Frequently Asked Questions
Why use Sceptre and not a Bank?
Very simply, Sceptre will provide a more efficient service at a better price.
Is my money safe?
Yes. All Sceptre’s currency accounts are designated client money accounts. These accounts are segregated from company monies.
Sceptre is regulated by the Financial Services Authority (FSA) under registration number: 540558 for payment services. This means Sceptre meet the FSA's stringent criteria of corporate governance, solvency, risk identification and risk management.
Confirm this by visiting the FSA website http://www.fsa.gov.uk/register/psdFirmSearchForm.do
Sceptre is registered with HM Revenue & Customs for Money Laundering Regulations, Number: 12610333. This means we adhere to the Anti Money Laundering Regulations 2007 which came into force on 15th December 2007.
Confirm this by visiting their website https://customs.hmrc.gov.uk/msbregister/checkTerms.do
How long does it take to transfer my funds abroad?
For the major currencies (GBP, EUR, USD, CAD) same day and next day currency transfers are the norm. Sceptre uses priority SWIFT technology for all transfers, which is the fastest and safest way to transfer funds bank-to-bank anywhere in the world.
How does Sceptre a make profit?
Sceptre makes its money by offsetting the market exchange rate (the Interbank rate) by a nominal margin which is given to a client ("client rate"). This margin is much less than what you would get from your bank, meaning that our clients get better exchange rates.
Who participates in the FX markets?
Apart from Sceptre; central, commercial and investment banks have traditionally dominated the foreign exchange market.
When is the FX market open?
From Monday 05:00 Sydney local time (currently Sunday 19:00 GMT), To Friday 17:00 New York local time (currently Friday 22:00 GMT)
What is initial margin?
A margin or deposit is required by clients wishing to trade with Sceptre. Margin is held incase a client defaults on settlement resulting in a loss. The loss is deducted from the margin and returned back to the client.
Sceptre’s Back Office system captures every trade and calculates the closing P&L (marked to market). Should a potential loss be calculated that infringes on the clients account value becoming negative, Sceptre will issue a margin call for additional funds to cover potential loses should the client default on settlement. This prevents any client being in a trade they can not fund.
What is spot and forward?
Spot is a foreign exchange trade with a settlement time of two days from the trade date. A forward or an outright is similar to spot, but the settlement date can be set up to one year forward. Once a forward/outright is executed, the exchange rate is set regardless of any further exchange rate movement. Forwards/outrights are subject to risk of potential margin calls (please see “what is initial margin” above).
What are orders and how do they work?
With Sceptre you can place a request for an order. An order is simply a mechanism to allow you set a desired exchange rate with Sceptre. We will watch the markets from Sunday 19:00 GMT to Friday 22:00 GMT and execute your order should the target price be triggered by the market moving appropriately. This is called a limit order.
Sometimes you may have budgeted or set a peg rate that if breached could prevent a foreign house purchase or reduce your profit ratios. One way to protect yourself could be to place a stop loss order. This is processed by Sceptre in the same manner as a limited order.
What does value date mean?
Settlement date or value date is when your foreign exchange trade is available for delivery. Sceptre requires to be in receipt of sold currency one day before settlement/value date before releasing funds. This is called DVP (delivery versus payment).