Bank Vs Broker – Save Money on Your Corporate Foreign Exchange
For any business, maximising profitability is essential. When that business has to engage in foreign exchange, whether to meet import/export costs, manage a foreign payroll, pay a mortgage or invest in overseas assets, monitoring that bottom line becomes a bit trickier. However, with the help of a reputable currency broker your business could save anywhere from hundreds to tens of thousands of Pounds on its foreign currency transfers.
So, how can currency brokers help?
Leading, FCA authorised currency brokers can transfer over 50 global currencies swiftly, securely and cost-effectively, helping your business save time and money.
Currency brokers work on much smaller margins than many banks so they can secure exchange rates up to 3% better. Although 3% might not sound like much, the difference of a couple of pence per Euro can leave you thousands of Pounds better off on a large transaction.
For example, if your business needs to transfer €250,000, making that transaction at 82 pence per Euro rather than 80 pence per Euro could mean a difference of £5,000.
While the savings aren’t quite as extensive on smaller transactions, if your business has to move money abroad on a regular basis (e.g. for the management of a foreign payroll) conducting those transactions at a more competitive exchange rate will make a considerable long-term difference.
Additional savings can be made as the majority of banks add on transfer fees to every transaction. Leading currency brokers like TorFX don’t levy these transfer fees or commission costs, and as the bank fees can range from £10 – £40 you could save up to £480 over the course of the year.
Currency brokers are also able to give their clients access to specialist foreign exchange services like forward contracts. Forward contracts allow favourable exchange rates to be fixed for up to a year in advance of a trade – helping you safeguard your transactions from adverse movements in the currency market.
As the foreign currency market is so volatile, keeping track of the latest market movements is essential if you want to achieve the best exchange rate. TorFX ensures its clients are kept in the loop by providing them with technical and fundamental analysis of current trends as well as offering specialist guidance regarding potential future fluctuations.
Another pro-point of using a currency broker like TorFX rather than a bank is that your company will be assigned its own dedicated Account Manager to handle all transactions. As well as providing specialist market insight, helping you pick the most lucrative time to trade and talking you through the best ways of safeguarding your funds, your Account Manager will act as a constant point of contact – meaning you won’t be passed round a call centre.
The process of opening an account with a currency broker should be free, quick and easy – and you shouldn’t be put under any obligation to trade.
These are just some of the benefits your company could enjoy by using a currency broker rather than a bank. With their support and insight, your business could maximise its profitability.