The FairFX Press Releases Blog

Sterling Holds Firm As MPC Confirms QE Boost

Fri, 06 Nov 2009 16:02:53 GMT

Rishi Patel, analyst at FairFX.com, commenting on the MPC’s latest decision to boost the UK’s quantitative easing programme, said, “The Bank of England has raised the bond purchase plan by £25 billion to £200 billion. Sterling has spiked on the news from 1.65 to 1.66 against the US dollar and against the Euro, we’ve seen a similar move from 1.1110 to 1.1180. This is contrary to most analysts’ expectations, who were expecting a more substantial increase of £50 billion to the programme and is now the third increase since March – however, this represents a decrease in the rate at which the bank has been injecting money into the economy.

“Policymakers are desperately trying to revive the economy through quantitative easing - the fundamental concern is if an increase of £25 billion will be sufficient. As expected, benchmark interest rates have been held at a record low of 0.5% and against the major currencies, Sterling is continuing to hold firm at higher levels.”

FairFX.com is an internet based foreign exchange business with a technology platform that allows it to provide UK travellers with the best foreign exchange rates in the market.

A Week Of Critical Decisions For Sterling Says FairFX.com

Tue, 03 Nov 2009 10:05:35 GMT

Rishi Patel, Head of FX trading at FairFX.com, commenting today, said, “The Global equity sell off has prompted safe haven buying in currency markets. The US dollar rally has kept the pressure on the Euro and Sterling and investors will be taking a cautious stance ahead of the major central bank meetings. This morning the pound failed to find any real direction, and there is still some ambiguity as to whether the Bank of England will expand the quantitative easing programme and if so, how far?

"This week is likely to set the scene for where financial markets will finish the year as traders await key decisions from the Federal Reserve, the Bank of England and the European Central Bank. Although markets are not currently expecting a change in base rate by the Federal Reserve, all eyes are watching as traders begin to speculate on the direction of monetary policy.

"If the markets stay cautious we would expect the dollar to appreciate as the ‘safe haven’ currency of choice. And in the UK we could see pressure firmly back on Sterling if the widely debated extension to the Asset Purchase Facility is significant."

FairFX.com is an internet based foreign exchange business with a technology platform that allows it to provide UK travellers with the best foreign exchange rates in the market.

Avoid The Ski Holiday Slalom Of Foreign Currency Charges

Wed, 14 Oct 2009 17:31:54 GMT

• Luton and Birmingham UK’s most expensive airports for foreign currency purchases

• Holidaymakers could save up to 14% by purchasing their cash online

Travellers planning on hitting the slopes this October should beware when purchasing foreign currency, FairFX.com reveals. Holidaymakers who buy their foreign currency from the airport risk paying as much as 14 per cent more for their money if they leave it to the last minute.

Luton and Birmingham airports have been revealed to be the most expensive foreign exchange bureaux, charging unwitting travellers up to 14% more for their holiday money than if they had purchased it online.

FairFX.com’s analysis reveals the UK’s most expensive foreign exchange bureaux:

Luton Airport- ICE
Birmingham Airport- Travelex
Stansted Airport- MoneyCorp

Many travel money providers claim they offer travellers 0 per cent commission but this hides the true margins they add – meaning travellers aren’t in the know and could end up sliding down a slippery slope of confusing charges and misleading advertising.

However, prepaid currency cards offer a different solution. They work just like a debit card but can be topped up via the internet or by text. The FairFX currency card offers rates for Euros and US dollars at less than one per cent margin above wholesale rates – i.e. giving all users ‘business’ level foreign exchange rates.

Stephen Heath, Chief Executive of FairFX.com, said: “To avoid the worst rates on the market, which are generally found in airports and train stations, travellers need to get organised. As Sterling continues sink against the Euro, exchange rates will continue to fluctuate, and as the pound is expected to be weak for some time to come it is more vital than ever that people take steps to get as much as they can. By preparing in advance and buying your currency online instead of using costly debit or credit cards for foreign spending, travellers will be able to get the most bang for their buck this half term.”

FairFX.com Launches Unique Business Expenses Platform

Thu, 01 Oct 2009 10:59:29 GMT

• Businesses can make substantial savings on employee spending overseas

FairFX, the online foreign currency provider, today announces the launch of its unique business expenses platform, bringing substantially better exchange rates and significant cost savings to the business travel market.

