We all know that exchange rates move around from month-to-month, day-to-day, minute-to-minute. This can be frustrating if you have a transfer to make and you’re trying to target a particular rate of exchange. In most cases, people just make the exchange anyway, aware that the rate they’ll get will depend on the market conditions at that given moment. It’s a convenient way to transfer money, even if it relies on the luck of the draw when it comes to the exchange rate they’ll get.

However, for some people this isn’t good enough and they would rather wait for the exchange rate to improve in the favour. They know that exchange rates go up as well as down, and getting the desired rate can often simply be a case of waiting for the markets to move in the right direction. This can be especially important if you want to make a large transaction, as even small movements in the exchange rate can add up to sizeable differences in the target currency.

But, waiting for the right exchange rate to appear is not exactly convenient. Sure, you can sit there refreshing the screen every few minutes, but you’ll need a lot of patience and stamina … isn’t there a better way?

YES – IT’S CALLED A RATE ALERT!

A Rate Alert is just that - an alert you receive when the exchange rate you’re interested in hits a certain level. This is called the Target Rate, and it is set by you.

Let’s say you want to transfer a sum of money from the UK to France to pay for an imported car. The spot Pound to Euro (GBP/EUR) rate is €1.13 when you look at the screen, but glancing back over the previous three months you see that it has touched €1.15 on a number of occasions. The difference between the higher and lower rate would mean a saving for you of several hundred pounds, so you decide to set a Rate Alert with Currency Solutions, who will then inform you the moment the GBP/EUR exchange rate hits your desired rate of €1.15.

Of course, you realise that your Target Rate may not be reached within the time frame you set, but it’s worth setting the alert anyway, as it’s a way of reducing the risk of missing out on a more favourable rate, even if the risk of a lower rate still remains. It will potentially save you money and you don’t need to do a thing other than set up the alert.

THE TOP FOUR REASONS TO SET UP A RATE ALERT

1. It saves you time: You don’t need to keep checking the screen to see if your desired exchange rate has been reached. Your dealer will simply tell you when your Target Rate has become available.

2. Flexibility: Unless you need to make a transfer on a specific date, setting up a Rate Alert that covers a period of time allows you to snap up a favourable rate when it appears.

3. Risk management: Rate Alerts can be for a number of currencies, so if you’re in charge of making numerous transfers on behalf of a business operating in multiple markets, setting multiple Rate Alerts is one way of reducing the risk of losing out on the best rates.

4. No obligation: A Rate Alert differs from a Market Order in that there’s no obligation to make a trade. You’ll simply be made aware that your target rate has been reached, without an automated trade being actioned on your behalf. It’s an information service, nothing more.

SETTING UP YOUR FREE RATE ALERT IS EASY

Setting up a Rate Alert with Currency Solutions is easy. Once you have registered a personal or business account and told us which currencies you’re interested in, you’ll be allocated a dedicated currency expert who will be able to make transfers on your behalf over the phone. All you need to do is tell us about any Rate Alerts you’d like to receive and what your Target Rates are.

Once you receive a Rate Alert by email or your dealer calls you, you can then decide whether you’d like to make a currency transfer or not – there is no obligation. If you do want to make a trade, you can lock in the rate and make the transfer.

Our dealers are there to help you get the best rate for your currency transfers; that’s why we’re called Currency Solutions. If this sounds like something you’d like to try, why not open an account with us today and get bank beating exchange rates on all your currency transfers.