Currency exchange providers specialize in buying and selling of currencies and their main focus is money transfers which involves different currency denominations. Banks on the other hand provide a range of services as their currency exchange division is not as huge compared to say their investment banking division. In this era of break neck competition banks have started providing a range of services be it life, motor and travel insurance apart from their credit cards and basic savings services.
Lately, most of the high street banks provide currency exchange services which involve high exchange rates and transfer fees. This, not only has resulted in the growth of dedicated currency brokers but also provide their customers to avail their knowledge of the currency market to make the most of their money in terms of investments or savings. With no to low fees, excellent exchange rates and faster wire transfer these money transfers and remittance services like, GCC Exchange have proved to be a better bet than using a bank.
The money that is remitted globally on a monthly basis by the economic migrants to their home country is astonishing. For example, the amount remitted by Filipinos to their home country from around the world is about 10.2% of their GDP as confirmed by World Bank data. Hence, with such sums of money at stake and with plethora of broker options it is important to choose the right currency exchange provider and make sure the money is in right hands.
Below are a few pointers to help choose the right broker.
- Law & Regulation
It is important to find out if the broker is regulated and compliant with local laws. In the UK, Financial Conduct Authority is the conduct regulator of all financial firms in the country. A broker if regulated would mention it on their website or any print communications. It is imperative that a money exchange house should be regulated before initiating any financial transactions as a matter of safeguarding against any possible fraud.
- Exchange Rates & Fees
Among the currency exchange companies due to stiff competition their rates differ and so it is advisable to check them in advance. Some currency brokers may advertise rates which are too good to be true only to add their fees and margins to get attention. It is therefore important to get a quote upfront and clarify if there are any fees attached before proceeding.
- Transfer Duration
One of the aspects that need to be checked is how long the transfer takes. In some instances, money exchanges have tied up with international banks and other exchanges and so the duration can vary from a few minutes to a couple of days. It also depends on the country where the money is to be transferred and the local regulation.
There are varied reasons for the need of a currency exchange company which can be buying a property abroad, remitting money to one’s home country, export/import or receiving pension in a foreign country. Therefore, not only they offer their expert guidance in currency matters they would save time and money.