The business expenses platform will be offered in conjunction with the FairFX prepaid currency card (available in Euros and US Dollars). The Card is a MasterCard prepaid debit card that provides market leading foreign currency rates for UK travellers.

Stephen Heath, Chief Executive of FairFX, said: “We have almost reached parity between Sterling and the Euro, so it has never been more important that businesses get better value when spending overseas. The foreign exchange market has been opaque about costs for years. We launched FairFX.com in 2007 to challenge the status quo and bring better value and complete transparency to holidaymakers. Today’s launch, via FairFX.net, is about delivering the same promise to businesses.”

The Business Expenses platform provides the capability for employers to issue, load and monitor cards, as well as exercise better control over employees’ expenditure.

The key benefits of this platform vs. other Corporate Card services are:
• Substantial reduction in foreign exchange conversion charges
• Significantly lower expenditure on initial card acquisition and annual service fees, conventional cash advance fees and late payment penalties
• Large cost savings by eliminating uncontrolled employee expenditure
• Flexible reporting system including real time alerts/exception reporting
• Reduced resources and costs by streamlining expense control and reporting

The platform has been structured as a pyramid, allowing password controlled access to its functions and reporting as required by management. Thus, full or selective access can be provided at head office and departmental levels with tailored access at the individual level.

Stephen added: “It is the online reporting area that provides the real opportunities for reduction of wastage and improved cost control. The system provides online real-time detailed reporting by user and by transaction but also has the flexibility to provide real-time alerts on spending, cost centre allocation, expense reporting and client billing allocation.”

Typical corporate charge cards:

• £30 to £80 per card per annum
• Foreign exchange conversion fees of 2.75% to 4%
• ATM withdrawal fees of 2% to 4%
• Late payment charges based on very high interest rates
• Limited real time capabilities and general system flexibility

FairFX’s corporate card:

• A 1% foreign exchange cost
• A flat ATM withdrawal fee of €1.50 or $2 (levied by the ATM networks)
• A platform usage fee to be determined based on volume
• No late payment charges as cards are pre-funded
• No hidden charges

For further information, please visit www.fairfx.net

Sterling Falls 1% Against The Euro And The Dollar

Wed, 16 Sep 2009 10:55:38 GMT

The pound has fallen significantly against the Euro and Dollar in the past 24 hours alone – falling from $1.6598 to £1 to $1.6479 to £1, and from €1.1366 to £1 to €1.1203 to £1.

Stephen Heath, Chief Executive of FairFX.com, said: “The value of Sterling fell dramatically yesterday morning after Mervyn King said the MPC will lower the deposit rates to free up lending between banks. We have now seen the pound take such a pummelling that you will get just $1.6479 or €1.1203 to £1.

“Anyone looking to buy their currency now should make sure they lock in the best rate for their holiday money or they could lose out on up to $95 or €70 for every £1,000 they spend.*”

FairFX offers customers market-leading exchange rates via either a pre-paid currency card or cash via their internet site: www.fairfx.com[http://www.fairfx.com].

FairFX.com Offers Holiday Makers $1.67 For Every £1

Tue, 04 Aug 2009 17:29:47 GMT

SO GET YOUR DOLLAR DEAL NOW BEFORE ITS GOING, GOING, GONE...

As the pound surges to a ten month high, anyone travelling to the States in the coming months could benefit from getting some of their travel money now, to lock in on the current rate of $1.67 for every £1 from FairFX.com.

Stephen Heath, Chief Executive of FairFX.com, said: “This surge in the value of the pound is good news not only for the UK economy, but also for British travellers planning to head across the pond. While still a long way below the $2 to £1 levels seen in July last year, the pound has rebounded 25% from the 23-year low of $1.35 it plummeted to in January this year.”

Don’t be fooled

Checking the exchange rate is very important as many travellers are misled by headline advertising for travel money such as “0% commission” or “no commission”, which often masks the true cost.

The true cost to consumers is not only the advertised commission rate, but also how many Dollars, Euros or other currencies they receive for each pound exchanged, namely the exchange rate. This can vary so much that some travellers, particularly if they use regional airports, could actually be paying up to 15% more than others.

