FAQ

What is Spot FX and when is it used?

By May 25, 2020September 11th, 2020No Comments

Spot FX/Spot Transaction

Spot FX or sometimes called a spot transaction, refers to the simultaneous buying and selling of one currency against another, usually for settlement within two business days. Rutland FX can provide same day Spot FX on a large basket of currencies. You can find a full list of our currency capabilities here.

How Long Does It Take?

Once you have settled for a Spot FX trade it will in most cases be sent via the SWIFT network. This means that payments to Europe will arrive the same day. You can find a list of our payment cut off times and respective currencies here.

Spot Trades from Rutland FX
Fixed Forward and Spot FX from Rutland FX

Are there any Fees?

Rutland FX does not charge any transfer fees or commission on Spot FX trades.

Are there any alternatives?

Spot FX accounts for the majority of daily global FX volume and is most suitable for immediate delivery of currency.  If you are not looking for immediate delivery of currency there are alternatives such as FX Forwards, FX Options, Non-Deliverable Forwards and FX Swaps however they are more frequently used as hedging tools. This market is generally reserved for use by medium to large corporations hedging their overseas exposure, or also by importers and exporters that don’t want to trade a particular currency pair at the current time, however will still have to pay their counterpart in another country at some point in the future.

Still not sure?

If you are still unsure or have any further questions, please call us on 0203 026 0112 or request a callback to discuss your requirements.

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