Introducing a new strategic partnership with award-winning online marketplace CurrencyTransfer.com. Readers can now take advantage of faster, cheaper, and more transparent international money transfers.
Given the recent months, and years event on the currency markets, purchasing international property has never been more volatile for British buyers. A swinging pound has impacted the final price significantly for overseas property buyers. Here is why partnering with the right currency company can make a significant difference when purchasing a property in Israel and beyond.
Stay Alert To Volatility Traps
Buyers beware. GBP swings against all currencies, especially the ILS, has been high by any historical standard. The timing and coolheadedness could make a few thousand pounds difference on your next property transfer. Whether itâ€™s news on the Brexit front or the Covid-19 crisis, using limit orders can mean you can catch a rare break in the market.
GBP/ILS volatility over the last 30 Days
Having someone hold your hand through your process, and be a shekel expert can make a significant difference too. By having 100s of ILS transfers every month, we can leverage the power of the crowd and let our clients know when there is activity on that currency pair, and stay on top of the news.
The Reuben Family
Would you buy a property in the UK without knowing the final cost? Probably not. Failing to fix the exchange rate and not budgeting the cost of currency is one of the biggest mistakes overseas property buyers can make.
Last year, the Reuben family approached us as they were buying a 4.5 million ILS apart- ment in Netanya, for completion in March 2020. It would have cost £965,665 on the 22nd of December. Immediately after Securing the property, they logged in to the CurrencyTransfer.com platform to reserve the rate via a forward contract, even though completion wasn’t for a few months. They wanted peace of mind the property price would NOT increase. Due to the poor performance for Sterling against the Israeli shekel, that same property would have been over Â£100,000 more expensive at Â£1,068,665 on the 22nd March.
It Pays To Shop Around
Alternative finance is on the rise. It’s bred a new wave of non-bank currency specialists who can offer vastly superior rates, often up to £4,000 cheaper for every £100,000 you transfer. It pays to compare as banks typically apply spreads of 2-5% away from the mid-market rate. Make sure you are comparing apples to apples. Benchmark rates as close to real-time as possible for accuracy in comparison.
Safe Reputable Suppliers
Only use a currency supplier regulated by the FCA (Financial Conduct Authority) as an Authorised Payment Institution under the Payment Services Regulations. Check they hold funds separately, in segregated client accounts, with a major bank.
The Hidden & Obvious Fees
Banks make money in two ways. First, they charge a fixed fee of up to Â£40 per payment when sending money abroad. You may also be hit with unexpected corresponding bank fees and get a nasty shortfall on the receiving end.
The second and biggest fee is almost always built inside the exchange rate. How far away from the real mid-market rate you are being quoted, i.e. the spread, distinguishes between a good or bad money transfer deal. Transparent FinTech (Financial Technology) focused online platforms will clearly display the markup being applied. Aim for spreads well inside 1% from mid-market.
Quite simply, it boils down to the following: How many shekels or euros will I receive for my British Pounds, after ALL charges.
To partner with such a forward-thinking newspaper epitomizes the power of FinTech and the ability to positively disrupt traditional markets, drive competition, and support new entrants. Whether you are buying a dream home in Israel or importing goods, don’t let the banks cash in on your international money transfers.
Daniel Abrahams, Chairman of the CurrencyTransfer.com Group
10 reasons you or your business should get started today
- 100% transparent online experience
- Up to 85% better-than-bank exchange rates
- No additional fees or opaque commissions
- Same day delivery for Euros and US Dollars transfer
- Security via FCA regulated transfers
- Local Israeli shekel settlement capability removing potential banking fees
- Exchange rate protection tools to optimise your transfer window
- Personal Currency Concierge
For any enquires call
Nathan Perez: +44 (0) 20 7096 1036