OVERSEAS INVESTMENTS A GUIDE TO INTERNATIONAL PAYMENTS

Transcription

1 OVERSEAS INVESTMENTS A GUIDE TO INTERNATIONAL PAYMENTS

2 CONTENTS 1 Paying for overseas investments 2 The smart way to invest overseas 3 Timing is everything 4 A new standard in international payments 5 Premier features for the discerning customer 6 The last word in high value currency transfers 7 Advanced currency solutions for flexibility and options

3 PAYING FOR OVERSEAS INVESTMENTS CURRENCY AND STOCK MARKETS RISE AND FALL, JUST NOT TOGETHER REPATRIATING SHARE INCOME In a market where every winner begets a loser, knowing when to buy and when to sell is everything. Unfortunately, the best planning in the world can be neutered by an unsympathetic currency exchange. What happens if your exit from a USlisted stock coincides with the dollar s worst performance in a year? Or if your meticulously-planned investment in an Asian fund is threatened by the Bank of England s downbeat predictions for the pound? With one in four of the UK s largest companies under foreign ownership, it s not just our colleagues we leave behind when we move jobs. It s important we are able to absorb earnings from share schemes into a larger investment portfolio. In the rush to repatriate the money, it s easy to forget the importance of the currency exchange process. After broker fees and bank charges, by the time the money s safe in your account it might not be quite the windfall it once seemed. 1

4 THE SMART WAY TO INVEST OVERSEAS Regardless of whether you re investing in a foreign enterprise or repatriating your offshore earnings, you should have a currency conversion strategy in place. Political and economic uncertainty makes foreign exchange transactions an unpredictable and potentially costly exercise. The good news is that peace of mind is just a few simple steps away. CONSULT A CURRENCY EXPERT CURRENCY SOLUTIONS FOR GREATER FLEXIBILITY WATCH OUT FOR HIDDEN FEES Exchanging funds and transferring them abroad always feels like a risk. But you can make the foreign exchange market work for you by buying currency when the rate is right, not when you need to make the payment. Having an expert on hand to answer questions and give expert assistance on the workings of international currency markets can only help. If you know your entry / exit point is three months from now but you re worried about the trajectory of the home or local currency, then a forward contract might be the right solution. It allows the flexibility to secure the best rate with a deposit with a view to paying the balance when the currency is needed. Many people, for convenience, rely on banks to handle their international payments. Often, though, there are better rates available elsewhere along with specialist advice that can mitigate the risks of volatile currency markets. 2

5 TIMING IS EVERYTHING INVESTING IN SHARES OVERSEAS REPATRIATING INCOME STEP ONE PLAN YOUR INVESTMENT. PLAN YOUR INCOME REPATRIATION. STEP TWO SPEAK TO CAXTON, OPEN PREMIER ACCOUNT. STEP THREE SPEAK TO CAXTON, OPEN PREMIER ACCOUNT. AGREE A TARGET EXCHANGE RATE. VALUE ZONE AGREE A TARGET EXCHANGE RATE. CHOOSING THE RIGHT TIME TO EXCHANGE CURRENCY CAN SAVE YOU THOUSANDS. LET OUR DEDICATED ACCOUNT TEAM HELP YOU SAFELY NAVIGATE THE MARKET. CHOOSING THE RIGHT TIME TO EXCHANGE CURRENCY CAN SAVE YOU THOUSANDS. LET OUR DEDICATED ACCOUNT TEAM HELP YOU SAFELY NAVIGATE THE MARKET. CAXTON BUYS CURRENCY ON YOUR BEHALF. SEND CURRENCY TO OVERSEAS BROKER. STEP FOUR STEP FIVE LIQUIDATE SHARES, PLACE FOREIGN CURRENCY IN YOUR CAXTON ACCOUNT. CAXTON REPATRIATES THE INCOME AT THE SCHEDULED RATE. 3

6 CAXTON PREMIER A NEW STANDARD IN INTERNATIONAL PAYMENTS Caxton Premier International Services is for the select few that need to transfer substantial amounts of currency overseas. It s for individuals who expect a high level of service with their own dedicated account manager to provide currency expertise. Individuals who expect a special rate of exchange for their high value payments along with enhanced benefits. Individuals like you. Your lifestyle crosses borders and can be complicated. You need a trusted advisor who will help you safely navigate international currency markets to maximise value and minimise risk. RELIABLE REWARDING FLEXIBLE With decades of FX experience and millions of pounds worth of safe and secure trades in 2017 alone, our discrete, expert team will find the best rate and execute your trades with a minimum of fuss. Bank-beating* preferential FX rates and discounts with no fees or hidden charges, plus an enhanced currency card for higher spending abroad, coupled with rewards for referrals. Comprehensive range of currency solutions - from spot contracts to flexi-forwards, to rate alerts and limit orders - helping you manage your risk and get the most for your high value payments. *Based on charges for transactions of 15,000 and 75,000 made using standard bank accounts from UK high street banks. Check caxtonfx.com/premier for the latest bank rate comparisons. 4

