Get the best exchange rates

If you have a high volume foreign currency transfer to make and want to be assured of the best exchange rate there are a few tips you can employ to achieve this. Whether it is a one off payment or you make more regular foreign currency transfers, in order to achieve the best exchange rate it is important firstly to be dealing with the right people. A specialist foreign exchange broker will be able to guide you through the process, they will have lower transaction costs than the bank, they also provide a quick and safe transfer of your funds.

It is important first to look at the timescale of your foreign exchange transfer, that makes the difference between achieving the best exchange rate and the worst exchange rate. The foreign exchange markets are very volatile, they trade 24 hours a day, 5 days a week and the rate of exchange fluctuates. With so much information available on the internet it can sometimes get quite confusing but a few basic points can help anyone to achieve better exchange rates for money transfers abroad.

Firstly it is important to identify the current trend of the currency you are looking to convert, the easiest way to achieve this is to look at a daily chart tracking the previous exchange rate movements on a one year time scale, it will show you the long term trend.
If you need to make a transfer in the next few days, look at this long term trend then at the last 5 days chart with a 1 hour time frame for candle bars. If it's moving in your favor then its worth hanging on for a bit but as soon as you see the rate of exchange start to fall away, give your currency broker a call and book the rate. You could also put an automatic buy order known as a 'limit' order with your broker so they watch the market for you. This will save you time and effort.
If you have a much longer timescale then the same rule applies, if the trend is against you then to achieve the best exchange rate it might be better to buy sooner rather than later. Market trends can be very useful and can go a long way to achieving the best rate of exchange for your currency transfer.

The next method which can be used in conjunction with trend analysis is to look at areas of support and resistance in the market on the currency pair. Say you are looking to buy Euros, the foreign exchange market is trading currently at 1.1400, the medium term trend is up, so you decide to hang on. The exchange rate might continue to rise for a while but then it starts to drop down quickly and before you have a chance to buy it has dropped another point. The reason this has happened is because the rate of exchange has reached a point of resistance in the market.
Points of resistance, in the context of an uptrend, are levels the market has reversed at before. Foreign exchange traders place orders in the market at these levels and that's why the rate of exchange can reverse. The best way to make the most of them is to place a limit order just below these levels so you can be guaranteed the rate of exchange as soon as the market trades there.
A foreign exchange broker will be able to help you with all these techniques. They will be aware of the trends in the market and the levels of support and resistance. A good foreign exchange broker will do everything they can to get you the best rate of exchange for your foreign exchange transfer.
General tips
Exchange rates via a foreign currency exchange broker tend to be better.
Make sure your currency exchange broker is FSA authorized for security of your funds.
A dedicated dealer will guide you throughout your currency transaction(s).
You can contact Currency Change on +44 (0)20 7373 2686 or info@currencychange.com for further help.
Best exchange rates can be quoted for free by Currency Change.