Everything you need to know about moving to NZ

No matter how much cash you have at your disposal to start your new life, you'll end up with more New Zealand dollars in your pocket if you use a specialist foreign exchange broker to transfer your money rather than a high-street bank. We can show you how to use their services to get the best possible rate, whether the Dollar is high or low against the Pound - this could save you thousands.

1. Don't use a trading bank

Most people use a bank for foreign exchange transactions when they go on holiday. The convenience and ease of using a bank makes up for what you lose on fees and an unfavourable exchange rate. But when you're planning to exchange sizeable sums of money it is wise to consider alternatives to using a bank, as they seldom offer the most competitive terms.

We recommend Halewood International Foreign Exchange (HIFX) to our clients because we have been consistently impressed with the service we have received both in terms of securing great rates and efficient administration. Their market views are recognised worldwide, with their analysts appearing regularly on CNBC and Bloomberg business television. The Reuters Forex Poll confirms HIFX's foreign exchange predictions to be consistently within the top 3 most accurate in the world.

For example...

The Jenkins family was planning to transfer the £120,000 proceeds from their house sale via their UK bank. They needed the money immediately to complete a house purchase in New Zealand. The rate they were offered at the time was 2.7878, which would have left them with $334,451.40 to start their new life in New Zealand. Through HiFX, we were able to secure them a rate of 2.8043 on the same day, giving them $336,516.00 - a difference of $1974.60.

2. Have a currency purchasing strategy

The timing of your currency transfer is typically dictated by practical considerations, such as the availability of liquid funds or the need for them. The sooner you talk to HIFX, the more flexibility you will have within these constraints.

An example of the specialised service they can provide is a limit order, whereby you can specify a target exchange rate. When (and if) the market reaches your target, you will automatically buy the New Zealand Dollars.

Another example of their specialised services is forward contracts; if exchange rates are favourable now but you do not have liquid funds quite yet, you may like to consider using forward contracts to “lock in” the current rate. A forward contract means that you can buy the currency now and pay for it later (when, for example you receive funds from a house sale or an investment maturity). You will be required to pay a 10% deposit straight away and the 90% balance upon the maturity of the contract. For example, if you wish to change £50,000 to New Zealand Dollars but do not need them for 3 months, you can agree the exchange rate now, place a £5,000 deposit, and pay the remaining £45,000 balance in 3 months.

In Conclusion

We cannot stress enough the value of using the services of a specialised foreign exchange dealer. It really is a simple way of maximising the money you’ll have available to you in New Zealand.

More information about HiFX can be found at their UK website, or their NZ website. Please don't forget to mention us if you get in touch with them.

Please also see our articles on your options when the Pound to Dollar exchange rate is not favourable and how volatile the Pound to Dollar exchange rate is.