Edition #8 of the OzForex BERIA Update

Well it has been a busy few weeks in the foreign exchange markets and with the decline in the AUD we have seen some mild improvement in the value of the GBPAUD. I’m sure you are all probably thinking that it would be nice to see an even greater increase in this currency pair, and I thought it would be worth discussing the use of forward exchange contracts (FEC) for when this rate improves to a level you are happy with!

Forward exchange contracts enable clients to lock in a current rate for future funds delivery. What this means is that when your preferred rate comes up in the market, you can lock this rate in for future use, even if you are not ready to transact at that point in time.

Instances where clients might use a forward exchange contract are as follows:
-Purchasing a property with international funds: when placing a deposit on the property there is every risk that at the time of settlement (1 or more months down the track) the exchange rate is very different and that property may have become significantly more expensive. Locking in an FEC when putting down a deposit guarantees you that rate at time of settlement so you know exactly how much that property is costing you.

-Looking to convert currently non-liquid funds: If you have funds tied up in a term-deposit or other investment and a fantastic rate comes up, you may want to utilise an FEC so you can use the current rate when your funds become available.

-Bringing over a pension: Many Aussie residents bringing a pension over from the UK will lock in a great rate for 12 months so they know when they will be receiving in their account for the following 12 payments. If you want to know more about using forward exchange contracts or how to transfer money internationally please click on the adjacent banners to register with OzForex and receive your first two transfers under 10,000AUD completely fee free.

Hello BERIA Members!

Edition #7 of the OzForex BERIA Update

Comparing Rates

It is important when choosing a foreign exchange provider that you look into the most reputable and secure option (see BERIA update 3#) but also the provider that offers the best deal! So this week we have included some tips on comparing rates:
-When you get a quote from one provider make sure you get the alternative quote at exactly the same time – the foreign exchange market is the largest market in the world and moves on a second by second basis. Sometimes, if time lapses between quoting, a quote that appears competitive is only because the market has moved in your favour.

-Ask what margin they provider is charging you and make sure that this margin is reflected when you deal – sometimes FX providers can make themselves sound competitive when providing a quote but then not follow through with that margin when you actually go to transact. You can always expect transparency from OzForex as we compare customer and interbank rates for you at http://www.ozforex.com.au/cgi-bin/customer-fo ... s.asp

-Ask about fees! – fees vary significantly from institution to institution and can often make a transaction significantly less competitive (especially if you are making smaller regular payments as in the case of receiving a pension in Australia). At OzForex, there are no fees for transactions over 10,000AUD and no receiving fees in most instances.

To register to get live rates and access to our dealing team 24 hours a day, 5 days a week, click on the banner adjacent or call 1300300424.

OZFOREX BRIEFING TO BERIA MEMBERS # 7

With Easter approaching the GBP/AUD is yet again moving towards more historic lows. The pain for those seeking to bring funds back from UK has been created through two main waves of contrasting sentiment. Firstly with the Aussie dollar experiencing a consistent and steady rise in the last 4 weeks the strength in the dollar has been triggered and well supported by better than expected domestic data. Secondly the ongoing woes of the UK seem to be magnified by concerns about not only its own budget deficit but also the general high debt levels throughout the Euro Zone, with decreased spending and increased taxes necessary to repay such debt a period of contractionary policy may lay ahead!

Until next time,

Jennifer

Welcome to the 6th Edition of the OzForex Update!

As many of you sit by your computers ever hopefully waiting for the GBPAUD to increase beyond its current levels, I thought it might be useful to discuss limit orders and how they can be extremely helpful in times of “non-ideal” rates...

Basically, a limit order allows a client to instruct us to buy a specific currency when it hits a certain level. This means that as soon as your target level is reached (and even if it only lasts there for a few seconds), we will go and buy the agreed amount of currency at the agreed rate. As foreign exchange markets are open 24 hours and volatility often occurs during overnight sessions, you may miss out on the best rates if you are unable to monitor movements all the time.

