How to get better exchange rates?

First, any company engaged in international payments is seeking better exchange rates. Your company is no exception to this rule. First problem, after contacting your bank advisor, you realize that it is very difficult to obtain an independent opinion. The 2nd, after making unsuccessful searches on the Internet, no information is able to guide you in the jungle of foreign exchange services. But we may have something to give you a smile!

We share with you our 3 practical solutions to obtain better exchange rate cad to yen for you. Whatever the stage of maturity of your company, these solutions allow to gain in performance gradually and independently. Finally, as good news never comes alone, we reveal to you the "super power" that is dormant in each financial director.

1 - Negotiate your tariff conditions with method

In each of your foreign exchange transactions, your bank offers you a commercial exchange rate. This corresponds to the interbank exchange rate (internet rate) after deduction of their margin. As you can see, the 1st measure to get a better exchange rate from the bank is to reduce the margin it takes you. But how to do it?

To begin, estimate your savings potential using an online exchange rate comparator. For free and with a previous notice of foreign exchange transaction, this 1st share assesses the rate applied by your bank. The most remarkable, the tool gives you digital advice. Following your simulation, the sharing feature gives you the opportunity to transfer the results to whoever you want. 

The method and results convinced you? It is time for you to negotiate your exchange rates with your bank. Transform your savings potential into financial gains!

However, evaluating and trading exchange rates in real time is another exercise. A tool is your ally for this trading: The Forex and Futures Exchange Rate Monitor. Indeed, informed of the interbank exchange rate in real time compared to the quotation given by your bank, and the exchange rate immediately available at a broker exchange rate, you will return to see your bank in a strong position. So organized every chance is put on your side to negotiate and improve your pricing conditions successfully. In addition, a history keeps the information of the profits realized by bank and indicates the total of the savings obtained thanks to you.

2 - Work on your exchange policy as a whole

Improve your commercial exchange rate is a first step. Getting better exchange rates also means respecting your budget and accounting rates.

To maximize your chances of meeting these constraints, responsiveness is required. Seizing the opportunities offered by the foreign exchange market is a matter of availability. Rest assured no need to spend your day behind a screen, the currency bank alerts are there for you.

Why "banking"? Because these rate alerts take into account the margin applied by the banks. No more frustration associated with regular rate alerts. When your target exchange rate is reached it is available in 83.2% of cases. For 100% success, the customization of your rate alert system is possible by integrating the bank margin. With the positioning of your target rate on the budget price or on the billing rate, you will not miss any more opportunities. The odds of meeting your budget course in the next fiscal year have just skyrocketed! 

3 - Do not forget your "super power": You are Master of Time

It is time for us to evoke the "super power" of the treasurers and financial director: the control of time. Do not forget, your operational calendar defines the timing of your foreign exchange transactions, not the other way around. But this subtlety gives you considerable leeway. Exploiting it will allow you to obtain better exchange rates for your company. The solution to use: forward exchange contracts.

Indeed, because of the interest rate differentials between monetary zones, we observe better exchange rates on the futures market in Europe. A situation to exploit when forward exchange contracts can be associated with the dates of your international payments.

Called term points, this difference between spot and forward rates sometimes complicates the judgment of what is a good exchange rate. Fortunately, Business Intelligence tools digitize the expertise of trading room professionals to simplify your purchases.

With these tools, you can view the change in futures exchange rates based on start and end dates. It's "like on a website buying tickets online" . You adjust the quotes of forward foreign exchange contracts to your operational schedule with ease. Then you can track all of your current forward currency contracts in a dedicated dashboard. Finally you get valuable key information about your exposure to currency risk. Your foreign exchange risk management has just entered a new dimension...

So much for the information we wanted to share with you. By following these 3 great recommendations, you just have to organize all this by asking for a remarkable demo!

Arslan Riaz

Arslan Riaz is a business writer, who loves technology and the way it affects every part of our existence, everywhere around the world.

He started writing about tech a decade ago, and is passionate about a wide range of topics including science, technology, finance, health, insurance, entertainment, politics, sports, property, and pretty much everything under the sun! Other than writing, he has worked in I.T. across several industries, including banking, retail, and software.

 

Published by Peter Garlow