There’s more than one way to buy foreign currency but, thankfully, it’s not too complicated. At Foremost Currency Group we offer a range of contract options to help you buy currency in a way that suits you. Each method of buying currency has its own particular advantages and disadvantages and our team of experienced foreign currency brokers are here to help you choose the right type of contract for you.
Whether you need your currency in a hurry, or you’re happy to wait for the best exchange rate possible, we offer a range of solutions that will help you get the most from your currency. The different ways to buy foreign currency are explained below, but if you need any help or guidance please get in touch. We’re always happy to answer any questions you may have and give you all the information you need to make the right decision based on your circumstances.
“These different ways to buy currency help you take control of your currency requirement. Don’t simply sit back and hope that the exchange rate will move in the direction you want it to; hope is not usually a reliable economic tool!”
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1. Spot Contract
Currency right now
The quickest, easiest and most popular way to buy and sell currency – you simply exchange one currency for another, whenever you need it. Simply send us the funds and, as soon as your funds clear, we’ll forward the currency to the designated account.
Fix into the future
A forward contract can help protect against market volatility – useful for managing your budget. You can set the price now for a transaction that will take place up to two years in the future, allowing you to fix the exact value of the currency to be paid, regardless of market fluctuations. A forward contract is perfect if you don’t need to convert your currency immediately but you want to avoid the risk of sudden fluctuations in exchange rates.
You secure the forward contract with a margin of 10% of the total value of your transaction (you’ll need to pay this within two working days of agreeing the contract) and then pay the balance before the contract expires. Once secured, the agreed exchange rate will apply for the duration of the contract. See diagram below.
3. Limit order
Hold out for a better rate
With a limit order you specify the exchange rate you are hoping to achieve – which may not currently be available. Your currency will automatically be purchased should your rate become available as a trading level, meaning you get the price you want. This type of contract is a great way to buy foreign currency if time is on your side and you can afford to wait until the market moves in your favour.
4. Stop loss order
Protect against rates dropping
A stop loss order instructs your foreign currency broker to buy if the exchange rate goes below a pre-determined trading level. When combined with a limit order, you can hold out for a better rate while protecting yourself from a sudden fall in the market. This contract is perfect for budgeting and forecasting and can help protect against further losses.
Now that you know all of the ways to buy foreign currency with Foremost Currency Group, please consider opening a personal or business account with us if you haven’t already done so. Opening an account is free, and there’s no obligation to trade once the account has been set up.
Open a Personal Account
We save you money by offering the best foreign currency exchange rates and achieving a better exchange rate than your bank.
Our commercial rates of exchange and outstanding market knowledge ensures we maximise the value of your currency.
Open a Business Account
We can improve the profitability of your business by helping to protect it from fluctuations in the currency market.
Your dedicated corporate forex broker will get to know your company’s individual requirements and provide you with product recommendations tailored to your business needs.