In a nutshell, currency brokers offer a hands-on international transfer service. These often have competitive exchange rates and no fees. The best currency brokers available include TorFX, Regency FX, Currencies Direct and Moneycorp.
This could be for large transactions like property purposes or moving a pension. They will also aid with business transfers, such as large supplier payments.
Currency brokers excel anywhere that movement in exchange rates can significantly impact cost.
The difference between a broker and digital money transfer company is customer service.
Personal care of each customer builds an understanding of the whole transaction, not just the amount.
Regency FX: is a decent, quick option. They cover most core markets and exchange rates are competitive. They start at 0.15%, but will be agreed based on the transfer.
What you can get
Account management and personal service
The biggest benefit of using a currency broker is the customer service received. This is in line with the needs of your transfer (or transfers). It is simple, easy and takes out a lot of the stress associated with complex transfers.
Negotiate rates
With rates given per transfer, it is also possible to negotiate the cost. For multiple transfers, you may also get better rates.
This won’t lead to wholesale changes. But result in better rate with a forward contract vs. getting a worse rate down further down the line.
The bargaining chip is, this way brokers know the money will move and you have your transfer sorted. Everyone is happy.
Risk management
Big money transfers are more at risk from exchange rate and currency fluctuations.
Working with a broker often comes with rate alerts and currency forecasts.
This goes beyond locking in rates and empowers customers to make informed decisions.
Top currency brokers listed
Company | Features | Rating | Pricing |
|---|---|---|---|
TorFX (UK only) | Best for UK customers sending land amounts of money, Risk management tools, Regular payments and mobile app support | ⭐⭐⭐⭐⭐ | No fees + competitive margins - request a free quote |
Regency FX | Supports large payments globally, Risk management support, Regular payments | ⭐⭐⭐⭐⭐ | No fees + competitive margins - request a free quote |
Currencies Direct | 24/7 transfers, forward contracts and other risk management tools, mobile support, regular payments | ⭐⭐⭐⭐ | No fees + competitive margins - request a free quote |
Moneycorp | Forward contracts, currency risk tools, personal account for regular payments, account manager | ⭐⭐⭐⭐ | No fees + competitive margins - request a free quote |
OFX | Forward contracts, limit orders, mobile app, regular payments | ⭐⭐⭐ | No fees + competitive margins |
Are you a business in need of currency risk solutions?
Compare providers offering a suite of options. These include multi-currency accounts, virtual cards and batch payments.
What is a currency broker
A currency broker offers currency exchange with a high level of customer service.
They will convert funds for you, from the starting currency to the end currency. Then, they will send this to the destination bank account.
This can be setup to be within a couple of days using a spot contract. Or, an agreement can be put in place for a longer period of time, this is a forward contract.
Currency brokers are largely staffed by currency trading analysts and customer service teams.
Digital only providers will have less in the way of customer service. This service is more likely to focus support for technical issues.
No they’re not. Although there is an overlap that can cause confusion.
Currency brokers are set up exclusively as a way to send money for a purpose, like a property purchase.
Forex brokers allow users to trade currencies, like you would with stocks on the stock market.
Our advice? Leave forex trading to the professionals!
Currency risk and large payments
Currency brokers specialise in managing large transfers in particular.
You wants to send $100,000 (or an equivalent amount) to Germany.
The mid-market rate when researching is $1 = €0.91. The exchange rate offered is by a currency broker is 1%.
You do not need to send the money right away.
You agree to a forward contract, meaning you lock in both the exchange rate and mid-market rate for 12 months. You make the payment in 3 months.
✅ €100,000 is received.
You decide that is about what you want to pay. As you do not need to make the payment yet, you decide to come back at a later date.
When you returns in 3 months, the mid-market rate has changed: $1 is now €0.89, and the best exchange rate you can find is 1.1%.
❌ €95,000 is received.
Let’s quickly spin that around.
You need a recipient to RECEIVE €100,000 WHATEVER the cost to you.
With the same rates, you would pay:
✅ $102,000 through using a forward contract and a currency broker.
❌ $105,000 through sending at a later date with no security.
Is fee free really free?
Generally, currency brokers will not charge fees. But, how do they make money?
This is the amount paid on top of the mid-market rate, and as such the cost will be built in here.
For comparison, Wise (a digital first provider) offer transfers at the mid-market rate, or 0%.
However, fees with Wise start at 0.35%, so the cost is seen as a little more transparent than a ‘no fee + exchange rate’.
This slightly higher cost than the likes of Wise is also where the hands on service comes in.
With a broker, you’re paying for people, with digital only services you’re paying for tech.
Use a currency broker for
Large payments that need specific hands on management
Business transfers in need of risk management
When you want access to tools such as forward contracts
Alternative options
If you need to make small payments as well as large payments, you could opt for a company that offers access to both.
Although, be aware services are tailored to digital only here.
This being said it is still possible to make large transfers with less risk measures. Generally forward contracts aren’t an option with digital services.
Most do have customer service teams as well, although it is slower. Wise in particular is starting to roll out hands on management for larger transfers over $20,000.
