If you’re thinking of buying property on the Costa Blanca and you live outside of the Euro Zone then you’re probably asking yourself, what about currency exchange? If you are unsure about what currency exchange is all about, then in this article I’d like to give you some quick information about the Forex Market. I would also like to introduce you to the company I recommend to my clients and outline some of the services they offer, which can help you when you buy your Costa Blanca Property.
What is the Forex Market?
Different currencies have different values and these values are influenced by economic factors. Some events have a positive effect on a currency’s value whilst others have a negative effect.
Trading currencies takes place on the Forex market and the whole business is often quite simply known as FX. This is because anyone who buys or sells a currency enters into the Forex or FX market to trade. Traders not only represent private individuals but also different kinds of business and this makes the FX market the biggest market, with a trading figure of around 5 trillion dollars a day.
Forex or FX traders, make money by hopefully using the fluctuating exchange rates to their advantage. To make a profit they must buy a currency which they think will soon increase in value and sell it at a profit when the rate increases. Just like any trader, the successful ones are those who can predict economic events and how they will influence currency values.
So in effect the Forex Market, is the same as any other market with traders buying and selling however the main difference to the stock market for example is that they’re not buying or selling goods or shares of companies, they are buying and selling currency. The fact that there is a profit to be made in buying and selling currency is the reason that currency exchange companies are able to offer you better exchange rates, because they are dealing in larger amounts. To make it simple, imagine the process as being a little like buying a product from a wholesaler, you can buy the product in bulk at a good price and then sell, on at a profit.
Buying Property on the Costa Blanca: Currency Exchange?
Now that you have a basic idea about how the FX market works, I’d like to introduce you to the Foremost Currency Group Ltd. They’re based in the UK and I’ll give you a link to their website at the end of this article.
If you’re from outside of the Eurozone and you’re buying a property in Spain here are some of the services offered by the Foremost Currency Group which will be of interest to you.
The first is the Spot Contract:
If you need to make a transfer now, a spot contract will get your money where it needs to be swiftly and securely. You can arrange spot transfers online or over the phone with currency experts and pay by bank transfer or debit card (GBP or EUR). This service is useful for paying property deposits or reservation fees!
If you aren’t ready to make a transfer now but you want to protect yourself against future market movements, use a forward contract to fix the rate for up to two years. By fixing a rate you’ll know exactly how much your transfer is worth and can budget for your property purchase or sale more effectively.
Use a limit order to target an exchange rate higher than the current market level. Set the rate you want to achieve and your transfer will take place automatically if the market moves to that level. This can be handy if you’ve got time on your side and you think the rate might improve before completion.
Stop loss order
Set a worst-case rate with a stop loss order and your transfer will be triggered if the market falls to that level. This service means you can hold out for a better rate but know you’re protected from a sudden slump in exchange rates.
With Regular Overseas Payments (ROPs) clients can automate recurring transfers, secure an excellent exchange rate and avoid transfer fees.
With our online service clients can make transfers anytime, anywhere. They can also use their online account to check live exchange rates, set rate alerts and view their transfer history.
You tell us the rate you want to achieve and we’ll let you know by text or email if the market moves to that level.
Buying Property on the Costa Blanca: Currency Exchange?
This has hopefully given you a good idea of how the Foremost Currency Group Ltd., can help you with currency exchange if you’re buying a property in Spain. Of course they offer Personal and Business Services and if you’d like to get to know more about them then click here.
If you’d like to see what their clients have to say about them just take a look at these reviews on Trustpilot.
Have you just started your search for property on the Costa Blanca or the Costa Cálida then why not take a look at some of my listings.
If you’re not sure whether you want to be in the North or the South Costa Blanca then read this, it might help you.
If you came across this page whilst researching Currency Exchange and would like to know a little bit more about me, and the services I can offer you, then click here.
Remember as an Independent Property Consultant I am not tied to one developer or agency, which makes me very flexible. So just let me know what it is that you’re looking for and I shall see what I can find for you.
This post is intended to give you some brief information about Currency Exchange and to outline some of the Services offered by the Foremost Currency Group. I hope it has been of some help to you. Please feel free to leave a comment and if you’d like to get in touch just fill out the form below.