After you have registered with a larger foreign exchange provider, the usual process is for one of their dealers to ring up and negotiate a transaction over the phone.
Without actually seeing the figures and rates at hand however, this can get confusing, and you may not actually be getting the best deal.
In fact, some brokers even calculate their rates on the status of the customer, meaning that depending on who you are, or how big your business is, you may be paying more than others.
Companies such as www.4xcurrency.com calculate their rates as a percentage away from the inter-bank rate and according to the size of the trade; so that everyone gets the same exchange rate.
Choosing the right broker is therefore imperative if you are looking to save your business as much money as possible.
Ideally, you should be able to see the exchange rate on a computer screen before you make a deal, so you can compare the price you receive with other providers. Often this will be streamed to your computer via the broker’s exchange system.
If it is done correctly, this means that you should be able to view currency rates in the exact same manner as large corporations and foreign exchange traders; allowing you to make the right payment at the right time, with maximum ease and security.
In addition to this, some brokers even back up their deals so that you will always get the agreed amount of foreign currency at the time of when the deal is made. This is bonding, even if the rate of exchange changes overnight or when the transaction is fully complete.
But what about bank exchanges?
Though bank exchanges offer great security, the truth is that the primary business of a bank is not in foreign exchange, so you shall probably be given a lesser rate and charged for the exchange that you are about to make. In fact, some banks impose fees of up to £30 - £40 per exchange.
Not only that, but if you go with a specialised broker, it is far more likely that they will spend the time and effort into making sure that their clients are given the best rates possible.
Though transparency can vary between individual banks, it is generally held that they do offer a good level of clarity when making an exchange, even if the bank charges more than a broker.
