Strategies for Currency Hedging

The world we live in is a turbulent one. Currency is affected by shifts in government and changes within countries such as the UK and Brexit. In turbulent times, which are fairly frequent, companies have access to many ways to maintain their success. One essential part of this is strategies for currency hedging. In order to protect profit margins, there is a skillset needed that requires analysis, proper implementation and market research.

Companies need to have a good understanding of the risks. Being exposed to risks through transactions, economics and translational, means that understanding these risks is the first stage in creating and establishing a made to order currency risk management strategy. For instance, if you have recurring monthly flows, such as payroll, it is wise to be proactive and work with a currency strategist to ensure the timing of your transfers are in line with the best exchange rates you can get.

Work with a currency expert or company you trust. In this way, you can be assured that you understand your risks and the impacts on your bottom line. Making a plan with all of the key stakeholders ensures that everyone has input and everyone understands moving forward.

Automating your currency purchasing is a first good step in any strategy. Work with a reputable company, implement your strategy and be reactive to the small and large turbulence you’re going to encounter. Reviewing your strategic plan, quarterly or semi-annually, will ensure that you are on the right track, and are staying on that track.

The growth in FinTech platforms allows you to automate most of your currency exchange program and keep control of your profitability. Linking yourself with such a platform gives you immediate control and success, using experts in the field to help guide you and keep you on the right path.

The world we live in is a turbulent one, ever changing with ups and downs in the currency exchange market. Finding a company that can help you stay the course with the least amount of harm to your bottom line is the key to success.

Online remittance saves 3%

Money remittance is, by any standard of measure, one of the most important elements of today’s globalised economy. The ability for individuals to quickly and easily transfer money to all corners of the globe has allowed countless men and women to pursue lucrative professional opportunities far from their home country while still allowing them to support any family members who may have been unable to accompany them on their journey.

In the earliest days of remittance, the convenience of quickly sending money abroad came at a price. Customers were often forced to pay exorbitant service fees in order to utilise remittance, which often dramatically cut into the amount of funds they were able to send abroad. Because of this, remittance was often undertaken sparingly so as to maximise the sum total being sent abroad. In today’s climate of innovation and disruptive technology, however, new development in remittance technology are helping customers save valuable funds by dramatically lowering the service fees attached to the transaction. In many cases, those utilising online remittance software are able to save up to 3% over traditional remittance services.

The advantages of online remittance and online money transfer are not only confined to cost savings. Given the fact that a large number of online remittance providers allow customers to transfer funds from their personal computers, these systems virtually eliminate the lengthy process of travelling to a bank, requesting funds, and then delivering these funds to a remittance provider. For many busy individuals, the old expression “time is money” has yet to fall out of fashion. Online remittance helps ensure that these transfers can occur without compromising the daily “to-do” list.

One of the most common questions regarding online money transfer and online remittance involves security. Is money safe when it is being transmitted online to a foreign bank account? Although security systems vary considerably between service providers, the largest remittance services are equipped with state-of-the-art protections in order to ensure that funds are not wrongfully obtained by cyber criminals.

As you can see, online remittance is a popular and import service for workers around the world! For those who have yet to explore the world of online remittance and the various services currently available, there truly has never been a better time! We hope you have a convenient and positive experience with whichever remittance service you choose!

How remittance affects a country’s economy

For anyone who follows global business, it should come as no surprise that the volume and frequency of international remittance in the past few years has grown tremendously. This is, of course, due in large part to the ever-increasing population of foreign born workers in countries around the world who are sending portions of their wages back to friends and family in their location of origin. The act of remittance, when analysed from a variety of perspectives, has proven itself to be immensely beneficial in a variety of ways.

For developing nations, remittance has proven itself to be a crucial lifeline through which foreign currency is routinely injected into their domestic economy. This, of course, often leads to substantive gains in overall economic health and an increased in speed of modernisation and other development projects occurring within the economic sphere. To put this in perspective, studies undertaken in 2014 revealed that nearly US $435 billion were being transferred as part of remittances on an annual basis. This number is likely to have grown significantly since then!

That being said, if a country is receiving a large amount of remittance income, it is quite likely that certain other indicators are becoming increasingly valid, such as a decline in the domestic manufacturing sector and thus, a dip in GDP and per capita income. While remittance may help slow this process, it is important to remember that remittance only cannot sustain an economy. If a country reaches a point where remittances have become a critical component of economic health, this is a sure sign that other domestic factors are in dire need of assistance.

