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Forex Brokers vs Your Banks

Forex Brokers vs Your Banks
Published:   12 Dec at 9 AM

Big foreign exchange decision? Just ask the FX Experts at TorFX for a Quote »

When transferring
large sums or even smaller sums, it is important to try and get the
best rate, even small differentials
in exchange rates can make a huge difference to the amounts concerned.
Even a small increase of 1% on a £100,000 fee is £1000. This is a
lot of money in it's self but when you think that many transfers even
on a personal level top £1million, the increase (or decrease) can often
be over £10,000. So one of the main things to consider is who you will
be using to exchange the money and two biggest and most common choices,
are banks and specialist independent forex brokers.

Many individuals
opt to go for specialist brokers because they find them more personable
but others prefer the safety and security offered by the banks, even
at the risk of increasing the amount it would cost. This leads to us
to the next problem that people have with banks, the costs involved.
The majority of banks tend to take a much larger margin on any currency
transfer than other currency traders and often even add a small charge
for the privilege of doing so. On the other hand, many independent currency
brokers offer much tighter margins than banking organisations as well
as being in a much better position to offer advice and provide information
on the current and future state of the market.

Another benefit of
using a currency broker is that they allow you to create an account
and make regular or one off currency transactions. Through this account
you can also often get regular
exchange rate updates which can be essential to ensuring you get the
best deal. If you are seriously considering sending large transactions
it is certainly worth signing up with a foreign exchange broker online
who would email you daily or weekly foreign exchange rates updates for
your relevant currencies so you can keep track of how the markets are
performing and estimate how much buying a property abroad would cost
you. Companies like World First and offer market updates and
most forex trading brokers will do so.

Whether you are involved
in importing/exporting and private clients looking to purchase property
abroad or sell property for a move back to the UK, it can be a difficult
decision. The main reason that people use banks is just because that
is what they know whereas in reality foreign exchange brokers can offer
the level of support and advice that most people require when dealing
particularly with larger sums. Similarly, the foreign exchange brokers
and specialists typically offer a much better and more competitive rate
as this is obviously their sole source of income whereas this is not
the case for the banks.

Overall, it is down
to you to make the decision that is right for you but from a financial
and advice point of view, having the services of an expert can be much
more rewarding than using your bank. However, if you are going to do
this, make sure you spend a bit of time researching which firm would
be best to use as you would with any company you would be allowing access
to your money.

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