Give Yourself a Pay Rise When Sending Money Back Home!

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Working on board a Superyacht and earning a salary in another currency can be very rewarding! When it comes to transferring your savings or salary back home, you should make sure your money is going as far as you do, since currency fluctuations can have a significant impact on the amount that ends up in your account.

Not only is it important to get a great deal on the initial exchange rate that you transfer your local currency at, but subsequent exchange rate changes often require management or hedging in order to minimize risks and maximize your savings.

The following sections cover some straightforward methods for managing your currency risk efficiently.

Shop around for the best exchange rate sending your money home

A key thing to remember when making the initial currency transfer is that you are generally not locked into using your local bank for foreign exchange transactions and forward exchange contracts.

This means that you can shop around among various banks for the best forex rate, which can often save you as much as 1-3% on your currency transfers. You can also use reputable currency transfer providers like OzForex, who work hard to make sure that all of your currency transfers will be both cost effective and straightforward to perform.

Furthermore, not only can you shop around for the best exchange rate on ‘one off’ transfers, but you can also get better exchange rates on your regular currency transfers, if you plan on repatriating parts of your salary over a long period of time.

Placing currency limit orders

Placing a limit order with your foreign exchange provider is another way to help you get the best exchange rate.

When you enter a limit order, you will need to specify an exchange rate level, a currency pair, an amount of one currency and whether you wish to buy or sell that amount at that level.

If the market exchange rate subsequently fluctuates to your specified level, then your foreign exchange provider will buy or sell the specified amount of currency for you automatically based on your instructions.

Limit orders are especially helpful because people cannot be watching the actively fluctuating foreign exchange market all of the time, and so they might miss out on a short lived exchange rate improvement. Although limit orders are often used when dealing through stock brokers, this useful ability is rarer among foreign exchange providers. Be sure to ask whether your currency transfer provider offers limit orders if you think you might wish to use them.

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This article is brought to you by OzForex Foreign Exchange Services. OzForex is one of the world’s leading foreign exchange companies, providing live exchange rates and focused on providing a smarter, online alternative to existing international money transfer services. Established in 1998 with the aim of giving individuals and corporate clients a better deal, OzForex has offices in Sydney, Toronto, London, Hong Kong, San Francisco and Auckland. 

The OzForex Group includes OzForex, UKForex, Canadian Forex, USForex, NZForex, Tranzfers and ClearFX.

Reproduction of this article is permitted with OzForex clearly credited as the source by including a backlink with anchor text that mentions OzForex, the article name or something that relates to the article’s content.