What's the best way to move foreign currency?

Q: What is the best way to move a large amount of euros into the country without losing out on the exchange rate?

Francis Klonowski is principal of Klonowski & Co in Leeds.

A: The best way to do this is to use a foreign exchange specialist service. It can help you get the best exchange rate available.

Transfers can be carried out quickly on the telephone, online or by direct debit.

Currency markets can be volatile, so exchange rates can change quickly. Foreign exchange companies can use various techniques to help you avoid being disadvantaged by such movements.

For example, you can lock into an exchange rate for a period of up to two years. This can protect you from a detrimental exchange rate move. Of course, you may miss out on a more favourable rate if the pound weakens.

You can also arrange a foreign exchange option that gives you the right to buy or sell your euros at a known exchange rate at a fixed future date, if you wish to. This provides a guaranteed future rate of exchange.

Of course, these options carry their own risks and there is no guarantee that you will not lose out. But the main advantage of these options is that specialists will monitor currency movements, so you don't have to. I have always found the services of foreign exchange specialists Moneycorp and Caxton FX to be very good.

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