Spot Contracts

Smart Currency Exchange will help you to make fast, efficient and safe transfers. As transfer experts with over a decade of experience, we know that you often need to act quickly when, say, securing a property or to make a purchase. With a Spot Contract you can register with us, discuss your requirements, lock in an exchange rate and make a spot payment on the same day.

When you have opened your account with Smart Currency Exchange, you will be able to discuss with your dedicated trader whether a Spot Contract will be right for you. It is quick and convenient type of contract for those who need to make one-off transfer on the day or very soon. Maybe you are about to complete on a purchase and are concerned that the pound is about to drop in value. Perhaps you have been watching how the markets are performing, biding your time and decide to act now to avoid your budget being affected by worsening exchange rates.

How a Spot Contract works

If you decide, after talking to your dedicated Smart trader, that a Spot Contract is right for you, your trader will secure the funds for you immediately.

Once your rate is locked in, you are contracted to send the payment to Smart Currency Exchange’s Client Account with either Barclays Bank plc or the Bank of Ireland. This is a separate account which only contains client funds. Once your funds are received into the account, it will be exchanged at the agreed rate right away, and forwarded to the intended recipient. Payments will either clear on the same day, or within a couple of days.

Is a Spot Contract right for you?

Whether you choose a Spot Contract or a Forward Contract will be dictated by when you have to make a payment. With a Spot Contract you need to provide cleared funds within two days.

If you have the luxury of waiting before you make a payment, but still want to trade at today’s rate, a Forward Contract allows you to do that without parting with more than a 10 per cent deposit until you do trade. That gives you more control, by allowing you to schedule payments at your locked in exchange rate for up to one year. A Forward Contract is perfect, therefore, for people making several transfers and for those who need to budget, as you will always know the rate you’re trading at, thereby removing all risk.

For on the spot trades, however, ask your trader about a Spot Contract.