guide to currency exchange

Guide To Currency Exchange

Guide to Currency Exchange

An increasing number of professionals of all nationalities have been moving and working abroad in the last decade. Whether you are a young executive or a high net worth individual with a diversified portfolio of global assets, you will have specific financial requirements and objectives.

Over the years, deVere has developed strong partnerships with some of the world’s leading financial institutions and banks, all of which offer some of the most competitive products in the marketplace and a high level of protection for the investor. The deVere Group recently entered into a formal agreement with leading currency broker TorFX Ltd to offer a currency exchange service to its clients.

In this guide, we aim to provide you with essential information on how to open an account with TorFX, and start trading all major world currencies and making international payments in a fast, efficient and cost effective manner.

Introduction

There are literally hundreds of reasons why you may need to make an international currency transfer. Whatever the reason, you need to be sure that you are getting the best exchange rate and that your funds are secure. TorFX are regulated by the Financial Services Authority under the Payment Services Directive 2009 and operate segregated client accounts with Barclays Bank Plc.

TorFX can help you save money on your currency exchange and international payments, including any of the following;

• Emigration • Buying or selling a foreign property • Bringing money home • Buying a car, boat or other item from overseas • Sending money to a family member or associate • Paying an overseas invoice or employees • Repatriating overseas income or profits • Regular overseas payments (to pay a mortgage for example)

Getting Started

As soon as you open an account with TorFX (which usually takes a couple of minutes online) you can trade foreign exchange and arrange your international transfers.

1) Register with TorFX by completing the form available on www.devere-group-currencyexchangeonline.com 2) Speak to your dedicated account manager who will be able to advise you on the options available 3) Use this guide to get a good understanding of how the currency transfer process works 4) Arrange your transfer!

Over 20,000 clients have chosen TorFX as their currency transfer specialist. When you are moving large sums of money it’s important to understand the options and have peace of mind that you are dealing with a company who understands your personal requirements. This guide describes the options available to you and how to choose which option best suits your needs.



Your Options

Contract Types: We refer to a currency transfer as a currency “contract”. A contract is simply an agreement to buy or sell currency. 1) Spot contract Spot contracts are ideal if you have all of your funds available and want to make a fast transfer. You can buy or sell currency for immediate delivery, and benefit from our excellent exchange rates. The “spot” price is the live rate that is available in the interbank currency market. 2) Forward contract Forward contracts allow you to fix your exchange rate for a future trade, even if you don’t have all of your funds ready. This option allows you to take advantage of favourable exchange rates up to 2 years before you actually need to send your currency. You can buy the currency now, and pay later. A 10% deposit is payable at the outset, followed by 90% when the contract matures. This option is ideal if you are in the process of purchasing an overseas property. Once you have agreed the purchase price it’s important to remember that the cost in Sterling can still rise if the exchange rate moves against you. By fixing your exchange rate using a forward contract you remove this risk and protect yourself from any fall in the value of Sterling. 3) Regular Payments Contract Ideal for sending a regular fixed amount for monthly payment of overseas expenses with minimal hassle and expense. Simply set up a standing order and let TorFX do the rest. They buy the currency each month and send it to your nominated account free of charge (the bank usually charge £25 per transfer).

Order Types:Exchange rates fluctuate constantly and can be difficult to predict, so as well as simply buying at the current rate, TorFX offers the following order types to help you make the most from your transaction. This is particularly relevant to clients who have a strong view on future exchange rates. 1) Buy Now This is the simplest and most commonly used order type. This means you simply decide when you want to buy or sell currency, and call your TorFX account manager to make the transaction. 2) Limit Order A limit order is an order that you leave with your TorFX dealer to buy your currency at a pre-determined market level (i.e. better than the current rate). TorFX dealers monitor your order 24/7 and your currency is purchased automatically when your target level is achieved. 3) Stop Loss Order A stop loss order allows you to set a minimum rate at which to buy your currency. This would effectively be your worst acceptable exchange rate. If the market falls to this rate, your currency will be purchased automatically. This gives you peace of mind that if you are holding out for an improvement in the exchange rate, you are also protected from a dramatic deterioration in the exchange rate. Some clients use a limit order and stop loss order together, protecting against risk while hoping to achieve a better rate than is currently available. Whichever level is reached first will be the level that your transaction is completed at. This strategy guarantees that the exchange will be made within a


certain price range, helping you to budget in advance. The markets are constantly moving, so our dealers will monitor your orders and keep you informed. Orders can be adjusted or cancelled at your instruction at any time prior to being fulfilled.

You will not be asked for payment until your order has been fulfilled (with the exception of some exotic currencies for which TorFX require payment in advance).

How to Make a Transfer with TorFX

1) As soon as you are registered with TorFX you can arrange transfers direct with your own account manager. Simply call your dedicated account manager and tell them how much currency you need to buy or sell and when you need to make the transfer. They will check the live market rate and give you an immediate quotation. If you are happy with the exchange rate, agree the transaction and your account manager will repeat your order back to you. At this point, the deal is complete.

2) Shortly after agreeing your transaction on the phone, we will send you a deal confirmation by email. This will detail the transaction that has just been agreed, and will include the client account details for you to make your payment to TorFX. Please note that unless agreed with TorFX in advance they will only accept funds from a bank account in your name.

