If you are a business trading internationally you will no doubt already be aware of the rising business costs that can swamp you. Taxes, rent costs and other expenses are all overheads you will need to keep on top of so that you can stay afloat in such a volatile economy. The last thing you want is another expense to deal with, especially if you trade with foreign currency, and so it pays to be vigilant when you are dealing with currency exchange transactions.
Businesses making and receiving international payments lose out on thousands. In this post, we’ll explain what you can do about it. You work hard for your money. Let your foreign currency work hard for you.
The Overseas Transfers That Could Be Costing Your Business More Than You Think
Do you know the true cost of your currency conversions? Unfortunately, most don’t. When making a cross-border money transfer, you need to ask yourself – what exchange rate am I actually getting and is it the best deal? Even a small difference between exchange rates could have a potentially seismic impact on your finances especially if you are exchanging large sums of money. Always remember the golden rule: Benchmark the sell rate against the real exchange rate. This difference determines whether you’ve got a competitive deal, whether you trade with a bank or currency broker.
Granted, you have a business to run. You don’t have time to sit and compare exchange rates or spend hours working out whether you are getting the best deal. There is also the complex world of forex to understand and it can all seem just a little too daunting and time consuming.
The News Story That Could Save You Money On That Next Transfer
There was one publicised case last year that involved an individual transferring £10,000 to a business client in Thailand. He decided to use his bank’s rate of 63 baht to the pound. Had he cross compared with an FCA regulated currency broker, he would have found the baht’s live rate was trading at around 69 baht to the pound.
And had he gone with that deal, he would have been over £800 richer! Unfortunately, he decided to trust the rate his bank gave him mistakenly thinking this was going to be the best deal of all.
The moral of that story is to compare live rates with more than one provider on each and every deal. This won’t take long and in moments you could have total peace of mind that you have found the best live exchange rate. Using an FX comparison website is usually a good starting point.
Always Choose A Company That Offers Transparent Rates And Service
Many banks and foreign exchange companies won’t tell you the exact exchange rate they are using to arrange your international money transfers. This can make it extremely difficult for you to work out the rate you are getting and how far your money is going to go – not good when you have a tight business budget to stick to. Many will also show you the interbank rate but fail to divulge their additional fees.
The key thing here is to ensure you always use a foreign exchange broker that offers you transparent details about the transaction you are about to make. By working with an FCA authorized and regulated broker you can trust, you can benefit from expert advice, forward contracts to manage currency fluctuations and complete peace of mind that your money is going to work in favor of your business no matter what country you are transferring to.
This is a guest contribution written by Aviva Tabachnik, resident currency expert at OPP award winning comparison website MyCurrencyTransfer.