FAQs
- What rate will I be offered?
- How do I use Foreign Currency Direct?
- How does Foreign Currency Direct make money?
- What happens to my money?
- How do I pay?
- When will the currency be paid out?
- What are your charges?
- Do you pay interest?
- What happens if my circumstances change?
- What is SWIFT or IBAN?
- What are Interbank prices?
Frequently asked questions
What rate will I be offered?
Our rates are based on live 'interbank' prices (the price at which one bank sells to another). These are aggregated from a number of sources, are quoted in real time and will be more competitive than typically quoted by high street banks and building societies.
How do I use Foreign Currency Direct?
Once you have opened an account you can secure rates by telephone. If we offer a rate which you accept, we will immediately fax, email or post confirmation of the contract. You then return this with your onward payment details.
How does Foreign Currency Direct make money?
As money brokers, our business operates purely on the profit from the margin – the difference between the price at which we buy and the price at which we sell. These are preferential due to the volumes we buy and sell. We also don’t have the enormous overheads of running branches like a bank or building society.
What happens to my money?
Payments are lodged in transaction accounts with Lloyds TSB Bank plc. These accounts are designated for the receipt of inward payments.
How do I pay?
By personal or building society cheque, or by CHAPS payment to the account details on your contract note. Payment is required within two working days in the case of Spot Contracts and deposits for Forward Contracts. The balance of Forward Contracts should be received no later than the maturity date of the contract.
When will the currency be paid out?
On maturity of the contract and receipt of cleared funds. Funds received by electronic transfer and showing in our account before 12.00pm (noon) can be sent out the same day. A copy of the transfer document will be sent to you if requested. For funds received by cheque, we need to allow six working days for cheque clearance before processing onward payments.
What are your charges?
Where a transaction value is under £50,000 we levy a £15.00 charge for a Priority International Transfer – otherwise we allow one free transfer per transaction. Should you require a copy of the IPD (Irrevocable Payment Document) this can be faxed or posted to you or the beneficiary for an additional cost of £12.00.
Do you pay interest?
No, as clients' funds are generally only held for short periods. With Forward Contracts, a loss of interest on your deposit could be negligible in comparison to the loss incurred if the market were to move adversely and rates had not been secured. This is because the deposit represents a small percentage of the overall sum, yet the interest lost is only on the deposit.
What happens if my circumstances change?
If you have secured a Forward Contract but find you will no longer require delivery of the currency at the maturity date, you may sell the contract back to the market provided that it has been settled in full.
What is SWIFT or IBAN?
An IBAN (International Bank Account Number) is the European standard for sending international payments. It usually includes a country code, bank code, branch code and your account number, and will vary in length depending on the country you are sending to. Your SWIFT or BIC (Bank Identifier Code) identifies the bank you are sending money to and acts as a double check that your IBAN is correct. All European payments now require an IBAN and BIC to be transmitted.
Your IBAN and BIC can normally be found on bank documents such as statements, but the receiving bank will be happy to supply them to you if necessary.
Other countries outside the EU use different standards and we can advise you of these when you place your order with us.
What are Interbank prices?
The interbank exchange rate, which most websites and newspapers show, is a mid-market rate which is not actually available to trade at. You will always buy a currency slightly below the interbank rate, and sell slightly above. Foreign Currency Direct does not show live interbank levels on our site because they can be misleading - you cannot buy at the price you see! Our dealers have access to live interbank prices and can always inform you of their latest movements over the phone.
