Migrants’ money at risk in foreign exchange transactions
New migrants to Australia potentially wasted hundreds of millions of dollars during the past year in poor foreign exchange transactions and bank charges incurred through transferring assets from their home country, according to foreign exchange risk management company HiFX.
Because many migrants are unaware of fluctuating exchange rates, currency market volatility or the risks associated with currency exchange, HiFX Australia director Spencer Wilcox said: “Effectively, there is a right time and a wrong time to transact a currency exchange, and your future wealth will be affected by the exchange rate you receive when you conduct a significant foreign exchange transaction.”
He said many people are unaware of the risk associated with changing money, and unfamiliar with the range of alternative service providers that exist to help with such matters.
One HiFX offering is called the Regular Payment Abroad (RPA) service, which enables migrants to manage regular income streams such as pension payments or other receivable from home countries. This eliminates bank charges and protects against currency fluctuations.
Recommended for you
Sequoia Financial Group has announced it is selling off its Informed Investor subsidiary which it acquired in April 2022.
Wealth Data has examined which advice business model has seen the most growth since the start of the year including those that offer holistic advice.
Research conducted by Elixir Consulting and Lonsec has quantified the efficiency gains of using managed accounts in financial advice practices in hours per week saved.
With only one-quarter of advice practices actively seeking feedback from clients, the Financial Advice Association Australia has emphasised why this is a critical tool for client retention.