Opinions on foreign exchange services companies

Foreign exchange services company has caught my attention

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Good afternoon all,

 

I am sure if you import anything into the UK, you have received many annoying sales calls from companies offering ‘apparently’ better foreign exchange rates then your bank. As the majority of these sales calls are time wasters who sell services that don’t even relate to our business, I tend to just ask to email me the information over and if I am interested, I will be in touch.

Anyhow this one specific foreign exchange rates company caught my attention, and I thought I will enquire about a precise GBP/EUR amount that we will soon have to pay to our supplier abroad in EUR.

The amount that this company quoted us was approximately £300 LESS than what our bank quoted us at that time. 

I have done research on this company as much as I could, and they are FCA and HMRC AML registered.

Just wondering has anyone had experience with these types of firms? Is there anything specific someone might recommend to me to double check?

Thank you in advance.

Replies (4)

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By paul.benny
31st Mar 2023 16:04

Anyone can quote an fx rate that's "better" than another one when they don't have to deliver against it.

Have you tried contacting your regular bank and asking if they can improve the rates they offer you?

Thanks (1)
Replying to paul.benny:
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By Polopols
31st Mar 2023 16:23

I actually didn't give our banks rate so the fx company didn't know what our bank was offering but I fully agree with you on this one. I just feel like it is too good to be true so I am very cautious about the whole situation..
I have not contacted our regular bank as I didn't think fx rates are negotiable with banks - thank you for this advice. I will get in touch with our bank manager.

Thanks (0)
AS
By AS
31st Mar 2023 16:55

I have clients that use these services just to move funds to/from their £ bank accounts to US$ or € accounts within the same bank as the rates offered by the banks are not very good. They save a few hundred pounds on each transaction compared to relying on the banks to give the best rates.

Thanks (2)
Caroline
By accountantccole
03rd Apr 2023 10:38

Based on my experience (live in France but have GB income streams and move money regularly) the bank charges/rates are normally worse than going via for ex agencies. Obviously need to do your DD on them, but general concensus on ex pat pages is they are better value.

Thanks (1)