Exchange rates will be agreed ahead of transfers, but will be better than using a traditional business bank account. Fees will also be lower, or non-existent, and the money should arrive at the intended destination quicker as well.
Often, tools like forward contacts will be used for any planned payments in the future.
Large business transfers and currency brokers
Using a currency broker offers a range of benefits against other types of business transfer companies, and banks.
Account managed
Currency brokers offer an account-managed money transfer service. This can give you a range of benefits - notably support on larger, complex transactions.
In some cases, support is available 24/7, in others, it is office hours in the country the broker operates from.
They will be able to offer insights into currency fluctuations and at times provide currency forecasts and advise on when is best to make a transaction.
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Tailored currency risk strategy
Currency brokers can offer tailored risk management solutions and strategies for businesses with high levels of cross border currency risk.
These risk strategies can include forward contracts and limit orders.
Companies like Moneycorp will also conduct an FX audit and currency risk audit to give an idea of the best approach for long term currency management risk.
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Legal and tax obligations
Working with a currency broker will aid in legal and tax obligations being met. This can be through fulfilling them with the currency broker or ensuring the transaction is set up correctly.
In most cases, this can also be self managed, however having a currency broker to hand is relatively helpful.
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Exchange rates and fees
Most currency brokers do not charge fees, but be aware the hands on service can come with a slightly higher exchange rate than a digital provider.
As an example, Airwallex charges a 0.5% markup across the board, whereas the TorFX markup starts at 0.4%, but can be as high as 1.5%.
Why opt for a currency broker over a standard bank account
Cheapest and fastest ways to send large amounts
Currency risk is reduced
Specialists for things like M&As
Be clear on
The rate and fee paid to a currency broker is agreed in advance, but may not be the same for every transaction.
On a case by case basis it pays to shop around, or agree a rate with a currency broker for a set period of time.
This can be done through a forward contract, but be aware a company is legally obliged to fill this type of order.
Just to be clear, a currency broker is not an FX broker. There is no overlap with trading within these companies and all are regulated to action money transfers within the countries they operate.
The providers
Compare currency brokers
Use cases
Currency brokers are used by many different company types across the world. Here are some examples of where they have been used.
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Recapping large transfers
Currency brokers offer a better deal for large transfers than banks
Currency brokers will work with you put in place currency risk management strategies
Currency brokers provide account management, or 24/7 over the phone support
Currency brokers often charge no fees, and exchange rates can start from as little as 0.4%
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