Frequently Asked Questions
About Ultima
About Ultima Money
What is currency conversion or foreign exchange?
This is the exchange of one currency into another by international wire transfer. This type of transaction includes the transfer of funds from one bank account to another via Ultima Money. This service is also known as physical delivery.
Who is Ultima Money?
Ultima Money Ltd is a foreign exchange company handling physical delivery of electronic foreign currency also known as a bank-to-bank transfer.
Why use Ultima Money?
- Excellent exchange rates
- Financial concierge service
- Dedicated currency experts
- Your own personal dealer
- No transfer charges or commission
Why is Ultima Money cheaper than using a bank?
The reason is simple. Due to the volume of currency we purchase through our bank we are given a preferential rate which we pass on to you in the form of a better exchange rate.
We make our profit in the exchange rate spread (also known as the ‘margin’) which is far smaller than the bank and other dealers.
It is difficult for banks to remain competitive while they maintain large overheads and operate as large corporations.
How is Ultima Money different from other dealers?
We are very focused on the client experience so not only do we offer you excellent rates and no transaction fees on sums above £5,000, but we also offer you a client-dedicated expertise with your own dealer, providing a truly outstanding foreign exchange service.
Is using Ultima Money a time consuming process?
No. As specialists in this field we know how time critical international payments are.
We will discuss your timescales from the outset and recommend the best method to use in sending funds to our client bank account.
The payment is then made automatically to your designated recipient bank account by SWIFT transfer.
All UK domestic payments are sent by the same day CHAPS service.
Banks often take longer to process payments, since being large organisations, frequently your payment is handled by several employees and departments before being sent.
Ultima Money also retains your recipient bank details to avoid the need for you to email or fax details every time you complete a transaction.
Communication with Ultima Money is far easier than with a High Street bank.
What type of clients does Ultima Money work with?
Private individuals and businesses requiring foreign exchange.
What sources of information do Ultima Money use?
Our experienced dealers use a wide range of sources to gather accurate, reliable and up-to-date information, all used to help our clients.
Our sources of vital information vary and include; CNN, CNBC, Reuters, Bloomberg, financial news websites and independent market analysis including Sigma trading services.
Our proactive approach keeps you up to date with the market via our blog, news feeds, email and telephone.
Booking a transaction
Using our services and opening an account
You need to open an account. You can do this by clicking on the Open an Account page. You then need to select if you would like a personal or business account and complete our online application form.
You will then see instructions on what documentation is required to finalise the process.
How long does it take to open an account?
Once you have made your account application online and submitted the relevant documentation by email or post your account will be open and ready to use within an hour.
Why do I have to provide you with documentation to open an account?
We are required by HM Revenue & Customs under the Money Laundering Directive to identify our clients. We are obliged to carry out these procedures on all our clients.
Do I need to make a deposit into my Ultima Money account?
No. Your account with Ultima Money is a trading account. This allows you to buy or sell currency by phone. The account is not a bank account.
How secure is my money?
Ultima Money is officially registered with the UK’s financial regulator (the FSA) to carry out payment services in compliance with The Payment Services Regulations 2009. Our FSA registration number is 506764. We are also registered with the HMRC Anti Money Laundering Regulations. Click here to read more.
How and when can I book an exchange rate?
You can book an exchange rate by phone when you have received written or verbal confirmation that your application has been approved and your account opened.
Is there a minimum or maximum amount that I can trade?
No. We do however charge £10 for any transaction under £5,000 unless it is part of a regular payment plan.
Does the rate offered vary depending on the amount?
Yes. Fixed costs for every trade are the same regardless of the volume (amount). So the more you trade the better the exchange rate offered.
Can I buy holiday money with Ultima Money?
No. We only offer bank-to-bank currency transfers. Click here for our recommended holiday money provider.
What exchange rate will you offer?
The rate you are offered is based on the live market inter-bank published price.
We will offer you an exchange rate by phone (that includes our margin) from this rate. The rate will depend on the volume you trade as well as the frequency.
Please note market rates change per second. Websites and other media displaying the rate may have a time delay.
What exchange rate will be offered?
This will be determined by the amount of currency that you are buying and the frequency of your purchasing requirement.
What is a same day trade?
We provide you with the ability to trade same-day (same-day value) enabling you to book a rate and request a payment of funds all in one day. We will require receipt of your funds by 12pm.
We can also provide this type of trade next day (overnight value). The contract type is ideal for currency required on an urgent basis.
Please note that this trade is not possible for minor and exotic currencies with longer settlement periods.
What is a spot contract?
This is a transaction with an agreement to buy or sell currency for two working days ahead. Payment of funds and settlement is made on the second working day.
This type of transaction is the most popular as it serves requirements for delivery of currency within a short time period but also allows enough time for you to send funds. Please ask your dealer if you need any additional days to make payment at the time of booking your trade up to five working days ahead.
What is a forward contract?
This is a transaction that allows you to book an exchange rate for delivery of up to one year ahead. This allows you to remove any future risk from currency fluctuations. Also known as hedging this is a brilliant way of managing your foreign exchange exposure. A forward contract is ideal for personal clients wishing to fix the cost of buying an overseas property or financial obligation.
It is also ideal for a business looking to capitalise on the prevailing exchange rate against future obligations.
Forward contracts require a deposit of 10% deducted from the sum payable on the maturity date. The (margin) deposit is required to protect Ultima Money against defaults on forward contracts. Smaller deposit requirements can be arranged depending on your trading history and circumstances.
Please note you can move the maturity date of your contract before or after this date by contacting your dealer. There may be additional costs for doing this.
What is a forward time option contract?
This option is similar to a forward contract but allows you the flexibility to draw down some or all of your funds anytime between the deal date and the settlement date of your contract.
