Get the best from the foreign exchange - By: Rutland

For many companies who trade overseas, international payments can present them with a confusing situation as the foreign exchange rates fluctuate constantly and are difficult to follow. A lot of companies have dealings overseas either with branches abroad or employees travelling on business much of the time or import and exporting.

Lots of scenarios will require international payments, and often a company will rely on its bank to deal with foreign currency exchange. As the bank don’t have the knowledge required to study the rates and do not have the time to keep you aware of changes in the market, you could lose out on huge amounts of money. The fluctuating exchange rates can also make it difficult for you to budget long term and forecast profit margins.

A currency broker will be able to offer a solution based on the individual requirements of your company and keep you up to date with currency fluctuations and relevant news. There are two methods of securing beneficial exchange rates and a currency broker can advise which will be preferable to your circumstances. A forward contract will let you set a favourable rate for a period into the future which will enable you to keep that rate of exchange for a fixed term even if rates go up. The second method is a Limit or Stop loss order which enables you to buy or sell currency when an agreed rate becomes available. If the agreed rate doesn’t become available you can stop the contract.

If your company have many requirements for international payments then a corporate currency broker such as us at Pure FX can save the company a lot of money by offering tailored solutions for your foreign exchange requirements. By working out the most favourable strategy for your company you will experience financial stability with the ability to budget long term.

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