Stephen Heath added: “No one likes to be fooled into buying something only to find out too late that they paid over the odds or that they have been stung by extra transaction costs when they return from their holiday. A good currency card gives travellers the choice about when they fund their trip, getting Dollars now could help someone to budget for a future holiday, or simply mean they’ve locked in the best rate available so far this year.”

FairFX offers customers market-leading exchange rates via either a pre-paid currency card or cash via their internet site: www.fairfx.com.

Summer Holidays Could Cost Less, If Brits Play Their Cards Right

Mon, 29 Jun 2009 17:30:13 GMT

> Holiday makers could each lose out on over £120 this summer

> Regional airports rip off customers to the tune of 15%

Sun seekers heading abroad this summer could waste over £120* for every £1,000 of their holiday budget if they don’t buy their foreign currency from the cheapest provider.

As Britons look to stretch their holiday spending money that little bit further this year, FairFX.com are showing how using a prepaid currency card could give them an extra $209 or €143 for every £1,000 they spend.

Don’t be fooled

Unsurprisingly consumers are being misled by headline advertising for travel money such as “0% commission” or “no commission”, which often masks the true cost. Research shows that 44% of Britons think “0% commission” means the service is free, and almost six in 10 went on to base their travel money purchases on this misleading advertising.

The true cost to consumers is not only the advertised commission rate, but also how many Euros, Dollars or other currencies they receive for each pound exchanged, namely the exchange rate. In fact the true cost to consumers can range from 3% to 5% at High Street providers, 8% to 12% at London airports, and up to as much as 15% at some regional airports.

Stephen Heath, Chief Executive of FairFX.com, said: “No one likes to be fooled into buying something only to find out too late that they paid over the odds. ‘0%’ may well have become the standard advertising tag for currency providers, but savvy holidaymakers still have time to make the most of their holiday budget this summer.

“A prepaid card will give travellers not only the best rate available, but also added piece of mind. However, for those who want to take cash, make sure you shop around, by pre-ordering it online they could have an extra $209 or €143 with them when they jet off.”

Make Your Gap Year Wonga Last For Longer

Wed, 17 Jun 2009 14:03:30 GMT

> Stretch your gap year cash on a shoestring

> Save up to €300 or $400 with the FairFX.com currency card

Gap year travellers could be wasting up to €300 or $400 unknowingly by having the wrong foreign spending habits. A better choice of travel money could give their budget some much-needed extra stretch.

As more gap year travellers head abroad this year than ever before, due to university deferrals and redundancies, FairFX.com, the foreign currency specialist, provides some handy tips to make the most of their money:

1) Pre-trip research: research your trip before you go – it’ll be easier to work to a realistic budget. Look at approximately how much you'll need on a daily basis for food, accommodation and activities, and then multiply that by the number of days you will be away. It's often better to over-budget in case of emergencies.

2) Carrying cash: A pre-paid card is the most secure form of travel money, but take a wallet for loose change and everyday spending. Wear a secure money belt under clothing for your valuable documents and any other cash.

3) Extras: If you're planning to do any adrenaline-junkie sports or extra activities, you'll need to take this into account as they’re often quite pricey. Make sure you’ve covered this in your pre-trip budget.

Stephen Heath, Chief Executive of FairFX.com, said: "No one likes to find out too late they could have got a better deal. Anyone heading off now on a gap year could get an extra $426 or €307 if they use a FairFX.com pre-paid currency card (assuming an average spend of £4,000)."

Britons Declare “Every Penny Counts” ... But Don't Practice What They Preach

Tue, 26 May 2009 14:05:22 GMT

-69% of people say “every penny counts” when it comes to buying foreign currency

-Yet only 2% use the cheapest payment method for foreign currency – pre-paid currency cards

Despite the credit crunch putting a squeeze on everyone’s wallets new research from FairFX.com reveals British holiday makers still aren’t spending prudently abroad. 69% of people might say every penny counts when buying their foreign currency, but 98% still don’t use pre-paid currency cards – the cheapest way to spend abroad.

