rates of exchange compared to banks
Published on September 8, 2010 by admin · No Comments
Superior rates of exchange compared to banks
Banks tend to take a much wider margin (or spread) on currency transfers, which is the main reason customers initially choose to or are advised to look for an alternative solution to a bank.
In a nutshell both banks and brokers buy their currency at a wholesale rate and then sell it at a retail rate. Brokers simply sell their currency for less than a bank.
Free transfers with no charges, unlike banks
Most people’s pet hate with their bank is excessive charges, whether it’s for an overdraft or credit card. The same applies with international currency charges on transfers which can be up to £30 for a single transaction! If you are regularly making payments for an overseas mortgage or exporting goods weekly this can add up to be a substantial amount over a year!
Most brokers don’t charge any fees so before you have even made the transaction you will have achieved a beneficial saving.
A dedicated account manager
You can avoid the hassle of having to go into your bank to make a transfer or seek guidance and information with a broker. You will be assigned a dedicated account manager with expertise and market knowledge who can give you an insight in to the markets without having to leave your house.
They’ll be at the end of the phone or contactable via email so you can build up a trusting relationship.
Market analysis and knowledge
Concluding the above; the account managers who look after your requirements at a well established currency broker’s are experts in the field of foreign exchange. They study the markets around the clock ensuring they can offer you the best opinion when it comes to transferring your money.
With a bank, the person you deal with would have a variety of different roles from loans to mortgages etc and therefore not have the insight and knowledge you would receive from a broker.
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