Foreign Currency · Spain

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Whether you are buying property abroad, migrating to a new Country or buying a high value asset abroad such as a car or a yacht, fluctuating exchange rates can make a huge difference to the price you pay. Currency risk- A European property priced at 200,000 Euros would have cost £127,443 in December 2002 but increased in cost to £133,334 by February 2003 (£6000 or 4.7% increase in just 2 months).

This is a classic example of avoidable currency risk (if the Euros had been bought or reserved in December, the cost would have been fixed and the currency risk eliminated).

Many currency exchange companies operate out of the UK and Spain, they operate a free service (they make money on the exchange rate when you do a currency deal) and don't charge to send money abroad. It is recommended that you compare exchange rates with those offered by your bank, even if you don't plan to use currency exchange companies.

The financial markets are both extremely complex and highly volatile. These markets are driven by the continuous global trading activities of major financial institutions for their own gain. These institutions invest heavily in their infrastructure placing great emphasis on technology, market analysts, professional dealers, and sophisticated treasury systems in order to minimise risk and maximise gains