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
Once you register an account, you can ask for a FX forward to buy a specific amount of currency, at a specified date in the future. If you confirm you want to proceed the contract becomes an agreement between both parties, and the exchange rate is secure and locked in. You would need to transfer a deposit, held as a balance against the contract (5% of the value of the contract is common). When the settlement date (otherwise known as the maturity date) arrives, you transfer the remaining balance to our account. Once received we will transfer the agreed amount of currency to your nominated beneficiary account. The contract agreement is then finalised.
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.
If 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 market news, which works in tandem with our range of products.
We strive to earn the loyalty of our clients by consistently delivering a dedicated, professional foreign exchange service, and focusing on providing a great client experience. We have a vast and varied client portfolio. Our experience and expertise in managing international payments applies across a wide range of industries, from accountants to warehouses.
Great exchange rate, helpful and knowledgeable service and fast transfer to a French bank account. Highly recommended.
best FX in town, I trust him a lot
I've used NewbridgeFX for several months now to make regular international payments. They have been very professional and helpful and saved my company a significant amount on fees.
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