Currency exchange – choosing a good broker

It's a well-known fact that using a currency broker can save you money on your foreign currency transactions. Whether you are a business with regular import and export channels, or an individual collecting rental income from an overseas property, you need to make sure that you're getting the best service from the best broker.

Choosing a currency exchange broker – things to think about

• Exchange rate – you want to be sure that your broker is able to offer you a good currency exchange rate. Established brokers that are dealing with numerous currencies every day can often get much better exchange results than individual agencies, so when you contact the broker, ask about the sorts of exchange rates they are currently operating and how they can keep those rates as low as possible for you.
• Speed – how quickly can the broker deal with your overseas finances? If you are in business and you need to make sure that your overseas suppliers are paid on time, you need to have confidence that your currency exchange broker is able to move the correct amount of money to the right bank as quickly as possible. A good broker will be able to handle your money with more speed than a bank.
• Commission – as well as not necessarily getting the best rate, some currency exchange practices will also charge you a commission. In some cases, this can be 3-4% of your total spend, or even more. It may not sound like a lot, but if you're buying a property overseas and transferring £100,000, the bank could take several thousand pounds in commission. Check whether your currency exchange broker charges commission, and at what level. If the service is commission-free, make sure you're still getting a good exchange rate.
• Trust – you need to be able to trust your currency exchange broker, so that you're confident that you're getting the best exchange rates and the best service you can. For this reason, it's always a good idea to ask friends or family for recommendations, or to make sure you have a good discussion with an adviser from the currency exchange brokerage before you commit to a relationship with them.

Foreign Currency Exchange Ltd is a commercial currency brokerage based in the UK. We help thousands of clients move hundreds of million pounds across the globe every day. From large businesses to private individuals who wish to send regular payments abroad, you can save money by getting a better currency exchange rate than your bank. The Foreign Currency Exchange buys currency at wholesale rates and can help you save money with our fast secure service. For more information contact us now, telephone +44 (0) 20 7989 0000 or email info@fcexchange.co.uk