Two thirds (66%) prefer to spend foreign cash taken abroad with them, and a further 29% choose to withdraw foreign currency from a hole in the wall once they get overseas. Despite the extortionate fees involved, 21% of holidaymakers still choose to spend on their credit cards.

Stephen Heath, Chief Executive of FairFX.com, said: “Will 2009 be the year that travellers wake up to the savings they can make by using a pre-paid card for all their holiday spending? Two thirds of people might say every penny counts, but then don’t actually ensure they have the right tools to make it happen.

“A family of four could have an extra $300 or €200 to spend on their holiday this summer if they used a pre-paid card, more than enough to pay for a days entry for the whole family to Disneyland in Paris or Orlando.* What’s more, the FairFX.com card is the only card with no global surcharge.”

For example, a family of four planning to exchange £1,500 for their holiday, would get $2,347.50 or €1,691.25 using a FairFX.com card compared to only $2,170.35 or €1,575.15 if they exchanged at Heathrow airport.**

Before buying their holiday money just 9% of people check a comparison site, and 16% of people don’t bother to do anything and simply use the card they already have in their wallet – a costly mistake which will only come to light when they check the statement the following month.

58% say they look for a supplier that charges 0% commission when they get their holiday money, but simply opting for deals based on “0% commission” or “commission-free” doesn’t ensure the best rate of exchange, in fact in some instances they could lose up to 19% of their holiday cash value.

Sadly, a misplaced belief that there is little difference between the best and the worst rates (one in ten consumers), or the view that foreign travel is costly already so there is no point in penny pinching (one in twenty consumers), mean many people are simply not willing to shop around for their foreign currency despite the extra money they could have with minimal effort.

Stephen Heath, Chief Executive of FairFX.com, continued: “There seems to be quite a large divide between consumers’ desires to make the most of their cash, and the reality of their foreign spending habits.

“Many of us might intend to look for the best deals, but when it comes to the crunch people aren’t making the effort to get the best bang for their buck. But they might think twice if they knew they could save up to 18% if they use the FairFX.com card instead of changing their money at the airport – savings not to be sniffed at.“

FairFX.com Offers Holiday Makers $1.5 For Every £1, So Get Your Dollar deal Now Before Its Going Going Gone...

Wed, 06 May 2009 10:16:11 GMT

Anyone planning to spend dollars in the coming months is urged to get their cash immediately and lock in the fantastic rate of more than $1.5 for every £1* - only available from FairFX.com.

Stephen Heath, Chief Executive of FairFX.com, said: “Credit crunched holiday makers have had a tough time trying to stretch their finances of late, as the Pound’s continued decent against the Dollar and the Euro has made trips abroad even more expensive. However, there is some good news for anyone planning a trip to the states in the coming months – FairFX.com is offering the fantastic rate of $1.5 to £1.

“Savvy consumers looking to take advantage of this amazing rate should act quickly and buy their currency online now from FairFX.com – the only provider currently offering this rate. Even if they aren’t planning to use it for a while they should buy it now to take advantage of the rate and keep it until they want to start spending.

“Given the recent volatility in the currency market, anyone planning to spend US dollars in the coming months could save themselves a bundle by buying their currency online now while this great rate is available.”

Heathrow Flies Below Parity On Euro

Fri, 13 Mar 2009 15:15:48 GMT

Travellers flying from Heathrow could find buying their holiday money comes at a hefty price tag. New analysis from FairFX.com reveals anyone buying foreign currency from Heathrow Airport will get less than parity at just €0.9831 to £1.

Stephen Heath, Chief Executive of FairFX.com, said: “Following last week’s base rate cut and the introduction of quantitative easing, the Pound is being traded at just €1.0831 to £1. However, Brits buying their holiday spending money from Heathrow Airport will get even less bang for their buck, just €0.9831 to £1.

“Airport travel money bureaus have long taken advantage of travellers who leave buying their holiday cash until they reach the airport by offering far worse rates than outside the terminal. And now Heathrow Airport has become the biggest airport out of many to offer below parity.”

Currently, you can still get €1.0725 to £1 with the FairFX.com currency card, 7% above the average airport rate, and 9% better than Heathrow Airport.

