Foreign Exchange

Common Questions

Here are a selection of the questions we are most commonly asked by clients who are considering using HiFX foreign exchange services for buying property abroad:

I’m buying off-plan. How can HiFX help?

When buying overseas property, you’ll have to make one or more international money transfers to complete the purchase. The issue needs serious planning especially if you are buying a new development off-plan where you will be required to make a number of stage payments during the construction of your property.

Example: UK resident buying in Spain

For illustration purposes, let’s assume that you’re a UK resident buying a holiday home in Spain:

  • The developer will require an up-front deposit in Euros and then further stage payments during construction over the next 18 months, with a final payment upon completion.
  • Whilst you know the price of your property in Euros, the actual cost in Sterling will be determined by the exchange rate you obtain.
  • If Sterling strengthens during construction the cost will decrease, but if the Euro strengthens, then your Euro costs will increase i.e. a stronger Euro means your overseas property will be more expensive.
  • As a result, until you’ve secured an exchange rate, you won’t know the final cost.

Whether you’re buying in Spain, Florida, Dubai or any other country the principles are the same.  

Removing risk with a forward contract

To remove this risk, many of our clients buy a forward contract. This is essentially a buy now, pay later option, allowing you to lock into an exchange rate even if you don’t have all the funds available. Should the rate get worse, you will not be affected. If however you have access to all of the funds from the start and want to convert them immediately, you can enter into a spot contract. Unlike a forward contract this is a buy now, pay now option, and you will need to arrange the immediate transfer payment for the full value of the currency bought or sold to HiFX.

Are there any hidden charges?

With HiFX there are no hidden charges. We don’t charge you anything to send your international money transfers. With HiFX there are no transfer charges, no commission fees and no foreign bank receiving fees.

Should a client incur bank charges, HiFX will refund them in full. Please note:

  • This does not include the cost of you transferring the funds to HiFX and any charges incurred where the funds being sent are in a different currency than the destination bank account
  • As part of the service, HiFX provides one free transfer per trade. If you would like to send multiple transfers as part of a single trade, these will be charged at £15. 

How will HiFX calculate the foreign exchange rate I pay?

The rate you are offered by your dealer will be dependent upon a number of factors including:

  • The amount of money you are transferring.
  • The time frames you are working to (i.e whether you are looking to book forward).
  • The currency type you are buying.
  • The exchange rate levels at the time of purchase.  

Overseas mortgage payments. Can HiFX help?

If you are using a foreign mortgage to help fund your overseas property, you may be interested in our Regular Payments Abroad service which removes the stress organising regular currency transfers can create.

We can help you fix the exchange rate for up to 24 months into the future and schedule your international money transfers over the entire period in a matter of minutes. With HiFX there are no bank charges of any kind saving you up to £300 each year and the process is fully automated so you’ll never miss a payment.

Learn more about the Regular Payments Service

Why should I register with HiFX?

Our goal is to make sure you have all the right information and tools you need to get the best exchange rate and protect yourself from currency risk. Registration is free and carries no obligation to trade, but it does allow you to call us for help and guidance. You’ll get access to our latest market reports and information and we also need to register you as a client in order to open up a trading facility.

Opening a foreign exchange account with HiFX is simple and should take no more than a few minutes of your time. Registration is free, and carries no obligation to trade, but it does allow you to call us for help and guidance. We’ll also give you access to the latest market reports and information.