How does it work if I am selling currency?
As a client of Ultima Money you are able to sell US Dollar, NZ Dollar, Australian Dollar, Euro and Swiss Franc, as we can receive foreign currency payments on your behalf to our bank, cost free.
Currency can then be transferred to your designated beneficiary when the rate is favourable or when you require. Trades can also be booked on a same-day basis depending on the currency.
What is a limit order?
A limit order placed in the market will enable you to buy or sell a currency when the market reached a required level, higher than the prevailing exchange rate.
On your instruction we will monitor the market and confirm if the rate is achieved (filled) at the required level or target rate. You can also place a time order or let it run GTC (good-till-cancelled) or indefinitely. This type of order runs in the market 24 hours a day seven days a week.
What is a stop loss order?
A stop loss placed in the market will enable you to buy or sell a currency set at a lower level than the prevailing rate. This protects you on the downside against negative movements and limits your loss in a falling market.
The exchange rate is not 100% guaranteed at the required rate as there is a risk in any fast moving market that the order is executed (completed) on less advantageous terms.
You can place a stop loss order on GTC (good-till-cancelled). This type of order runs in the market 24 hours a day seven days a week.
Payment and Settlements
How do I pay for my currency?
There are three ways of making settlement for your transaction:
CHAPS (Clearing House automated payment system)
This is used for urgent payments as your funds will usually arrive same day.
Your bank may charge you up to £30 for this service, which is ideal for transactions over £10,000.
Online banking
This allows you to make payments to Ultima Money using your bank’s internet banking service. Some banks are now using the new faster payments service allowing your funds to arrive same day. Banks not using this service will deliver funds to Ultima Money within two to three working days by BACS (banking automated clearing system). This method can be restricted (depending on your bank) to a maximum of £10,000 per day.
Telephone Banking
This allows you to make payments to Ultima Money using your bank’s phone banking service. Some banks are now using the new faster payments service allowing your funds to arrive same day. Banks not using this service will deliver funds to Ultima Money within two to three working days by BACS (Banking automated clearing system). This method can be restricted (depending on your bank) to a maximum of £10,000 per day.
Please note
It is essential when sending payments to Ultima Money that you specify your client number as a reference.
Your chosen settlement date will depend on the method used in sending money to Ultima Money.
Failure to reference the funds with your client number may result in delayed payment, Ultima Money will not be held responsible for this.
Ultima Money does not accept cash, cheques, debit/credit cards, or drafts under any circumstances.
Please ensure we receive your payment by the agreed settlement date allowing for the processing time taken by your bank or financial institution.
Do I pay any transfer charges, extra fees or commissions?
No. There are also no transaction fees to pay on amounts above £5,000. There is a small transfer fee of £10 on amounts below £5000.
What happens if I no longer require my currency?
On occasion, due to unforeseen circumstances, plans or requirements change. If required we will sell the purchased currency back to the market and request the client to cover any losses or charges that have been applied.
How long do I have to make payment for my trade?
Same day contract
Settlement is required by 12pm on that working day
Spot contract
Standard settlement is within two working days. Ultima Money can provide up to five working days for settlement if required. You will need to inform your dealer at the time of booking your transaction.
Forward contract
A 10% deposit is required within two working days. The remaining 90% is required on or before the maturity date of your contract. Smaller deposit requirements can be arranged depending on your trading history and circumstances.
Please note payment must be made as per the settlement date agreed with your dealer. Late payments may incur extra costs.
When will my currency be sent?
On receipt of your funds your currency payment will be sent via SWIFT Telegraphic Transfer to your beneficiary bank account. This method is the quickest way of delivering funds. If you are selling currency we will return sterling to your UK bank account the same day by CHAPS.
How long will it take for my payment to arrive?
Ultima Money will make payment automatically on receipt of your recipient bank details and funds, providing they arrive before 12pm.
All major currencies will usually be credited to an account within 24 hours. Minor and exotic currencies will take longer depending on the destination country.
Further information can be provided by your personal dealer.
Can I change the settlement date of my transaction?
Your foreign exchange transaction whether spot or forward will be booked and agreed with a settlement date (also known as a value date).
This is the date on which you need to pay funds to Ultima Money. If you need funds sooner (draw down) or later (rollover) than the initial settlement date, you will need to inform your personal dealer as soon as you are aware, in order for a new date to be agreed.
In both cases the exchange rate agreed will remain the same minus any extra costs for moving the date. These additional costs will depend on the currency, the amount and the new settlement date. This is known as a SWAP contract.
Does the beneficiary bank charge to receive funds?
This depends on the amount remitted and the destination country. This type of charge is also known as a landing or agent fee. US Dollar payments to the US are covered, as are most payments to emerging markets. New legislation in Europe means Euro payments to banks and institutions signed up to the scheme will usually not charge for receiving, although this should be checked with the receiving bank prior to sending the payment.
Can a payment be recalled?
No. Once an international wire transfer is initiated and the confirmation received, payment is guaranteed by the bank.
However, if there is inconsistent or incorrect information in the beneficiary bank details, the transaction may be reversed and funds returned, or there could be a delay in the specified account being credited.
Does Ultima Money pay interest on outstanding balances?
No. Ultima Money is a brokerage not a bank.
Unfortunately we are not authorised to hold client funds and do not hold a banking licence to pay clients interest on funds held on deposit.
For any further information or to discuss your options, please call 0800 8620269 or email info@ultimamoney.com or contact us
Ultima Money Ltd are registered with the FSA in compliance with the Payment Services Regulations 2009 and HMRC for Anti Money Laundering Regulations
FSA Registration Number:506764 HMRC Registration Number:12312714