nvestment and commercial banks in Britain are governed by Bank of England rates as well as commercial policy. They trade foreign currency as a service for their commercial, lending and deposit customers, and foreign currency exchanges are conducted for hedging and day-to-day trading purposes.
Because commercial banks do not offer a foreign exchange brokerage service, they are unable to offer the same competitive rates those companies like we at Pure FX do. Whereas we specialise in just one unique service, the banks have many, and must adjust their rates to get the best financial return overall. This means that quite often the customer will end up paying for their bank’s losses in other areas.
Large central banks like the Bank of England work in accordance with governments, trading foreign currency to improve their economic position, or to make adjustments to their country’s financial condition as a whole. Although they are not-for-profit organisations, both central banks and governments trade on a long-term system, so tend to be profitable in that way.
Because central banks don’t trade speculatively in the way that companies like we at Pure FX do, they can never offer the competitive foreign exchange rates that we can. Their already poor rates get passed down to the commercial banks, which then use them to set their own high street rates at a lower return still.
This means it is impossible for the business or domestic user to get a good foreign exchange rate on their money transfers by going to a bank. By coming to a company like us at Pure FX instead, you can be guaranteed the best possible currency exchange rate on all your transfers.