Transferring Currencies in Tenerife

In the last few years it has become much cheaper to move money from one currency to another because of the emergence of specialist companies.  These cost savings do not just apply to large movements, such as transferring money to buy a property.  If, for instance, you receive a pension from the UK or any other form of income, then using these companies can save large amounts over time.  Semi residents or even property owners who are paying a Euro mortgage will also make large savings.

Use a Currency Company for…
•    Paying a Euro mortgage from the UK
•    Transfers to purchase a house, boat, car etc
•    Receiving a pension or other income from the UK
•    Paying maintenance costs
•    A business importing goods from another currency zone


Currency companies trade directly on the international money markets, so they are able to offer commercial rates to their clients.  These will be much better than normal bank rates.  In fact, on small amounts, banks will normally use a tourist rate similar to the rate offered by a bureau de change, so the difference can be sizeable.  But there are further savings to be had.  Most banks charge between £10 and £40 for a transfer, and for those of us who are receiving a monthly income, this adds up to a substantial amount in a short space of time.  Currency companies will typically offer free transfers above certain limits.  Banks may also charge a commission of around 2%, but here again these specialist companies may charge no commission at all.

Currency companies will generally offer a few different options.  The simplest is a ‘spot deal’ which is used for a single, immediate payment; generally for a large purchase such a buying a house or a car.  If you need to make a regular transfer for, say, an income or a mortgage payment then a ‘forward contract’ will allow you to fix a rate for typically up to two years.  With this option, you can pay a small deposit at the start and the balance when the contract matures, which means you can gain even more by putting your money into a high interest account.  A variation on this is a ‘time option’ which allows you to withdraw some or all of your funds a few months before the maturity date you have chosen.  This would suit you if, for example, you have set payment dates in the future, as you would with stage payments for an off-plan property.  Lastly, there is a ‘limit order’.  If you have time to wait then you can set the level of a really good rate, and when the rate of exchange reaches that rate, the transfer will be made.  A conversation with a currency company will soon establish which type of contract best suits your circumstances.

In order to start working with a currency company, you will have to open an account.  This is a fairly simple procedure that requires filling in a short form and providing copies of your passport and proof of address.  Some Estate Agents in Tenerife provide facilities for opening accounts with currency companies, which may be more convenient if you are not connected to the internet.

Before you contract a currency company …

•    Ensure that you know the minimum amount you can transfer.  Typically this should be as low as £2,000.
•    Make sure you know what fees will be charged.  Currency companies generally have a minimum amount at which transfers are free, but this can be as low as £5,000.  If there is a fee, make sure you know what it is before you agree to their terms.
•    Confirm that they will not be charging a commission; again currency companies can vary in their terms.
•    Ensure that you know what the receiving fees (if any) are when the money arrives in your bank.
•    Try to get one contact, rather than being shifted around a faceless customer services department.  It will make life easier and you won’t continually have to explain yourself over and over again.
 

Rational FX, Tenerife currency exchange Telephone: 0044 207 220 8181 Address: Rational FX's offices can be found at: Holland House Bury Street London EC3A 5AW Visit Website or Send an Email