Currency brokers are renowned for offering far better exchange rates than the banks when it comes to sending money abroad. This industry has grown at a fast pace over the past decade as more and more private individuals are investing abroad especially in overseas property. People have become aware that the high street banks offer poor exchange rates on large overseas transfers and the service offered is often unsatisfactory with a low level of currency market knowledge.
Banks generally offer extremely poor tourist exchange rates on even the largest international transactions. The emergence of currency brokers allowed private and corporate clients to achieve more competitive exchange rates, specialist advice and assistance on the foreign exchange markets. If you are planning to carry out a large international payment with a currency broker you will receive an exchange rate closer to what is advertised in the paper (the interbank rate) than what you would achieve via the bank.
How do Currency brokers make a profit?
Currency brokers make a profit in the same way as the banks do. They make a profit in the difference between the interbank rate and the exchange rate that they offer to you. Currency brokers are far less greedy than the banks and take a far smaller spread allowing you to benefit from better exchange rates.
Save money
To see how much money can be saved by using a currency broker instead of the bank to make an international payment, simply call a currency broker and a bank and compare the exchange rate they both offer to carry out a transaction at the same time. Exchange rates fluctuate all of the time so you will need to check one against the other immediately to make a true comparison.
On larger transactions of over £50,000 you can save thousands of pounds by using a currency broker instead of the bank.
You can still save money on smaller transactions by using a broker. If you make regular international payments a currency broker will be happy to waiver any transaction fee and will offer you competitive exchange rates. On average a private client sending £1,000 on a month basis to Spain will save £300 annually by using a currency broker instead of the bank.
Currency Brokers and Risk
People are concerned about transferring a large amount of money to a currency broker because of the perceived risk of losing their money. If you are planning to use a currency broker we would always advise you to check that they are FSA registered. Currency brokers should also have a business license from HM Revenue and Customs for money laundering purposes.
Unfortunately being FSA and HM revenue and Customs registered does not guarantee that your money is 100% safe. One of the most important ways to check the legitimacy of a currency broker is to find out how long they have been in business. Use the compare currency international payment table to find a currency brokerage with an established track record.
You also have the right to request information on the company’s accounts and balance sheet from Companies House and some brokers will contact their banking providers for a reference letter for you to have.
When deciding whether to use a currency broker or the bank to make an international payment you must weigh up the potential risk against the substantial savings that can be made. The checks mentioned in this article will help you to find a well established and reputable currency broker.
Was tlotlay stuck until I read this, now back up and running.
Son of a gun, this is so helfupl!
Hi Etta,
Currency brokers are renowned for offering far better exchange rates than the banks when it comes to sending money abroad. This industry has grown at a fast pace as more and more private individuals are investing abroad especially in overseas property. People have become aware that the banks offer poor exchange rates on large overseas transfers and the service offered is often unsatisfactory with a low level of currency market knowledge.
Currency brokers make a profit in the same way as the banks do. They make a profit in the difference between the interbank rate and the exchange rate that they offer to you.
To your Forex Trade Success,
Olav
Superior thikning demonstrated above. Thanks!
Thanks for your comment
The Importance of Superior Thinking and Decision-making in Business Success.
How do we view a company that shows consistent profitability, growth, and stability? We quickly conclude that it is good management behind the business success. What immediately comes into our mind when a business fails or has gone bankrupt? We readily pass judgment and say that bad management brought the business down.
So, it is all about quality of management. But quality of management is just the end result of the two most important aspects of business, and these are: the quality of thinking and the quality of decision-making.
Superior thoughts are important in all stages of the business and they are most critical in planning and strategy development.
To your Forex Trade Success,
Olav
Hahahaha. I’m not too brgiht today. Great post!
If time is money you’ve made me a wealhteir woman.
Dear Ziggy,
Thanks for your reply!
Remember – most resources are potentially unlimited. There’s no limit to how much money you can make, right?. There’s no limit (other than self-imposed) as to how many customers you can have, or employees, or locations, or products or anything else.
But there are only 24 hours a day, 7 days a week, 52 weeks a year, and you have to spend some of that time sleeping, eating, playing, relaxing and growing with yourself, your friends and your family. Time is an entrepreneur’s most precious resource, because it is the only one that is truly scarce. Be stingy with it.
Brgds,
Olav
Thanks!
To your Forex Trade Success,
Olav