Avoid the risk of currency fluctuations

with Currency Forward Contracts

Lock in an exchange rate for the next 12 months and stop unpredictable economic variables from driving up the costs of your purchases abroad.

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Get more control over your financial future

Forward Contracts are ideal for property purchases, regular payments and transfers with a flexible payment date.

Eliminates the need to constantly monitor currency markets

Achieve your goals with peace of mind and reduce uncertainty

Allows you to budget your finances accordingly

Get guidance from trusted currency specialists

You pay a small deposit now and pay the remainder on the payment date(s)

Safe and secure payments, authorised by the FCA

Our team are available via telephone from Monday to Friday, 8:30am to 6pm.

What is a Currency Forward Contract?

A Currency Forward Contract is a legal contract to buy a certain amount of currency or currency pairs at an agreed rate in the future.

It allows you to take control of international payments by protecting you from losses due to currency fluctuations, which is important in times of economic uncertainty.

What is a Forward Contract?

A Forward Contract is an agreement to buy a certain amount of currency, at a fixed exchange rate, for payments up to 12 months in advance.

It allows you to take control of international payments by protecting you from losses caused by currency fluctuations, which is important in times of economic uncertainty.

Real life scenario

How a Forward Contract can help

FC_real_life
March 2022

Jason and Kylie decide to buy a small villa for €300,000 on the Costa Blanca.

At this stage, the total
cost of the property:
£250,863

May 2022

After finding a property they love, they pay a 10% deposit of €30,000 to take the property off the market.

The total cost
of the property now:
£254,972 (+£4,109)

Sept 2022

They need to transfer the remaining €270,000 to complete the paperwork.

The final total cost
of the property:

£263,277 (+£8,305)

In NOT using a Forward Contract, as Jason and Kylie had no idea when the date of completion (nor the exchange rate at that time) was going to be...

This led to the property costing them an extra £12,414.

Our team are available via telephone from Monday to Friday, 8:30am to 6pm.

Want to see the risks of currency exchanges without a Forward Contract?

See how much your chosen currency has changed over the last 12 months:


Find out more about how locking in an exchange rate with a Forward Contract can help you avoid losing money. Complete our short form to speak to one of our currency experts.

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Speak to an expert 0808 163 0102

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Frequently Asked Questions

An example of how a Currency Forward Contract can help you:

A Forward Contract will reduce the uncertainty when buying a oversea property. Suppose you are buying a villa in Spain for €200,000 but won’t be paying the money for a month or two while the lawyers sort out the legal side. If you are paying for it in euros but are currently holding your money in pounds, any rate changes in the meantime will change the price of the property. Even a 1 percent loss in the value of the pound – and that can happen in a day – will send your property rising in price by thousands of euros.

Using a Forward Contract will protect that from happening. It can also protect your income when you live abroad too.

When can I use a Currency Forward Contract?

A Forward Contract helps you stay in control over the exchange rate, which is the price you’re paying for foreign currency. The exchange rate fluctuates constantly, affected by political and economic events each day. One minute your pound is looking good against the dollar and euro, the next it falls in value and that dream property slips beyond your price range. But a forward contract can fix your cost in advance. If you know that you will need to make a large payment abroad in the coming year, or a number of payments, a Forward Contract could be the best service for you.

How does a Currency Forward Contract work?

A Currency Forward Contract lets you lock in an exchange rate for up to 12 months. You might take this option if you have paid a deposit on a property abroad as your final cost could exceed your budget when currency is fluctuating. It allows you to reserve foreign currency when you feel the currency you have is strong, or vulnerable to weaken.

With the contract signed, and your 10% deposit paid, no matter how the currency values fluctuate, you will always be able to trade at the agreed rate. You might use one if you are making a regular payment every month; for an overseas mortgage perhaps, or stage payments on a new-build. Without a Forward Contract, a monthly payment of €10,000 will vary by hundreds and even thousands of pounds each time you make it.

Currency Forward Contracts for regular payments

Forward Contracts can also be teamed with one of our Regular Payment Plans. If you need to make payments frequently or at regular intervals, for example for a pension payment or to cover an overseas mortgage, you can use a Forward Contract to lock in a rate for these regular payments for the year ahead.

This allows you to budget for the amounts coming in and out of your account, and ensures you’re never left short. Combining a Forward Contract with one of our Regular Payment Plans removes hassle from these transfers and set up is simple. Your trader will help you lock in a satisfactory rate, you outline the dates the payments need to be made and then set up a standing order to cover them. Your payments will then be managed on your behalf for the next 12 months at the rate you’ve agreed. This combination of services is the best way to effectively manage your regular payments to help you budget, and to give you complete peace of mind.

Is a Currency Forward Contract right for me?

Forward Contracts work well for many of our clients. For example, those making one-off payments who want to avoid currency risk and be certain on their currency prices. Forward Contracts are also great for those who feel that rates are at a good level, or that they could weaken significantly, and they want to take advantage of that favourable rate for a year.

There are pros and cons for using a Forward Contract. Currencies can move in both directions, if the source currency strengthens after agreeing the contracting rate you are still legally obliged to trade at that level. If you only need to make a one-off payment, a Spot Contract works well. Your trader will secure you the best exchange rate possible on the date you need to make the transfer. As there is no time delay, the currency risk is much less and a Forward Contract unnecessary. However, if you are committed to buying and have a set budget, a Forward Contract will work well.

Whether you need to make a payment today, or three months in the future – we can help