Compare currency exchange brokers
Currency exchange brokers, also known as foreign exchange brokers (FX brokers), are non-bank companies specialized in high value international money transfers for companies and individuals.
If you want to send large sums of money overseas, you will need to compare currency exchange brokers in order to get the best transfer rates. Choosing a comparison website to look for providers worldwide can help you lower the cost of making international money transfers through better exchange rates and no fees. Vetted by the comparison website, the brokers will meet all financial and legal regulations of the countries in which they operate.
How does a FX broker work?
The process is pretty simple and straightforward. You open an account with a FX broker and fund it from your credit card or bank account, depending on the amount to be transferred. Next, your broker gets to work on finding you the best currency transfer rates. One of the benefits of using the services of a FX broker is that they offer you a personalized solution for your specific needs, which may include fixed exchange rates for a determined period of time.
You should know that they work with large amounts of money (over $5,000) and charge you no fee at all, but if you want to use them for transferring lower amounts, some FX brokers may charge you a small fee.
Another advantage of using a currency exchange broker is the speed of the transaction. Money gets pretty quickly to the receiver, compared with transactions made through high street banks, for example.
How to find the best currency exchange broker?
When choosing a FX broker, there are several aspects to be considered.
The first one is the services they provide, meaning: what currencies do they give you access to and types of currency trading offered. Do they have a local market FX expert? How effective is the provider in attending their clients? What´s the amount of foreign currency your money will buy and how long does it take for an international wire transfer?
You have to be sure to whom you entrust your money. So trust and credibility are aspects to consider when selecting a FX broker. You can do that by verifying how previous users ranked the broker, FX broker´s experience and seniority in business, if it´s authorized by FCA (Financial Conduct Authority).
Whatever FX broker you choose, you should be sure you are in business with a reputable company, not any firm offering you the best deal, not to mention working with an unauthorized firm. No matter how good the deal is from an unauthorized company, the risk of loosing your money is not worth it.
However, if while working with a responsible broker, you are still worried about your money (in case of big transfers), you could split the transfer in several smaller ones and send them through different firms or at different times.
A third aspect to be taken into consideration when selecting a FX broker is what other products they offer, such as hedging products or forward contracts. This may be important for business users in particular
The best FX brokers have online and mobile services, so you can deal in real time from your laptop or desktop computer and mobile devices such as smartphone or tablet.
Now you know how a FX broker works, you know what you have to check and compare currency exchange brokers before selecting the most suitable one, so take your time, research and choose wisely.