3) Lastly, you need to supply TorFX with the details of who you want to pay. For example, this may be yourself (to your own Euro account perhaps), or someone you are buying a property from. Follow the instructions in the deal confirmation to submit your payment details online.

TorFX will email you when your payment has been sent. If you would like a Barclays Bank payment confirmation please tell your account manager and TorFX will ensure that this is emailed to you from their accounts department. TorFX do not charge for this service.

Useful Transfer Information

Sending money overseas can be confusing. Depending on which country you are sending money to there are different banking requirements specifying the information that needs to be included on your transfer to ensure it is processed quickly. TorFX are dedicated to making this as simple as possible for you and have prepared the following guide for payments to their most popular destinations.


EuropeWhen you transfer money to European countries you will need the following information: • Beneficiary name and address • Bank name and address • IBAN (International Bank Account Number) – See IBAN key below • BIC (Bank Identification Code), also known as SWIFT codeAn “IBAN” is an International Bank Account Number. It is made up of digits that include the account number, but also include a country code and other information that are necessary to ensure your payment is fast and accurate. The following key shows you the correct format for each European country. Country Country Code IBAN Length Example Andorra AD 24 AD1001101000100010011110 Austria AT 20 AT111100101000111010 Belgium BE 16 BE10111010011101 Bosnia BA 20 BA110110110001110010 Bulgaria BG 22 BG11XXX101110101101010 Croatia HR 21 HR1110110101010100111 Cyprus CY 28 CY11110011101010101011010101 Czech Rep CZ 24 CZ1110111101111100001010 Denmark DK 18 DK1010111101100011 Estonia EE 20 EE110101011010100101 Finland FI 18 FI1110101111010101 France FR 27 FR1110011101010101011X10101 Germany DE 22 DE11100101110101101010 Gibraltar GI 23 GI11XXXX110111100111001 Greece GR 27 GR1101101110000000011100111 Hungary HU 28 HU11101011101101001100000000 Iceland IS 26 IS111010010011010101101110 Ireland IE 22 IE11XXXX01110101101010 Italy IT 27 IT10X0111111101000000111111 Latvia LV 21 LV10XXXX0000111100011 Liechtenstein LI 21 LI11011100001101010XX Lithuania LT 20 LT111000011101001000 Luxembourg LU 20 LU100010100111110001 Macedonia MK 19 MK01100000000011111 Malta MT 31 MT11XXXX011000011111XXXXXXX001X Netherlands NL 18 NL11XXXX0111111101 Norway NO 15 NO1010011111010 Poland PL 28 PL10111010010000100101110110 Portugal PT 25 PT10000101111101011100110 Romania RO 24 RO11XXXX1101111100001010 Serbia CS 22 CS11100101110101101010 Slovakia SK 24 SK1110111101111100001010 Slovenia SI 19 SI01111000000000111 Spain ES 24 ES1101101011010010110111 Sweden SE 24 SE1110111101111100001010 Switzerland CH 21 CH1100111011111000111 Tunisia TN 24 TN1101101011010010110111 Turkey TR 26 TR111010010011010101101110 UK GB 22 GB11XXXX01110101101010


AustraliaWhen you transfer money to Australia you will need the following information: • Beneficiary name and address • Bank name and address • Account Number • BSB number • BIC (Bank Identification Code), also known as SWIFT code The USAWhen you transfer money to the USA you will need the following information: • Beneficiary name and address • Bank name and address • Account Number • ABA / Routing code (9 digits, identifies bank, used instead of a BIC) • Routing bank info if applicableSouth AfricaWhen you transfer money to South Africa you will need the following information: • Beneficiary name and address • Bank name and address • Account Number • BIC (Bank Identification Code), also known as SWIFT codeNew ZealandWhen you transfer money to New Zealand you will need the following information: • Beneficiary name and address • Bank name and address • Account Number • BIC (Bank Identification Code), also known as SWIFT code

About the deVere Group

The deVere Group is the world’s leading independent financial consultancy group. We work with international investors and expatriates to find financial services products that best suit their medium to long-term requirements for investments, savings and pensions.

With in excess of US$10 billion of funds under advice and administration, deVere has more than 80,000 clients in over a 100 countries. Our independence and ability to offer financial products that are tailor-made to fit an individual’s needs, are behind our success.

We have offices in locations such as Dubai, Abu Dhabi, Paris, London, Shanghai, Tokyo, Bangkok, Johannesburg and more.

The advice we provide is free and without obligation.

All opinions expressed in this Guide constitute the author’s own judgment as of the date of the Guide. Please note that as we have only indicated the general position, and whilst every effort has been made to ensure the accuracy of the information, we can accept no responsibility for any act or failure to act based upon its content. The views expressed herein are purely those of deVere employees and are not to be construed as advice.

To find out more about currency exchange, please visit www.devere-group-currencyexchangeonline.com

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Copyright deVere Group 2009 - 2014 © All rights reserved

For a full list of the regulatory status of the deVere Group companies, please go to www.devere-group.com/footer/disclaimer.aspx

This material is for information purposes only and does not contain (and should not be construed as containing) investment advice or an investment recommendation, or, an offer of or solicitation for, a transaction in any financial instrument. Always seek independent financial advice before investing in any product. The information provided and contained in this brochure are believed to reliable, but are subject to change without notice and deVere makes no representation as to the completeness or accuracy of the information or of any opinions expressed.

guide to currency exchange

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