A forward contract lets you fix today's exchange rate for a transfer you will make later, typically up to 12 months ahead and with some providers up to two years. You usually pay a deposit of about 10% when you book and the balance on the agreed date. It protects your budget if your currency falls before completion, but you will not benefit if it rises, and you stay committed to the transfer even if the purchase is delayed or falls through. Some providers let you close the contract early, with any loss taken from your deposit.
How a forward contract works
- You agree an amount in euros, a date or a window of dates, and a rate with a currency provider.
- You pay a deposit, often around 10% of the amount.
- Before the date, you send the balance in your currency and receive the euros at the rate you fixed, in an account in your name, ready to send to the notaire.
Among providers that publish their terms, OFX offers forwards from five days to 12 months for personal clients, Currencies Direct and Smart Currency Exchange up to a year, and Moneycorp up to two years. OFX asks individuals for a 10% deposit. We found no forward contracts for personal customers at Wise or Revolut; Revolut offers them to business accounts. Read on 28 October and 10 November 2026: see OFX and Smart Currency Exchange.
Why buyers use one
About three months usually separate the compromis from the deed. Your budget, the bank's loan and the notaire's figures are all in euros, but your money is not. On the ECB's reference rates, the pound moved between 0.8336 and 0.8846 per euro over the last twelve months: on €300,000, that is the difference between £250,074 and £265,380 (our calculation).
Fixing the rate turns that uncertainty into a known figure. It is most useful for the deposit and the balance, which are large amounts on dates you know, and when a fall in your currency would leave you short of what the bank and the notaire expect.
The risks
- You must complete. A forward is a binding agreement. Currencies Direct says its contracts cannot be cancelled. OFX says you must settle the full amount and may be liable for losses if you cannot.
- Top-ups. If the rate moves sharply against the contract, you may be asked for an additional deposit (OFX).
- If the purchase falls through. Smart allows you to cancel, but deducts any loss from your deposit. Others leave it to discussion. Ask before you book.
- No upside. If your currency strengthens, you still pay the agreed rate.
- Dates. Deeds slip. A contract with a delivery window, or one you can extend, avoids having euros arrive before you need them or too late.
A common approach is to fix part of the amount, for example the deposit and the purchase costs, and convert the rest when the date is certain.
How forwards are regulated in the UK
A currency forward entered into to pay for identifiable goods, services or direct investment, settled by actual delivery of the currency, is treated as a means of payment rather than a financial instrument under MiFID. The FCA's guidance says this can cover land (FCA PS17/14, PERG 13). In practice, a forward to buy a French property is usually outside the investment rules, and the protections that come with financial instruments do not apply to it.
The firm itself should still be authorised by the FCA, usually as a payment or e-money institution that safeguards client money. Check it on the FCA register before you send anything.
Other ways to manage the rate
- Convert on the day. Simple, and fine if the amount is small relative to your budget or you have room for a move.
- Target-rate orders. Several providers let you set a rate at which they convert automatically if the market reaches it.
- Convert in stages. Spreading conversions over several weeks averages out the rate.
Compare providers on the rate you receive, not only on fees: brokers do not publish their exchange-rate margin. The guide to paying from abroad covers the transfer rules.
If you would like a currency specialist to contact you about the deposit, the notaire funds or your repayments, tick the currency box in your eligibility check, or ask your broker. It is never a condition of the introduction.
The currency specialist we introduce is run by the founder of this site.
Questions
How far ahead can I fix an exchange rate?
Typically up to 12 months for personal clients, and up to two years with some providers.
What deposit does a forward contract need?
Often around 10% of the amount, paid when you book. Some providers can ask for more if the rate moves against the contract.
What happens to my forward if the purchase falls through?
You are still committed to the transfer. Depending on the provider, you may be able to close it out, with any loss taken from your deposit. Ask before you book.
Can I get a forward contract from Wise or Revolut?
We found none for personal customers on their UK sites. Revolut offers forwards to business accounts.