What are my transfer options during this Brexit voting period?

Whether you’ve seen it on the news, read it in the newspapers or witnessed its dramatic effects on our live Market Rates page, the European Union (EU) referendum has taken centre stage in recent months. As we get closer to 23rd June 2016, many worry about the volatility of the British Pound, wondering ‘how will it affect me?’, and ‘what can I do about it?’

buy now, transfer later

Buy Now, Pay Later Contract

If the market rate is looking favourable right now and you anticipate a turn for the worse

  • Secure a rate for up to 12 months. Those who secured a forward contract before the Brexit announcement may still receive a higher exchange rate on the pound.
  • Spread the payment over 12 months or pay the entire amount on a future date.
  • With a lot of volatility predicted in the coming months, you may be protected against any further depreciation for the year ahead.

This period of exuberance for the Aussie dollar could be sustained for increased returns with a forward contract. If the market takes a turn for the worse you can enjoy the same favourable rate for up to 12 months.

set your target rate

Target Rate Order

If the market isn’t looking favourable right now but you anticipate an improvement within the next six months…

  • Tell us the rate you want to deal at and we’ll watch the market for you. 
  • If and when it reaches your desired rate, we alert you so you can quickly take action. 
  • There’s no predicting which way pound sterling will go but leaving us to watch the market on your behalf frees you from the fear of you missing your ideal rate.

Like many British expats, while you may wish to retire in Australia, you can be alerted when the market meets your favour and transfer your pension to where you are. OFX sends money to over 190 countries worldwide. That way you can keep track of the market without having to check in.


recurring transfers

Regular Payment

If you want to send/receive a set amount on a regular basis of you choosing…

  • You can set up a recurring payment up to a total of AU$150,000.
  • Think of it like an international automatic payment – simply set and forget.
  • You can rest assured that your funds will be delivered with speed, safety and efficiency, as often as you like. 

If you’re supporting any overseas studies, you’ll want to make sure the money arrives no matter what. Set up a regular payment and rest assured that you’re saving on your transfers every time.


Ready to OFX it? Start your risk management transfer now

 

 

In 1993, the EU was created out of the ‘European Economic Community’ (EEC); a collection of European countries that banded together to prevent a repeat of the Second World War. The United Kingdom joined the EEC in 1973, 20 years before the formation of the EU, and there were great benefits for the countries involved. Economic trade boomed, international research and education flourished, and visa-free travel gave increased freedom for citizens from any of the 28 member states.

Many say, however, that over time the strict membership rules and growing number of EU policies, make it difficult for some member states to act independently and keep their national sovereignty. One of those member states is the UK.

On 20th February 2016, David Cameron, the British Prime Minister, announced a referendum would take place on 23rd June 2016 to vote on whether the UK, a key player and important part of the EU, would exit and ‘Brexit’ was born.

The Prime Minister is currently opposed to a UK departure from the EU, while the Mayor of London, Boris Johnson, is openly for it. Each of them has received a great deal of support (and criticism) from the press and the public, respectively. There has also been talk that Brexit could start a domino effect, including a Czechzit (Czech Republic-exit) and another Scottish bid for independence from the UK.

With so much foreign trade, investment and mobility depending on the UK’s involvement in the EU, the British pound has become very erratic under the uncertainty of the outcome. Although nobody knows what the result of the referendum will be, many believe that the British pound will only become more volatile as we get closer to 23rd June 2016.

If you’re a British expat living in Australia, any money you receive from the UK, whether from yourself or others, may not stretch as far as it would have a year ago. Property owners may see that their rental income has taken a dive in recent months, and overseas retirees will see a tightening of their pension on the other side.

If you’re an Australian-based importer of products or intellectual property that’s doing business with the UK you’ll find your money may go further, enabling you to buy more product or the same for less Australian dollar. To capitalise on this opportunity, avoid paying through your bank, and instead use a trusted foreign exchange service with a more competitive exchange rate. With the referendum taking place on 23rd June 2016, this could be a small window to leverage greater returns for your bottom line.

Many suspect that if the UK leaves the EU the pound will fall even further, and predict a return in the strength of the pound if the ‘stay’ vote succeeds. With no way to know for sure, and little way to move the vote in your favour, the best thing to do may be to protect yourself from currency volatility.

Need to send money swiftly and securely right now? Our single transfer option may be right for you for you.

Also known as a “Spot Deal,” a single transfer means you can lock-in the current exchange rate and start sending your money to your recipient.

Legally you’re required to send your funds to us within 24 hours of locking-in the deal. Then we’ll send your funds to your recipient using our global network of bank accounts.

You can choose from 55 major and exotic currencies to transfer with. Select a currency pair and enter your transfer amount in our currency converter to start a single transfer today.

Our range of risk management transfer options all help you to manage the risk associated with larger transfers and provide benefits for both personal and business transfers.

Forward Exchange Contracts allow you to “buy now, transfer later.” This could be right for you if you want to lock-in the current exchange rate but aren’t ready to make the transfer now. You can schedule your transfer between two days to twelve months from today, protecting you from rate fluctuations. Please note there is a minimum transfer amount of AUD 50,000 or equivalent.

With our Limit Order you can set your target rate and once it’s triggered we’ll contact you to complete your transfer. This means we’ll watch the market for when you can’t, so you save time as well as your money with our great exchange rates. Our minimum transfer amount for Limit Orders is AUD 30,000 or equivalent and is valid for up to 6 months.

An FX Option gives you the right, not obligation, to make a money transfer at a certain exchange rate and time for an up-front premium. We like to think of it as being the best of both worlds, giving you protection against adverse rate movements while allowing you flexibility to take advantage of favourable rate movements. The minimum transfer amount is AUD 50,000 or equivalent and is only available for clients based in Australia.

If you would like to learn more about our other ways to transfer, click here. If you’d like to make a transfer with any of the above ways to transfer, please give us a call and one of our team members will help you get started.

Please note, Forward Exchange Contracts, Limit Orders and FX Options carry risk. Please speak with us or refer to our PDS for more information.

Whether you’re making a personal or business transfer, we’ve got a way to transfer to suit your needs. So no matter where, when or what your transfer is for, OFX it.

If you want to make a one-off money transfer, our single transfer may be for you. If you’d like to make multiple transfers, perhaps for regular mortgage or business payments overseas, our recurring transfers will allow you to set up an automated transfer schedule.

Beyond our instant transfer options are Forward Exchange Contracts, Limit Orders and FX Options which help manage your transfer risk. These are suitable for larger transfer amounts and provide you with a degree of rate security with added flexibility to take advantage of the market.

For more information on our ways to transfer, click here.