Pure FX Logo arrow Reviews On Feefo Pure FX Logo Exemplary Service In-Depth Knowledge We're Jargon Free Same-Day Transfers Better Exchange Rates Purefx_currency_exchange Personal Transfers Business Transfers FCA Authorized Personal Service Trusted Brokers Get A Quote Register With Us Make A Transfer Seller Transfers Contract Definitions Read Our Top Tips What Influences Exchange Rates Glossary Frequently Asked Questions Contact Us

Reasons for trading in foreign currency

GuidesReasons for trading in foreign currency

Over $1.2 trillion of foreign currency is traded every day, with even small fluctuations having a direct effect on the value of the pound in your pocket. Why does all this foreign currency trading take place?

A major part of foreign exchange trading is linked to investment: speculators earn short-term profits from upward fluctuations in the rate of exchange. Companies also use foreign currency trading to protect themselves from losses when the exchange rate drops.

A significant part of foreign exchange trading occurs when businesses – and, to a smaller extent, individuals – buy goods or services from abroad. The preferred currency is the American dollar, which has global recognition.

We all know that the economy is linked to the rise and fall of the pound, but how does this work? Imagine an American tourist comes to London to buy a £100 pair of shoes. At the time he buys his traveller’s cheques, the foreign exchange rate is $1.45 to £1, so the shoes will cost him $145. However, if the pound falls, for example $1.35 to £1, the same shoes will only cost $130. If, on the other hand the pound rises, say $1.65 to £1, he will now pay $165.

Now contrast this to the kind of profits and losses a shoe importer might face, and you can see how small changes in foreign exchange rates can have significant effects on business.

We at Pure FX regularly trade large volumes of money on the foreign exchange for our business clients, keeping a close eye on the trends.

Get a Quote
Feefo service

What Our Clients Say

Read all the reviews at Feefo.com

Why Us

FCA Authorised E-Money institution

Authorised by the UK’s Financial Conduct Authority, so you can rest assured that we’re handling your money responsibly.

Exceptional Service

We have received Feefo's Gold Trusted Service Award 3 years in a row.

Same Day Transfers

We can transfer your money to your destination bank account the same day you send it, once we’ve confirmed the payment details with you.

Competitive Exchange Rates

Competitive exchange rates and transparent transfer fees, so you know exactly what you’re paying for.

Dedicated Personal Service

To guide you through the transfer process and keep you up-to-date with the changing exchange rates.

Established in 2006

Since then, we’ve transferred money for thousands of satisfied clients.

How It Works

  • 1. Register

    for a no obligation account
  • 2. Agree the exchange rate

    with your account manager over the phone
  • 3. Send us payment

    for the transfer of your purchased currency
  • 4. We transfer the currency

    to your nominated account