Dealing "spot" is what you will get if you dealt through your bank. You fix a rate for delivery in two days time. This is beneficial when you need your currency immediately, but can pose problems when you will need currency in the future. For example, if you agree to buy a property off-plan it is likely that you will require a deposit. Dealing spot is good for this as you need the money immediately. But if the balance of the cost of the property is not due for 12 months it is unlikely that you would want to deal spot for the total cost and tie up your capital for such a long period. On the flip-side, you may not want to leave the balance to be dealt at a later date, as you will leave yourself exposed to fluctuations in the currency market. This is why Cornhill FX can also offer you forwards.

Forwards mean that you can secure a rate at the time of dealing for settlement up to two years in the future. There is a "cost of carry" on this sort of transaction but this is a calculation based on the difference in the interest rates of the two currencies. Dealing forward means you agree the price and therefore negate the risk of currencies moving against you. However, you will not pay until the date that the forward contract is due to settle, thus freeing up your capital in the interim. Cornhill FX will require a small margin payment as security against this sort of transaction. Forwards are beneficial as you know exactly what your costs will be from the outset.