Frequent use of remittance is also a sign that a country’s less wealthy population has become marginalised by their domestic banking system. Given the fact that remittances can occur without the use of a bank, many receivers are opting for third-party providers in order to avoid the lofty fees imposed by larger institutions. If such actions are occurring, it is most likely a sign that money transfer software in domestic banks is considered out-of-reach for many citizens.

Regardless of the positive or negative aspects of money transfer, it seems quite reasonable to assume that these services will become increasingly important over the foreseeable future! With that in mind, learning all there is to know about money transfer will quite likely pay large dividends for those who are preparing for a more globalised future economy.

How to know the reliability of the money transfer company

Money transfer is easily one of the most important and critical services for individuals working around the world. Particularly in situations where individuals are employed in a different country then their official residence, money transfer often provides a much needed ‘lifeline’ by which family members can receive critical financial resources. With demand often comes supply, and in situations of immense demand, it is not uncommon for more dubious service providers to become involved in order to reap a quick profit. The money transfer industry is not immune from these issues of credibility.

How can you properly determine whether or not you should trust a currency exchange company? This is a question that individuals all over the world have to ask themselves on a near daily basis. Perhaps surprisingly, one of the elements of a business’s “trustworthiness” which is easiest for consumers to evaluate is its reputation. Online review sites are widely available, and typically provide customers with an honest, comprehensive overview of a business as viewed by its customers.

Other parameters can also directly influence how you perceive the reliability of a money transfer company as well. These are not directly related to customer sentiment, but instead, are linked to the fine details of the operation aspects of a business. One of the most important examples is exchange rates. Although the buy/sell price for currencies fluctuates noticeably throughout the business day, customers should always do their research before entering into a transaction with a business in order to ensure that they are not losing out on funds due to manipulative exchange rates.

Yet another similar aspect of a money transfer company that should be thoroughly explored before doing business is transaction costs. One of the most common ‘tricks’ that currency exchange services play on their customers is offering highly competitive exchange rates which, unfortunately, are paired with staggeringly high transaction fees. Although customers think they are receiving a good deal, these costs dramatically eat into the sums they receive.

As a general rule, customers should always try to find as much information as is available about a money transfer business. No detail is unimportant. Whether it’s the number of years a money transfer has been in existence or the number of currencies they currently offer, this information may influence your final decision on whether or not they can be trusted. Whatever decision you make, it’s always best when that decision is informed!

Send money in-app while chatting with friends

It seems that the world’s leading technology providers are locked into an intense race-to-finish to see which can become the most popular money transfer service. What began as an enterprise largely dominated by PayPal, online money transfer software is now a volatile and competitive field, made even more cutthroat following Facebook’s full implementation of in-app, in-chat money transfer bots.

The new Facebook Messenger bot launched by TransferWise allows individuals to quickly transfer money to friends and family in the UK, US, Canada, Australia and Europe without leaving the messenger app. As could probably be expected, this technology is proving to be immensely popular among social media users who are seeking a more vertically integrated approach to their online experience.

Although the TransferWise bot is currently only available in a select number of countries, representatives from the company have explained that this initial roll-out is only one step in a larger plan which will see the technology implemented in over 50 countries worldwide. At this stage, it seems not outside the realm of possibility that the TransferWise bot will give more established competitors a serious “run for their money”.

In terms of operational details, the TransferWise bot operates by asking users a series of short questions which determine how much money is being sent, who it is being sent to, and where the money will come from. At this point, the bot takes over and completes the transaction for the client. With largely industry-standard exchange rates and fees, the TransferWise bot delivers exceptional performance and results without forcing customers to pay an annoying premium for them.

For those who are interested in learning more about this powerful money transfer software or other products like it, a simple internet search will likely yield a handful of viable options. More than anything, customers should be diligent in order to ensure that whatever service they choose does not charge them excessively for transactions. Performance and affordability should always go hand-in-hand.

Your cheapest option for money transfer

Online money transfer has quickly become one of the most important aspects of the digital economy today. For individuals around the world, money transfer provides a quick and effi-cient way of routing financial resources to families and friends in foreign countries. Particular-ly in situations where someone may be working in a different country than their current resi-dence, money transfer helps ensure that these critical financial lifelines are preserved.