There are very few providers out there who will allow private clients to utilise limit orders – with OzForex limit orders are free but the amount generally does need to exceed AUD 50,000. For more information on OzForex limit orders, register by clicking on one of our adjacent banners or speak to the OzForex dealing team on 1300 300 424.

OZFOREX BRIEFING TO BERIA MEMBERS # 6

Last week we certainly saw the GBP fall against the AUD, this wasn’t helped by the better than expected unemployment figures released in Australia. The AUD recovered quickly after the RBA left interest rates on hold and that was certainly unexpected. Still, no joy for the GBP/AUD however we have expected to see improved figures for inflation, retail sales and unemployment in the UK also. The RBA will meet tomorrow to hear what Gov. Stevens has to say, and retail sales figures will be released in the UK on Friday also, so fingers crossed they will come in stronger!

For more information, please follow the links and go to the Economic Calenders and Daily Commentaries.

Until next time,

Jennifer

Happy New Year BERIA members,

For this 5th instalment of the fortnightly update we thought it would be beneficial to explain what a “margin” is and how you can identify a good rate from a bank or other foreign exchange provider.

All foreign exchange providers (banks inclusive) buy currency at wholesale rates (often called the “interbank rate”) and on-sell the funds to their clients at a retail rate. The difference between these two rates is called a “margin” and is how most banks and brokerages make their money.

In order to identify the size of the margin the provider is taking from you, make sure you ask what the current “interbank rate” is when you are quoted a rate. The closer the offered/customer rate is to the interbank rate, the better it is. At OzForex, we compare our customer rates to interbank rates for you at http://www.ozforex.com.au/cgi-bin/customer-foreign-exchange-rates.asp.

This month OzForex is also offering your first two transactions fee free! To take advantage of this special deal click here or on one of the adjacent banners, and you will have no fees attached to your first two transactions that are under AUD10000!

OZFOREX BRIEFING TO BERIA MEMBERS # 5

With the start of the New Year there are certainly many investors hoping for a brighter 2010 for the Pound Sterling. With a busy economic calendar lying ahead in the coming month, the market has finally seen some positive sentiment established. With extremely ambitious expectations of improved economic growth coming out of the UK, and impending announcements expected out the Bank of England there’s predictions of increased volatility should the fundamentals not reach their anticipated lofty heights. The GBP/AUD is currently trading on either side of the psychological barrier of 1.80 with the market yet to make any steady gains from this level, as times passes and as the developing economies slowly free themselves from the strains of the global economic crisis of 2008, we would expect this rate to hopefully turnaround.

A full economic calendar for the days ahead, please go to our home page and follow the links!

Until next time,

Jennifer

Merry Christmas Beria members,

What a year it has been to say the least! Almost 2 years ago, 2008 was on track to being a great year in the Australian economy with strong GDP growth and low unemployment figures, consumers were spending up large and Exporters were happy. 2009 has seen the worst Global Financial Crisis since the Great Depression of the 1930’s, and we are still reeling from the fall out. What will 2010 have in stall for us? Luckily here in Australia it has been managed relatively well when we compare to the UK, US and Japan. Significant risks still remain, however and we live in hope that valuable lessons have been learnt.
Understanding exactly what we are getting ourselves into when making financial decisions is very important. Transparency when choosing such things as a Foreign Exchange Provider can not only be rewarding, it offers peace of mind and empowers consumers. Choosing an ‘easy to understand’ system should take priority when looking at such things like locking in rates and getting quotations. There are always questions we ask when first looking at this -

•What does the buy/sell rate mean?
•Am I buying or selling or both?
•Am I looking at this the right way?
•Is that what I will actually get?
•Are there any other hidden fees or charges?
•Are all charges built in to the rate?

