Current Exchange Rate
A spot contract is one of the most common foreign exchange products used to sell one currency and buy another. Whether you are an individual purchasing a property overseas, or a business looking to close a deal or buy goods, this is a product that you can use to help buy or sell currency for immediate settlement on the spot date.
A spot rate is the live market rate between two currencies. When the rate is secure, the transaction generally settles within T+2, which means transaction date plus two working days, although with the speed of bank to bank payments being almost instantaneous these days, a spot contract would usually settle the same day or next day. What this means is that you are reliant on the current market rate at the time the transaction is due to take place.
Speak to a specialist at NewbridgeFX to receive a Spot Rate and book your transfer.
Secure an exchange rate
Once your account is setup, tell us who to pay and in what currency and we’ll quote you a rate. You can access rates either online or by phone.
Transfer your money to a holding account
When you’ve agreed an exchange rate, we’ll ask you to send us the money by bank transfer to our bank account.
Once we’ve received your funds, we’ll send your onward payment. Depending on the currency and the destination, payments can arrive on the same day.
Example of when a spot contract is used
A spot contract is useful when you need to make an immediate international payment. Once you have agreed to, and secured the exchange rate, you make payment in the currency that you sold. Once your payment is received, the currency you purchased will be sent to your nominated beneficiary bank account. A spot contract is useful when you need to make an immediate international payment.
Once you have agreed to, and secured the exchange rate, you make payment in the currency that you sold. Once your payment is received, the currency you purchased will be sent to your nominated beneficiary bank account. A Spot Deal is an immediate transfer of funds and can be useful to:
- Send funds to suppliers for good and services
- Business payments, such as invoices for
- Overseas investments
- Purchasing a property overseas
- Sending funds to friends/relatives
Spot contracts can be thought of as a ‘buy now, pay now’ arrangement and are particularly useful if you need to make an immediate or urgent international payment. The standard settlement timeframe for a spot contract is T+2. Transaction date plus 2 days for expected delivery. It is one of the most common types of deals used to transfer money overseas immediately.
A spot rate is the live market rate between two currencies. The rate will be secure and the transaction settled immediately.
Spot contracts enable you secure an exchange rate for immediate onward settlement, the rate is secure and the funds remitted as soon as your funds are received. Like all financial products, there are advantages and disadvantages that come with them, so using a professional service such as NewbridgeFX who provide tailored support, will help you to determine whether to go ahead and book a spot contract, or opt to take a different approach.
AnswerIf a payment is not required immediately then a spot rate may not be the best option. For example, if you place an order for goods from an overseas company that requires payment in two months’ time. If you choose to use a spot contract to settle the invoice at that time in the future, then you are exposing yourself to the risk of currency fluctuations. That could mean the exchange rate at which you settle the spot contract could have changed by the time you come to book the transaction. This could mean that the price you pay is higher than it would have been. On the flip side, the markets could change in your favour, but there is no way of knowing and so, you might want to consider other financial products, such as forward contracts or market orders, if your payment requirements are not immediate.
NewbridgeFX offers a specialist service in the deliverable foreign exchange market, promoting a range of products and services, available online or over the phone. Our products have been designed to meet the needs of our clients. A lot of these products are ways for businesses, and individuals, to manage and mitigate currency risk, and are used frequently during times of increased volatility. Alongside up to date foreign exchange related market news, which works in tandem with our range of products.
Multi-Currency Account In Your Company Name
Receive funds from your customers in to your own named collection account, using one account number for all currencies, or a local in-country account number still in your company name.
Create And Manage All Your Beneficiaries
Add and manage your beneficiaries, perform bank account validation & verification checks as you enter your beneficiary details & bulk upload multiple beneficiaries via a CSV file.
Make Fast & Secure Payments To Over 200 Countries
Real time Swift and local payments are settled the same day, within minutes of processing (currency/country dependant), and payment tracking capabilities allow you to keep updated on the payment status.
Hold multiple currencies and access balance information in supported currencies. Receive, convert, send and move money between your multi-currency accounts without making payments.
Convert Over 45 Currencies, 24/7, Using Multiple Devices
We provide informative, up to date market news, including updates on currency movements, upcoming economic events and announcements that impact the foreign exchange market.
Real-time Reporting And Tracking
View and track all conversions, payments and incoming funds using our online platform, and receive email notifications when funds have been received, conversions processed and payments released.