Useful tips to save thousands on currency exchange

Currency Exchange

We’ve asked our friends and currency exchange partners at Halo Financial to discuss the importance of locking in an exchange rate when buying a property in Florida.

How Florida property buyers could save money on their currency exchange – and why they should…

Brexit, the North Korea crisis, the Russia inquiry, the cold war, Syria, the slim UK Tory majority –
there are so many major looming political issues that could affect the Pound to Dollar exchange rate.

There has already been significant volatility between Sterling and the US Dollar over the last year,
with the Pound hitting a post Brexit referendum high of $1.437 in April 2018 a rise of 15% in the last
12 months.

When exchanging Sterling to US Dollars to buy property in the United States, that 15% can make a
huge difference.

Take Florida, for instance, where 6% of buyers were British in 2017, and this percentage has stayed
steady, despite the Pound falling, according to the 2017 Profile of International Residential Real
Estate Activity in Florida from the National Association of Realtors®.

In February 2018, the average sale price of a Single Family Home in Florida is $336,601, according to
Florida Realtors®. That means a 15% swing in currency values could mean a difference of more than
$50,000. That $50,000 could be spent on your flights to Florida; renovating your Florida property; or
even buying a car to use in the US.

Amber Discombe, of Halo Financial, leading foreign exchange specialists, says, “A significant swing in
exchange rates really can be considerable when you are buying a property in another currency.

“Florida, and even more so Orlando, are popular targets for British people buying holiday homes,
investment properties and for those looking to retire or work in the Sunshine State.

“It therefore makes sense to shop around for the best rates and to get expert guidance to help you
make your money go further when buying Florida real estate.”

Thankfully, there are steps that foreign property buyers can take to ensure they know exactly how
their target currencies are performing.

Halo Financial can monitor the currency markets and let clients know how they are moving, as well
as alerting them to vital political and economic news and events that will affect future exchange

When it comes to buying US Dollars, Halo Financial is able to offer rates that are usually closer to the
Interbank rate than a local bank, meaning clients can potentially save up to an extra 4% on their
currency exchange.

“The Interbank rate is the rate which banks use to exchange currency with each other, and it can be
up to four percent better than the standard high street or retail exchange rates. That’s a difference
of almost $13,500 on the current average price of a family home in Florida, which goes a long way to
helping clients offset their fees and costs.”

Halo Financial offers these useful tips for Florida property buyers to get the most out of their currency exchanges.

1. Spot a great exchange rate

Buying a property in Florida can involve several payments; either ad hoc or in set stages. One way of
making the payments is through spot transactions. These are agreements to exchange a fixed
amount of currency at a set exchange rate. Compared to the banks, Halo Financial offers a significant
discount on exchange rates and does not charge any commission, so you could make significant
savings by using Halo Financial instead of your local bank or other provider.

2. Peace of mind with a forward contract

If you want to know exactly what exchange rate you will get for the planned payments on your
Florida property, then you can enter into a forward trade. This means you agree an exchange rate
today for a set amount of currency, but delay the settlement of the contract until a date up to a year
in the future. This is a godsend for those who want to cut out all the currency risk from their
property buying plans and brings peace of mind. It’s even more attractive when the exchange rate in
question is particularly beneficial at the time!

3. Target an exchange rate

Achieving the best exchange rate for either a spot or forward trade is best achieved using another
useful free service from Halo Financial. As we have discussed, the Sterling to US Dollar exchange rate
can move significantly in a short space of time in response to political and economic events.
However, you can ensure you get the rate you want by setting an agreed target and placing an
automated order into the currency market. That means that once your preferred exchange rate is
reached, the transaction will automatically be processed.

4. Stay on top of the currency markets with the latest news

Want the latest news about how Sterling and the US Dollar are performing and what events are
likely to influence exchange rates looking ahead? You can get up-to- date daily and weekly market
updates, free informative currency reports, live exchange rates and graphs and more at

Want to find out more? Make an enquiry today and an experienced Currency Consultant from Halo
Financial will be in touch.

Author: Rachael Kinsella, Head of Content and Communications, HALO Financial

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