By Richard Way, editor at the Overseas Guides Company
Every penny counts when you’re emigrating, so discovering unexpected ways to save money is always a bonus.
One way of doing that is through specialist currency exchange firms, rather than the conventional route of using a bank. These can deliver better rates than banks, as they focus on this one area of expertise.
Often these superior exchange rates could amount to as much as three per cent, which makes a big difference when you’re transferring large sums for a property transaction.
Hertfordshire couple Louise and Kevin Cheadle recently moved with their two children to New Zealand, and like anyone relocating anywhere in the world they needed to send money to their New Zealand bank account.
“We were a bit nervous the first time we used the currency firm Smart Currency Exchange, having never used a firm like them before,” said Louise.
“So, we decided to move small amounts of money to start with. At the end of May, Smart exchanged £6,000 into NZ dollars for us and deposited them safely in our Bank of New Zealand account. We then had to pay a NZ$600 bond to secure a rental property, which they dealt with too.”
The Cheadles are waiting for the New Zealand dollar to weaken before they transfer more money.
“Our personal currency trader will contact us when the exchange rate gets to £1/NZ$2.12, and then we’ll decide whether to transfer more money over from the UK,” Louise added.
Like many people emigrating, the Cheadles sold their home in St Albans when they moved and will use Smart to transfer the proceeds to New Zealand.
A bit closer to home, when John and Claire Walters bought their new home in Cyprus in May 2024, they opted to use a currency specialist to transfer their pounds from the UK to a Cypriot bank – and they continue to save money by using them for regular transfers.
“We considered using our bank to send money to Cyprus,” said John, “but our currency specialist offered better rates and it seemed less complicated with them. We’ve used them for large £/€ transfers, our highest being worth £85,000, but we still use them every month.”
The Walters, from Porthcawl in Wales, arrived in Cyprus at the start of November 2024, when they signed the final contract for their three-bedroom bungalow in Liopetri, a village in the Famagusta district. Their property was due to be completed in three to four months, so in the meantime, their estate agency provided them with free accommodation. They moved into their home on 27 April.
John continued: “We like the daily currency emails we get that give you details of what economic announcements are likely to affect exchange rates – you can start to see trends in the exchange rates and see if there are any pointers to what is likely to happen.”
Asked if they have been affected by the banking crisis in Cyprus, John commented: “In all honesty, not at all. We had decided before leaving the UK that until we knew how the Spring budget might affect us, we would continue to operate our finances through our UK bank and to continue paying UK taxes. So, all our money was safe in the UK.”