So you have established that your bank is probably (almost
certainly) not going to be your best choice when sending your money abroad,
especially when we are talking large sums.
Now it’s over to your decision-making process, gut feeling,
research and biases on which specialist currency company you think will be best
for you and your situation.
Let’s take a look into your options..
Online only
Are you comfortable buying stocks, shares or commodities
by yourself?
Do you prefer to do business without having to speak
to a human?
Do you use the self-checkout at the
supermarket?
Do you drive a Dacia?
If you have answered yes to all 4, then choosing an online
only company may be the choice for you. These companies have automated nearly
every role, so it’s quick, easy to use and cheap.
However..
You probably have limited knowledge at best on the FX market
(which is the biggest and one of the most volatile markets in the world) and so
not having a human to guide you puts you at an immediate disadvantage.
DIY issues..
A DIY service can create stress and anxiety that you may or
may not deal well with during an already highly emotional time. As you are
buying from a live market (the same as stocks, shares & commodities), booking
the wrong amount and/or inputting the wrong account details can be a very
costly mistake indeed.
Also, sending a large payment abroad is not like
sending a small payment abroad and a property payment is not the same as
sending money to family. There are compliance checks required to satisfy our
AML procedures, which means having the correct documentation before any payment
can be released and you can expect payment delays if doing this alone.
Without someone guiding you, how do you know when is
best to exchange or do you just exchange when you are ready or when the money
is needed to be sent?
This presents a huge issue because exchange rates will
change by around 3% in the timeframe of someone purchasing a property abroad.
This means a £6,000 swing on a £200,000 exchange. Imagine what you could
put that money towards if timed correctly..
Pay cheap, pay twice..
The Dacia question is relevant if you value getting the cheapest
price possible for goods or services. Dacia is the cheapest car brand in the UK
and if you see a car as just a way of getting from A to B, then there is no
better option. But not everyone sees a car this way and not everyone likes choosing
the cheapest option.
Also, cheap rarely means better. Usually
something has to give. And that can certainly be said in our industry. Paying cheap
often means paying more in the long run via either time or money or probably
both when a large overseas payment is concerned.
There is a time and a place to use an online only company
in ours and many of our competitors’ opinion. Built for small exchanges
and payments (sending money to family for example) and overseas debit cards,
they are nearly unbeatable.
This is where they receive their vast number of good online
reviews from. However, those with a larger exchanges and payments, well it’s a completely
different story and this is reflected in their many 1* reviews.
Complaints..
Last year, the FCA brought in something called the ‘Consumer
Duty Act’ to financial service firms. Effectively saying ‘treat your customers the
same as if your mother was a customer’. A very interesting and eye-opening concept
I’m sure you will agree..
Anyway, a huge reason as to why the FCA brought in this new
principle was because of the sheer number of complaints online only
companies were receiving from its customers via the Financial Ombudsmen (again
you can research this online).
Frozen accounts, money going missing, huge delays on
payments, no human customer service help and so on..
Over the years, these online companies (that are trying to resemble
banks but without having a banking license) have received more complaints
than our high-street banks and we know the kind of reputation they (mostly) all
have.
The right service for you?
Remember Purplebricks? Once worth £1.4bn after disrupting
the real estate industry was sold for £1 in 2023. Many of you may have had a
good experience with Purplebricks, but ultimately it couldn’t service every customer’s
needs with their main USP of a cheap commission offering.
We are not in anyway suggesting that these online only
companies are going the same way as Purplebricks. Tech-first disruptors are
good for industries to get better, we are just saying it’s really horses for
courses..
Online only will suit some people in certain situations, but
not all and probably not those that are sending a large amount of money abroad
for the first time.
Traditional
If longevity is a strong bias motivator for you
and/or if you are someone who wants to do business with only the oldest and biggest
players in everything you are involved with (no matter the cost) then look no
further.
The traditional FX brokerages have been around for 25-years+
and were the original disruptors in our industry, taking market share away from
the banks who had monopoly at the time. With huge balance sheets and staff head
count, they resemble ‘mini banks’, which is both a good thing and bad thing
depending on how you view banks.
Practically all traditional FX brokerages are now large
corporations needing to make money for either their investors or shareholders
and so competing on marketing, staff and offices is simply a no-go for the rest
of us.
How we match up..
We have been in business for over 20-years ourselves,
surviving the financial crash and of course the covid pandemic and so that should
provide at least some positive longevity bias for you.
Still privately owned, we have built a company and culture
based on a low turnover of staff and family feel. Our traders for example have been
with us for over 12-years. We have over 50 staff in 6 different countries
and we all share the spoils at the end of the year.
Also, instead of using just a bank for our liquidity, treasury
and full FX functionality needs. We have been working with the best-in-class
for cross-border payments ‘The Currency Cloud’ since 2011, who have processed
an astonishing $100 billion for its customers to date.
The software company was bought by Visa in 2021 for £700
million and is only available to banks and FX brokerages. We leverage Currency
Clouds’ full package for an overall faster and more competitive solution
for our customers.
Don’t be just another sale..
If affiliation bias is a strong motivator for you,
then again, a traditional FX brokerage could be your best bet. They are well
affiliated with estate agencies and solicitors, mainly due to having a long and
well-established presence/brand in areas where there is high ‘Brit’ traffic.
We may not have offices anymore in the EU (due to Brexit),
but we rival the number of affiliations a traditional FX brokerage has. This is
because we do not have anywhere near the overheads they have. This means
we can offer estate agencies, solicitors and their customers a much more competitive
service and exchange rate.
If you don’t mind being just another sale to a big
corporation and calling into a call centre who will pass you onto
someone that doesn’t know you or your requirements, there is no need to look
further down this page.
A traditional FX brokerage rely on their name, affiliations
and marketing to bring business to their door and then they will offer a
package just about better than a bank. We rely mainly on customer referrals.
To receive a customer referral, we have to provide value and a certain
level of service to be worthy of a customer referral.
In short, no pro-activeness, no market expertise, no
personal touch, average rates and an average experience is what you will likely
find with this kind of firm. We believe in offering the red carpet treatment
and you shouldn’t settle for anything less in our opinion.
Consultative
Would you like fine dining, but without the
cost?
Would you like to work with a market expert who
takes an interest in you, your requirements and can help guide you through the world’s
biggest market?
Just 2% of the British population are ‘lucky’ enough
to purchase property abroad. This is an exclusive club and we believe
there should be a high-level of service to match.
A consultive FX company like ourselves will be hands on and
will help you create a plan to minimise your risk on the market. Risk
management is the name of the game and this comes with experienced traders
explaining the hedging options and tools available to you.
Don’t just roll the dice..
81% of professional traders lose
money on the FX market. This ranges from someone betting £100 that £-€ will go
down by 50 pips to hedge fund or investment bank traders betting hundreds of
millions or billions for a 10 pip gain.
The one question we always ask customers is; if experienced
traders who use algorithmic technology, religiously follow market trends and forecasts
still get the movement of currency wrong more often than not, what chance do
you have really of timing your exchange right?
This is where we come in, to help shift the odds more in
your favour..
Whilst we cannot advise you on what you should do,
we can show you what others are doing and suggesting and we can explain what
the trends and forecasts are saying, for you to make a more informed decision.
A consultative FX company will take the stress, frustration and anxiety away when entering the FX market and they will not only save you money by offering a preferential exchange rate, but also by helping you exchange at the right time.