Forward Exchange Contracts for Money Transfers

buy now transfer later

Buy now, transfer later

If you need to lock in a rate but aren’t ready to transfer now, our Forward Exchange Contract may be for you. You can book transfers between two days and twelve months from today, protecting you against exchange rate movements. There are some downsides you need to be aware of, such as you may not be able to take advantage of favourable market movements after booking the forward contract. So it's a good idea to talk to an OFXpert first. Find out more here.

  • Locked-in OFX rates
  • Manage your cash flow
  • Minimum GBP 20,000

What Is A Forward Contract?

A Forward Contract is an arrangement that allows you to transfer money at some time (up to 12 months) in the future at an exchange rate that you agree to now, so that you know what the exchange rate will be at the time the transaction takes place. This allows you to avoid the risks and uncertainties associated with adverse exchange rate movements.

Forward Contract: Benefits

A Forward Contract may be beneficial for businesses and individuals if exchange rates are particularly attractive now, and you want to lock in that rate to hedge against uncertainty in the future. This can be especially helpful for small businesses who want to keep their cash flows predictable when buying or selling overseas. 

Forward Contract: Elements to Consider

Entering into a Forward Contract is a binding arrangement. Therefore, a Forward Contract may preclude you from taking advantage of exchange rate movements of your currency pair if the exchange rate moves in your favour. To continue to take advantage of exchange rate movements, some customers use a Forward Contract for only part of their liability as a way to partially hedge against volatility.

You may be asked to pay a deposit at the time of booking a Forward Contract, or during the life of the Forward Contract (a “margin call”).  No interest is paid on deposits.

Talk to one of our dedicated OFXperts today to develop a currency strategy that’s right for you.