The Mediterranean season is coming to an end, and now comes the time to tackle the less adventurous yet essential task of all, what to do with your hard earned money. You may consider buying a home, investing in a property abroad, paying off a chunk of your mortgage, or traveling the world. Whatever you choose to do, you will probably find yourself moving money to and from different currencies.
As simple as it sounds, there are many potential costs to be aware of when you exchange your money into another currency, like bank fees and additional charges; but more importantly, movements in the exchange rate. On the positive side, a favorable exchange rate can result in a considerable profit, so making the right move is crucial.
First of all, it is important to understand that the currency market is driven by supply and demand. Economic performance, political announcements, interest rate decisions, or mere speculation, have an immediate impact on the value of a currency. If an economy is performing poorly, this will discourage investors and reduce the demand of it´s currency, therefore weakening it´s value; and vice versa. The Greek turmoil, Chinese Black Monday, the uncertainty of the UK interest rate rise, or the release of economic performance figures of each economy, is creating these constant movements in the market prices of currency. This makes it very difficult to predict and a potential risk when you need to move your funds; even a relatively small movement in the exchange rate can have a significant impact on the funds received on the other end.
So how can we make sure we achieve the best possible exchange rate? Trying to understand the market and to predict what the rate is going to do can be very time-consuming and risky. Generally we use our bank to transfer funds abroad, but a bank won´t be able to give you advice on the currency trend, and they won´t apply a very competitive exchange rate. This is where a specialist currency exchange company can help you. A currency broker is constantly researching the market and keeping a close eye on the rates, and will give you free advice on the best time to move your money and achieve a favorable rate. But more importantly, a broker will offer extremely competitive exchange rates very close to the market price of the currency.
Premier FX is an expert currency exchange company with offices in London, Portugal and Spain. They are fully authorized by the Financial Conduct Authority (FCA) and registered with HMRC, ensuring the safety of your funds. Some of the benefits of using Premier FX include:
Beware hidden costs
Financial costs can vary, from no premium being charged to a small percentage charge based on the value of the yacht.
Owners are strongly advised to confirm costs with the shipyard and their yacht insurance provider prior to committing to a refit, therefore avoiding any hidden costs arising after the refit deal has been signed.
It is therefore imperative that the yacht owner discusses the refit plan with their insurer before signing a Waiver of Subrogation. If not, they could find that their insurance cover is void.