Whenever money is traded abroad, either for business or personal use, the currency exchange rate comes into play. This varies depending on who you use to do the transfer. Most people will automatically go to their bank, lured by the promise of low money transfer charges or good exchange rates. However, the truth is they would do far better to use an independent broker. There are several reasons for this: 1. The limits on the foreign currency exchange rate for all banks and similar institutions is set by the Bank of England, which is closely controlled by the UK government. The rates set are therefore those that are best for the country †not you or your business. In fact, your cash losses are helping to bail the country out! 2. Once the initial rate has been set, individual banks then further â€tweak†the figures to overcome losses in other areas †for example loans or mortgages. 3. The charges for money transfers can be very high, especially for business transactions. This is because the overheads of running a bank are also very high. 4. Even if you visit an independent financial institution, unless they specialise purely in money transfers you won’t get the best exchange rates. This is because they simply don’t have the time to trade on the Forex market exclusively, 24/7, the way a broker does. Recent times have seen a massive increase in the number of people using online brokers like us at Pure FX. Because we deal exclusively in the bulk trading of currency online, ungoverned by the UK government or Bank of England, our overheads and losses in other areas are minimal. By constantly â€playing†the Forex market, we ensure money transfers at rates that banks just can’t match.
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