Frequently Asked Questions
- What are my obligations to Sterling Exchange?
- Does Sterling Exchange handle cash deposits and withdrawals?
- How and when do I pay Sterling Exchange?
- How does Sterling Exchange transfer the currency?
- How much does it cost?
- How do I know my money is safe?
- What is a Spot/Forward contract?
- What is a Limit Order?
What are my obligations to Sterling Exchange?
There is no obligation to trade with Sterling Exchange, however, once a trade has been agreed it may not be cancelled. If you no longer require the currency it may be sold back into the market once it has been paid for.
Does Sterling Exchange handle cash deposits and withdrawals?
In line with Customs and Excise regulations we do not offer cash based services. All payments to and from Sterling Exchange can be made by cheque, draft or telegraphic transfer.
How and when do I pay Sterling Exchange?
Payment is usually made by bank transfer (T.T.) or cheque. Instructions on how to do this can be found on each deal receipt. Once we have cleared your funds, we will transfer the purchased currency immediately to your specified account.
How does Sterling Exchange transfer the currency?
Payments are sent by "Swift or chaps" transfer which is the quickest method. We can arrange drafts in most major currencies. The purchased currency normally arrives in your nominated account within 24 hours. Please note that exotic currencies may take 48 hours.
How do I know my money is safe?
All client funds flow through a segregated client accounts. These accounts are held with our principle bankers, Barclays Bank Plc & Marfin Laiki Bank Plc. We are also authorised by the FSA under the Payment Services Directive and Her Majesty's Customs & Excise as a money services business who monitor and regulate our accounts.
What is a Spot/Forward contract?
When purchasing currency there are two types of contract available: Spot and Forward. A spot contract asks that you make payment for the total amount of currency purchased. Once in receipt of cleared funds, the currency is ready for immediate delivery. A Forward contract allows you to fix favourable exchange rates for a specific length of time, thus protecting yourself against market fluctuations. Requirements of a forward contract are a percentage deposit payable immediately, and the remaining balance upon maturity of the contract. This can be a useful tool for clients who may be buying property on a stage payment system or other long term payment plan.
What is a Limit Order?
Limit orders can be used to potentially buy at a rate that is not presently on offer. If you feel that the current market trend is working in your favour but don't want to watch the market constantly, leave us with an order and we will be happy to execute it on your behalf. We will be able to guide you to what is a reasonable rate. Also, if you are worried that the rate may drop thus making your currency more expensive, you can use a 'stop loss'. This enables you set a minimum or lowest rate that you wish to trade at. By using a 'stop loss' you will protect yourself against adverse market movements and avoid spending more than you planned.