Pros and cons of a spot contract

Spot contracts

Benefits of a spot contract

As the simplest service you can use to transfer funds, there aren’t many complications using a spot contract. Because you are able to agree the exchange rate before sending your funds to A Place in the Sun Currency, you are in control of the transaction and will only proceed if you are happy with the rate.

This service usually also offers the best available exchange rate at any given time.

Full control of your transaction
Usually the best rate available at any given time
Your rate will not go down if the market declines

All your funds need to be available to settle with us
Your rate will not improve if the market goes up
May require some additional documents

Key considerations

You will need to ensure you have the funds available to settle the contract within a couple of days of placing the order – if your money is overseas, or in a savings account, you should make sure you are able to transfer it to A Place in the Sun Currency before placing an order with us.

Because exchange rates move all the time, you might also find that you could have got a better deal hours or days after agreeing the rate too. But conversely you might buy just at the right time. Nobody can predict the markets, so be sure you are happy with the rate on offer, before telling us to secure your rate.

Depending on the amount you are exchanging and the nature of your transaction, we may also need to ask for additional documents to comply with regulations on ‘source of funds’. Your account manager can advise on this before you commit to a transaction.