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Spot Contracts

You can buy currency as a 'Spot' purchase which quite simply means that you buy now, i.e. 'on the spot'. Settlement for a purchase of this type is two working days and upon receipt of cleared funds a transfer can take place. A spot purchase would normally satisfy someone who has an immediate requirement for the currency and wants to exchange in a prompt manner.

Forward Contracts

The alternative method is a 'Forward' purchase, which is a method that allows one to fix a rate now for final delivery up to one year in advance. The benefits of this style of purchasing are variable. Firstly, once you have locked the rate in, whatever the market does in between those two points in time, you are guaranteed the price. Secondly, you do not tie up 100% of your capital; at Excel Currencies we tailor make every client’s purchase by agreeing a percentage to suit you best. Thirdly, your remaining capital can therefore be earning you interest at the prevailing rate. Finally, depending on what currency you are buying you may well end up with a better rate by using a forward rather than spot purchase. This is as a result of differing interest rates in countries effecting what is called 'points' that are either added or subtracted from the spot rate of the day to determine the forward price.

In order to determine which option is more suited to you, our Currency brokers are on hand 24/7 to provide advice on the best possible market strategy, enabling you to achieve the best rate whether it may be through a forward or spot contract. The brokers will guide you through the whole process making the transfer stress free and substantially cost-effective.