Types of Transaction
There are four different types of transactions:
• Spot Contract
A spot contract is undertaken when you buy currency at the prevailing exchange rate at the time of the transaction and make payment within two working days. This transaction is typically used for deposit payments on property or for full payment if the funds to pay for the transaction are available.
• Forward Currency Contracts
A forward contract is undertaken when you fix the exchange rate now for a specific date from one to 24 months in the future. As an example, your final payment for a home abroad may be the equivalent of £100,000. You could seal that exchange rate today with a small deposit, and pay for the bulk of that transaction at the completion of the forward contract. To guarantee the exchange rate, private clients will have to pay for at least 10% of the value straight away (a margin deposit) and the balance on or before the maturity of the contract.
• Time-Option Forward Contracts
You may also reserve a time-option forward contract. This contract allows greater flexibility in paying. For example, a property developer may give you a date of February 2007 as an approximate completion date but may tell you it could take a bit longer. Your dealer may recommend that you set a date for your forward contract of May 2007 and you are free to settle that contract anytime before the maturity date with no penalty.
• Limit Order
Limit Orders allow a client to set the rate at that which they would like to exchange their currency. GLOBAL will monitor the market for you and if the rate can be achieved, we will purchase the currency on your behalf. We would then notify you of the due date for your payment. This is particularly important for contracts of substantial value where a small currency fluctuation may have huge implications.
Paying for your currency
You can send funds to GLOBAL by electronic bank transfer into our client account at Barclays or by sending a cheque made payable to Global Currency Exchange Network (be sure to write your client number on the reverse). Your bank may charge you to send an electronic (CHAPS) transfer but GLOBAL will be able to send your funds overseas immediately upon receipt of your funds. A cheque will take 7 working days to clear and is only suggested if you are in no hurry to make a currency transfer payment.
Instructing GLOBAL to make an onward payment
We require a signed, written instruction by post or fax to transfer currency to your onward banking co-ordinates. Ideally this would be in the designated box on the deal confirmation invoice sent to you after you have instructed a GLOBAL dealer to buy or sell currency on your account. However, if your agent or lawyer has provided you with instructions then you can attach a copy of these to your signed contract invoice.
If you would like further information please call our Private Client Desk on 01622 816 940 or alternatively click the “Call Back” button to have one of our representatives call you at your convenience. You may also register online with GLOBAL by completing the form below. We will contact you to activate your account. In order to complete the registration process, we require two forms of identification. Please also provide us with a copy of your passport or driving licence and a utility bill, council tax bill or landline telephone bill with your address.