Banks Vs Brokers – Who Offers the Best Deal?

When it comes to transferring funds abroad there are two main approaches; using a bank or using a specialised broker. Most people would assume that using a bank would be quicker and easier, but this is rarely the case. This article will outline the many positives to using a reputable broker to move your money abroad.

Get a Competitive Exchange Rate

Exchange rates are constantly moving, just as a nation’s economy is always changing. This means that getting the best exchange rate could be essential when transferring money abroad. As currency brokers work on smaller margins than most banks, they can offer you exchange rates up to 3% better.

A saving of 3% is good no matter what, but if you are moving a substantial sum this could equate to quite a saving. For example, if you wanted to exchange £100,000 for Australian Dollars, an exchange rate of 1.93 you would get $A 193,000. If a bank gave you an exchange rate 3% lower, you would achieve $A 5,790 less!

No Fees

In addition to not securing you the most competitive exchange rate possible, banks typically levy transfer fees and charge commission. So if, for example, you have a business which sources products from China, you would be charged every time you replenished stocks. A broker, conversely, wouldn’t charge any fees for transactions, whether singular or multiple.

Specialist Services

A dedicated broker can offer you many different ways to move your money, helping you maximise your transfer.

One such service is Regular Overseas Payments or (ROPS), where recurrent transactions are set to be transferred automatically at a preset date, at a competitive rate of exchange and with no additional costs to pay.

Another very useful service is the ability to fix an exchange rate for up to two years in advance of a trade. This is particularly useful if you’re buying a house and don’t want currency fluctuations to change the amount you get for your money.

Personal Account Manager

When you make a transaction with a bank you’re just a number, the banker has no idea who you are or what you require from your transaction. Additionally they have no idea of your business or the reason you wish to move your money.

A broker will provide a dedicated Account Manager who knows you and your business. With an Account Manager, there is always someone at the end of the phone to give advice, answer questions and reassure those who are dealing with large transactions.

Keep Up to Date

An account manager will be extremely knowledgeable with regards to economics and foreign exchange. Having a professional who can offer evidence-based guidance can be a massive relief for someone who hasn’t the time to keep on top of the ever-changing market.

In conclusion, it is always beneficial to use a broker when moving money no matter the size of the transaction. Better exchange rates, no fees and specialist guidance can be extremely valuable to someone whose livelihood depends on money movement, but can be just as valuable to someone wanting to get as much spending money for a holiday as they can!

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