Most New Zealanders go to their local bank to organise their currency conversion and are totally unaware of just how much they are paying for this service. Little do they know that foreign currency exchange is a highly competitive market for those in the know but could be costing far more at the local bank.
The exchange rate moves constantly and each bank has different buying power for different currencies. Some banks hold more of one currency than another and they can alter their buy/sell rate or profit margin depending on whether they are a major player in that currency or not.
Milestone has clients who regularly need to convert money to or from New Zealand dollars and has put in place a wholesale currency conversion arrangement/foreign exchange facility with one of Australasia’s leading foreign exchange organisations. This enables clients to leverage off the Milestone currency conversion rates that are based upon tens of millions of NZ dollars being transferred annually.
Milestone has provided access to a simple, secure, and fast way for clients to obtain competitive foreign exchange quotes, compare those against their bank of choice, and purchase the currency when the exchange rate is most favourable..
Clients visit and register in 3 easy steps here. Clients open an account in their own name which is linked to our preferential rate. Funds can only flow between nominated accounts; Milestone does not have access to clients’ money!
After an individual account is set up, clients enter online the currency to be exchanged or converted. This can be done anytime, 24/7. When the deal is confirmed clients have two days to transfer the funds to NZ Forex. The exchanged funds are usually transferred to the nominated account within 24 hours.
The facility also offers individual clients the following options, usually only offered by banks to business clients with large trading volumes:
If clients do not want to watch the exchange rate constantly until a suitable rate can be obtained, clients can enter a limit deal.
For example, Marty wants to buy 10,000 Australian Dollars, but only at a rate of 0.86 NZD. Marty enters a deal for 10,000 AUD at a rate of 0.86, which will expire after four weeks. The exchange rate moves to 0.86 two weeks later and a deal is automatically triggered. Marty receives an e-mail and has two days to transfer NZD to his account with NZ Forex.
This is of specific interest to a small or medium-sized import or export business. For example, Smith Engineering needs to pay an invoice in USD in six months time. A forward deal enables Smith Engineering to fix an exchange rate for the amount today and eliminate the currency risk.
NZ Forex charges a fee of 0.6% over the interbank rate and pays 10% of that fee to Milestone Financial Services Ltd.
By using the foreign exchange currency conversion service offered by Milestone Financial Services Ltd (Milestone) through NZ Forex Limited (NZForex) you will be deemed to understand and agree to the following:
Milestone has made available to clients a facility to obtain a highly competitive exchange rate through NZForex. Milestone does not offer foreign exchange trading or any other foreign exchange services to clients.
Milestone does not offer clients advice relating to what rate to select and/or when to undertake currency conversion. Nothing contained in the description of the above facility is, or should be considered a personal financial adviser service under the Financial Advisers Act 2008. Clients should seek professional advice to suit their individual financial circumstances before taking any action relating to foreign exchange conversion.
Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.
Milestone makes no representations or warranties of any kind, express or implied, about the accuracy, reliability, completeness, suitability or availability of the NZForex website or the information about the products and services provided on that website.
Milestone Group and its directors, shareholders, employees and associates do not accept any liability or loss arising in any way (including by reason of negligence) for errors in, or omissions from, the information published on NZForex website and do not accept any loss or damage, however caused, which arise out of or result from any reliance on, or inability to use or access, any information on NZForex website when clients use the service relating to foreign currency conversion.