Foreign Exchange Transaction Process Flow

The process of exchanging foreign currencies varies according to the method you use to do it. Whether you work online or by phone, the process is a simple and quick process.

Online

1. Log online with your access codes via our website
2. Choose which currency to buy/sell, which value date (delivery date), amount, then click 'Get Rate'
3. Click 'Accept', then on pop up, click 'Settle Now' to set up onward payment
4. Check amount of currency to pay, choose payee, add reference, send payment.
5. Organise your bank to send your payment to the BARCLAYS VFX NOSTRO to pay for your currency.

 

Over The Phone

6. Call your broker on 800 MENATREX for an up to date exchange rate.
7. Confirm your order over phone, no paperwork needs to be signed.
8. Email your broker new payee details if required.
9. If sending to same account as before, VFX will store all payees' details.
10. Organise your bank to send payment to VFX to pay for your currency.

 

Myths about foreign exchange

Many FX companies offer services with "no commission" or "no charges". Essentially this is trying to imply that customers will get something for nothing...
...if only life was that simple!

All banks charge for making onward payments and any company offering no commission or no charges will simply build this cost into the rate at which the sale currency is converted into the purchase currency.

We are charged by our bankers to make onward payments and pass this cost on. This allows us to focus on offering the most competitive conversion rate. This provides transparency and integrity in the whole process.

 

Example

Mr. Jones needs to buy €100,000 for a property purchase in France. He is given a rate of 1.48 from a well-known FX Bureau. There are "No Charges or Commissions" and Mr. Jones is required to pay £67,567.57 to buy the €'s. VFX charges £15 to make the foreign transfer, but offer a rate of 1.4850 to buy the €'s. This means that Mr. Jones will pay £67,340.07 to buy the €'s and a further £15 payment charge. This means that Mr. Jones will save £212.50 if he uses VFX. This shows you that "No Commission" or "No Charges" is usually more expensive!

 

Step-by-Step Guide To Making A Forex Currency Conversion

Open a foreign exchange account with VFX

 

To use our currency services you will need to set up an account with VFX. To open an account now, click here.

 

Buy or Sell your Foreign Currency

 

Please call the MENATREX/VFX dealing desk on 800 MENATREX, or click here to order from VFX Online Send Payment to BARCLAYS Nostro Account Transmit funds to VFX from your bank by internet banking or traditional banking. VFX will automatically email you a credit advice when your funds arrive, followed by a print out of the SWIFT screen.

 

Onward Payment Instructions (OPI)

 

Send VFX a completed OPI form showing the bank account details of your supplier or designated beneficiary. Alternatively, you can send an onward payment instruction through VFX Online by making a payment request.

 

Payment Confirmation

 

VFX will automatically send you an email confirming that a payment to your supplier or beneficiary has been made. Copies of the confirmation by fax or post are available upon request. VFX can also email, fax or post the confirmation to your supplier or beneficiary free of charge. We can also provide you with a copy of the SWIFT screen.

 

Overseas operations

 

If you have a multi-national business or are part of a joint venture with a foreign company then it is essential that you manage your currency risk from the start. If you are unclear of the implications, or unsure how to go about minimising this risk, then get in touch with VFX. Our experienced brokers will find the right solution for your business.

 

Overseas subsidiary

 

If you are becoming an international business through expansion and overseas operations then it's time to really start managing your currency risk.  Perhaps you have to pay for the maintenance of overseas offices or business operations from the UK, for example? VFX can help you minimize costs on making regular payments in local currencies in the countries concerned.

With VFX, these international elements are made simple.

 

Overseas partnerships

 

How are you handling your international currency transactions? Is your foreign bank giving you a fair deal? Are you aware a specialist broker like VFX can handle the currencies you wish to sell as well as buy?

 

Overseas contracts

 

Perhaps you are an exporter being paid in foreign currency via staggered instalments or operate in the automotive industry working on EURO-based contracts. You need to consider currency risk when repatriating these funds back to AED.

VFX can help you manage the currency markets and minimize associated costs.

 

Overseas workforce

 

If you are employing personnel such as outsourced consultants or staff in an overseas office, what are the costs associated with paying them in the local currency? VFX can help to keep escalating costs under control.