Foreign Exchange

Common Questions

Here are a selection of the questions we are most commonly asked by clients about our Regular Payments Service:

How can I pay the deposit?

In the majority of cases HiFX will take the deposit from your account by direct debit. If you need the RPA setup within two weeks you will need to send us this first payment by bank transfer.

Overseas mortgage payments – how would an RPA work?

Let's assume that the repayments on your overseas mortgage are €1,200 each month*

 

High street bank

HiFX

Exchange rate

€1,200 @1.43 = £839.16

€1,200 @1.43 = £839.16

Commission charge

2% = £16.78

FREE

Transfer fee

£25.00

FREE

Receiving fee

0.50% = £4.20

FREE

Total you pay

£885.14

£839.16

 
In this example, with HiFX you could save up to £45.98 each month or £551.76 every year. Over the typical life of a mortgage (15 years) you save £8,276.40 on bank charges alone!

*Figures are for illustration purposes only and may not reflect present rates and bank charges. 

Receiving a pension from the UK – how would my RPA work?

Let's assume that each month you are living in Australia and receive a UK pension of £800 per month*

 

High street bank

HiFX

Commission charge

2% = £16

FREE

Transfer fee

£25.00

FREE

Receiving fee

0.50% = $8.94

FREE

Exchange rate

£759 x 2.355 = $1787

£800 x 2.355 = $1884

Total you receive

$1778.51

$1884

In this example, with HiFX you could receive up to $105.49 per month more for your pension than you would by transferring your funds using a bank.  Over a year this equates to $1265.88

*Figures are for illustration purposes only and may not reflect present rates and bank charges. 

Cancellation of an RPA contract?

To set up your Regular Payment, HiFX buys your total currency requirement up front. In order to do this the market requires a deposit as security, in the same way it requires a deposit for trading a forward contract. This deposit is equal to 1 month’s payment for each year of the contract. The deposit is not a fee and is used for the final payment(s).

Should you sell the contract, we can sell your foreign currency and buy Sterling for you, but please be aware that the rate may have varied. As a result, your deposit will be returned minus any losses (if relevant).

Why do I have to pay a deposit for a regular payment?

To set up your Regular Payment, HiFX buys your total currency requirement up front. In order to do this, the market requires a deposit as security, in the same way it requires a deposit for trading a forward contract. This deposit is equal to one month’s payment for each year of the contract. The deposit is not a fee and is used for the final payment(s).