If you’re looking to buy a property in Marbella or anywhere else on the Costa del Sol then one of the major considerations to think about is transferring the capital required to make the purchase.
For most people using their personal bank will be the first choice for the process however charges from banks can be high and they don’t always offer the best exchange rate which can make a big difference when transferring large sums of money.
The good news these days is you don’t have to accept this anymore as the foreign currency transfer market has now become very competitive with many independent brokers offering attractive rates to grab new business.
If you are not sure which type of service is best for you then the guidelines in this article will ensure you get the best deal.
Step 1 – The first thing to do here is find out exactly what your bank would charge and the amount you would receive when transferring your money.
Step 2 – Once you have both figures then use a comparison website such as FX compared to see what foreign currency brokers are offering for the same transfer. They will tell you exactly how much you would receive in the currency you are sending the money too, how long it would take and if the firm in question is authorized by the FCA.(Financial Conduct Authority)
Step 3– Once you have the results it is a simple process of looking at the bet deal then doing a little research on the company you want to use and just see if they have any bad press or negative feedback from customers. If you are transferring a lot of money it is recommended to use a firm that is fully FCA authorized so that your money is fully protected should anything go wrong.
Step 4 – If you are happy with the firm selected then just make sure they are able to process the amount you want to send and in the timeframe you need it done. Get all confirmations in writing so that you have a reference to use if there is an issue or delay.
Step 5- Once the decision is made open your account and transfer in the money. Depending on you’re the company and your bank this may take a day or two.
Step 6 – Decide whether you want to use the current exchange rate at the time of transaction or use a forward contract. A forward allows you to lock in rate now for a trade in the future. This can be useful if say you have a final payment on a property due in a month but you are concerned that sterling may weaken against the euro before this transaction takes place.
Step 7- Get all paperwork concerning the transaction and keep it safe. Make sure to have everything in writing so that if something does go wrong then you have proof of what was agreed when the transfer took place.
In most cases money transfers go through smoothly without any issue but to full safeguard your money do your research on the company you intend to use. If the firm you use goes under and is not fully authorized by the FCA then you will not receive compensation for the lost funds.
Only firms that are fully authorized and not just registered by the Financial Conduct Authority are required to safeguard customer money.
So if you want to keep peace of mind these are the firms you want to stick with.
Need help with selling or buying a property in the Marbella area? Then contact our friendly and knowledgeable team who will happy to help you with any inquiry you have.
Call – +34 952 886 340
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