7 PREMIUM FEATURES FOR THE DISCERNING CUSTOMER ADVANCED CURRENCY SOLUTIONS Protect your wealth by making the foreign exchange market work for you. Buy currency when the rate is right, and we ll look after your money until you need to make the payment. CURRENCY ALERTS AND LIMIT ORDERS If you know your target rate, just tell us and we ll contact you the moment the market hits it. If you ve placed a limit order with us, we ll execute the transaction right then and there. DEDICATED FX EXPERTISE With decades of FX experience, your FCA authorised account team is just a phone call away 1. Rely on us to help your FX planning and use the best tools to find the best rate and reduce your risk. MAKE PAYMENTS ANYTIME, ANYWHERE Take control of your international payments with an online payment account 2 and currency card app. ENHANCED CURRENCY CARD Your Caxton Card offers an enhanced FX rate while loading via the app or desktop. You can save even more by loading the card via your account manager when making an international payment. 1. Specialist advice around financial contracts can only be given by FCA authorised personnel and carries customer risk. Appointments must be made with Caxton FX expert and pass eligibility criteria to gain access to this service. 2. Online International payment account allows for 24/7 payments up to 100,000. 5

8 THE LAST WORD IN HIGH VALUE CURRENCY TRANSFERS BANK BEATING RATES No hidden fees. No additional charges. Just a great rate. But that s not all. Exclusive to Premier is the ability to move currency from your international payment account onto your Caxton Card. Take advantage of that same great rate when making day-to-day purchases abroad 1. MAKE THE MARKET WORK FOR YOU Spot, forward and flexi-forward contracts are essential tools of the trade for anyone sending large value payments abroad. Along with limit orders they allow the flexibility and control you need to mitigate market volatility. Premier customers also receive a reduced deposit on forward contracts 2. DEEP DISCOUNTS FOR ADDITIONAL SAVINGS Premier customers enjoy a 10% discount on online international payments 3 and 20% discount on debit card transfers to their currency card 4. Premier also includes a 50% discount on Caxton s travel assistance and insurance offering 5, Caxton Plus. REWARDS FOR REFERRALS We value Premier customers and we re proud that as much as a third of our clients come from personal referrals. Should you also wish to refer the Premier service, we ll reward you with 50 for every eligible friend who makes an international payment Maximum of 50% of a trade may be moved on to card at any one time. Existing card load limits apply to account which cannot be exceeded. 2. Forward contact deposit % are subject to additional qualifying criteria and are reduced relative to the standard 10% deposit requirement. 3. Online International Payment margin discount is against Caxton s base rate margin and is not available to be used with any other offer, discount or enhancement offered by Caxton. Caxton s online margin will differ from those offered over the phone when speaking with your dedicated account manager. In order to maximise your offering, always speak to your account manager. 4. Online card margin discount is set against Caxton s base rate margin and cannot be combined with any other offer, discount or enhancement offered by Caxton and is only available on transactions made via the desktop and mobile web versions of caxtonfx.com or version 6.2 or later of the Caxton App on Android or ios. 5. Caxton Plus is added to the main account holders card and is subject to further terms and conditions which can be read at caxtonfx.com is awarded to the referrer once a new customer has opened a Caxton account and made a successful international payment. A new customer is considered a person who has never had a Caxton a card or international payment account before and must have a different residential address from the referrer. 6

9 ADVANCED CURRENCY SOLUTIONS FOR FLEXIBILITY AND OPTIONS We know that you already keep a watchful eye on currency markets. That s why we offer a range of products that provide maximum flexibility. SPOT CONTRACT To exploit advantageous market conditions you need to move fast. Spot contracts are the simple, fast and effective way to buy money to move overseas quickly. Secure that day s rate with the ability to pay in up to four working days. LIMIT ORDER Don t miss out on your target rate. Once signed, limit orders authorise your account manager to automatically execute a trade should the rate become available during an agreed time frame. FORWARD CONTRACT The right rate can often come at the wrong time. Forward contracts allow you to secure an optimum currency rate with a deposit, then defer the final payment until such a time when you need to transfer the money overseas. FLEXI-FORWARD CONTRACT The best laid plans often go awry. Similar to forward contracts, flexi-forwards also allow a degree of flexibility on the date you make the final payment. The rate won t quite match a forward contract deal, but for some it s a small cost to ensure peace of mind. CURRENCY OPTION Options 1 offer the right but not the obligation to buy currency on a future date. After the contract is signed you can choose to buy at a different rate should the market move in a favourable direction. If the market takes a turn for the worse, the original rate remains locked in. 1. Spot and forward contracts can be offered on all trades, while Option contracts offered by Caxton require additional eligibility criteria to enter into and carry additional risk to the customer. 7

10 CONTACT CAXTONFX.COM/PREMIER