A business’s forex requirements can range from simple to complex, so it’s important that you hire a forex broker who can help your business maximise outcomes. To help ensure you make the right decision, look out for these four key things when choosing a forex partner for your business.
When it comes to forex, one of the most important things is regulation. Money transfer companies need to ensure that they stay up to date with all the relevant regulations, requirements and laws, as well as ensure they are fully licensed and registered with the correct regulatory institutions. In the UK, all forex businesses should be registered with HM Revenue & Customs as a Money Services Business and authorised by the Financial Conduct Authority as an Authorised Payment Institution.
When choosing a forex broker, I advise you to do thorough research and ensure that they have the relevant accreditations. A professional looking website doesn’t ensure that the broker is regulated by the relevant authorities – so it’s always best to get the registration number and do your own research into the regulations. You don’t want to take any chances when it comes to your business's finances.
See also: How to protect your business from common cases of cyber fraud
The security of your funds is one of the most important things you need to consider when choosing a forex provider. You want to have peace of mind when transferring large sums of money to your suppliers or clients.
To ensure your money is as safe and secure as possible when transacting online, make sure the online security measures used by your broker of choice are adequate. Information about the online security measures in place should be available on their website, but if not, call them to enquire about the safety of their online money transfers. Reputable forex providers should use advanced security such as Secure Socket Layer (SSL) 128-bit encryption to keep your money as safe as possible.
SSL 128-bit encryption is the strongest data encryption technique available for securing information between clients and the website they use to transfer money. This technique provides absolute protection of your debit card against unauthorised use. You can visually verify a site’s use of SSL in two places – the “s” in https in the site’s web address and by the padlock on the left-hand side of the address bar.
Transaction fees and rates, beware the fine print
You really shouldn’t still be doing your international money transfers with your bank. Banks charge a premium for their transfers because they are not a key service. Most banks also only set their exchange rates once or twice a day which means you might not be getting the best rate you can get.
Most importantly, don’t be fooled by websites that show interbank rates – the rate at which banks trade, which is not the actual rate you will receive. You should also always shop around to ensure that you are getting a fair deal on transfer fees. Be wary of all and any “hidden costs”.
With a good independent forex specialist, you can make sure that the rate you get is locked in at the time of your transfer. This way you won’t get any nasty surprises when your cash arrives on the other side. Remember, a good forex provider will always be able to tell you exactly how much your transfers are going to cost you before you make them. Over a long period of time, your forex provider can either save or cost your business a substantial amount of money. Be sure that you’re getting the best possible rates and transfer fees, so you can increase your bottom line.
Looking for a world-class forex partner?
Oftentimes the forex broker you deal with will be helpful and efficient during the account opening process, but will then have terrible after-sales support. Rather choose a company that has a track record of great, personalised customer service. You’ll also want to make sure that the forex specialist offers access directly to its help desk so that you don’t get stuck talking to a chat bot or automated email replies when you have a business-critical query.
The best way to gauge this is usually to check the company’s website for testimonials and reviews. A company with a sterling reputation and great reviews didn’t get that way by accident. You can also test their helpfulness by making use of any online chat boxes or simply mailing an email address you find on the website and seeing how long it takes to get a useful reply from someone.
At the end of the day, you want your money transfers to be done at the best possible price and as quickly as possible so that you can devote your time and energy to growing your business.
We’ve been helping clients transfer money for over 20 years and we’d love to help you minimise your forex expenses. Contact our forex team on firstname.lastname@example.org or +44 (0) 20 7759 7554 (UK) or +27 (0) 657 2153.
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