How our Exchange Rate Guarantee works
By taking out HiFX's Exchange Rate Guarantee, you are securing the right, but not the obligation to buy your currency at a pre-agreed exchange rate for a future date.
This means that you can fix the currency exchange rate now, by paying an upfront premium (similar to an insurance premium) to HiFX, and decide on expiration date whether the current market rate is better or worse than that guaranteed. If it is worse, you simply exercise the contract for the rate guaranteed. If the market rate is better, you let your Exchange Rate Guarantee lapse and transact at the current market level, taking advantage of the gain.
Why use our
Exchange Rate Guarantee?
If you need to convert the currency and you do not have all of your funds available (e.g. you are awaiting the sale of a property), your choices are limited. One risk-free solution would be to take out a forward exchange contract immediately guaranteeing you the exchange rate for a time in the future, however this strategy:
- Does not allow you to benefit from improvements in the exchange rate.
- Will normally require you to deposit a minimum of 10% of the face value of the contract with your FX provider.
- Will limit your flexibility, as a forward exchange contract commits you to sell currency whether you have sold your property or not.
With HiFX's Exchange Rate Guarantee you eliminate all of these potential issues!
Key Benefits
By taking out HiFX's Exchange Rate Guarantee:
- You do not have to find a significant sum of money, as is required when taking out a forward exchange contract.
- You have protection of the rate secured and therefore will not be affected by an adverse movement in exchange rates.
- You can benefit from a subsequent improvement in the exchange rate.
- You have total flexibility as you are securing the right (not the obligation) to an exchange rate e.g. if your house sells for less than you were expecting and you had taken out HiFX's Exchange Rate Guarantee you can simply change the lesser amount. Perhaps you change your mind about emigrating or your house does not sell. You can simply let your contract lapse.
No matter what your future situation is, you have total flexibility. Please call one of our private client consultants to ask about a premium quotation.