4X Currency Corporation, the world’s first online currency exchange company, has launched a new facility to offer its customers the opportunity to buy foreign currency up to twelve months before all the money needs to change hands, therefore removing any worries of fluctuations in the volatile currency market.
The new forward trading service will provide small businesses, which trade overseas, an easier way to predict and manage their cash flow more efficiently. The service has been developed as an enhancement of the company’s 4X Dealer platform. The new facility accurately updates the user with currency rates every five seconds.
Helen Scott, managing director of 4X Currency comments: “We have had our developers working on this project for some time and it means that if a business knows in six months that it will be receiving $200,000 from one of its American customers, it doesn’t have to worry about exchange rates anymore. Rather than take a chance on what $200,000 will be worth in six months time the business can decide to sell the dollars forward by six months.
“The business will then know exactly how many pounds it is going to receive for its dollars. It also works the same way if a business knows it has to pay for materials in a foreign currency. A business can buy the currency now on a forward contract and then it knows exactly how many pounds it has to pay, no matter what happens to the exchange rates in that time.”
The future date for the trade is agreed at the time of the forward contract. 4X offers its customers forward contracts of between one week and a year.
Helen adds: “The main benefit of our system is that clients can actually watch the changing rate themselves and when they are happy they click their mouse and that’s the rate they get. Forward rates are actually calculated by taking the current spot rate and applying a premium or discount to it, which is based on the interest rate difference in the two currencies. Customers just need to place a small deposit of 10% when the contract has been agreed and then the remaining 90% is still available to the business as capital to help it grow.”
Martin Lee, director at Mountainsun comments: “Our bankers offer a first rate service, but their rates are not as competitive and harder to access than 4X Currency’s. As a company we are trying to do everything electronically since that expands the day and we can do things when it suits us rather than when it suits others. 4X Currency has a real no nonsense attitude and you get an immediate response, which is exactly the way we like to do our business. To support our week-in week-out activities in foreign countries we need a quick, accessible and reliable service, which is just what we get from 4X Currency."
4X Currency (www.4xcurrency.com) is able to offer competitive rates because it developed the first unique online foreign exchange system (4X Dealer) which provides the end user with live dealing rates, and the ability to complete the currency purchase themselves. It’s free and easy to use and it allows the user to instantly make currency purchases without the need for long, complicated and costly phone calls to banks or other providers.
Ends
For further information please contact:
Chris Norton/Sebastian Mysko
+44 (0)113 394 7960 / +44 (0)7932 864 901
Skype chrisnorton2
Notes to editor:
· 4X Currency operates in a unique and price transparent way, providing exchange rates that customers can actually obtain at that particular time, rather than rates that are merely indications based on the bank’s interbank rate
· 4X Currency is a registered overseas money provider with HM Revenue and Customs
· 4X Dealer™ is a registered trademark of 4X Currency Corporation
· 4X Dealer™ can process 2,000 trades per second and transfers can be made to any worldwide bank
· 4X Dealer™ has been designed especially with the business market in mind to enable companies to receive live, up-to-the-minute, market rates so that they select the most favourable ones available before making a transfer.
Multimedia information:
A full set of images are available for download at 4X Currency's Flickr account:
4X Dealer forward trading screen grabs:
USEFUL QUOTES
4X Currency Quote:
Mary Sheppard finance director at 4X Currency comments: "Forward contracts enable clients to lock into an exchange rate to cover currency needs for payments or receipts at a specified future date. This removes the uncertainty of currency fluctuations and helps to protect profits. Forward contracts are useful for ensuring that sales are priced at known foreign exchange rates. The price paid for supplies in foreign currency can also be stabilised by fixing the exchange rates through a forward contract.
Forward contracts provide a further advantage as clients are not required to pay most (90% generally) of the payment for the currency until the specific future date. Clients can therefore closely match the timing of their currency payment with the timing of their payments or receipts, reducing their short term borrowing requirements and associated interest payments to lenders.
A further great advantage of taking out a forward contract with 4X is that we offer very competitive forward rates, which create further savings for you. We also make it quick, easy and secure for you to take out a forward contract using 4X’s own on line free to use foreign exchange dealing platform 4X Dealer™."
Software Tech Quote:
Darren Brown, managing director of Cybertrak who built the software for the new system comments: "We had to create a well designed trading engine with a whole range of new system improvements. We had three genuine challenges which were firstly to make the GUI (Graphical user interface) quick and easy to use whilst still fitting the corporate style, despite the extra complexities. Secondly, to ensure that the speed of forward rates delivered to customers was optimal and finally the redesigning of the application deployment to the client, which means that future updates for customers are as simple as a click of a button."
Business Customer Quotes:
Richard Lowe, managing director, Grid Defence Systems Ltd
"The initial set up required the usual paper trail now insisted upon by the financial sector, but 4x were good enough to remind and support this initial step. The software package is small and neat and has the benefit of retaining beneficiary details until payment needs to be made. Logging on and dealing is very quick and easy and the rates are very much more competitive than those offered by the High Street Banks. Queries and problems are dealt with compassionately and swiftly, which again is a vast improvement on the service from the main banks. We are pleased to have moved our forex to 4X and would have no hesitation in recommending your service to other companies."
-----------------------------------------------------------------------------------------------
Dr Richard I Taylor, director, Taylor Associates.
"The service provided by 4X Currency Corporation has been exemplary in that it provides that rare combination of being highly efficient, flexible in meeting client requirements and, at the same time, was significantly cost effective. A recent requirement by my company to exchange sterling into euros, undertaken by Helen Scott (Managing Director), was accomplished with helpful and constructive advice. The net result being that the transaction was undertaken at a cost considerably lower than ones quoted by commercial banks, and at a time which saved this company some £3,000."
-----------------------------------------------------------------------------------------------
Ian Shearer, Rubber trade finance and factoring.
"4X Currency Corporation has provided me with a fast and cost effective service. I have traded between EUR GBP and USD sums between $40000 and $100000. 4X rates are always closer to the spot mid rate than my bank. I have saved as much as two-thirds of the cost that my bank would have charged and can recommend 4X to other businesses."
-----------------------------------------------------------------------------------------------
Clive Hayton, finance director, Eurocash Corporation PLC
"4X Dealer is simple to install, easy to use and when I click on the icon to deal, I am confident that I am getting a great rate. The transparency offered by the online live rate being constantly updated reassures me that I am getting the current prices direct from the FX Markets."
Comments