Moving Money Across Borders: Why FX Strategy Matters

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For internationally mobile individuals, global mobility is often framed around residency, citizenship, and lifestyle outcomes. But behind almost every decision sits a far more practical reality: moving money across borders. 

Traditional banks, in particular, often offer uncompetitive exchange rates and embed significant margins within them, meaning clients can lose substantial amounts of money without ever seeing a clearly stated fee. 

When transferring funds from USD to EUR, for example, even a small difference in exchange rate can result in tens of thousands lost on a single transaction. 

Whether purchasing real estate in Greece, investing in funds in Portugal, or committing capital to residency or citizenship programs, transferring funds internationally is not simply an administrative step. It is a financial decision, often involving significant sums, where small inefficiencies can lead to substantial costs. Having an FX strategy matters.  

This was the focus of a recent episode of The Global Passport Investor, where Latitude Group Chairman and CEO Eric Major sat down with Giles Lloyd, Founder of CompareFX, to unpack the realities of foreign exchange in global investment planning. 

The Overlooked Layer of Global Mobility

In the world of investment migration, attention is often placed on program selection, timelines, and legal frameworks. Less attention is given to how funds actually move. 

“In the business that we do… money often has to go from one country to another. And often it’s a lot of money,” explained Mr Major.  

For many clients, this is where uncertainty begins. Exchange rates fluctuate daily, pricing structures are opaque, and the process itself is often treated as a necessary but poorly understood step. 

Mr Lloyd describes this as one of the industry’s most persistent challenges. 

“The main pain point which I found in this industry is trust. People don’t know who to trust.” 

A Market Defined by Complexity and Lack of Transparency

Foreign exchange is a global industry, but one that remains highly fragmented. 

With hundreds of providers operating across different markets, clients are often left navigating a landscape where pricing is not always clear and comparisons are difficult to make. 

“There are so many options for customers to choose from… there’s a lot of noise to cut through,” said Mr Lloyd. 

This complexity is compounded by the way FX pricing works. Unlike many financial services, costs are often embedded within exchange rates rather than presented as transparent fees. This makes it difficult for clients without an FX strategy to understand what they are actually paying. 

“It’s really hard for the customer to understand… am I being taken advantage of or am I not?” 

The Hidden Cost of Currency Transfers

FX costs are not insignificant. Even small percentage differences in exchange rates can translate into meaningful financial impact when applied to large transactions. 

“Anywhere from typically $200,000 to… $5 million New Zealand dollars,” explained Mr Major.  

Within this context, pricing inefficiencies can quickly compound. Mr Lloyd shared that, in recent cases working alongside Latitude: 

“Over the last three clients… we’ve saved them $30,000 in markup fees.” 

These are not marginal differences. They represent a layer of cost that many clients are unaware of until it is measured directly. 

From Execution to FX Strategy

One of the key themes emerging from the conversation is that FX should not be treated as a one-off transaction. 

Instead, it should be approached as part of a broader financial strategy. 

“It’s only 50% of the battle,” explained Mr Lloyd.  

“Because if you’ve got a cheap markup, but you do it at the wrong time… you’re still not being efficient.” 

This introduces two critical factors: Timing, and structure.  

Currency markets are inherently volatile, influenced by macroeconomic conditions, political developments, and interest rate decisions. 

“There’s been a lot of volatility… it makes it uneasy for customers to know what they’re ultimately going to be paying,” said Mr Major.  

Managing Currency Risk in Practice 

For clients committing to future investments, whether in property, funds, or structured programs, managing currency exposure becomes a particularly important FX strategy. One of the tools discussed in the episode is the use of forward contracts. 

“It enables you to buy at the currency rate today for a future delivery date,” said Mr Lloyd. 

This allows clients to reduce uncertainty and protect against adverse market movements. In practice, many clients adopt a blended approach: 

• securing part of the exposure at current rates 
• leaving some flexibility for future movements 
• spreading transactions over time 

This approach reflects a shift from reactive decision-making to proactive planning. 

Trust, Transparency, and Long-Term Relationships

Beyond pricing and strategy, the conversation returns repeatedly to the issue of trust. 

For many clients, FX is not a one-time interaction. It becomes an ongoing requirement as they: 

• complete initial investments 
• purchase property 
• transfer income or assets internationally 

“When you have someone in your corner… it reduces the anxiety. There’s a plan. There’s a strategy in place,” said Mr Lloyd.  

This highlights the importance of having clear pricing structures, consistent service, and ongoing advisory support rather than relying on transactional relationships. 

A Structural Part of Global Planning

Ultimately, this episode reinforces a broader point about FX strategy. Global mobility is not just about where clients live or what passports they hold. It is about how their financial lives are structured across borders. 

“A big part of this is… they want some of that infrastructure outside [their home country] as well. Diversification,” said Mr Major.  

In this context, foreign exchange becomes more than a technical function. It becomes part of risk management, capital efficiency, and long-term international structuring. 

Looking Ahead: A More Informed Client Base

As global mobility continues to evolve, clients are becoming more sophisticated in how they approach cross-border decisions. 

This includes not only where they invest, but how those investments are executed. The shift is subtle but important – from viewing FX as a transactional necessity to treating it as a strategic component of international planning. 

This article highlights just a portion of the discussion. For a deeper dive into how FX works in practice, including real-world examples, strategies, and client outcomes, you can watch the full episode of The Global Passport Investor here: https://www.youtube.com/watch?v=-37oG8IdGCU. 

If you would like to know more, read about Latitude’s partnership with CompareFX here. For a more personalized experience, Latitude’s advisors are also available for a confidential conversation.