PureFX

What Are The Advantages of Using A Foreign Exchange Broker?

Mon 9th July 2012

By Peter Lavelle

If you plan to exchange currencies, then without a doubt you’ll want the best exchange rate and a trustworthy service. But how do you get them? In this post, I want to outline the advantages of using a foreign exchange broker when you transfer money abroad.

1. You get a better exchange rate.

The biggest advantage of using a foreign exchange broker to exchange currencies over alternative services (such as high street banks) is that you get a better exchange rate.

For instance, if you intend to purchase €200,000 to buy a foreign property, you might expect that to cost you £181,500 or so from a high street bank (depending on the exchange rate.) From a foreign exchange dealer though, the cost could be just £175,400. That’s a difference of £6,100, which is clearly significant.

The reason for this difference is that foreign exchange brokers are specialists, and therefore able to offer much better exchange rates than banks. These, by comparison, provide a range of financial services and so generalise.

2. You get specialist service.

The second advantage of using a foreign exchange broker is you receive a specialist service. For instance, the moment you get in touch you’ll be assigned a personal dealer, who can assist you throughout your enquiry.

This will be someone that spends all day every day observing the currency markets, and, so will have lots of experience in this area. So whether it’s finding out how the pound has performed in recent months, or deciding the best time to change currencies, you can get easily stay informed.

On the other hand, because banks deal with a range of financial services, you’ll likely be assigned someone that doesn’t specialist in changing currencies. This means the guidance you receive may not be the best, in addition to receiving inferior exchange rates.

3. There are more options available to you.

In addition, there are more options available to you using a foreign exchange service. For instance, you may like the present exchange rate, but not want to have your money sitting in your foreign bank account just yet.

In this case, you can set up what’s called a “forward contract,” whereby you lock in the present exchange rate, and transfer you money when you want later. You transfer just an initial 10.0%, and can move your money any time during the next two years, at that exchange rate.

The big advantage of this, of course, is that it protects you against undue movement in the exchange rates later on, giving you peace of mind.

To enjoy these advantages for your money transfer, don’t hesitate to contact us, either at +44 (0) 1494 671800 or email enquiries@purefx.co.uk. We’d be delighted to assist you in getting the best exchange rate.