Currency Brokers – The most competitive way to send money abroad

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.


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