Finding the best FX provider for my business
Expanding your business internationally is an exciting but daunting time for any business. Whether it’s on the supplier-side or the customer-side, it’s highly likely that you will need to make some foreign currency exchanges to facilitate business. Even for established international business, navigating the FX space can be a time-consuming and complicated task which often results in your business not getting the best possible deal. Here’s some key considerations when choosing an FX provider that’s right for you:
Cost and fees
When dealing with FX, the associated costs and fees are often a key consideration. For example, when making exchanges through a bank with no specific provisions for foreign exchange, you can be charged fees just for making the transaction and given a particularly poor exchange rate. If you use a dedicated FX provider, fees will be packaged differently. Fees per transaction are likely to be minimised and offset through receiving a much more favourable exchange rate. This is particularly beneficial for businesses who have made arrangements to be fulfilled over a specific time period themselves, and so need an adaptable FX service to fit their needs.
Level of service
Each provider, depending on factors such as size, capacity, and expertise, will be able to offer different levels of service to you as the customer. Some providers will simply give you access to an online platform without advising you on how to make the most of the functions available. Services with a dedicated account manager on hand that can support you with how to make transfers, as well as talking you through other possible products relevant to your business and the way it operates. This results in a much more tailored and specialised offering, helping you make the most of your money.
Planning and risk management
Some currency providers look only to provide you with the best exchange rate at that moment. This is fine for making exchanges when travelling or other one-off situations, but for a business that will likely be making several transfers as part of a long-term arrangement with other businesses abroad, this short-sighted view can put a serious dent in your bottom line long-term. As a result, it’s important to find an FX provider who can take this longer view, look at your plans and can help you make robust decisions about when and how to make exchanges, managing risk and protecting your business.
All of this is especially important in the wake of COVID-19, a time in which markets became increasingly volatile as the impact of the pandemic affected supply chains and general productivity unpredictably. All of this is compounded by US inflation fears, which can greatly upset currency markets due to its effects on the Dollar, the world’s reserve currency. In these unprecedented times, it’s more important than ever to have a knowledgeable foreign exchange specialist by your side, helping you make informed decisions in this turbulent market.
If you would like to find out more about how we can support your business with its foreign exchange requirements call us today on +44 (0) 20 7738 0777 or click here to open a business account with us.