Fulcrum have partnered with FX providers to offer more competitive exchange rates for foreign currency transactions.
Over a number of transactions, our clients were being let down by the FX services provided by their banks. The process was typically reactive and client initiated, as opposed to receiving advice and being guided toward a better rate. This led us to design a service that is quick, easy to use, and valuable to our clients.
FX providers must be registered as money service businesses (MSB) by the Financial Conduct Authority(FCA), and as such are subject to full and strict regulation. Client funds are held in segregated client accounts, and payment execution completed using secure banking protocols.
FX rates move constantly, making it difficult for clients to fully understand whether they are getting the best rates available. We offer real time rates and a personalised service, working alongside clients’ existing professional advisers, including if appropriate the ability to satisfy our on-boarding requirements via such advisers. In doing this, we are close to the trade, so able to take control and keep clients informed of any currency swings potentially affecting the process.
The most common type of transaction, a ‘spot’, will typically be settled within 48 hours. An exchange rate will be agreed upon, at which point a client sends the appropriate amount of funds to settle the trade.
We can lock in a rate for the future, known as a forward contract. If we are working towards a particular target date, a ‘forward’ can give you certainty as to the amount of home currency required to convert to Sterling.
This is known as a Market Order. If there’s an optimum rate at which clients would be happy to complete the transaction, we can try to secure that. The potential disadvantage of this option is that the market could move unfavourably whilst rates are moving, but we are able to advise clients through this process.
Currency movements tend to mirror world events, often leading to large swings over a short space of time. Clients should be mindful of which currency is being used to budget the level of Sterling required for a transaction. By working closely with clients’ professional advisers as early as possible during the process, we provide a window of opportunity to secure the strongest rates and therefore peace of mind.