According to the experts at foreignexchange.org, one of the most important things to consider when transferring Forex is whose services you will use. The two most popular choices are banks and specialist independent Forex brokers. Most South Africans are still using banks to meet their Forex needs but a new trend is emerging. Internationally, businesses and SMEs prefer to use specialist online brokers to transfer Forex online. This is mainly because it is a straightforward and profitable method to transfer Forex. According to Expertsforexpats, specialist Forex brokers can offer far more services than banks can. We have compiled a list of the top 7 reasons why businesses and SMEs are moving away from using banks for their Forex needs.
- Banks don’t specialise in Forex. Although many banks do offer Forex services, this is not their area of expertise. This means that banks struggle to keep their clients informed about the ever-changing market-place. However, specialist Forex brokers are specialists and they are therefore dedicated to monitoring the exchange rate and to keeping their clients informed. Because brokers are specialists, they give their clients advice on currency risk which ensures the best service to meet their clients’ every need.
- Specialist Forex brokers secure the best exchange rates for their clients. According to org, it is often more expensive to use the services of a bank because banks work with large margins on Forex transfers. Unlike banks, specialist Forex brokers work on much smaller margins which means that brokers are able to secure more competitive exchange rates.
- Banks usually have more transaction fees and charges. Banks are likely to charge clients an extra fee for transferring Forex whereas specialist Forex brokers don’t charge their clients any extra fees. According to Expertsforexpats, specialist brokers can save up to 90% of the costs associated with Forex transfers for their clients. Banks are notorious for overcharging clients.
- Banks take a longer time to transfer your Forex. According to co.uk, banks are regarded as the slowest mode for Forex transfers. Specialist brokers are a much faster option for clients.
- Specialist Forex brokers allow clients to create an account with them. This means that it makes it easier for clients to make regular, or even once off, Forex transfers. Opening an account with a specialist broker also allows clients to keep up to date with the exchange rates.
- Specialist Forex brokers are better at reducing your risks. The foreign exchange services offered by a bank are usually quite limited whereas specialist brokers try to tailor their services to meet your needs. For example, specialist brokers generally allow their clients to fix exchange rates months/years ahead of actually transferring the Forex. They also encourage and assist their clients to set up Forward Cover.
- Specialist Forex brokers are more proactive and transparent than banks. Specialist brokers keep up to date with the latest exchange rates every day whereas banks only update their exchange rates when it is convenient for them. By keeping up to date with the exchange rates, specialist brokers make sure their clients can reap the benefits associated with the changes and this further reduces costs for the client and can sometimes even be profitable.
Next time you need to make a Forex transfer be sure to keep these factors in mind. Yes, there is a perception that using a bank to do a Forex transfer is an easy option, but this is only because it is something that is familiar to most people. However, you should consider the overcharging and the excessive fees associated with banks. Perhaps you should give specialist Forex brokers a try next time—the benefits are endless and there are no sneaky hidden costs for you to contend with. For any further questions please feel free to contact us or to understand more on how we work, click here.
Leave a Reply