Given the extremely high demand for online money transfer today, a myriad of businesses have entered this arena, making it one of the more competitive industries and over-saturated marketplaces in existence. As a customer, finding the perfect money transfer service can be difficult, particularly if you do not know which specific parameters of the industry you should be researching and comparing. With that in mind, we hope that this brief guide will provide valuable insight into the world of money transfer and help ensure that you have the best ex-perience possible.

Perhaps the most conventional form of online money transfer available today is the bank transfer. If you have an established account with any larger banking institution, the chances are good that you will have access to a variety of online money transfer tools. That being said, do not expect these transfers to be offered at no charge. It is quite common for banks to charge between £5-15 per transfer. As you can see, these expenses will add up very quick-ly, particularly if you are expecting to complete transfers on a frequent basis.

For those seeking an alternative to online bank transfers, services such as TransferWise may be the ideal solution. Studies have shown that TransferWise typically provides a highly competi-tive exchange rate on major currencies, particularly in scenarios where larger sums are being transferred. Although customers transferring less than £400 may be forced to pay slightly high-er transfer fees, the widespread popularity of this service is a testament to its unwavering com-mitment to performance and affordability.

CurrencyFair is yet another option that may customers around the world have chosen to use. Although the base exchange rates for CurrencyFair are typically less competitive than Trans-ferWise, they also offer reduced transaction fees, helping to reduce the overall cost of the ser-vice. It is always important to remember that exchange fees and transfer fees figure prominently into the final cost of a transfer. Ignoring one of these parameters could lead to unpleasant sur-prises over time.

If you are still in doubt as to which service may be the best for your needs, we highly recom-mend that you take the time to survey customer reviews and industry insights into these prod-ucts. There is no shortage of reviews regarding the latest money transfer services. This infor-mation can prove to be invaluable for customers who may be entering this world for the first time and do not have the prior knowledge they need to evaluate the merits of a service based on more technical details. If , for example, a money transfer service has repeatedly failed to deliver funds in a timely manner or at the agreed-upon-rate, this information will likely be available. Reviewers are typically more than willing to divulge both the best and worst experiences they have had with money transfer services. This can only work to the benefit of future customers such as yourself.

If you have any additional questions about money transfer services, we would encourage you to speak directly to representatives from the service provider you are researching. A simple phone call could reveal a variety of insights that could help facilitate a smoother decision making pro-cess. Good luck!

Moving Currency Can Affect Your Investments

With the triggering of Article 50, following the Brexit referendum, the pound fell in value and is going to have many ups and downs, in the near future. A weak pound hits everyone hard, especially if they want to travel, or do business, outside of the UK. The imported goods in the stores are seeing higher prices for consumers in the UK, making their sterling stretched to maintain their lifestyle.

Of course, the weakening of the pound is going to affect purchases as well as travel plans. That might be good news for some businesses in the UK, as they see more people staying home for their vacations and, perhaps, buying locally-sourced goods in the shops.

Shopping and travelling outside of the UK, with the weakened pound, impacts people immediately. It is something that is noticed right away. When it comes to investments, people should also be aware of where their money is. Many investments have currency exposure in other countries and the movement of that currency can cost one a lot of money if they are not proactive in their investments.

Companies and people who have businesses with overseas operations can benefit when converting or moving earnings back to the UK. They will most likely see an increase in profits due to the conversion rate. However, investments that are solely in the UK will see their importing costs, along with fuel and other commodities, rise.

There are mixed views regarding the outlook for the pound and it is best to have a diversified portfolio for your investments. A diverse portfolio can spread your money across a variety of investments and goegraphies. This will help to achieve the best balance between return and risk. Reviewing your investments regularly is a good practice to have, if you do not already do so.

Finding a fund manager is a good idea if you do not have the time to research or manage your investments. A strategy called ‘hedging’ is seen in some funds and it helps to reduce the impact of currency movements. This strategy is usually best left to the professionals.

Yes, turbulent times are upon us and many of our investments are going to be influenced by Brexit and elections in France and Germany, among other things. Hedge your investments, talk to professionals and do some research. It will pay off in the end.

VinIt Solutions is Your Solution

Sending money nationally or internationally, exchanging money, trading online, or starting a money transfer business or Bureau de Change, all need the support of a well-known and well-versed company to help you on your way. Trying to figure out what the best way to transfer money can be like trying to figure your way out of a maze. Even Consumers International, an international watchdog, has stated that: “The current industry standard allows for opaque pricing, which obscures unfavourable currency conversion rates, hides the real cost to the consumer and makes it almost impossible for the consumer to ‘comparison-shop’.”

