Buying property in the EU is a fascinating and popular venture, and those of you who are interested in the potential of investing in the continental property market will have many factors to bear in mind before you take the plunge. One of these matters is concerned with transferring currency and more specifically, what is the best way to do it. Should you use a bank or an FX broker when you are transferring currency? As is often the case, there are pros and cons for each of these alternatives. Some of your concerns may be eased when you learn that EU countries are considered to be low risk for the exchange of currency, and all EU countries have well-established networks of estate agents, lawyers, and banks, many of which are used to dealing with customers from overseas. No matter how well-established the companies you decide to use, you should carry out the usual sort of background checks which you would employ whenever you are transferring money from one place to another, selecting a registered business and finding an experienced lawyer.
Having chosen which agents and lawyers you are going to employ you then come to the matter of transferring currency. Here, you will find that your choice boils down to one between a bank and a Foreign Exchange brokerage, as we mentioned earlier. Banks have the great advantage of being safe and reliable. They will convert your sterling into euros and transfer the results to wherever you instruct. Using a bank will give you peace of mind. However, banks tend to lag behind brokers when it comes to two important matters, specifically the speed at which the currency transfer takes place and also in the matter of the most advantageous exchange rates being utilised. The standard transfer of funds between banks takes between four to six business days and you often have to pay extra for a speedier express delivery. Similarly, banks use different rates for commercial and retail customers. The differences between the rates may be small but a difference of only 1% could potentially cost you hundreds or indeed thousands of pounds. For this reason, even if you do use a bank when you are transferring currency, you might want to employ a broker to try to equalize the rate, thus saving you money.
Foreign exchange brokerages tend to excel in the fields where banks are at their weakest in the matter of transferring currency. If you are concerned that your transfer does not enjoy the safeguards which attend the use of a bank, then you can be assured that reputable brokerages use FCA Authorised Payments Institutions as part of their regulatory requirements. In your initial research, you should ensure that any FX broker you employ is FCA authorised. Remember that when you are transferring currency, you can never be too careful. Choose a reputable broker, after careful research and after reading reviews and endorsements, if available.
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