A ‘Spot’ allows you to buy currency today - but why buy
a 'Spot' from Smart rather than the bank?
Whether transferring large or small funds, either internationally or on a regular
basis, it’s the same procedure - whether you use Smart Currency or a bank.
Let's start off with using a bank...the person making the transfer instructs their
bank to send the amount due to the beneficiary’s bank overseas. When
calculating the amount due in the overseas local currency, the bank will instruct
the buyer of the cost and they will be debited accordingly. Within 5 days of
instructing the bank, the funds in the designated currency will arrive and clear
at the overseas destination.
The actual process of moving money isn’t rocket science – however,
the commission, currency exchange rate and fee structure imposed on clients by the
banks can be extremely confusing.
And through this confusion, the banks are able to relieve clients of substantial
sums of money without them even realising it. The Sunday Times (5 Feb 2007)
“Britons buying property abroad could have lost out on up to £1.8
billion because of high-street banks offering such a poor deal on foreign exchange,
according to new research.”
Before I explain how the banks make their billions on international currency transfers,
let me explain what the ‘interbank’ rate is. The interbank rate
is the price banks trade between each other when they’re moving millions. When
rates are announced on the news, on Internet ticker tapes or in the newspapers,
they are not the rates that you or I can actually buy at, but they are the rates
the banks use between themselves.
Even though you can never buy currency at the rate quoted on the news, the interbank
rate gives you an indication of where the rate is and what
direction it’s moving in. It also gives you a rough idea as to how much currency
will cost you.
When you do decide to buy currency or make an international payment the institution
that you do it through will put a ‘mark-up’ over and above the interbank
rate. So – if the interbank rate for a pound is equal to €1.15,
you should expect to buy euros at a discounted price of €1.12, the difference
representing the mark-up.
So - as stated at the beginning, the process for buying currency or making an
international payment between a bank and Smart is the same however there's a massive
difference in the 'mark-up'. For bank to bank transfers (which
means electronic transfer of funds and not physical cash), Smart adds a mark-up
of 1% (on average) over and above the interbank exchange rate whereas banks add
a mark up of 3% to 5%. Compared with the mark-up supplied by the banks, that’s
an instant saving of up to 4% by using Smart. On a £100,000
transfer that’s a reduction of £4,000 by using a currency specialist
rather than a bank! And on a regular payment of £1,000 a month that’s
a saving of £40 a month or £480 a year!
In order to ensure that you know
how to save money on the international payment process, call Smart Currency on our
free phone number 0808 163 0102 (free phone) or
"During a very difficult time when the pound was very weak we still managed
to save several thousand pounds thanks to your prompt and efficient personal service.
Thanks. Sue Bristol " more testimonials
"Just used Smart for the first time and what a tremendous experience, from
the initial phone call enquiry through to the transaction. I experienced concise
information plus pro-active and personal service. We will be using you again and
recommending you to others. We can't thank you enough - we had difficulties with
our bank when we asked for the cash to transfer, but James Thorpe helped us out
again and again to get the transaction through. Also, house sale goes through next
week - had we not used your services and transferred the money a month ago our German
house would now be costing us an additional 15,000 euros!! Sue McFarland "
How will Smart help you to reduce the risk of your property price increasing by
£1,000's when doing a money exchange? By:
- Providing better-than-bank exchange rates
- Reducing the risk of your international payments from INCREASING
- Offering a service with no fees*, no commission, no hidden charges (*Fees on amounts
- Giving you direct access to your dedicated Smart Trader. Unlike most UK international
payment specialists, Smart Traders are not paid on commission, thus your trader
will be working for you - not their pay-packet
- Making the whole process fast and effortless
now and get access to your Smart Trader to discuss just how much Smart can save