For Businesses
Foreign Exchange for Business
Regardless of your type of business, risk exposure from foreign exchange fluctuations is a constant factor. Whatever your firm's currency needs, an expert foreign exchange service can provide the cheapest, fastest and most secure methods. They can also offer extras such as advisory services, hedging strategies and forward contracts.
Use a foreign exchange specialist for your business, to increase growth and maximize profits – whether you require:
Import and Export of goods and Services
You are usually required to pay for overseas goods and services in local currency; a foreign exchange specialist can access excellent exchange rates and a fast transfer speed to keep costs down and cut time wastage.
Import and Export of Foreign Currencies
Even if you are on the receiving end of foreign currency (from overseas suppliers, for instance) you will need to get a good rate for converting the local currency back to yours.
Risk Management
To limit your company's level of exposure from the currency exchange market, foreign exchange services can offer a comprehensive risk management program. This will include one-to-one discussions on where best to install orders (such as Stop Loss or Limit orders). You might also opt for a forward contract – thereby fixing a good exchange rate for up to 2 years before you wish to make a trade. Forward contracts are usually subject to a margin (10% is normal).
Overseas Investment
As with foreign import/export, you will need to convert to local currencies in order to carry our overseas investments. So as ever it is essential to find a foreign exchange specialist that can guarantee excellent rates at all times.
Hedging Strategies
Today you can choose from a range of hedging strategies to limit your firm's exposure to currency fluctuations. These usually involve a type of contract, from vanilla options to high tech forwards. Your dealer will discuss each one with you in detail.
One-off or Regular International Transfer
A foreign exchange service will be able to offer great rates and additional features regardless of whether your requirements are for regular transactions or simply a one of transfer.
An expert foreign exchange firm can offer all of the above services and more besides. Your firm will be appointed a dedicated dealer, expert analysts and a team that knows the foreign exchange market inside out.
Online Corporate Foreign Exchange Services
Easier and quicker than using your regular bank, a foreign exchange specialist with online capabilities can offer a wide range of services to help you streamline your business – regardless of the size or industry of your firm. Online foreign exchange brokerages can offer:
Online account (accessible anytime day or night)
- Unbeatable exchange rates
- Personal service (no call centers)
- High tech hedging strategies
- Fastest international payments
- Service tailored to your business
Opening an account with an online corporate foreign exchange service is straightforward. In general, you will be asked to provide official documentation to prove your firm's status. A good currency service will not charge a fee for opening an account, nor will they put you under any obligation to make a transaction or trade.
Once an account has been set up, your business is appointed its own dedicated currency dealer. They contact you to discuss your firm's currency requirements and risk exposure. Every step of a transaction is discussed and tailored. Before any transaction is made, a good foreign exchange service will give you an exchange rate quote.
Most corporate foreign exchange services take payments via bank transfer or Direct Debit.
Things to Look For:
Before choosing a foreign exchange specialist, there are some things to look out for:
Are they fully regulated?
Check their website thoroughly or ask directly for proof that they are regulated fully. As a financial service, any foreign exchange brokerage or bank must be regulated to trade, deal or transact currency. They should be either regulated by the Australian Securities and Investments Commission (ASIC) or by the local equivalent (such as the Financial Services Authority (FSA) in the United Kingdom).
What additional features are offered?
A service may be able to provide international transfers but do they offer you a range of additional features such as an advisory service or hedging strategies? These extras are important to many firms who want to limit risks as much as possible.
Are the rates competitive?
Exchange rates are constantly fluctuating, so it is essential that you are offered the best available at any given time. You can take measures to hedge risk with a range of strategies or a forward contract, which fixes a rate for a set period of time. But even if you just want to make a fast one-off international payment, it is important to access the best rates; a good currency service will be able to offer you a rate within 1% of the Interbank spot rate.