Currency Transfer for Expats

If you earn in one currency and spend, save or retire in another, exchange rates can change the value of your money as much as investment returns do. A move of a few per cent on a large transfer, such as a property purchase or a pension lump sum, can mean thousands gained or lost.

How can I reduce the cost of moving money abroad?

Banks often add a margin to the exchange rate as well as charging a transfer fee, so the real cost is higher than it looks. Comparing the rate you are offered with the mid-market rate shows the full cost. Specialist currency providers can often offer tighter rates than high-street banks on larger or regular transfers.

Can I fix an exchange rate in advance?

Specialist currency providers offer tools such as forward contracts, which fix a rate for a transfer on a future date, and limit orders, which carry out a transfer automatically if the rate reaches a level you choose. They reduce uncertainty, but a forward contract also means you will not benefit if the rate later moves in your favour.

When should currency be part of my financial plan?

Before a large one-off transfer, such as buying property, moving country or taking a pension lump sum; when setting up regular transfers, such as school fees or mortgage payments; and when deciding which currency to hold your savings, investments and pensions in. The currency you expect to spend in later life usually matters most. See Investment Management and UK Pension Transfers for Expats.

How NEBA Private Clients helps

• We look at currency as part of your whole plan, not just the transfer.
• We help you decide which currency to hold your savings, investments and pensions in.
• We plan the timing and structure of large transfers, such as property purchases and pension lump sums.
• Where a specialist currency provider is the right route, we explain the options and their trade-offs.

Important: exchange rates can move against you as well as in your favour. This page is general information, not personal advice.