Getting the best exchange rate

It is one thing to pay extra for a fancy meal at a top restaurant, but paying more than you need to exchange currency is a total waste of your hard earned money. Currency conversion or foreign exchange is big business for banks and they make big money from it, especially from those trusting individuals who believe their bank will always look after them.

Milestone has negotiated a foreign exchange/currency conversion arrangement with one of Australasia’s largest foreign exchange specialists. Clients piggy back on the massive discounts that Milestone has negotiated and this enables clients to transfer funds or currency at often less than half the cost they would be charged by their local bank. Clients can set up their secure facility via the web.

‘This facility is more than just getting a better exchange rate and lower ‘spread’’, says Stephen Fitzjohn from Milestone (Wellington).

The facility enables clients to:

• Nominate a particular exchange rate and wait until this is reached before making the conversion. Stephen said this is ideal for those clients who know that the currency is volatile and are not in a hurry to move the money right now.
• Wait until a time when they perceive the exchange rate is most favourable, lock in the rate and only pay a small holding deposit to secure that rate, then pay the balance once the money is due to be transferred. This avoids having to exchange money today due to the rate being good then having the money sitting around earning minimal interest until is it due to be used. Stephen indicated this is a favourite for his business clients and those moving money to New Zealand as part of their immigration plans.

Peter Tetzlaff from Milestone (North) used this facility to transfer his funds from Germany to New Zealand. Peter indicated that the process worked flawlessly.

“The fluctuation in the Euro-NZ dollar exchange rate was 22% in the year I was doing it. I studied the market, picked a rate and locked in at that rate. No-one is ever smart enough to work out the absolute best time to move money but for me, it worked out pretty well and the saving in both picking an opportune rate and then receiving a conversion spread over 50% better than any bank could offer, saved me tens of thousands of dollars. The saving equated to the cost of buying a good second-hand car in New Zealand,” reported Peter.

“We don’t provide the actual advice on what rate to select or when to move the money,” said Richard Paynter from Milestone (Canterbury). “We leave that up to the experts in foreign exchange to discuss with our clients. We merely make available the wholesale facility so our clients can potentially get the best deal in the market. The whole process is simple, fast, low cost and secure. Our clients love it.”

Find out more about the foreign exchange facility. If you want to take advantage of the Milestone preferential rate, register here or contact your adviser to discuss.