Why hedging is so useful

Why hedging is so useful

When MGP hedges a currency for you against a different currency, we create a contract during the term of which you can buy or sell that currency at a guaranteed exchange rate without needing to pay upfront.

You can then use this ‘forward contract’ to make payments for goods, services, a capital investment into another enterprise or even return funds back to your business.

Expertise. Data. And no fees.

Expertise. Data.
And no fees.

By bringing our extensive expertise, and the market-leading data with which we work, to bear on your specific objectives, we tailor a currency risk management strategy specific to you.

This adopts what we consider to be the optimal strategy, and utilises the most advantageous products in the market. We don’t charge a ‘fee’ for this. Instead, we simply incorporate this into the exchange rate - which will remain highly competitive.

The benefits of hedging foreign currency with MGP

MGP can de-risk your foreign exchange exposure and help you protect margins, cashflow and profits. Real benefits... with tangible returns.

Profit margin certainty

Profit margin certainty

By knowing your exchange rate for a fixed period, you can be sure your profit margin is protected against movements.

Flexible products

Flexible products

Provide you with the ability to change maturity dates, window to use funds and amount of currency.

Improved planning

Improved planning

Certainty over exchange rate helps you with cash flow planning as well as with mitigating currency risk.

Hedge strategically

Hedge strategically

Lock in a rate to cover future dated international invoices, or to secure future currency requirement forecasts.

Tailored for you

Tailored for you

We understand businesses have different commercial goals, which is why we don’t create generic hedging strategies.

Cashflow benefits

Cashflow benefits

Forward contracts can be booked by paying a small deposit now, with the balance due on one or multiple future dates.

“MGP Solutions have been an invaluable partner as we have moved from a UK to a global market. They understand the TV sport industry and the hedging and cashflow challenges we face daily. MGP work with us to provide the best hedging models for each contract as they all have unique requirements. Their insight and level of personal service is unrivalled in my experience of FX brokers and their flexibility enables us to be nimble.”
Allan

Allan, Head of Finance

“Before working with MGP we had partnered with several providers of currency exchange. The most frustrating thing was a lack of transparency around the margin being taken by the provider. The benefits I value most are transparency and the platform which is easy to use for simple spot trades. If I need advice on something specific, I can make a phone call to get it.”
Paul

Paul, Managing Director

“Second to none when it comes to handling foreign currency exchanges. Not only knowledgeable, engaged and efficient but offered an unrivalled level of customer experience - essential when it comes to critical financial transactions.”
Glenn

Glenn, Managing Director

 

Benefit from our transparency

‘Forward Points’ are the adjustments added or subtracted to the current price of a currency to set its price for a future transaction. When we hedge for you, we show these to you so you can see how they are impacting your purchase costs.

Not everyone is MGP, however! As this can increase the profit from a trade significantly, lots of legacy foreign exchange providers keep quiet about these and use them to maximise their margin.

Peace of mind

Currency exchange and international payment services are provided through MGP Solutions by companies who are fully authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Some of MGP Solutions currency exchange and international payment services are provided by The Currency Cloud Limited, registered in England with company number 06323311. Registered office: Stewardship Building, 1st Floor, 12 Steward Street, London E1 6FQ.

The Currency Cloud Limited is authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 for the issuing of electronic money. FCA registration number 900199. Client funds are processed securely via segregated client accounts.

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