For a one-off transfer of a few hundred pounds, it rarely matters who moves your money. For a six-figure property completion, the choice of provider can change the cost by more than your legal fees, and a high street bank is usually the most expensive way to do it. A currency specialist generally offers a tighter rate, the ability to fix that rate ahead of completion, and a named person to manage the timing, while a bank tends to convert at a wide margin on the day. This guide compares the options for a large property payment. For the full picture, see our guide to buying property abroad.
How does a bank price a large currency transfer?
Most banks build their margin into the exchange rate rather than charging a visible fee, so the cost is the spread between the wholesale rate and the rate you are given. On a large transfer that margin can be substantial, and it is rarely shown to you upfront. Banks also tend to convert at whatever the rate happens to be on the day you instruct the payment, which leaves a completion sum exposed to wherever the market sits at that moment. The service is convenient because the money is already with them, but convenience on a six-figure transfer is expensive.
What does a currency specialist do differently?
A specialist that handles large transfers competes on the rate, so the spread is typically tighter, and a reputable one will confirm the all-in rate before you commit. More importantly for a property purchase, it can fix the rate in advance with a forward contract, so the figure you budget at exchange of contracts is the figure you pay at completion, whatever the market does in between. You also get a named dealer who understands the timetable and can make sure the funds land exactly when your notary or lawyer needs them. For how rate-fixing works, see how a forward contract works, and for the underlying cost detail, see what it costs to transfer money abroad.
What about self-serve currency apps?
Self-serve apps are well suited to small, everyday transfers and travel money, where speed and a tap on a phone are what you want. For a property completion they are a weaker fit. Funding a six-figure payment can run into transfer limits or bank-side checks, there is usually no facility to fix a rate months ahead for a future completion, and there is no named person to manage a fixed completion date. The convenience that works for a small sum becomes a constraint when the amount is large and the date is immovable.
What matters most for a property payment?
Three things, in order. First, certainty: can you fix the rate now so your budget holds to completion? Second, the all-in rate: how many pounds leave your account for the euros that arrive, with every charge included? Third, timing and service: can the provider guarantee the funds arrive cleared on the exact completion date, and is there someone to call if a date moves? A specialist is usually built around these needs; a bank and an app are built around something else.
When is a bank or an app actually fine?
There are times when convenience wins. For small, routine transfers, travel money, or a modest sum where the amounts are low, a bank or a self-serve app is perfectly sensible, and the difference in rate is too small to matter. The case for a specialist grows with the size of the transfer and the importance of the date. For a six-figure completion that has to land on a fixed day, the rate, the ability to fix it in advance, and a named person to manage the timing are worth far more than the convenience of using the account you already have.
How do you check a provider is safe?
Regulation matters more than the rate when a large sum is in transit. In the UK, the firm should be authorised by the Financial Conduct Authority as a payment institution, which obliges it to safeguard client money in a segregated account so it is protected if the firm fails. One point that catches buyers out: the Financial Services Compensation Scheme, which protects bank deposits up to £85,000, does not cover payment or currency services, so safeguarding is your protection rather than the FSCS. Check any provider, specialist or bank, on the FCA Register before you send anything.
Frequently asked questions
Is a currency specialist cheaper than a bank?
Usually, on a large transfer, because the spread tends to be tighter and a reputable specialist will confirm the all-in rate before you commit. Always compare the total pounds out for the euros in, rather than the advertised fee.
Can a bank fix an exchange rate for a future completion?
Some can offer forward contracts, but it is not their core service for private clients, and the rate is often less competitive. A currency specialist offers forwards as standard for exactly this purpose.
Are currency specialists safe for large sums?
They are when authorised by the FCA and safeguarding client money in a segregated account. Confirm the firm's status on the FCA Register and ask how it safeguards funds before sending a large transfer.
Can I use more than one provider?
Yes. Some buyers keep a bank or app for small everyday transfers and use a specialist for the large property payment, which is a sensible split. Match the provider to the size and the deadline of each transfer.
Does it cost more to use a specialist?
Usually less, on a large transfer, because the spread tends to be tighter than a bank's. There is rarely a separate fee that outweighs the better rate, so always compare the all-in figure.
Related articles
This guide is part of our overseas property series. For the full framework, read Buying Property Abroad: A Currency Guide for UK Buyers. See also how a forward contract works, what it costs to transfer money abroad, and our country guides for France, Spain, Portugal, Greece and Hungary.