OzForex only offers deliverable Foreign Exchange, which means it is also always a two sided deal. You exchange one currency for another. You sell one currency and buy another. For example, GBP/AUD means you are selling GBP and buying AUD. When getting a quotation through OzForex, you will be quoted in these terms. It will always mean that this will be displayed as GBP/AUD 1.8100, which means 1 GBP equals $1.81. AUD, so this makes the quotation very easy to read and understand.
Anything over GBP3,000 is completely fee free, and anything under GBP3,000 there is usually a one off charge of GBP7.00 only, so again, this is very simple. The rates you are quoted under the ‘new quote’ tab in your profile is the rate you actually get! There are no commissions or hidden charges. What you are buying in AUD is the exact amount you will see in your account at the other end, and because OzForex will pay the AUD from an account in Australia, there will also be no receiving fees at all, easy!

OzForex provides expertise in Foreign Exchange and International Money Transfers. We provide helpful tools, charts, daily commentaries online and access to accredited dealers by phone 24-hours a day Monday to Friday. You can contact us with any questions you might have on 1300 300 424 or info@ozforex.com.au.

OZFOREX BRIEFING TO BERIA MEMBERS # 4

It’s certainly been a bumpy old ride for the Aussie dollar in the last few weeks as the local market appears to have knocked off early for the Christmas break. With improved purchasing in the US we have witnessed a move away from the domestic currency. As investors continue to move from the AUD, those waiting to bring funds across from the UK have seen their sterling stretch a little further just in time for the festive season. With the direction of the GBP/AUD becoming increasingly volatile it’s certainly a nice surprise to see it heading away from the historical lows of just a few months previous. The market remains nervous ahead of pre-Christmas announcements in the UK, with investors hoping for some positive sentiment to kick off the new year.

Out of the UK this week

22nd December – Gross Domestic Product
23rd December – Bank of England Minutes
23rd December – Mortgage Approvals
25th December – Christmas!

Out of Australia this week

25th December – Christmas!

Merry Christmas and a Happy New Year to everyone!

Until next year,
Jennifer

Hello BERIA members,

Welcome to our third briefing for BERIA members!

Our last briefing we covered the most fundamental questions to ask when looking for a Foreign Exchange provider. This time, we will cover the ‘Safety of Your Funds’.

Moving your money can be nothing short of daunting, especially when it is your main source of income and/or your whole life savings. Researching and checking a company’s reputation and credibility is the most important thing you can do to ensure your funds are in good hands. There are some essential questions that you must ask before you take the plunge and entrust your money with a Foreign Exchange Provider.

Please see the below check list of the questions you should consider asking -

•Are they licensed to do this kind of business?
•Who regulates them and in what country?
•How long has the company been around for?
•Who are they owned by?
•What happens when you type the company name into a search engine like Google?
•Have you heard of them before, or do you know anyone who has used them?
•How can I contact them and what are their opening hours if I need to speak to them?

Australian regulations are some of the strictest in the world. They require licensed foreign exchange dealers to meet strict capital requirements and employ a range of internal procedures to ensure consumer protection. OzForex has an Australian Financial Services Licence to deal and give advice in Foreign Exchange granted by the Australian Securities and Investments Commission (Licence No. 226484).

OzForex offers a safe and regulated alternative to the banks for transferring funds. Your funds are held in accounts with major financial institutions and are only released once your outward payment has been sent. OzForex is a trusted provider to more than 70, 000 clients worldwide who enjoy the benefits of excellent rates and low fees without compromising on service.

You can contact us with any questions you might have on 1300 300 424 or info@ozforex.com.au.

OZFOREX BRIEFING TO BERIA MEMBERS # 3

The Pound against the Aussie has been trading within a very tight range over the last couple of weeks. With the festive season approaching the outlook remains neutral as the markets wind down for the year. Looking back it has certainly been a year to forget with the GBP/AUD trading temporarily down around a 30 year low. While we have seen some strengthening in the rate, it’s expected the economic recovery in the UK will be a slow one, although much of the world economy may have turned the corner, it appears the UK still has a sustained consolidation period ahead of it.

