Free lunches...!

The old adage states that ‘there’s no such thing as a free lunch.’ But is this always true? I think not – and I’ll tell you why. Because of the Internet and changing marketing practices today, there is a virtual treasure trove of valuable information available - and most of it is free! Now, I don’t dispute the fact that there’s quite a bit of drivel, however, if you’re interested in gaining a greater understanding about almost anything, the Internet provides an incredible starting pint - and a potential finishing point too.

In terms of marketing practices today, many organisations have learned that the best way to help consumers to purchase their products is to educate them rather than to manipulate, coerce or control them. Just last week, a friend of mine was in absolute misery due to ‘morning sickness.’ She was aware that many women experience nausea during pregnancy yet she was unequipped for just how bad it could be. After a few days of extreme discomfort, she went onto the Internet, discovered around ten ways to minimise the effects – and, within an hour, she was armed with several options – all for free!

After a lot of research and much useful and free advice she eventually settled on an e-book on ancient Chinese pressure points. Within 2 days of purchase her ‘morning sickness’ was a thing of the past. Both the education and the e-book proved invaluable…most of the advice she had used was free and the book was good value: job done.

In this case it had not been absolutely free - so…what about having that free lunch and saving money in the process?

Smart Currency Exchange, the international payment specialists, offer two free reports that not only help readers to make more educated decisions but that also enable them to save hundreds if not thousands of pounds in the process. One report is for individuals that need to make large lump sum payments or small regular payments between Cyprus (it could apply to anywhere abroad) and any country outside the EU (say, the UK). These payments can include paying for a property or making mortgage or pension transfers. The other free report is for companies that need to buy or sell goods or services with countries outside the Euro zone.

Both reports outline how the international payment process works, with a focus on where and why particular expenses occur. Once the reader fully understands this, each report details exactly how to eliminate, if not reduce, the various costs and expenses. The reports allow readers to get valuable free information and, in the end, each reader will be armed with various tools to reduce their expenses dramatically, thus saving money too.

The information has been written in an easy-to-read format with absolutely no jargon. It outlines common mistakes that people make, along with case studies, so it’s easy to relate the information to everyday life. And neither report is longer than 10 pages – giving the reader quick, valuable information that can be assimilated in under 10 minutes.

Just by reading the Smart report could save you huge sums of money. On average, international payment specialists save individuals and organisations €40 for every €1,000 transacted through better-than-bank currency exchange rates. That means that someone buying a property in, say, Cyprus or repatriating back to the UK could save €8,000 on a €200,000 property. Or, an organisation that’s buying or selling goods could save €4,000 on a €100,000 transaction!

Getting better-than-bank currency exchange rates is only one of the tools that the reports discuss. Another significant aspect in relation to the international payment process is planning. If you need to exchange money and the markets are not looking favourable, it’s possible to reserve or lock into an exchange rate even if you don’t need to do the transaction right away.

Imagine having to move €400,000 back to the UK in a month’s time, knowing that the rate is at 1.10 with forecasts of it getting weaker. Imagine watching the value of the €400,000 go from £363,636 to £350,000 – it’s enough to make anyone’s stomach churn – and this type of situation is completely avoidable! By reserving a rate today, you’ll know that the value of the exchange will not change at all in a month’s time.

In conclusion, if you have any need to make international payments, by reading one or both of the Smart reports, you’ll not only get a ‘free lunch’ (something of high value at no cost), but you’ll also learn how to save money throughout the process. So, to find out how to save money, from an individual’s perspective (rather than a company) please go to http://www.smartcurrencyexchange.com/FreeCurrencyReport.aspx to collect your free report.

As for companies, or anyone sending or receiving funds for business purposes, just go to http://www.smartcurrencybusiness.com/freeCurrencyReport.aspx to collect your “free lunch!”

There is absolutely no obligation – or strings attached! Our hope is that you read the reports and are so enthusiastic about the potential savings that you call us. The worst thing that can happen is that you spend 10 minutes reading educational material only to choose that saving money isn’t for you….

Charles Purdy is a Director at Smart Currency Exchange, the international payment specialists. To get more information on us – or any of our educational material – you can also call us on 0207 898 0541.

Here is a slightly irreverent testimonial for Smart from Ian Munro!
I would like to express my satisfaction with the ease and convenience of using Smart Currency Exchange. My money was placed into my designated account within 24hours of transfer at the rate I wanted. I guess the biggest pleasure is reserved for knowing you can stick your finger up to the Banks with their less than generous rates and tardy service. I will definitely use Smart Currency Exchange again.

Thank You,

Ian Munro.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

How much are the banks ripping you off?

How much are the banks ripping you off?

Vince Cable is one of five Lib Dems in the Tory-Lib Dem coalition cabinet and holds the position of Business Secretary. He has come out publicly and said what we at Smart Currency have been saying for simply ages: that the high street banks are ripping their customers off.

