We offer forward contracts to help you organise your money transfers and send money at a specified rate on a date in the future.
In this article we'll cover:
What is a forward contract?
A forward contract is an agreement to buy or sell an asset at a specified price on a specified future date.
You could think of it as the ‘buy now, send later’ money transfer option. You agree the rate today and lock that in until you send the money at your specified date at some point in the future.
Here’s how it works:
- Select your currency pairing (the currency you have and the one you’re looking to send)
- Let us know when you’re looking to send your money (this can be months in advance)
- We’ll confirm the rate you’ll receive
- You provide all the necessary payment and recipient details
- Sit back and wait until your specified date and we’ll send the money automatically
When would a forward contract be the right move for me?
Forward contracts are a great option if you’re worried about potential changes to the rate you'd be offered between the time of booking your transfer and the date you’re looking to send it.
Currency markets are constantly moving. Usually, the rate available today is unlikely to be the same as the rate available in a few months’ time. However, with a forward contract, you can rest assured you’ll receive the same rate you specified when booking your transfer on the date you selected to send it.
Are you planning on making any larger purchases, particularly property or investments? If you’re happy with the rate offered in your forward contract, you can lock that in and wait until the agreed date with confidence that your rate won’t change.
How do I set one up?
Some customers will be able to create a forward contract on our secure money transfer website. If you see the option to change your value date (the date we send your money) you’ll be able to set one up yourself.
Please contact us if you don’t see this option after signing in to your account online and we’ll be happy to arrange this for you. Please select the Message Us button at the bottom of the page and choose Setting up a regular payment, market order or forward to create your request.