On a more positive note the strength of the Aussie has also levelled as investors flock back to the less risky majors, as a result this should help those looking to bring funds back from the UK. Despite the tough year the plus side still remains that the rate will eventually improve the unpredictability however lies in its timing.

Data out of the AUD this week

December 8th - Westpac Consumer Confidence
December 9th – Home Loans
December 10th – Consumer Inflation Expectation
December 10th – Unemployment Change, and Rate

Data out of the UK this week

December 9th – Nationwide Consumer Confidence
December 10th – Bank of England Interest Rate Decision
December 11th – Producer Price Index

Until next time,
Jennifer

This information has been prepared by OZFOREX Pty Ltd, ABN 65 092 375 703, AFS Licence Number 226 484 without taking into account the investment objectives, financial situation and particular needs of any particular person or company. OzForex makes no recommendations as to the merits of any financial product referred to in this advertisement. Please read our Product Disclosure Statement at http://www.ozforex.com.au/documents/pds.

Hello Beria members,

Welcome to the second briefing for BERIA members!

As advised in our last briefing, we are going to cover some basic tools and options available to you when moving funds internationally over the coming weeks but first, I thought we would cover the most fundamental questions you should be asking when looking for a provider.

Rule number one - You should always use a regulated foreign exchange provider. Some jurisdictions do not regulate non-bank foreign exchange providers, whereas other countries such as Australia, formally regulate providers to ensure they meet certain financial, audit and training standards.

The best thing to do when choosing a foreign exchange provider is to compare services and consider asking such questions like:

• How do I get started?
• How do I get funds to you?
• How safe is my money?
• What is the differences in exchange rates, transfer fees and receiving bank fees?
• Transparency of prices – is the provider open about their margins?
• How easy is it to actually use?
• Do I have access to experts over the phone?
• Are they available 24hrs?
• Can I choose the time of conversion myself?
• Do I have access to hedging tools such as Forward Contracts?
• Is the foreign exchange company I am dealing with licensed and regulated?


Australian regulations are some of the strictest in the world. They require licensed foreign exchange dealers to meet strict capital requirements and employ a range of internal procedures to ensure consumer protection. OzForex has an Australian Financial Services Licence to deal and give advice in Foreign Exchange granted by the Australian Securities and Investments Commission (Licence No. 226484).

We offer a safe and regulated alternative to the banks for transferring funds. Your funds are held in accounts with major financial institutions and are only released once your outward payment has been sent. We are a trusted provider to thousands of customers (many Beria members) world-wide who have enjoyed the benefits of excellent rates and low fees without compromising on service.

Well that’s enough about us, you can contact us with any questions you might have (no matter how basic) on 1300 300 424 or email info@ozforex.com.au.

OZFOREX BRIEFING TO BERIA MEMBERS # 2

The past two weeks has not seen an awful amount of movement for the GBP. Despite the GBP/AUD trading within a tight 3 cent range over the past 3 weeks, there does remain a large level of speculation surrounding the comments and policy announcements out of the Bank of England. With opinion divided on whether the asset purchasing program will continue, the market remains nervous about increased volatility. The market is hanging out for improved GDP Figures out of the UK on Wednesday with sentiment remaining sluggish should this news disappoint, despite the key level of 1.80 being reached, commentators would still predict a rough patch for the battling GBP. Let’s keep in mind, there is a 62% market expectation the RBA will also increase interest rates next week, by 25 points!

Out of the UK this week

Tuesday 24th November – BBA Mortgage Approvals
Wednesday 25th November – Gross Domestic Product
Wednesday 25th November – Index of Services


Out of Australia next week

Tuesday 1st December – RBA Interest Rate decision
Tuesday 1st December - RBA Commodity Index
Thursday 3rd December – AUD Retail Sales


Until next time,
Jennifer


This information has been prepared by OZFOREX Pty Ltd, ABN 65 092 375 703, AFS Licence Number 226 484 without taking into account