How to target an exchange rate for international transfers?
Currency exchanges are part and parcel of international money transfers. But, when life gives you currency conversion losses, there are ways to mitigate the risk and boost savings.
If you send money overseas, the exchange rate you get today might not be the rate you get next time. The unpredictability of currency markets can be quite dizzying unless you have good timing. Fortunately, you can use several FX tools to catch the rate when it moves in your favor. Here are four main ways to target an exchange rate.
Forward contract - Lock in a desirable exchange rate
A forward contract locks in your desired exchange rate for future international payments. That means you can fix an exchange rate for a set amount on an agreed date or period, then sit back and relax because you know how much your next international payment will cost.
A forward contract is ideal when you need to budget effectively and manage cash flow. For instance, if you’re locked in a set rate in an agreement that can last for many months, it’s easier to budget for your destination wedding or planned overseas investment.
However, although this provides certainty and protection against market fluctuations, a locked rate means you’ll not be able to take advantage if the market moves favorably. Also, note that a forward contract typically requires a deposit to set up.
Market order - Place an order for a future transfer
Another way to target a better exchange rate is by setting up an FX order. There are two types of market orders – a limit order and a stop loss order.
With a limit order, you can target an exchange rate higher than the current market level. Once the target rate is achieved, your transfer happens automatically. This lets you capture favorable exchange rates if rates move in the right direction.
A stop loss order protects against adverse rate movements. You set an automated instruction to make the transfer if exchange rates fall at a specific level to limit your losses in case rates continue to fail.
Thus, using limit orders and stop loss orders simultaneously helps you achieve your target rate while controlling downside risk. This FX tool is perfect if you can afford to wait for the right rate and want to avoid the hassle of constantly monitoring the market.
Rate alerts - Get notified of favorable rates
If your international payments are time-flexible, you can also set an alert to target your desired rate. For instance, your MTFX account lets you set a target rate for pairing the Canadian dollar with another foreign currency. When the desired rate is achieved, you receive an email that prompts you to act.
Again, you can easily make transfers at your ideal rate without keeping a constant eye on market fluctuations. Additionally, your MTFX account comes with other industry-leading FX tools, such as a live currency rate calculator and currency history charts, to help lower costs and get the most out of your money.
Market insight - Time your transfers more effectively
Timing is crucial if you want to target an exchange rate. To get your timing right, it’s necessary to keep a finger on the market pulse, but that's not always feasible. Fortunately, currency specialists like MTFX exist to monitor the market 24/7, so you don’t have to.
We’ll keep you abreast of the latest news with daily, weekly and monthly currency updates. MTFX also offers excellent customer service and expert guidance from dedicated currency specialists. This gives you the best insight into anything that can affect your international money transfers, guiding you to an informed decision.
Target an exchange rate with MTFX today
With MTFX, you can enjoy more exchange options when sending money abroad. Whether you want to use a spot contract for an immediate transfer at the present exchange rate or arrange a future transfer, you can expect the exchange rate margin to be more profitable than banks.
MTFX exchange rates are based on the interbank market rate, which is the best possible rate for maximizing the amount your recipient gets. Banks charge higher rates and transfer fees; hence, you can save more by skipping the bank and logging onto MTFX’s 24/7 online platform instead.
Open an account to enjoy competitive exchange rates, low fees and fast, convenient international money transfers.
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Who can use the MTFX payment service?
Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into.
Personal clients usually use our services to transfer money between their own accounts in two different countries.
Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
Why should I use MTFX and not my own bank?
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands.
We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world.
Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
How do customers send funds to MTFX?
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
How long does it take MTFX to transfer funds?
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.
Please read the following update before logging in to your MTFX online account
We have updated our online dealing system to provide you with better functionality, more unique tools and an overall enhanced client experience. MTFX Online 2.0 is now available for your dealing needs. You can begin using our enhanced online portal today.
Please note that the traditional portal will be available for use until MAY 30th 2021 at which point it will be decommissioned.