Exchequer Risk Management
No.3 Siskin Drive, Coventry, CV3 4FJ
Opening Hours: 8:30am - 05:30pm

Foreign Exchange Risk Management

Forex (FX) risk management overlooks international financial transfers for clients or businesses safely and securely, for better value and faster transfers.

What Are Forex Transfers?

An FX money transfer is a safe and secure way to make international payments, either as a gift or as a purchase, which may be better value and faster than using your bank. It can also be used to collect regular salary or pension payments if you’re moving abroad. You can use an international money transfer company to make both one-off and regular international payments. You can also use to send a larger sum, for instance to cover the deposit if you’re buying a property abroad.

How Do Foreign Exchange Transfers Work?

Thousands of people make foreign exchange money transfers each day, safely and securely. When sending money abroad, foreign currency exchange swaps one local currency into another. An international money transfer through a bank or transfer services allows a client or business to convert their existing currency into the desired foreign currency, using exchange rates based on the global trade markets.

Why Is Forex Transfer Management Needed?

Today, sending money abroad can be done in a matter of minutes regardless of your location. With the development of digital banking and online apps for money transfers, you can make international money transfers and exchange multiple currencies in the comfort of your home.

For regular payments (for example, if you pay a mortgage abroad or transfer a salary) our FX risk management experts can seek out potential benefits on transfer fees and assess the risk of the transaction. Additionally, it can also help you lock in an exchange rate to regulate the amount you pay in a foreign currency. For one-time payments, locking in exchange rates can also be useful if you need to make a large transfer at an upcoming given date and if the market is unpredictable.

That’s where we can help. Reach out to FX providers like ourselves to make sure you negotiate the best deal when sending money abroad.

For more information, talk to our team of Experts

Who Needs FX Risk Management?

You might want to add and extra layer of protection for your foreign exchange transfers if you are:

1

Working for a multi-national or foreign company If you earn salary in foreign currency, you may need FX management to help convert salaries and profits without losing profit.

2

An importer/exporterFX management is recommended for importers/exporters who may have to pay foreign companies for getting/selling products, especially when imports become costly.

3

Doing a transfer of profit to holding company If a subsidiary company is working with foreign currency, it needs to transfer the profit to their holding company in that foreign currency.

4

Travelling If you are visiting a foreign country, for work or personal reasons, you will need the currency of same country, especially if the amount is of high value.

5

An FX Business FX risk management is vital if you are an foreign exchange dealer where you may rely on needing to buy or sell forex.

6

Foreign Investment FX management is especially useful for clients/ businesses who liaise with foreign businesses and multi-national companies.

Why Choose Forex Risk Management?

Foreign exchange transfers have a number of inherent advantages for sending money overseas that other options tend to lack. FX providers can typically provide better exchange rates and lower transfer fees than banks because of the high volume of transactions they conduct.
FX management typically offer more transparency than other transfer options. If your transfer is not urgent, it can help create a limit order or set a desired exchange rate to target.
Our forex transfer and risk management services include:

  • Better exchange rates
  • Cheaper transfer fees
  • Guaranteed safety and security
  • Quick transfer speeds

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    Foreign Exchange Risk Management FAQs

    Foreign exchange transfers come with fees additional and potentially high exchange rates. If you’re not careful, you might end up paying more than you should for the convenience of a fast money transfer. In fact, with the unpredictability of trade market, fees charged for international transfers can be high. We have compiled a list of frequently asked questions below to help you make an informed decision.

    How can you send money to another country?

    You can either send money to someone in another country using an international money transfer company or online broker, or you can set up an international money transfer through your bank or building society.

    International money transfer companies support payments to almost any country in the world, but there may be limitations. With some countries, a provider may be able to send money to the country but not from the country. A provider may also process personal payments to and from a country, but it may not be able to offer this service for business payments. You will need to read the provider’s list of supported countries and restrictions to know if your international money transfer is possible.

    Different countries have different rules on how much tax you should pay on any money received, and this will depend on the nature of the money – for example, whether the money is a financial gift, a pension or a regular salary.

    While using your bank for foreign currency transfers might seem like the simplest option, using our specialist brokers, you can make the process more streamlined and considerably more cost-effective.

    Hedging with FX management is a strategy used to protect one’s position in a currency pair from an adverse move. It is typically a form of short-term protection when a trader is concerned about news or an event triggering volatility in currency markets.

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