- 90,000 British families emigrate each year in search of a better life[ii] but could lose up to £10,000 of assets when they move abroad - High street banks charge up to 4% over the odds for currency exchange[iii] - Émigrés also at risk of currency fluctuation during time it takes to emigrate

Brits emigrating abroad could collectively be losing as much as £900 million a year by relying on high street banks that are cashing in by offering unfavorable exchange rates, warns currency specialists HiFX.

Each year approximately 90,000 British families leave the UK to live overseas, lured by the promise of sunnier climes and outdoor living. However, thousands are risking their pot of gold at the end of the runway by paying over the odds for currency exchange and relying on their high street bank to transfer their assets.

On average, a UK family emigrates abroad with assets of £250,000[iv] from the sale of a house, car and some savings. While they carefully plan their new lives in minute detail, what many overlook is the potential cost of leaving their currency exchange in the wrong hands. By transferring their worldly goods to their new country via a high street bank, the average family risks losing up to a staggering £10,000 of their assets. According to research from HiFX, banks typically charge 4% more than currency specialists in unfavourable exchange rates.

Mark Bodega, Marketing Director for currency specialists HIFX comments: “Making the decision to move to a new country is a big undertaking, both emotionally and financially. The last thing that any family taking the leap would want to do is unnecessarily lose as much as £10,000 in the process. Unfortunately though, this is exactly the case for the many people who entrust the transfer of their assets from old to new country to their regular high street bank. This huge loss could be avoided simply by people being aware of the alternatives and making sure they get the best rate for their money, early on in the process.”

As well as falling victim to inflated charges on exchange rates, émigrés are also at the mercy of currency fluctuation as they are rarely able to transfer all their assets in one go. The time it takes to make a successful visa application and eventually move abroad can be anything from nine months to four years. During this time, exchange rate fluctuations can have a huge impact on a person's future wealth because at various points during the process they will have to convert some or all of their assets into the local currency of the new country. For example, when moving £250,000 to Canada over a four year period, currency fluctuation could mean you risk as much as £68, 500.

Each year HiFX helps 2,500 families emigrate from the UK. They have identified Australia, New Zealand and Canada as the top three destinations for Britons moving abroad permanently.

Destination / Average time is takes to emigrate / Currency fluctuation / Average amount of money transferred / Potential amount lost through currency fluctuation[v]

Australia / 9 -12 months / 9.7 % over last 12 months / £250, 000 / £24,250 New Zealand / 6 – 9 months / 21% over last 9 months / £250, 0000 / £52, 500 Canada / 3 – 4 years / 27.4 % over last 3 years / £250, 000 / £68,500

Bodega continues, “What many people may not realise is that they have the option of 'fixing' the exchange rate or taking out a forward contract on the destination currency as soon as they have made the decision the move. Without doing this many wannabe émigrés are taking a huge gamble with their money. People need to seek proper advice at the outset from currency specialists, who are also usually able to offer a far better rate of exchange than the banks.”

When transferring all your UK wealth HiFX recommends considering forward contacts. In essence this means people can buy their currency as soon as they start the emigration process and pay for it later (once they have sold their UK house for example). By doing this consumers are completely protected from exchange rate movements as they have 'locked in' the exchange rate at the time of setting the contract.

Mark Bodega added: “The earlier you begin thinking about your currency requirements, the more likely you will be able to start your new life with as much money as possible. The majority of people emigrating from the UK are not millionaires jetting off to a luxury island, but everyday people who are likely to be most affected by banks charging over the odds for currency exchange and losses through currency fluctuation when transferring their worldly goods overseas.”

For further information on HiFX and its products and services Please call 01753 751 776 or visit www.hifx.co.uk

HiFX HIFX is widely recognised as one of the UK's leading foreign exchange specialists. In addition to promising that customers will not have to pay commission fees or transfer charges, HIFX guarantees that no client will be charged a receipt fee by a foreign bank with their new 'zero charges pledge'.

HIFX was featured in the 2006 Sunday Times Best Small Companies to Work For, for the second consecutive year.

Notes to editors:

[i] According to HiFX internal figures, the average family transfers assets of £250,000 on emigration - Mystery shop results (see note 3) reveal that high street banks take on average 4% more commission on currency transfers than currency specialists. - Therefore families are losing 4% of their assets on higher exchange rates offered by banks (£250,000 x 0.04 = £10,000) - This potential loss, multiplied by the number of families emigrating, equals the amount lost through unfavourable exchange rates (£10,000 x 90,000 families = £900m)

[ii] According to Office of National Statistics 360,000 Britons emigrated in 2004. Assuming an average family size of four, that is 90,000 families: (360,000 ÷ 4 = 90,000 families)

[iii] Mystery shop results of exchange rates offered by currency specialists and high street banks on 25th August 2006

Company / Rate on buying €150,000 / Cost £

HiFX / 1.4780 / £101,488.49

Moneycorp / 1.4730 / £101,832.99 Barclays / 1.4729 / £101,839.99 Currencies Direct / 1.4720 / £101,902.17 UK Forex / 1.4708 / £101,985.31 Lloyds TSB / 1.4626 / £102,557.09 Nationwide / 1.4539 / £103,170.78 HSBC / 1.4345 / £104,566.05 Halifax / 1.4307 / £104,843.78 Royal Bank of Scotland / 1.4100 / £106,382.97 Nat West / 1.4095 / £106,420.71

Difference of £4,932.22 between the highest and the lowest or 4.63%

[iv] According to HiFX internal statistics the average family transfers a total of £250,00 in a number of transactions

[v] Note – these figures are based solely on currency fluctuation in the time it takes to emigrate. The actual amount risked by an émigré would also be affected by inflation rates. A forward contact negates the risk of currency fluctuation by 'fixing' the rate at the prevailing rate at the time of taking out the contract. HiFX can not guarantee that the rate at which a forward contract is set will not improve during the time it takes to emigrate.

Case Study: HiFX

Mike Cole, of BritsNZ used HiFX when he and his family emigrated to New Zealand. “As a qualified financial adviser and now an emigration specialist I have had a number of clients complain about the poor exchange rates offered by their high street bank and indeed before undertaking detailed research “suffered” similarly poor rates. As a result when we decided to move lock stock and barrel to NZ my research quite fortuitously led me HiFX. No-one has a crystal ball so they can't predict the future, but the advice and service I got was excellent. More importantly they helped me make $1,000's by employing strategies that allowed me to work within the markets 24 hours a day to look for the best rates. By using HiFX and their expertise we made sure that, along with a great exchange rate, we were in the best possible financial shape on arrival - this made a considerable difference to us financially. I cannot overstate the massive importance that other should place on learning as much about these strategies before leaving for NZ”

- Ends -

For further information, contact: Mark Bodega, HIFX Tel: 01753 751776 Email: Mark.bodega@hifx.co.uk

Caroline Macleod-Smith, Lansons Communications Tel: 020 7566 9702 Email: carolinems@lansons.com

Helen Thomson, Lansons Communications Tel: 020 7566 3604 Email: helent@lansons.com