Hi

I'm currently going through the emigration process of moving to Canada from the UK, and i don't know if its just me but i can't help keeping a constant eye on the exchange rate!!.
I've been saving frantacly for over 18 months now and plan to take approx £100k with me to Canada (with the profits from my house), and it seems with the exchange rate fluctuating so much, I could loose/gain alot of money depending on what the rate is when we get the go-ahead.
The rate has varied from 2.5 CDN -2.12 CDN to the pound over the past 6 months, and you don't have to be Carol Vordamen to work out how much money were talkin about when your looking at changing over £100k.
Its varying nearlly $40k!! :scared: and to me thats a little worrying.
I suppose the only thing to do is:

a) stop looking until nearer the time
b) just take an average (around 2.35) and hope for the best

Does this sound familer to anyone else??

Don't beat yourself up over it. If you see what you think is a good rate take it. It's a bit like filing up the tank on the car, driving a couple of miles and finding it 5 cents a litre cheaper down the road. It makes you unhappy but needs must, you had to fill up and that's that.

At some point you will have to transfer your money, do it when you think it's right for you rather than waiting and finding that you need to do it and end up losing out.

It depends on a few things

Have you sold you house yet?...do you actually have that £100k in your hot little hand eh?

If you don't, then the question is fairly academic at this point, and though you can watch the exchange rates you can't actually do much about it!

How far through the process are you...when do you think you might be moving?

Looking back over previous years, the dollar has apparently risen in December, dropped, and risen again through spring/early summer, dropping off again as the year goes on. I mean there are no guarantees, but if it follows that pattern and you have money available, then it would suggest that early to midsummer might be the best time ....... however, nobody has a crystal ball, and sometimes you just have to go for it!

Check out xe.com for exchange rates and money-changing possibilities, or consult HIFX?

Morw
( I have no training/specialist knowledge in this area btw, just my observations and from what others have said. I'm like you,....just waiting and hoping!)

Weener, i am in exactly the same position as you! watching the rate every day... but don't panic, there are plenty of currency insurance deals available and it is all negotiable.. a couple of weeks ago (when the exchange rate was 2.25) I got a quote from Lunn Poly(!!!) exchanging £40k they promised a rate of 2.5...

i just hope when my house finally sells, the rate will be high too!

a couple of weeks ago (when the exchange rate was 2.25) I got a quote from Lunn Poly(!!!) exchanging £40k they promised a rate of 2.5...

Daveyboy how on earth did lunn poly give you an exchange rate of 2.5 when commercial dealers are only offering 2.25 please enlighten me because this dose not seem possible.
Regards Mick

i agree. which is why i double checked then triple checked.

it seems they are the first high street operator to realise that there is an emense amount of UK people taking money away to different countries principly to buy property, and that is what their advert in their window was aimed at.

FYI it was Ashford, Kent branch.

I assume this is in there high street bureaux exchange operation did you get any details because this seems absolutely impossible to me example I could change say £100,000 to Canadian $ with them and make an instant 10% or more profit by exchanging it back else ware?? Don’t think so phone them up and check ill change other £300,000 tomorrow if this is the case

Mick

And is it still there?

Why would you want to go to Lunpoly to do your exchange, don't they specialize in package holidays, and lager-louts holiday to Ibiza and Magalouf?

I'll rather go to marks and sparks than LP !

Thought it worthwhile to check what rates are available out there.

They varied from $2.26 to $2.36. (as of today)

But, For greater amounts, there were a number of companies offering better deals on the net.

For smaller amouints Marks & Spencer has amongst the best rates.

I second that. Good place for travelling cash.

just been having a squizz at the HIFX site (no I don't have shares, just using them as an example) Interesting reading..... for Australian read Canadian!!

"Your strategy is semi-dependent upon when you will have liquid funds. You may be awaiting proceeds from the sale of your house in the UK, or waiting to realise other investments/shares, etc.

If you have full funds available you have two choices: one being 'risk free' and one being 'high risk'. The 'risk free' solution would be to sell all of your sterling now, thus fixing the amount of Australian Dollars you will own at the outset. This is called buying currency for 'spot'. You can then deposit the bought currency to earn some interest and send this to your new bank account(s) as and when you require. We will send your funds to Australia for no charge.

If you think that Sterling's value against the Australian Dollar will rise, then you can arrange a 'stop loss' order with our dealers. This mechanism guarantees you a certain exchange rate with the possibility of improving the rate if Sterling strengthens in the future.

The other mechanism that is available is a 'limit order' or target price whereby you specify the exchange rate that you want to achieve. When (and if) the market reaches your target, you will automatically buy the Australian Dollars. For both 'stop' and 'limit' orders the minimum transaction amount is £20,000. For a full explanation of 'stops and limits' please ask one of our team to explain it to you in more detail.

The 'high risk' strategy would be to buy the currency at the last minute, just before you leave the UK, leaving you no option but to buy at the prevailing exchange rate

What happens if you want to 'play safe' (buy the currency straight away because you are happy with the current exchange rate) but do not have all of the money at the outset? There is a solution that is employed daily by international businesses to protect their profit margins: a 'forward currency contract'.

In essence, a 'forward contract' means that you can buy the currency now, and pay for it later (when you are ready to leave the UK or receive funds from your house sale). You will be required to pay a 10% deposit straight away and the 90% balance upon the maturity of the contract. For example, if you wish to buy £50,000 worth of Australian Dollars but do not need them for 3 months, you can agree the exchange rate now, place a £5,000 deposit, and pay the remaining £45,000 balance in 3 months. If the exchange rate moves at all in that 3-month period this will not affect you at all, as you have bought currency at the originally agreed rate. You can combine a forward contract with a target exchange rate (limit order).

Remember: You are risking your future wealth! Without fixing the exchange rate or taking out a 'forward contract' at the outset, you are taking a gamble. Until you actually buy the currency, you will have no idea how much money you will have to spend on your new house, car, etc. "

Hope this helps?

Morw

Weener

Morwanna's notes has explained clearly the need to have all the information available to make your own mind up about what you feel most comfortable with.

No one knows what may happen. You don't have to take one option, especially if you have not got all your funds yet. Experience has shown that you must be careful committing yourself to a forward contract if you are not guaranteed to have the funds in place.

I would always recommend a forward contract for consideration, however, as it guarantees the rate - you know where you stand, you have no exposure to currency fluctuations.

Just to re-iterate:

They're not "my" notes, I pasted them from the HIFX site.

So don't think I've gone mad ranting on about Australin dollars instead of Canadian, ..... Australian dollars was just the example given!

MorwEnna