Most buyers will need to transfer some home currency into euros whether they plan to buy in cash or use a French mortgage to purchase.

Here's something your bank does not want you to know your when you use your bank's currency exchange service :

You are not getting the best deal! 

Avoid that pitfall by using a trusted currency broker and benefit from the following advantages: 

Significant Savings
 
Banks make money on currency transfers in two ways:
 
1 - Charging a service fee to make the currency exchange
 
2 - Adding a margin on top of the interbank exchange rate when they purchase the currency to move abroad
 
Retail banks typically apply a margin of 2% or more and we often see banks give quotes to clients with margins of 3 to 4 % over interbank exchange rate. One major east coast US bank we know of refuses to let clients send funds to a currency broker as a policy. 

They require clients to convert funds into the final currency and submit to their margin of 3.5% over interbank. A client recently had to transfer funds to another US bank account in order to avoid this.

Most clients don't know about these hidden inflated charges

A good currency broker will not charge a transfer fee and save you 1 to 3% on the value of funds transferred.

Imagine you are transferring 1 000 000 of your home currency for a property purchase in France or repatriating euros from a property sale. 

This can be a savings of € 10 000 to € 30 000

Even when competing against a client's private bank relationship, a good currency broker can bring savings.
 
Service Advantage
 
A currency broker can confirm a trade online or by phone, 24 hours a day, Monday to Friday. Local banks often insist a transfer is made in person over the counter which can be impractical for clients. The delay involved can mean missing a peak trading opportunity.

Some US banks have never heard of IBANS used by French banks which can cause confusion. Frequently funds will have to pass by an intermediary bank, which adds an additional 1-2 days. 

Money transfers from outside of Europe are often rejected by French banks

They have all modified their systems to be compliant with Euro Zone transfers and new anti-money laundering laws. They are not properly equipped to deal with transfers from outside of Europe. This creates major problems as clients often think they have transferred money into their French bank or to their notaire for the closing and don't realise it never arrived. 

Unlike other countries where an overdraft policy is common if your bank account goes negative, it's not in France. It's considered a serious offence, can cause expensive charges and will negatively impact your relationship with your French bank. 

You never know when you might want to renegotiate your French mortgage, ask for a renovation loan or other. The first thing the French bank will do is look to see if there were ever any "irregularities" with your account. It's best to keep a spotless record. 

Always use a currency broker when transferring money to France

Lock in your rate

A good currency broker will offer market advice, forward contracts and spot trades which means clients can control the timing of their trade in order to optimize the exchange rate. Client savings are are often invested in T-bills, stocks or high-bearing interest accounts. 

Therefore, a forward contract allows clients to secure a rate, allowing most of their savings to continue attracting interest until the funds are needed in France.
 
Why is this useful? 

French real estate transactions take time. As an example, after signing your pre-purchase contract, your final sale, when funds are due, will take place three months later.

What if your home currency is the dollar and it's expected to weaken over the next six months? 

You can lock in your advantageous rate today and leave your funds invested where they are to earn interest for another three months without losing further valuation when you make the trade. And if the dollar is expected to strengthen, your broker can advise you on a strategy to take advantage of that.

Case study - Property purchase in Paris, 2022

Client A took a long-term view and secured €1,218,948.00 three months before the closing the sale of her new “pied a? terre” in Paris.

Her funds were secured at a rate of 1.0846, equating to a 1.2% (€14,627) savings compared to her bank. Furthermore, between the day Client A secured a rate and her completion date, the USD had depreciated to 1.1047, meaning an additional savings of €5 940.

Case study - French mortgage payments, 2023

Client B needed to schedule 12 months of ongoing payments to cover his French mortgage. Our broker helped him convert his money into euros at a favorable rate and schedule 12 separate payments from the platform.

He saved 1.5% on the amount converted into euros and avoided the 12 transfer fees he would have had to pay his bank.

Contact us today to save money on:

• currency exchange for sending funds to purchase,
• setting up regular payments abroad,
• or repatriating funds after you sell your property in France.