Dealing with exchange rates while exchanging money can be also be tricky, especially if banks are involved. The Australian consumer watchdog, Choice, says: “There’s no way to know how much might go missing in the course of an international money transfer. Unexpected fees and a laughably bad exchange rate could cost you hundreds of dollars along the way – especially if banks are involved.”

They say it’s easy to open a money transfer or exchange office but running it smoothly and cost-effectively is another thing. Knowledge is power and, in these businesses, knowledge comes from experience and constant exploration into the money market world. If you don’t have the experience and knowledge, you can find it at VinIt Solutions.

VinIt Solutions is here to give you support in your endeavours. We have high quality, innovative products that are based on years of experience to deliver easy to use products and services. Our services are second to none. We work closely with our customers, whether they are a small start-up or a large corporation. Operating in full transparency, VinIt connects with customers on a personal level. This allows for professional relationships to grow, so that VinIT can be your solution.

The Swiss Franc scraps cap on Euro

In a move that is bound to have vast repercussions throughout both the domestic and international economy, the Swiss National Bank has determined that the mandated cap on the national currency’s value is no longer justified. Following this decree, the value of the Swiss franc immediately soared almost 30%, setting off one of the most chaotic days of currency trading in the past few years. In additional to the removal of the currency cap, the Swiss National Bank reduced a key interest rate from -.25% to -.75%, a move which has increased the amount of wealth required by investors to hold on to Swiss deposits.mon

Legarde also expressed her confusion as to why the head of the Swiss National Bank did not provide her with advance notice of this move. It is also important to note that the Swiss National Bank refrained from communicating their intentions to fellow central bank governors across the continent.

Although a strong national currency may bolster sentiment within the country, some financial ex-perts argue that the current strength of the franc will make it difficult for Switzerland to maintain their current level of export activity. The chief executive of Swatch, one of the most iconic Swiss watchmaking companies in the country, also remarked on the relative dangers posed by the removal of the currency cap, claiming that the decision would prove to be a “tsunami” for the domestic economy. The price of Swatch’s shares dipped 15% following the cap removal.

Defending their position, the Swiss National Bank stated that their moves were completely justified, due in large part to the fact that recent divergence among major international economies, including the weakening of the euro dollar, have resulted in an economic climate where the Swiss franc is no longer experiencing overvaluation. These evaluations are reinforced by current data gained from cutting edge money transfer software.

It will be interesting to observe the long-term effects of the SNB’s recent moves. Whether or not the Swiss economy will be able to maintain its current health with a dramatically appreciated currency has yet to be seen.

You could win a prize pool of $6000 with OctaFX & Forex-TSD’s contest

It seems that there’s no shortage of enticing and alluring competitions in the FX marketplace, particular for traders who are looking for the opportunity to show off their skills against a global pool of eager and ambitious competitors. OctaFX, in conjunction with Forex-TSD, have recently announced the arrival of a new competition designed to explore the “limits” of a trader’s ability in a no-holds-barred simulator contest.

Participants will each be given a starting sum of $10000 and 1:500 leverage in a race to see who can accrue the most wealth within a one month period. Although the funds used to facilitate this competition are fake, the prize winnings are very real. The 1st place winner will receive 2500 USD, while the 2nd and 3rd place participants will receive 1500 USD and 1000 USD, respectively. Financial prizes are also offered to 4th and 5th placed competitors.

Competitions such as these serve two primary purposes. Not only do they give amateur traders the opportunity to explore new strategies in a friendly competition, but they also raise awareness of trading software platforms, which, in this instance, is represented by the OctaFX platform all competitors will be using throughout the duration of the event.

Because of this, it could be asserted that both OctaFX and the five lucky finalists will all leave this competition a “winner.” Although OctaFX is dispensing cash to each of the winners, it is likely that they believe that participants in the competition will return to the company and continue to use their platform for commission-drive trading.

Additional information about this competition can be found at http://www.octafx.com/company/news/$-6000-prize-pool-in-a-new-octafx-&-forex-tsd-demo-contest/. Contestants must register on the website before the competition begins in order to be included in the event.

There really is no reason why those interested in enhancing their FX trading abilities should not participate in an event such as this. The opportunity to expand one’s abilities in a competitive environment will prove to be an invaluable experience for those who have not yet had the opportunity or ability to engage in FX trading in the real world. Essentially, the knowledge gained in this competition is as valuable as the actual prize itself.

Category: Money Exchange Software