Dollars at $1.7699 to the pound

[london75]

Crown Currency have been discussed a few times but they have some cancelled contracts at the moment. Thought it worth posating for people that don't get their emails.

Just bought all our holiday money at $1.77 effectively no commission and free delivery for May this year.

Get it while it's hot, limited amounts left!

https://www.crowncurrencyexchange.com/content/cancelled-currency-contracts.asp

Disclaimer: This is undoubtedly riskier than a traditional exchange so weigh it up for yourself, I've used them three times now and never an issue.

Double disclaimer: I don't work for them, reading it back it sounds like a spam advert!

 

[wayneg]

A way to buy currency I said is not worth the risk but that is a great rate for anyone willing to hand over their money for 4 months. About 20 cents/£1 more than the High st.

 

[london75]

That's it, you've got to factor in loss of interest or cost of credit to the equation, you give your money out and get nothing back for however many months.

The cancelled contracts are certainly a good deal if you have cash or say a low balance transfer rate on a credit card.

I doubt very much the actual rate will go above 1.68-69 by May

 

[igk]

I'd be very wary of this. I know people have successfully used them in the past, but something doesn't seem right to me.
It looks too good to be true, and when that is the case often it is too good to be true.
They seem to be offering these great rates on cancelled contracts. This seems odd. Why cancel a contract if the rate is in your favour? Who had the contract that got cancelled? Why on earth if the contract holder cancelled the contract if it was not in their favour would this company be offering a free profit to its customers? There is more than just the interest differential in these rates - so something smells fishy.
Sorry to put a damper on it - I just don't want anyone to lose out if it goes wrong.

 

[stephensmum]

What is the difference between a cancelled contract & ordering with them the normal way? We used them last year.

 

[london75]

No difference and to put in perspective, 2 of the 3 times in the past I've used them are on cancelled contract.

They don't have the dollars, they have a contract for dollars at that rate on that date. They sell contracts, they aren't an exchange and they aren't selling money in a traditional sense. The difference is the contract in this case is second hand and it was created when the rate was anticipated to get much better.

Why don't they take the rate themselves? What if the real rate leapt to $1.90 to the £ in May when the contract is due, the company would be bankrupt? I'm prepared to take that risk with my holiday money but as a business it is much easier to pass the risk on and take a fee per contract.

That's how I understand it. Which is why I also think the risk is actually pretty low as the company don't actually own the dollars, they've sold you a contract with someone selling dollars.

 

[london75]

PS This is the concept behind futures largely responsible for the economic troubles we're in!

Watch the rate go to $2 to the pound now!

 

[igk]

I'm really not trying to criticize or put a damper on london75
The thing is the company wouldn't have to go bust (or lose money) if the rate went to 1.90 by may and they didn't pass the dollars on to the likes of you and me, they could hedge it themselves in the forward fx market and lock in the profit. Presumably when they did the contract in the first place that supposedly gets cancelled, there would be some hedge against the risk of that, so they could then just close that.
I don't know maybe they're fairly clueless and probably they'll continue to be fine, but I still say be careful

 

[minimandymouse]

I'm really not trying to criticize or put a damper on london75
The thing is the company wouldn't have to go bust (or lose money) if the rate went to 1.90 by may and they didn't pass the dollars on to the likes of you and me, they could hedge it themselves in the forward fx market and lock in the profit. Presumably when they did the contract in the first place that supposedly gets cancelled, there would be some hedge against the risk of that, so they could then just close that.
I don't know maybe they're fairly clueless and probably they'll continue to be fine, but I still say be careful

cancelled contract deals for the last 7 years from this company and have had no problems whatsoever
The always deliver on time by courier on the day they say they will
I don't know why they call them cancelled contracts and to be honest i don't really care because they give such a good rate (much better than the high street)
Yes there is a risk but if you are willing to take it you get a brilliant deal
Mandy

 

[2Tiggies]

Yes there is a risk but if you are willing to take it you get a brilliant deal
Mandy

That's the answer in a nutshell. It is a risk. Are you comfortable to take it? For me, I don't gamble with my money. For those who do - most of them come off with a better rate than me. I can live with that. Depends on the person. I hope it works out for everyone using it.

 

[babyh200]

Thanks for the tip-just ordered some more dollars for June.
We have been using Crown for a couple of years now. The minimum order is £300. We tend to order dollars from them in £300 batches and when one lot arrives order the next! They are very prompt and any orders normally arrive the day before they are due by special delivery. Its like a savings scheme for us and stops us being temepted to spend the money on something else.
Just to let anyone considering using them know we have used them about 6 or 7 times now without any problems!

 

[jopaly]

As others have said, we've used them a few times as well now over the last 2years for both Dollars and Euros.

We've just ordered on the contract that the OP referred to for our May/June trip as well.

I can understand why people are sceptical, but from our experience, we've never had any problems and the service is excellent.

We've also used 'Travel Money Services' which are effectively the same company operating under a different name.

 

[fairytale]

I too have used Crown for many years now, either from Cancelled contracts or simply by purchasing when the rate goes up on the Stock Market. They normally average a good few dollars higher depending upon how in advance you are ordering.

I often by the odd £500 here and there and it all adds up to our next holiday

Also something to note, they will happily also buy your dollars back off you upon your return should you have any surplus at a good rate but I suppose that depends on how good the rate was that you bought at

 

[igk]

I would recommend anyone considering using this company to read this:
http://www.investorschronicle.co.uk/Columnists/NoFreeLunch/article/20090909/0873f056-9d2e-11de-b65c-0015171400aa/When-segregation-is-good.jsp

Edit, and this:
http://www.dailymail.co.uk/money/article-1221083/Could-cash-lost-conversion-unauthorised-foreign-exchange-firms.html

 

[fuse04]

We used Crown three times last year and no problems, but as you say there is no protection if they go bust. However like all things in life the bigger the risk the bigger the return, and for most it is about what level of risk you are confortable with.

 

[stephensmum]

Wish I'd got them, sold out for May now. We go in August, do they have them each month?

 

[london75]

Tends to be every 4-6 months or so, whether it's genuine cancellations or just a marketing ploy, it always seems to pay up. I think over the last few years we've saved enough to not lose out overall if they did go under anyway.

If you're going August I'd be tempted to buy at 1.7499 as that is still a flippin great rate. We've decided on a second trip in August du to the way my contract is panning out so if we have some money spare soon we'll buy some more on that rate.

If you have a look, their current August rate is only 1.6488 so cancellations if genuine are only likely to be around the 1.65 mark as that is what the contracts were taken out at. If you're lucky there'll be some better rates but if not it'll be 1.65.

This does not constitute financial advice as it's very clear from this thread and others that you hand over money and hope your dollars will arrive. I and others have used them many times but next time might be the bummer as it were!