The USA has long been a desirable place to live, with great weather (in some areas it has to be said) as well as a better standard of living with houses and food as well as other materials such as fuel being comparatively cheap compared to the UK. In addition the confidence if the American dream still resonates with many people even though the US has suffered as badly as the UK in terms of economic climate.
Whilst exchange rates have significantly dropped since the 2007 levels of $2 to the £1, to circa 1.54 at the time of writing, there are a wide range of people that still wish to go and peruse their American dream, or alternatively require to purchase goods or services from the US, here we will consider some of the things which you need to consider if you are considering emigrating, or perhaps younger looking to purchase a holiday home, or wish to purchase goods or services from the US.
Depending on the size of the transaction will determine which type of currency exchange provider you will need to use. Money transfer providers similar to paypal will offer a fairly versatile service, and ensure prompt delivery of a wide of range currencies. However, if you are looking at larger transactions the foreign exchange brokers will probably be the preferred choice, offering highly competitive margins and also some providers offering good service standards.
If for example you are considering purchasing a holiday home, or you have a significant order for some materials from the US, then you will need to overcome several issues. First, how much money will you need (in £’s) to pay for the item you wish to pay for? As currency exchange rates are continually fluctuating, this can mean that this amount could potentially significantly change in value even within a day. Therefore, it is recommended that you should male sure that you are aware of the exchange rate for several months leading up to a large foreign exchange transaction, as then you can identify the best possible time to purchase the required amount of currency.
If you were to leave it until the last minute, then it is likely that you would not get the relevant accounts opened in time, and also the process of shopping around is imperative, to compare foreign exchange brokers to make sure that you are getting the best deal.
If you are purchasing a property using an overseas mortgage, then you will need to meet regular monthly repayments to pay the mortgage off. Once again, these monthly repayments will potentially be exposed to currency fluctuations, and for these types of transactions it may be sensible to considering the various hedging options available to make sure that you have a fixed monthly cost. Finally, do not just rely on your bank, as typically the currency exchange rates which banks offer are not the most competitive.
To purchase travel money click here. To transfer lower amounts of money, click here, finally please fund included below some of the UKs leading foreign exchange providers, offering highly competitive rates of exchange.
| Provider | Margin | Margin Explained | FSA | HM Rev and Customs | Fee | Currencies | Trust Accounts | Transfer Options | Apply |
|---|---|---|---|---|---|---|---|---|---|
Rational FX | 0.5-1% | Spread from Interbank Rate | Yes | Yes | £0 on orders above £5k | All deliverable currencies |  | Spot Transfers, Forward Contracts, Limit Orders |  |
| RationalFX is one of the world’s leading and fastest growing independent foreign exchange and money transfer companies. Every year we help thousands of individuals and businesses to achieve significantly better foreign currency exchange rates and make significant cost savings. |
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International Foreign Exchange  | 0.5-1% | Distance from Interbank rate. | Yes | Yes | £10 per transfer | All deliverable Currencies | | Spot Transfers, Forward Contracts, Limit Orders | |
| IFX is one of the UK's leading specialist FX consultancies. London-based, we are a dynamic business with a global reach, serving a growing spread of corporate and private clients throughout the UK, Europe, the US and Australasia. International Foreign Exchange are committed to providing a focused, premium service that combines a depth of experience and expertise with world-class trading systems, flexible and highly personal account management capabilities, and stringent standards of governance and compliance. |
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Halo Financial | 0.6% | Spread from interbank rate | Yes | Yes | No fees on all orders above £5K | All deliverable currencies worldwide | | Spot Transfers, Forward Contracts, Regular Payments | |
| Halo Financial has based its business upon the value and expertise which it delivers through the delivery of foreign exchange currency services. Halo Financial actively manage the foreign currency exchanges and requirements of both individuals and international business. Halo Financial prides itself on the cost effective services which it provides, offering a more efficient and cost effective way to transfer foreign currency. |
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World First | 0.6% | Distance from interbank rate | Yes | Yes | £0 on all orders above £5k | All deliverable currencies worldwide |  | Spot Transfers, Forward Contracts and Currency Options | |
| When you work with us you get a dedicated dealer – someone who gets to know you and your business. They always answer your call within three rings, and we guarantee you’ll never go through to an automated service. We’re continually improving, innovating and building anything that adds value to our clients. Because on top of everything else, we want to be the best foreign exchange dealer in the world. |
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Moneycorp | 1% | 1% depending on volume | Yes | Yes | £0 | 76 Accounts | | Hedging, Forwards, Regular Payments, Options | |
| Moneycorp has been trading foreign currencies for over 30 years and has built an unparalleled reputation within the industry. We employ the most secure payment systems available and are authorised and regulated by the Financial Services Authority (FSA) for the conduct of designated investment business and the provision of payment services. |
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