A Guide to FX Forward Purchasing
What Is an FX Forward?
An FX forward is a contractual agreement to buy or sell a specific amount of currency at a fixed exchange rate on a future date.
Unlike spot transactions (settled within two business days), forwards extend settlement for weeks or months, allowing you to secure today’s rate for tomorrow’s payment. For high-value transfers — property purchases, inheritance distributions, investment funding — this provides price certainty and peace of mind.
Why Private FX Clients Use Forwards
Predictability
Eliminates budget uncertainty; you know the exact sterling cost of a euro, dollar, or franc payment months in advance.
Cash-Flow Control
Only a small deposit (margin) is needed to fix the rate — freeing up liquidity until completion.
Protection, Not Speculation
A forward is designed to remove volatility, not to “bet” on the market. Lucid clients use them to neutralise risk, not chase returns.
Alignment With Broader Wealth Strategy
Currency exposure is just one element of wealth. Locking rates ensures portfolio or property decisions aren’t undermined by FX moves.
How an FX Forward Works
Benefits vs Limitations
Use Cases for Private Clients
- Overseas Property Purchases – Secure the purchase price months before completion.
- Tuition Fees or Relocation – Fix annual outflows for families abroad.
- Investment Funding – Time foreign-currency investments without exposure drift.
- Estate & Trust Distributions – Protect value of multi-currency inheritances.
Lucid Insight: Strategic, Not Speculative
At Lucid Financial Markets, forward purchasing is integrated into a broader wealth and liquidity plan — not used in isolation.
Our advisors assess:
- Time horizon and cash-flow needs
- Potential alternative instruments (partial forwards, options, or staged conversions)
- Tax and reporting implications for large contracts
The goal: clarity, control, and continuity across borders.
Key Takeaways
- An FX forward fixes a future rate — protecting budgets from volatility.
- It’s ideal for high-value, time-sensitive overseas payments.
- Understand both sides: stability versus lost upside.
- Always embed FX planning within your overall financial strategy.
If you’re planning a significant foreign payment or property completion, Lucid can help you structure an FX forward that fits your timing, liquidity, and broader wealth objectives.
Speak with a Lucid Advisor to explore your options today.
FAQ's
Who must pay UK CGT?
UK residents on worldwide gains; non-residents on UK property and certain indirect interests.
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What are the current CGT rates?
Most gains are charged at 18%/24% depending on your remaining basic-rate band; residential property uses the same split. Always check the year’s rates on HMRC.
How quickly must I report a UK property sale?
Within 60 days of completion via HMRC’s online service (residents and non-residents).
Do I get an allowance?
Yes — £3,000 for most individuals in 2025/26; trusts usually £1,500. Confirm the figure at the time of filing.
How do currency movements affect CGT on overseas assets?
Gains are calculated in sterling; FX swings can increase or reduce the computed gain. We help clients plan conversions (see our FX forwards guide).
We help...
Here's What Our Private and Corporate Clients Said
''David has been great throughout the process. He has explained everything from the start in a clear manner. He has been punctual, always responsive and, overall, a wonderful professional to work with.''
''Dave has been very helpful throughout my transfer of money from the US to the U.K. He was available to answer my questions and guide me through the process. He is friendly and reassuring. I certainly appreciated his quick responses whenever I needed him.''
''David was very detailed about the service, kind in his communication, engaging as a person, and helpful with as much as he could. I really enjoyed working with him and I feel like I've made a long-term connection.''
''I have used a range of online FX services before (Wise, etc...). I was introduced to Lucid as I needed to do a number of higher value transactions.David has been brilliant: transparent, available, good advise,...Overall great service and value for money. Highly recommended and would use again.''
''I used Lucid / David for a purchase of a property in Spain. Was a very good service and would recommend. It's pretty stressful transferring large sums cross border and David gave a very good personal service.''
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Our take
Empowering financial decisions for corporate and high net worth clients through currency risk management and best execution.
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