Can I profit from a strong pound? I am a British citizen living and working in New Zealand. I would like to buy a house here in the next couple of years and am saving up for a deposit to put towards it. I have NZ$44,000 saved and I am planning to transfer this money to my UK savings account to make the most of the strong New Zealand dollar. But I plan to move the money back to New Zealand when the dollar loses value against the pound. When should I do this, and what methods I should use? Elisabeth Dobson, head of the private client desk at currency broker World First, says the economic crisis has meant that the values of various currencies are more volatile than ever - so, if you are looking to plan ahead, it's essential that you keep a close eye on movements in the market. Over the past six months, the sterling-New Zealand dollar exchange rate has been on a rollercoaster ride, with a 13 per cent swing between the high and low. Fears over a slowdown in China have hit all the Pacific currencies hard recently, while the pound has benefited from its recent status as a "safe haven" currency. Slowness in the global economy is expected to see monetary policy become more expansionary, which is likely to lead to interest rate cuts - and the Reserve Bank of New Zealand is a primary candidate for this. It could mean that the kiwi dollar weakens further in the next few months. But, with the fortunes of the pound so perilously exposed to the eurozone, there's no certainty that the pound will stay as strong as it has been. Further monetary stimulus from the Bank of England - known as "quantitative easing" - will also weaken the pound, even if the currency continues to gain some ground for a month or so. Knowing where the rates are going to be in two years" time is even more difficult. However, if you use a currency broker, you will ensure you get a better exchange rate when you convert from kiwi dollars to sterling - and back again - than you would from a bank. If you use a Financial Services Authority authorised broker, you can also secure an exchange rate in advance with a "forward contract" or, if you are looking to keep some flexibly, you could utilise a "currency option." Currency options minimise your exposure to exchange rate moves by fixing your worst case rate in advance, like a forward contract, but they also allow you to receive the upside if the rates move in your favour in the lead-up to the date of transfer. Choose a broker that offers a "rate alert" service and maintains close contact with its clients. If you are trying to plan ahead and beat the market, you are going to need a professional on your side. Charged for my US dividends I'm an American expatriate living in London and I'm looking for a brokerage firm through which I can manage my self-invested personal pension (Sipp), but have my dividends automatically reinvested without a commission charge. My current UK broker charges every time I reinvest dividends. Is this standard in Britain? Various online accounts I have in the US all offer automatic dividend reinvestment with no charge. Jason Butler, a partner at independent advice firm Bloomsbury Wealth, says you could open up a US dealing account to obtain free reinvestment of dividends - provided that your Sipp provider will allow this. But your provider is likely to charge a higher fee for this facility - which may wipe out the savings. An alternative is to use a low-cost UK Sipp dealing account, such as Selftrade's, as it charges only £1.50 for automatic dividend reinvestment - as long as the security is in the FTSE 100 index or on the broker's panel of approved exchange traded funds (ETFs), commodities (ETCs) or investment funds. This advice is specific to the facts in the questions posed. Neither the FT nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.