Tenerife forum

[rob]

For all our pensioners who complain of the fluctuations in the exchange rate. Have you ever considered fixing your exchange rate for say, the next twelve months? I know that many people seem to think that it will always get better when it's lower than it has been in recent times but what happens if it doesn't? Large companies that buy and sell products in different currencies 'fix' their exchange rates for the next year so that they can budget their income/expenditure and not be victim to sudden currency fluctuations. Pensioners could do the same by arranging their monthly purchase of Euros at a predetermined rate. Of course if the pound becomes stronger you'll not benefit from the gains, equally you wouldn't suffer 'losses' but you would have peace of mind and be able to budget for a year in advance.
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[rabd]

Thanks for the advice about the pensions Rob that is good to know Rab

[andyfowles]

Rob,

I think you normally find if you want to secure a forward for 12 months a 10% margin deposit will be required. Although that would form part of the total amount being transferred, this would need to be paid up front to secure the forward but would secure the rate as you rightly say.

If you can wait for your monthly pension to arrive for a little while longer you could try using a 'conditional order' which allows you to specify the rate at which the monies will be transferred, i.e. wait till the Euro is slightly stronger ...you can specify any rate and closing date normally up to 30 days into the future and the monies will not be transferred until such time as that rate is achieved, Bear in mind though that if the closing date of the bid expires before the rate has been achieved then the monies would not be transferred at all and to perform a 'basic trade' then may mean you lost out even more.

30 day forwards allow you to secure the rate now for use for up to 30 days into the future, normally with no margin deposit.

Depending of circumstances any of the above may be better than a 'basic trade' i.e. simply accepting the exchange rate at the precise moment the exchange happens.....the rate goes up and down all day long (or is that down and down even more) So it actually not only depends on the day the exchange happens but also what time the transaction occurs during the day

But please tell me you're not using your UK bank to transfer the funds since they will probably use the tourist rate. always use a forex currency trading company.

I hope this sheds even more light on Robs initial good suggestion.
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[rob]

Anyone who keeps up to date with this forum will know that I always advocate using a foreign exchange company. We like Global .... you'll find details here... http://www.sun4free.com/directory/tenerifebusiness519.htm
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Remember: You don't stop laughing because you grow old, You grow old because you stop laughing.

[andyfowles]

[andyfowles]