If you need to transfer money to your own overseas account or to other businesses and employees abroad, you can find an online specialist currency transfer firm such as Universal Partners FX who will offer competitive exchange rates and cost-effective transfers. In a volatile and fast-moving market, it is best to choose a reliable currency transfer company who can keep up and provide consistency and security.

How to determine your currency transfer firm is reliable and reputable?

First, it is good to check whether your currency transfer provider is authorised and regulated by a recognised authority or regulator. In the UK, the specific legal body and authority of overseeing the financial services sector is the Financial Conduct Authority (FCA). A currency transfer company, for example, is obligated to make sure that their client funds are secure at all times, and it does so by keeping them separately from the firm’s own funds.

The FCA regulates the conduct of around 51,000 businesses. They are the prudential supervisor for 49,000 firms and sets the standards for around 18,000 firms. Established on 1 April 2013, the FCA took over responsibility for conduct and prudential regulation from the Financial Services Authority.

The FCA’s responsibility is to protect consumers such as yourself, as well as safeguard the integrity of the UK financial system. As an independent public body funded by the firms they regulate, they are accountable to the Treasury and to Parliament.

Avoid using your Bank

Don’t rely on your bank. From high costs and fees and high margins on exchange rates, your bank is not the ideal partner when sending funds. Instead find a reputable money transfer provider, like UPFX who can offer tailored assistance, competitive exchange rates and secure and fast delivery of your funds.

Monitor the markets

If you are sending funds regularly then you need to check what is happening in the financial markets and how the currencies you are exchanging could be affected by economic news and events. As a business, you want to make sure that you are not losing money when transferring your funds overseas, especially if you send big amounts of money to pay partners or employees overseas. To make sure you know which time is the best to transfer your funds, check an economic calendar or ask your currency transfer specialist. UPFX has a dedicated team to help you with any enquiry and publishes expert market insight on its website. Currency volatility is usually common before or after major Central Bank announcements or the release of important economic data such as inflation data, PMIs and employment figures.

Manage your risk

Again, your currency specialist can explain to you about the various risk management tools available to you and which ones you can use for your specific needs. A forward contract, for example, gives you the opportunity to secure today’s rate for a future transfer, so you can control what exchange rate you will get and how much it will cost you to transfer your funds.

Trading internationally? Save money with Universal Partners FX

If you are intending to start an international business or you are already dealing with international money transfers, you will need a cost-effective way to manage your overseas currency transfers. Universal Partners FX is the right partner for your foreign exchange. With UPFX, you can open a multi-currency account, send and receive money worldwide with low and transparent fees. You can also manage your money and send international payments 24/7 through UPFX’s easy-to-use online platform powered by Currency Cloud.

If you are an exporter or plan to start your international business, get in touch now with Universal Partners FX to find out how much you can save in your international money transfers.

As a business transferring funds abroad, you might have heard of currency hedging, or you might have even used it without realising it. If your business makes regular transfers overseas, hedging your risk is paramount. No matter what currency pair you need to trade in, exchange rates will potentially impact your bottom line. This is why, using hedging as a strategy to reduce risk is important, even when you might not benefit from it. The way to see hedging is as an insurance measure: if something goes really bad, then you will definitely protect your funds and your business.

Currency hedging

Put simply, hedging refers to currency strategies and ways to protect your funds from future currency movements. It involves entering a financial contract to limit the impact of foreign exchange risk on your international money transfers. Currency hedging is used by financial investors and businesses to reduce currency risks when conducting business internationally.

If you have an international business and want to safeguard your funds, then currency hedging is essential. In currency hedging, you can choose the type of contract that suits your needs and requirements so that you protect yourself from losing out if there are unexpected changes in currencies that will affect you. For example, businesses commonly use a Forward Contract, which locks in an exchange rate for a predetermined amount that can be used in the future, usually up to 12 months. Businesses very often have specific currency transactions they want to perform at a specified time and set intervals. By purchasing and booking a type of contract that will achieve their set goals and protect from unnecessary risks, they manage to reduce to a great extent their exposure to currency movements that might hurt their funds.  

While hedging can be complicated as there are various mechanisms to choose from when considering a hedging strategy, usually it is wise to understand and analyse potential foreign exposure and proceed to evaluate the relevant goals and actions needed to mitigate against that risk.

Why your business needs it?

Hedging is best suited to a business that deals with regular international payments and buys goods or services on an ongoing basis. If your business does not have such requirements and instead you want to send funds internationally whenever it is needed, then it will be more beneficial to have the freedom to take advantage of currency volatility and send your funds whenever the opportunity arises. If you commit yourself to a forward contract, then you might be missing beneficial market movements. So, currency hedging is ideal for businesses that depend on regular currency transfers and thus need to protect their liquidity.

If you are considering hedging, it is best to make sure that all goods or services’ orders are final and are going to be delivered, so you can confidently proceed to hedge based on those numbers. Unless you are sure, it is best to avoid committing to a contract based on estimates and uncertainty as this could leave you with a loss if your contract fails to go ahead. At the same time, you will also need to be aware, that even if you have taken the necessary measures and chosen to use a Forward Contract, it is possible that market volatility does not go against you, but since you have committed to the contract you need to remain faithful to it and complete it. For this reason, you have the choice to take advantage of both future and spot contracts and create a combination of hedging where you can still reduce the risk of any unexpected movements.

Currency hedging is also important when your business deals with countries where political or other events might amplify currency volatility. If you are trading with a currency that could be subject to extreme swings, then you need to make sure you are protected.

Managing currency risk is a specialised area. Universal Partners FX can help you develop the right hedging strategy and stay protected ahead of volatility.

Trading internationally? Save money with Universal Partners FX

If you are making international money transfers, you will need a cost-effective and secure way to do so. Universal Partners FX is the right partner for your foreign exchange. With UPFX, you can open a multi-currency account, send and receive money worldwide with low and transparent fees. You can also manage your money and send international payments 24/7 through UPFX’s easy-to-use online platform powered by Currency Cloud.

If you are an exporter or plan to start your international business, get in touch now with Universal Partners FX to find out how much you can save in your international money transfers.