Don’t lose out with a mainstream banking deal
You can save thousands of pounds with a wise currency exchange deal
How to Save Money on your Import/Export Costs with TorFX
Does your business require you to meet import/export costs, manage a foreign payroll or pay royalties? Do you have any international interests that require a currency exchange?
If so using a reputable currency broker can be much more lucrative than using a high street bank.
Generally currency brokers work on much smaller margins than banks, which means they can beat the exchange rates they offer by an average of 1%-3%.
To put this in real terms, if your business had to transfer £50,000 – to pay for materials, premises rental or employee wages – securing a better exchange rate could easily save you over a thousand pounds on that transfer
If your company has to make regular overseas payments or transfer substantial sums, executing the transactions at a better exchange rate can make a huge difference to your bottom line.
The majority of banks also add on a transfer fee of £10-£30 per transaction which can amount to hundreds of pounds worth of fees over the course of the year.
ZERO COMMISSION – ZERO FEES
As currency brokers make their money on the spread (the difference between the bidding price and the asking price of a currency pairing) they don’t charge transfer fees or commission.
By using a currency broker to handle your corporate foreign exchange requirements, you could save hundreds of pounds in additional costs as well as saving thousands by securing a more favourable exchange rate.
WARNING AND PRO ACTIVE ADVICE
The specialist insight that currency brokers are able to provide can also be extremely useful as exposure to the volatility of the currency market is one of the biggest risks facing businesses with overseas commitments.
Exchange rates are highly erratic and can move by up to 10 per cent within just a few weeks. If you haven’t got the time to devote to monitoring market movements and currency trends your business could be stung by an adverse shift in the exchange rate.
To prevent this happening and to help you safeguard your funds from currency risk, brokers offer expert guidance. With their support you can take a proactive approach to your foreign exchange commitments and maximise profitability by making your transfer at the most financially rewarding time.
SPECIALIST SERVICES – ANOTHER WAY TO SAVE MONEY
Currency brokers are also able to give businesses access to specialist services, like Forward Contracts. With this form of contract you have the option of ‘fixing’ an exchange rate for up to a year in advance of a trade.
Fixing a rate in this way means that you can prevent your profits from being eroded by negative fluctuations in the market. It can also help you budget for future expenses more effectively – imperative if you are intending to purchase a business premises or make another kind of substantial business investment.
Similar services include Limit Orders (where a currency is purchased automatically once it hits a pre-agreed rate) and Stop Orders (where a currency is bought as soon as it drops to a pre-set minimum level).
Meanwhile, if your overseas business needs to send money on a regular basis (for the paying/receiving of wages, for example) the Regular Overseas Payments service offered by some currency brokers could be particularly useful.
Once your account is set up, regular payments are carried out at a competitive exchange rate automatically on a day of your choosing. More than one plan can be taken out at a time, and you won’t be charged transfer fees or commission. This is a cost-effective foreign exchange solution for businesses which need to make regular transfers of between £500 and £10,000 on a monthly, bi-monthly or quarterly basis over a minimum period of 6 months.
For example, if your business is based in France but you have British employees you may need to convert Euros to Pound Sterling in order to pay their wages into their UK bank accounts. Using a bank to make these transfers could cost you £40 a month per transfer in fees, plus extra in commission, whereas a currency broker would conduct the same trades at no extra cost.
HOW TO TAKE ADVANTAGE NOW AND GET STARTED
Opening a business account with a currency broker is usually straightforward and free.
The first stage of the process typically involves registering your details with the broker either by phone or via an online form.
Once your details are logged and your client account opened, you’ll be assigned an Account Manager who can talk you through the options and help you pick the most suitable contract for your company’s requirements.
Your Account Manager will also be responsible for keeping track of market movements and informing you as soon as any pertinent fluctuations occur.
Once you are happy with both the exchange rate offered and the type of contract proposed you can book the trade and send your funds to your client account.
After the funds have cleared your currency broker will complete the trade by swiftly and securely sending the foreign currency to the beneficiary account on a pre-agreed date.
Future trades will be conducted with even more expediency and you’ll soon start seeing a considerable difference in the cost-effectiveness of those overseas dealings which require currency exchange.
Whether you’re a large public company or a small family-run business, looking into your currency exchange options and using a broker rather than a bank means you could benefit from 0% commission, no transfer fees, a more competitive exchange rate, expert guidance and increased flexibility – all factors which could make your international business more profitable.