Posted: Wed Apr 3, 2019 11:54am
Hi Josie. We were in exactly the same position a few weeks ago. I researched TORFX, Currencies Direct, A place in the sun currency, GCEN, Magna Financial and a few others (I'm great with maths and love getting a better deal). You will have realised by now that it is not easy! Nobody seems to give you the forward price unless you call them and as the rate is constantly changing it makes it hard to get a comparable figure from multiple companies (by the time you finish one call and call the next company the rate has changed.) I ruled out Magna Financial as they don't have physical offices and I was not comfortable giving all my money to an online company. The differences in rates between A place in the Sun, GCEN, TORFX & Currencies direct was minimal. I ended up going with Currencies direct and have, just last week, got a forward contract for £100,000 for 9 months and it was VERY easy. You just pay a 10% deposit. Very helpful on the phone and of course, they have physical offices and are more well known. What I did work out (roughly) is that the forward rate for 1 year is approximately 0.94cents less than the spot rate. So, if today's spot rate is 1.1568 the forward contract would be around 1.1474 (1.1568 minus 0.0094). Hope this helps. Dean