Forex for contractors
As a contractor it is vitally important that you get every penny of your hard earned income working efficiently, whether it be in your personal hands or still within your Limited company.
Plan your money transfers
Far too many contractors put up with uncompetitive interest rates and poor service at the hands of high street banks and ignore the opportunities provided by newer entrants to the market and many more contractors that need to change money from one currency to another relay to heavily on bank transfers which are costly and give a poor exachange rate.
If you are working overseas and need to change currency reguarly or for a large amount then you should open your own forex account to benefit from being able to maximise your earnings - dont lose to the tax man or feed the bankers profits!
Forex for contractors
The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies. [1]
The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.
In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.
The foreign exchange market is unique because of
- Trading volumes,
- The extreme liquidity of the market,
- Geographical dispersion,
- Long trading hours: 24 hours a day except on weekends
- The variety of factors that affect exchange rates.
- Low margins of profit compared with other markets of fixed income