Foreign exchange markets can be one of the most mind-boggling arenas to get involved in as a fledgling company, especially when you’re looking for new markets to expand into and opportunities to work with companies overseas.
With so many factors to consider, it’s quite possible that your first attempts will end up, at best, falling short of your expectations and at worst completely unprofitable. Finding the most efficient and cheapest possible method for transferring currency internationally is of paramount importance, so in collaboration with 4xcurrency.com, here are five ways to get the best out of an exchange without coming up short:
Avoid exchanging at the bank
When dealing as your business you will inevitably end up working with larger sums of money than you are used to in your personal dealings. It is worth bearing in mind that banks are likely to charge at the very least a flat rate of £30-50 for each foreign exchange transaction, even when dealing with relatively small amounts of money.
So if you’re making this kind of transaction daily or even weekly, you will be losing out on thousands of pounds a year. Thankfully however, direct exchange brokers tend to forego any such fee but will offer the same fixed margins for every deal (often a fraction of what the banks can offer), saving you money each time you use them.
Avoid the foreign exchange facilities aimed at personal exchange
If you’re used to exchanging personal funds for a holiday, you may already have accounts with services set up for this kind of transaction but for business dealings they’re likely going to be inadequate or overly expensive.
As traders who deal with businesses on a daily basis are guaranteed an audience that needs a quick cash exchange, they’re more likely to be able to offer you a good exchange rate. Typically, trading your currency online gives you a better chance of a good deal when compared to phone or face-to-face dealers.
Keep your ear to the ground
No person can successfully exchange currency without having some grasp on the current state of the market, unless of course, they are extremely lucky.
If foreign exchange is an area that you will be working in regularly, it is worth keeping up to date with forums and news sites to ensure that you are always on the edge of breaking news.
Avoid salesmen if you can
Though over the phone sales have been somewhat of a tradition around exchange brokers, the truth is that although salesmen seem like they are working in your interest, they are in fact pushing up your costs.
By working on an exchange platform online, you are able to cut out the middle man, meaning that because the broker’s overheads are lower, they are able to give you a much better rate.
Additionally, this means that the transaction that you are carrying out is totally transparent, as you will be able to see the live exchange figures right in front of you – and there is nothing more assuring than that.