If you’re planning a move to Australia, transferring currency is something you’ll need to deal with sooner or later. Whether you’re buying a house, moving savings or transferring wages, you’ll want to get the best bang for your buck.
But how do you make your money go further?
Get to grips with exchange rates
For most people, their main experience of exchange rates comes from buying holiday money. On larger transfers the same principle applies, but the rate you secure makes a much bigger difference.
To get right back to basics, an exchange rate tells you the value of one currency compared to another. For example, the Pound to Australian Dollar exchange rate was near 1.80 in September 2019. So, £1 would buy AU$1.80.
But exchange rates are always moving. In fact, they fluctuate on a second-by-second basis in response to economic, social, political and global news and events.
These movements can have a serious impact on how much your money is worth when you come to move it overseas.
As an example, if you exchanged £200,000 at a AUD/GBP exchange rate of 1.75, you would receive AU$350,000. But at a more favourable rate of 1.78 you’d receive AU$356,000 – an additional AU$6000.
Time your transfer effectively
If you want to move your money when the exchange rate is in your favour, you’ll need to keep an eye on the currency market.
Staying up-to-date with the latest currency news and monitoring exchange rate trends is the best way to time your transfer effectively.
The Australian Dollar is also a commodity-correlated currency, so fluctuations in commodity prices can impact its value.
No one really has the time to sit around watching the markets all day, but some specialist currency providers do all the leg work for you and send handy updates straight to your inbox.
Explore your options
Banks are a traditional go-to for currency exchange, but they often charge fees and rarely offer competitive exchange rates.
Some specialist currency providers, on the other hand, work on a fee-free basis and help you secure an excellent rate.
They also offer a range of services to help you get more for your money.
- Forward Contract – Fix the current exchange rate for up to two years and protect your transfer from negative market movements.
- Limit Order – Set a rate higher than the current market level and your transfer will take place automatically if your rate is hit.
- Stop Loss Order – Sets a worst-case rate and your transfer will be triggered if the rate suddenly drops.
- Rate Alerts – Pick your ideal rate and receive an alert by text an email if the market moves to that level.
The currency market is a fickle thing, but moving money in and out of Australia is easier with the right support – so do your research and find the provider and service that’s right for you.