs to pay their tax by the end of January. They are presented with the sterling figure they owe only a matter of weeks before the deadline. If they live in the UK but have capital outside the UK it is not uncommon that they might want to pay their UK tax bill with their foreign currency savings. In fact, they might be paid in a foreign currency as is the case for a lot of the lawyers we have as personal clients. A client approaches Prime Cap on 10th of January and knows they need to have executed and settled a transaction by 31st. The first thing we do, and without even a sniff of vitriol, is suggest that the client consider their tax position as early in the year a possible, especially if they have foreseeable liabilities. The release of their P60 in May is the ideal time to consider preparing for a payment. Remember, in January the pound tends to be higher(ish). By leaving their exchange until January our client who wants to pay their sterling tax bill using US dollars has picked perhaps the worst time of year for rate competition. 'If I wait until....Thursday....will the rate be better?' The balanced and no-nonsense currency broker, sympathetic though they may be, replies 'there is simply no way of knowing'. The foolish and inexperienced recent graduate who sits behind the dealing desk at a 'factory firm' tries to spin some convoluted narrative about how 'may be, yes, but' which is of no actual use to the client. The call centre operative at the client's bank just repeats the rate they will offer. The experienced broker who possesses the linguistic dexterity to simultaneously reassure their client that they've not quite shot themselves in the foot by delaying their payment will identify to the client the fact that at this time of year the trend tends to be a bit more GBP positive. Advising the client that waiting even a moment means the current rate might no longer be available, for better or worse, is the primary function of a broker in this instance. Any waiting is nothing more than speculation, plus, such is the relationship between sterling and it's major currency peers that, were nothing of any measurable force to happen to the markets, any decrease in the value of the pound (which would be in their favour) might only equate to a few pounds difference in terms of costs, so, why would they risk paying more for a potential gain tantamount to the cost of a sandwich? When it comes to something like paying tax and getting a currency exchange done in time for the tax deadline, as with a business, considering your options well in advance of the deadline is a winning strategy. It gives you choice and removes potential stresses. Also, as we mentioned before, there are times of they year when the pound does soften. So, why not begin to think about how much you need to convert, provided you have it in the bank already, at a time when the rate will be more favourable to you? Broadly speaking, at the end of the month and at the end of the quarter some fund managers - in layman's terms a 'fund manager' is the person who heads the team that decides what assets and instruments collective pots of money are invested in. Quite literally he manages a fund of money - will look to off load or get out of positions, trades and plays that have not performed as expected or are now in conflict with the wider investment policies and strategies because underlying aspects of the investment or the security have changed. Fund managers and people who manage other peoples investments and savings have to report on the effectiveness of their approaches. They do this periodically. It is not unreasonable for a fund manager to off load poorer performing choices prior to such reporting dates. If enough funds managers offload or get out of positions at the same time and in the same currency, this can have an effect on the rate at which that currency is exchanged. This is where we come to aspects of supply and demand. If i am a pension fund and i feel that my investment choices are more weighted in one direction than the other, i have a reporting period coming up and i want to ditch this poor performing investment in favour of one more benign or stable, it may be the case that i am selling a lot of stocks denominated in sterling (let's say). My selling out of these positions naturally attracts the attention of others in my sphere of operation. For one thing they are seeing a lot of shares in something come back to the market because i have sold them. This could well prompt my competitors to take note who might, quite reasonably, do the same. As more and more of these shares come to the market their price drops because fewer institutions want to hold them on the back of my, and now my peers, indifference to them. The currency in which these stocks are traded is also coming back to the market and, in theory, it's price drops too because there is an oversupply. Anyway, what many commentators do not talk about is the effect of this type of appetite and what it does to the rate of exchange. They reason it is not often talked about if actually because it does prompt huge shifts in the value of a currency. It happens often, but other factors may mitigate the effects of these sorts of sell offs on the broader exchange rate. Consider though the implications of a large proportion of the world wide traders in certain assets deciding they do not want to hold them any more. Consider that these assets have under-performed for a while and that a number of fund managers want to make their reports and positions look more stable and less vulnerable to further losses in these types of investments. In this case you get something called 'window dressing'. Funds managers who work for financial institutions - institutions that might be a bank - want to make their choices look as sound a possible and as considered. They do not want bad choices pulling down their averages and they want to demonstrate to their stakes holders that they're able to identify poor performing positions and not waste more money on them. These reporting periods or seasons tend to happen around the same sort of time for year for each sector. Now, we are not going to say that window dressing necessarily moves sterling adversely more so than any other currency, but it does rather depend on the underlying fundamentals of the markets and economies in which institutions operate. What we can say is that reporting season(s) not only serves as a barometer of optimism or not, but it is also a likely period of currency volatility. For one thing, the performance of big banks and institutions in economic news in its own right and can very well dampen or buoy confidence in certain markets. The lead up to reporting season can we see volatility on the currency markets. That volatility is both a concern and an opportunity for businesses and individuals considering the exchange of currency and it is the work of a good forex broker to be at the coal face and feeding back information to their clients about changes in the value of the currency they hold and the currencies they may be looking to acquire. Your bank will not call you to tell you that the rate has gained a further half a cent because RBS will be sold at a knock down price and the UK public will have to weather their losses. A broker should. An online platform, TransferWise, for instance, is not going to tell you that unemployment figures in the United States may, if positive, see the pound lose value because appetite for US denominated industrial stocks increases. Our broad view is that if one can avoid making a foreign exchange conversion one should. If for no other reason that an faction, minute or not, of the currency you buy goes to the entity performing the exchange (whether than is Prime Cap or a bank). If you are going to perform an exchange then we think you should do so using the tools, skills and insight of a company that has actually thought about the issue that face you in the context of the conversion. We also think you should be in a position to freely and openly consider the array of contracts and tools that can lessen the effects of adverse subsequent movements in rates of exchange and that can extend your access to rates that improve you position for the longer term. Our brokers are available on 02031728193. #reportingseason #windowdressing #financialreport #forwardcontract #currencyhedge #currencyhedging #holidays #fourthquarter #stock #purchasing #orders #foreignexchange #FX #interestrates