From Trump to the constant uncertainty around Brexit, China’s growing influence throughout the world and the current situations in Iran and Syria, it’s safe to say the world is a rather unpredictable place at the moment. Of course, all this unpredictability has effects that are far reaching and one of those is currency.
On a daily basis, money is moved around the globe from country to country, for a multitude of reasons and understanding how currency exchange works could help you save some money. For most of us, when we need to move funds, we’ll head to our local high street bank and arrange for them to organise the transfer. However, this isn’t necessarily the best option.
Foreign Exchange (Forex) companies are often able to beat the rate of exchange that your local bank offers you and this can equate to a saving of between 2% – 5% on the rate.
How are Foreign Exchange companies able to do this?
Large financial institutions have access to the interbank market where they trade currency. Some foreign exchange companies also have access to this market enabling them to buy currency at good rates and pass that saving on to the client.
A question that often gets asked is why a bank or foreign exchange company’s rate is not as good as what they see when they Google or check the rate online.
The rate seen on Google is the live interbank market rate and one that is not achievable by the man in the street. These are the rates that financial institutions have access to.
Making use of a forex company also means that you get personalised proactive service and have a dedicated trader who will contact you wherever you are in the world to discuss the exchange rate prior to the trade. Transactions are handled and processed faster than most banks can manage and each client has one point of contact.
Should you need to transfer funds on a regular basis, for example, paying a mortgage bond overseas, converting income or receiving pension payments, a forex company can offer a cost-effective method whereby this process is automated and paid across at the best possible rate of exchange. This process can be monitored by the client via real time online tracking and email confirmation is provided once the payment is sent.
When selecting a forex company, make sure you use a reputable one.