I am planning to attend university in Britain next year, but I currently get paid in USD. I want to take advantage of the low USD-GBP exchange rate to buy a one-time futures contract so that when I actually have my money in USD in 9 months, I can buy GBP at a guaranteed rate. I am planning to convert about $20k. Where would be the best place to buy this contract, any idea about how much it can cost (hundreds? thousands)? thanks.

Answer
Hi there,

Opening up an account with SaxoBank, It's a international bank.

Use their trading platform on forex options.

Long a PUT Options on GBP/USD for 9 months and the premium is 0.105 .
0.105 : 20,000 X 0.105 = $2100

How can I pay a bill to a foreign country without an international payment fee?

I'm in the USA and want to pay a university in England about $6000. To switch that to Pounds my credit card would be charged an extra 3%($180). I have enough saved up to pay it cash, but I need to pay it before I arrive in the UK. I'm on a tight budget, how can I avoid that fee?

Answer
I don't think you will be able to avoid the fees. First, there is the exchange rate loss you will suffer from conversion to Pounds, second, even if you tried to wire the money, banks will charge you for the transaction, besides their rates are bad.

If you are to go the bank way, go to a Forex bureau, convert your dollars to cash and then wire the money to the university or do a TT EFT.. you will save close to $100