FairFX.com and Matalan Team Up To Offer Holidaymakers A Free Fiver As Family Finances Come Under Increasing Pressure In 2009

Thu, 12 Feb 2009 12:06:22 GMT

To help Brits make the most of their holidays this year, FairFX.com is offering Matalan Reward Card holders a free prepaid currency card (normally costing £9.95) loaded with £5 to help them stretch their holiday spending money even further. This exclusive offer can be applied for online via Matalan.

Stephen Heath, Chief Executive of FairFX.com, said: “Brits are facing a tough year ahead and for many people holidays will be the last thing on their minds. While we can’t make the outlook for 2009 look any less gloomy, we can help people stretch their holiday spending money that little bit further by offering free FairFX.com cards preloaded with £5 to Matalan Reward Card holders.

“The FairFX.com currency card offers market leading exchange rates, secure access to cash worldwide and could save people up to €70 or $90 per £1,000 spent*; and now people can get the card for free with a fiver thrown in to boot there is no reason why holidaymakers can’t get the biggest bang for their buck with Matalan and FairX.com .

“FairFX.com’s new offering with Matalan is the next step in partnering with brands with a shared ethos. We share the same commitment in helping our customers get more for their money, be it on holiday or in the shops, in a fair and transparent way particularly in tougher economic times.”

How does the FairFX card work?

The FairFX Currency Card is a MasterCard chip and pin enabled prepaid debit card. It differs from regular debit cards in two ways. Firstly, the cards are issued in either Euros or US dollars and secondly, funds must be loaded onto the card before they are available to spend. The currency to be loaded is obtained simply by logging on to www.fairfx.com and can be paid for by any sterling debit or credit card or internet bank transfer.

Base Rate Drop Helps Sterling Rally - Holidaymakers will see Pounds stretch further

Thu, 05 Feb 2009 17:28:46 GMT

Commenting on the Pound’s recent rally, Stephen Heath, Chief Executive of FairFX.com, said: “There appears to have been a change of sentiment towards the Pound. Sterling is fighting back despite the base rate cuts, and today alone the Pound has strengthened from a low of $1.4365 to over $1.4650. Against the Euro, Sterling has appreciated from €1.12 to over €1.1440.

“The Pound has rallied 8.5 per cent against the Dollar since it bottomed out at $1.35 to £1 in January. There might finally be some good news for holidaymakers planning a trip to the Med, with the Pound gaining over 12 per cent against the Euro since December, when it traded down to an all time low of €1.02 to £1.”

Pound Trades Against DollarAt Lowest Levels Since 1985

Fri, 23 Jan 2009 15:44:48 GMT

Commenting on the Pound’s fall against the Dollar, Stephen Heath, Chief Executive of FairFX.com, said: “Sterling has continued to collapse against the Dollar falling to just $1.35 to £1 earlier today, its lowest rate since 1985. When measured against a basket of currencies Sterling has collapsed by approximately a quarter, more than any previous devaluation in the past century.

“The escalation in the banking crisis and news that we have officially entered recession has led to investors dumping Sterling in favor of more secure assets and the Pound falling to its lowest rate against the Dollar in almost a quarter of a century.“

Dollar Dashes Sterling Strength

Tue, 20 Jan 2009 16:49:10 GMT

Commenting on the Pound’s fall against the Dollar, Stephen Heath, Chief Executive of FairFX.com, said: “Despite getting off to a good start in 2009 the Pound looks to be in a sorry state again already, falling to just 1.3950 against the US Dollar – a seven year low – and 1.08 against the Euro. Sterling is also trading at an all time low against the Japanese Yen.

“After a horrific day for the UK banking industry yesterday, traders have failed to keep Sterling supported against the US Dollar. Investors around the world are beginning to cut exposure to the weakening UK economy and its distressed banking sector.

“We are close to the 2001 low of $1.3685 to £1, making the heady days of $2 to the Pound seems like a distant memory. The financial markets are expected to remain volatile at least for the first half of the year, and travellers should plan foreign currency purchases carefully to ensure they stretch their Pounds as far as possible. Brits would need a crystal ball to accurately predict the currency swings and roundabouts we are seeing at the moment, so until things settle down Brits should try to buy their currency in small increments on a periodic basis to try to protect their wallets from rate fluctuations.”