His comments come as Panorama, in researching for their television programme on the subject, reveal that some high street banks surveyed are charging on average 32 per cent interest, despite advertised rates of around 19 per cent. With costs and other charges factored in this can reach an unbelievable 167 per cent over a year as an average rate across the high street banks.

There are fewer banks after the recent recession (and therefore less competition) and still use what some would say is an almost deliberate device of making the small print so complicated that few actually read it. This means that clients aren’t really kept in the picture. All the charges are no doubt explained, but in such a way that few ever get to know about them before running into these enormous costs.

A quite considerable sum is charged when you transfer money abroad through your bank. What we at Smart Currency have found is that we are often able to do away with certain banking fees if your currency exchange is done through us and, let’s face it any money saved on unnecessary bank charges is a real plus.

That is not the only way that the banks rip off the man on the street when sending money abroad – or indeed returning it to the UK from abroad.

Smart Currency have long commented on the fact that high street banks do not go to the money markets to get exchange rates for clients as and when they require foreign currency. Rather, they fix an exchange rate at the beginning of the day, one that what ever happens during the day will still bring them a profit. Looking at the way currencies have fluctuated recently you can imagine how high they set the bar to ensure they were not caught short at any stages – a scary thought indeed.

At Smart we call into the trading floor to get an up to the minute exchange rate just for you, at the time of your transaction. Smart charges neither commission nor do the traders take any commission cut but operate on a fixed salary. This guarantees that they have only YOUR interest at heart…indeed, we are the only currency company to operate in this way.

You will also get your own dedicated Smart trader, who you can call directly. Try speaking to anybody when phoning your bank: if I have to push one more button or speak to one more automated voice when I attempt to contact my bank I feel I will scream! Spot contracts, forward contracts, order to call, order to buy: these may all seem like confusing concepts but a few moments chat with your trader will set you on the right path – the one that is right for you.

It will cost you far less than your high street bank – guaranteed!


Jargon Buster - Forward Contract

A Forward allows you to reserve a currency exchange rate today, yet not have to pay for it or send the money until an agreed date in the future.

This option is fantastic for property buyers that have staged payments (or are paying for a new build in instalments) and want to ensure against unexpected changes (in either direction) in the price of their currency. This is especially handy if you need to work to a budget.

To discuss your options with us call in now on free phone 0808 163 0102 (+44 0207 898 0541)


A Happy Smart Customer

Recently at Smart we have had many clients coming to us from our competitors. One particular example was a couple who had used another currency broker in the past when sending money overseas and had got in touch with the same company again whilst selling their UK property. The client struggled to get through to their main point of contact at the organisation and was eventually told that this person would call them back. When they did eventually hear back from their Trader, he wasn't interested in discussing the matter, until the funds were actually available. This made the couple explore the possibility of other brokers and thus lead them to Smart.

The major difference at Smart is that its Traders are not paid on a personal commission basis, so you can speak to any of the Traders and get the same quotation with the same high level of service. Secondly, our Traders are more than happy to discuss requirements with you, whether they are a year away or instant. All in all, the couple mentioned are now incredibly happy with their service with Smart.

Find out how we can help you by calling free phone 0808 163 0102 (+44 0207 898 0541)



For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

What Factors Affect Exchange Rates

The one thing I am sure of is that expert comments from people like me do not move exchange rates. Having been involved in currency exchange for over 15 years I am confident my understanding is extensive and continues to grow. But the sheer size of the currency market, which dwarfs every other trading market, including the US and UK stock exchanges, means that comments from someone like me are quickly forgotten.

So given the enormous size of the currency market what on earth makes exchange rates move?

A significant proportion of the currency market is for bona fide business reasons such as the need to hedge a possible exposure to a loss from sudden movement in an exchange rate. Also, the physical delivery of currency forms a part of the market - but this is minimal when compared to its overall size. Probably the most important part that affects exchange rates short term is investors who “bet” on exchange rates and their future movement.

So what are they on the look out for?

Sentiment is an important factor. When the world saw long queues outside of Northern Rock Bank there was only one way for sterling to go - and that was down. This is probably a fairly extreme example of market sentiment affecting a currency and its rate of exchange as sterling fell against every other currency.

Most of the time, exchange movements will be more constrained with say, the US$/£ exchange rate moving differently to say, the €/£ exchange rate. These movements tend to be driven by the never ending flow of economic data released daily by all of the worlds’ developed economies. Most of this data will already have been forecast by the seemingly infinite number of economists who spend their life predicting the future. Because of this only very rarely will one piece of economic data have a major affect on exchange rates and then only if it was totally unexpected. So this is a rare occurrence although in recent times less rare than it used to be.

