5 Tips to Get A Top Exchange Rate when You Buy Alacant Property

Are you thinking about buying a property in Alacant this year? If so, whether you've got your eye on a 3-bedroom flat with a garage in Alicante, or an outstanding flat with a swimming pool and sport facilities in Gandia, you'll want the best exchange rate.

After all, when the UK's pound sterling is flying high versus the Eurozone's common currency, you receive more euros in your Spanish bank account, to buy your dream Alacant property! With this in mind, how can you ensure you get a fantastic exchange rate, when you transfer money to buy in Alacant? Well, here are some tips.

1. Transfer money with a currency broker, instead of your high street bank.

This is because you'll receive a far better exchange rate with a foreign exchange dealer than with your bank. Why? Well, because your bank knows that you'll usually go to them, as you first port of call. Hence, the banks use this as an excuse to offer inferior exchange rates.

In reality though, you'll get a much better exchange rate from a currency dealer, as they're dedicated solely to foreign exchange. In turn, this will lift your euro exchange rate when you transfer money, to buy your Alacant property!

2. Think about transferring money to your Spanish bank account sooner rather than later.

This is because, the earlier you start to think about exchanging currencies, the bigger the window you give yourself for a good exchange rate to become available. For instance, between October 11th and December 2nd last year, sterling jumped +10 cents against the euro.

If you'd transferred €100,000 to buy a property in Alacant at this time, you'd thus have received +€10,000 extra. Given this, it pays to give yourself lots of time for sterling to rise, to buy your Alacant property!

3. Accept a good exchange rate when it becomes available, to buy your Spanish property.

When we transfer money, it's tempting to wait and see how high the exchange rate goes, to get the highest possible foreign currency total. The thing is though, the currency markets are volatile, meaning that a rising exchange rate can fall again in the blink of an eye.

With this in mind, it's best to play it safe on the currency market, and transfer your money when a good exchange rate arises. This will ensure you hit your desired euro total, to buy your fantastic new property in Alacant.

4. Protect yourself against forex volatility, with a forward contract.

Are you concerned that the exchange rate might fluctuate between now and when you plan to transfer money, to buy your Alacant property? If so, you can protect yourself against ups and downs in the value of sterling versus the euro, with what's called a forward contract.

A forward contract locks in your exchange rate when it stands, so that even if the pound falls later, you'll get the rate you've fixed. Hence, you won't have to worry about currency movements, when you buy your fab Alacant property!

5. Ensure you transfer your money with a company that's directly authorised by the UK's Financial Conduct Authority.

This is because, if the company is directly authorised by the FCA, they'll adhere to all UK legal and regulatory requirements to protect your money. For instance, the firm will safeguard your funds in specific client accounts separate from the business accounts, like an accountant does. 

With this in mind, your money will be highly secure throughout the transfer. Given this, use an FCA-authorised company for peace of mind, when you buy your Alacant property!

With these tips in mind, you'll get an outstanding exchange rate when you transfer money to buy your fantastic property in Alacant. Keep them handy!

By Peter Lavelle at foreign exchange broker Pure FX

Peter Lavelle

Pure FX

http://www.purefx.co.uk

+44 (0) 1494 671800

peter.lavelle@purefx.co.uk