Do you need to transfer money on a set date in the future?

Protect yourself against exchange rate movements by locking in a forward contract.

 

What is a forward foreign exchange rate?

When one currency is exchanged for another at a future date, it is called a forward foreign exchange rate. You can save money with forward foreign exchange rates by using a forward foreign exchange contract (FEC).

An FEC will:

  • Lock in an exchange rate for a transaction that will occur at a predetermined future date (maturity date)
  • Allow you to choose the rate at which you want to buy or sell
  • Protect you from exchange rate movements that occur in the intervening period

How are FECs calculated?

To calculate the forward rate the system adjusts the spot rate for forward points. The system then calculates the difference in interest rates between the two currencies and the time to maturity.

  • The time period allowed for a forward foreign exchange rate is between two days and 12 months
  • You will not be required to pay the entire amount owing on the FEC until the maturity date
  • Deposits may be required at the onset of the transaction or at a predetermined later stage
  • A standard industry formula is used when calculating forward points

The International Payments Price Promise

We regularly check the rates of major banks and key competitors to ensure we give you the best overall price on your FEC – or we refund the difference. We are committed to matching the best possible overall price in the UK on your international money transfer quote. If you find a better price offered by another provider contact us and we will guarantee to beat that price. Click here for more information.

Please note that although the Travelex International Payments service is powered by UKForex, prices are determined by Travelex UK Limited.

Compare us to your bank and see for yourself how we can make those essential transactions both affordable and easy.

To receive a quote for a Forward Exchange Rate or for more information on Travelex International Paymnents' products and services please contact us. Or register online now to start saving today.

Travelex International Payments is proud to partner with UKForex to bring you this service.

 

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The Travelex International Payments service is provided by UKForex Limited [CN: 04631395] (“UKForex”).

UKForex is regulated by Financial Conduct Authority (FRN: 521566) for the provision of payment services.

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