One thing that more often than not has an affect on exchange rates is announcements by a country’s Central Bank. Any announcement by the Head of the US Federal Reserve, or the European Central Bank, or the Governor of the Bank of England will be closely scrutinised by all and could even have a very dramatic affect. Take for example, the surprise announcement from the Bank of England that they wanted to increase the UK quantitative easing programme by £50billion - and then this surprise was compounded when it became public that the Governor of the Bank of England had wanted to increase the programme by £75bn but had been outvoted by his fellow BoE members. Sterling had a very bad month following these announcements, as they highlighted the UK economic problems - plus the contents of the announcements caught the markets by surprise, which as noted above, is never good.

The Central Banks also control their respective interest rates. Recent events have brought interest rates to record lows. Investors are now watching events very closely as they want to know when the Central Banks are going to increase interest rates and which country will be the first to do so, as these will be the most likely to see their currency benefit relative to others.

But at the end of the day, there is one major factor that affects the underlying value of a country’s currency - and that is that country’s longer term economic performance. Why has the UK suffered unduly? Clearly, some of its banks having to be bailed out were a major negative for sterling. However, a country that operates a budget and balance of payments deficit cannot go on borrowing forever. What these dual deficits mean is that the UK government has to keep on borrowing more each year [even before the credit crunch] to fund government spending and also the UK has to rely on other countries to invest in it to fund the continual flow of money out of the UK. As we all know personally, such a scenario can only go on for so long and the same logic ultimately applies to a country - and when confidence in the country is lost, the currency will suffer. The euro zone has one major plus: the undoubted strength of the German economy, the world’s greatest exporter. So even though there are some basket cases in the euro zone, the German economy is the cash generator that will keep it going.

At the end of the day, there are a myriad of factors that affect exchange rates. However, there is no way of really calculating how an exchange rate will move as these factors all work on different timescales and with different levels of affect. That is why I always try and get companies I work with to have a very clear understanding on what their currency requirements are, over what time period and what their targeted exchange rates are. If you can bring some certainty and clarity to such a complex market with so many variables, it really does help.

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com

The History of Currency

The earliest form of currency dates back to ancient Babylonia times around 4,000 BCE. Clay tablets were used to represent goods or services being traded whereas other tablets represented a receipt of deposit or letters of credit. The term, ‘cleaning of slates,’ dates back to this period and was used when the king of the time would declare all debts null and void. The actual slates would either be smashed or dissolved in water.

Up until the first world currency originating in Greek times, people operated mainly on a barter system. If you were a fisherman you could trade some of your fish in return for some vegetables from a farmer. The problem arose, however, when the farmer didn’t like fish – what was the fisherman to do? He would have to find someone else that wanted his fish in return for something the farmer would be interested in. The barter system works, however it was eventually deemed slow and inefficient.

Around 800 BCE, the Greeks developed the first money system that was eventually accepted around the world. Greek money has been found in China, India and northern Europe! The main currency in Greece was a silver coin called the Athenian drachma and during the time of Alexander the Great (300 BCE) it eventually became the monetary standard in all of Asia. Even as Greece declined and Rome came to power, the value of the drachma held its ground.

Paying the Greeks a massive complement, the Romans fashioned their own money, called the denarius, after the drachma to the exact specification. In an effort to expand from the Greek monetary system, the Romans created a gold coin for the army and emperors, a silver coin for international trades’ people and a copper coin for poor people. Eventually, however, the Roman currency system was eroded by removing the valuable precious metal and replacing it with a worthless base metal. After years of reducing the gold and silver content, the currency eventually became valueless and in 215 AD India stopped accepting it as a mode of payment. Soon after, the rest of the world followed.

In 325, as Rome was in serious decline, Constantine created a new monetary system which quickly became the world currency. The coins, called ‘bezants,’ have been found as far away as Scandinavia and Sri Lanka and as Western Europe fell into the Dark Ages, Constantine’s money was the only currency traded. By 1050 the bezant eventually lost its popularity and around 1204 the Byzantine Empire lost monetary supremacy.

During the 7th-12th centuries, the Islamic dinar also had high levels of circulation and remained quite stable. It wasn’t until paper money was introduced that the Islamic monetary system went into serious decline. Due to the ease of printing money, nothing stopped authorities from printing more of it with nothing to back it.

Throughout history, there was one constant that caused the demise of each currency. They all went into decline after the authorities removed the silver or gold and replaced it with a worthless base metal or paper. The devaluation of money has even been seen in today’s world currencies. In 1971, when America went off the gold standard the value of the US Dollar started to go down – it has actually depreciated by over 90% since the removal of the precious metal. If history is to repeat itself, American monetary supremacy may be on its way out!

For more information on Smart Currency Exchange, please call our freephone: 0808 163 0102 (+44 (0)207 898 0541 from outside the UK) or visit our website at: SmartCurrencyExchange.com