Local-in, local-out

When you join Flowbrite you are issued local named bank accounts in the US, Canada, Europe and the UK, plus a named multi-currency account in the UK for every other currency. This combined with our local pay out capabilities to over 50 countries really does mean you can transact like a local.

• Make it easy for your customers to pay you. Invoice them in their own currency and allow them to pay via local payment networks where possible. Manage the FX risk with a forward contract as part of your hedging strategy.
• Delight your suppliers. We can pay out to over 50 countries using local payment networks meaning your international suppliers can get paid in full too and will want to work with you.

We can help reduce the fees associated with sending and receiving international payments.

What is a forward contract?

Booking a forward contract with Flowbrite allows you to secure an exchange rate for a trade on a date upto 12 months in the future. They are used to help minimise the impact of currency fluctuations and market volatility on profit margins. At Flowbrite we offer 2 types of forward contract:

• Fixed forward contracts. Buy or sell an agreed amount of a currency pair on a particular date in the future.
• Stop-loss orders. A stop-loss order can be thought of as the opposite of a take-profit order with the rate set below the current spot rate. Stop-losses are usually used to to limit your exposure to downward market trends.
• One-cancels-other orders. Also known as an OCO order. This order type combines both a take-profit and stop-loss order. If the target rate is met for either order the other one is cancelled. OCO orders allow you to take advantage of possible positive exchange rate movements whilst simultaneously protecting against downward movements.

Why hedge?

Buying a forward contract and locking in an exchange rate it means you know exactly what exchange rate you're getting for a period of time. You can use it to accurately predict your profit or make it easier to price. If you chose not to hedge the market could move against you leading to potential losses or the need to charge more for your products or services.

Things to consider...

• You must pay a deposit. This is known as "margin" and is typically 3% to 5% of value of the contract. It is essentially a security deposit that must be paid when the forward contract is booked.
• Markets move. During a forward contract, if the market rates move against you, you won't lose out because your rate is secured. However, if rates move significantly against you, you may need to top up your deposit. This is known as a "margin call".

How do I buy a forward contract?

Froward contracts must be booked through your account manager.

What is an FX order?

FX orders allow you to protect against short-term downside risk, or alternatively to use market volatility to your advantage by targeting a more favourable rate. At Flowbrite we offer 3 types of FX order:

• Take-profit orders. A take-profit order targets an exchange rate better than the current spot rate. They are the best option if the currency is trending upwards and you believe it will continue to rise.
• Stop-loss orders. A stop-loss order can be thought of as the opposite of a take-profit order with the rate set below the current spot rate. Stop-losses are usually used to to limit your exposure to downward market trends.
• One-cancels-other orders. Also known as an OCO order. This order type combines both a take-profit and stop-loss order. If the target rate is met for either order the other one is cancelled. OCO orders allow you to take advantage of possible positive exchange rate movements whilst simultaneously protecting against downward movements.

How do I place an FX order?

All you need to do is to decide on your target rate and expiry date and time. Then just call your account manager to place the order. When the target rate is hit or the order expires we will notify you.