Compare Foreign Exchange Brokers for Currency Transfers
If you want to convert currency to another and move it to a foreign country you need a currency broker.
Currency brokers normally offer better exchange rates than high street banks because they specialise in foreign exchange. The process of transferring your money abroad can also be faster, simpler and cheaper than the service offered by high street banks.
It is possible to save up to 4% on your money transfer by using a currency broker as opposed to your bank.
Most established currency brokers do not charge a commission or any fee for paying the money to an international beneficiary.
Fees relate to how far exchange rates are from the mid-market.
|Currency Broker||Who are they?||What do they offer?||CEO Interview||More Info|
|Currency broker OFX have transferred over £78b in currency conversions for 1 million customers around the global. They have a network of 115 global banking patterns, offer over 55 currency pairs, are regulated by over 55 global regulators and offer 24/7 customer service.||OFX offer personal and business currency brokerage with zero commission. They offer same-day payments and forwards online or over the phone with 80% of all major currency transfers processed in 24 hours.||Read Sarah Webb Interview|| Get A Quote|
|Currencies Direct have helped more than 325,000 customers move money internationally since they were founded in 1996. With them customers can transfer 40+ currencies to 120+ countries. They have more than 20 global offices and employ over 500 currency experts.||24/7 transfers online, over the phone and by app No transfer fees Personal currency expert Spot and forward contracts, limit orders and rate alerts Specialist business transfer services and risk management solutions|| Get A Quote|
|TorFX have been connecting their customers with great exchange rates and no transfer fees since 2004. They’ve won the Moneyfacts Consumer Award for International Money Transfer Provider of the Year five times (2016 – 2020) and have also won the Best Customer Service award four times (2016, 2017, 2019 and 2020). They have a five-star ‘Excellent’ TrustScore on Trustpilot.||Dedicated account management The ability to transfer over the phone, online or by app Great exchange rates and hidden fees Tailored transfer services Free market updates|| Get A Quote |
|Linear Int Payments|| Linear International Payments is a currency broker that cater primarily to large currency transfers and conversions. Personal service and expert advice.|| Online :|
|Read Mark Phipps Interview|| Compare Quotes |
|Ram FX specialise in personal service for corporates, funds, family offices and high net-worth currency brokerage for individuals.|| Online :|
|Read Mark Henry Interview|| Compare Quotes |
Ram FX Reviews
|Assure Hedge specialise in online OTC FX Options for hedging|| Online :|
|Read Barry Mccarthy Interview|| Compare Quotes |
Which currency broker is most established?
Why use a currency broker instead of your bank?
What is a currency broker FAQ?
Q. What is a currency broker?
A. A currency broker is a currency transfer specialist that specialises in large international money transfers. Because currency brokers specialise in doing one thing they are able to do it quicker, cheaper, and with better service than banks.
Q. Why should I use a currency broker?
A. If you have a large amount for currency to convert and send abroad a currency broker will be able to get you much better exchange rates than your bank. A currency broker can also provide advice on when and how to convert funds so you get the most amount of foreign currency for your money. Here are 10 reasons how choosing a currency broker can save you money vs your bank.
Q. How does a currency broker make money?
A. Currency brokers make money by widening the spread between the price at which they buy currency and the price you buy it from. Bank can charge a spread of up to 4% for currency transfers. Currency brokers charge around 0.5% for transactions above £10,000. Currency brokers will charge a smaller spread margin for larger currency conversions.
Q. How do I compare banks and currency brokers for currency transfers?
A. To compare the rates offered by bank and currency brokers use our currency quote finder to get quotes from multiple currency brokers at the same time. If you want to find out what your bank charges for currency conversions you will have to phone them up and ask.
Q. What are the top five reasons not to use my bank for a currency transfer?
A. Here are five very good reasons why you should use a currency broker as opposed to your bank for currency transfers:
- currency brokers are cheaper than banks
- currency brokers offer currency forwards so you can lock in exchange rates
- currency brokers have dedicated account managers to provide advice and assistance
- currency brokers allow you to set a predetermined rate you want to exchange funds at
- currency brokers do not charge additional fees converting funds
Q. Can I trust a currency broker?
A. Always use a currency broker that is authorised by the FCA. You can check the FCA register for information on currency brokers. Whenever you deal with any sort of financial service provider you should always do some basic research online. We maintain a list of trusted currency brokers in our comparison table, you can also read reviews of the brokers and interviews with the currency broker CEOs.
Q. Are all UK currency brokers the same?
A. No, not all currency brokers are the same. Many specialise in different aspects of currency converting and international money transfers. In our currency broker comparison tables, we have summaries which say what each currency broker is good at and what services they offer.
Q. How do I find the best currency broker in the UK?
A. Finding the best currency broker in the UK really depends on what you are looking for. Sometimes it depends on the relationship you have with your account executive, or maybe you just want really cheap rates and no assistance. Or do you want a currency broker to offer currency options and corporate FX hedging? We have a series of guides on currency transfers which should help you find the right currency broker for you.
Q. What are the top five things I should considerations when choosing a currency broker?
In summary, when you are looking for a currency broker here are the top things to look out for.
- Trust: Are they regulated? Compare regulated currency brokers in our comparison tables.
- Costs: Compare exchange rates & fees in our currency broker quote request form
- Speed: Check to see how long do transfers take and if they can be done sameday.
- Service: Personal service and customer support is one of the key benefits of using a currency broker.
- Technology: As well as being able to convert money over the phone, most currency brokers will also offer a DIY online currency conversion and transfer platform.
How to compare currency brokers
There's more choice than ever for those who need to send money abroad. As well as high street banks, traditional money transfer services and FinTech transfers like TransferWise and WeSwap there has never been more choice for those looking to transfer currency overseas.
Currency analysis is a breakdown of what is going on in the currency markets at the moment. If there has been a significant rate move currency analysis can tell you why.
The best money transfer services won't just tell you what has happened but also explain how this affects you and the transaction that you want to make.
Where can I see currency broker currency forecasts?
In addition to historical analysis, currency forecasts are equally important because they can help predict how the rates may be impacted due to certain events, so it can be useful for traders looking to make a profit.
Currency forecasts use a combination of technical and fundamental analysis. This means looking at what has historically happened to currency trends and also what effect economic events may have on the price.
Currency forecasts cannot tell you specifically where the rate is going, but they can provide early warnings of potential moves that could significantly move a price.
How much will you pay for a currency transfer with a currency broker?
This will depend upon a number of things, normally; how much you are looking to transfer, how quickly you want the money to arrive and the fees that the currency transfer service charge.
Getting the best deal on a currency transfer isn't just about finding the foreign exchange service with the cheapest prices but also considering which ones can; get your money there quickly, safely and in the way that works best for the recipient on the other end of your transfer.
Most Currency brokers today don't charge commission. Instead they buy the currency at one rate and sell it on to customers at another. This is called a markup and is usually calculated as a percentage.
You can read our guide on how to compare exchange rates but essentially, if a broker doesn't tell you how far (as a percentage) your rate is from the mid-market, the exchange rates are not fixed.
They matter because, with such opaque pricing structures, being fixed and transparent is paramount.
Can you convert online and over the phone with a currency broker?
Dealing online is easier, faster and safer than ever, but you may feel as though having a broker at the end of the phone, to help with conversions and issues with larger currency transfers beneficial. However, this may cost you a little more.
Pricing is the same with fixed-rate brokers. There are many advantages to doing large currency transfers online, as you can keep an eye on the exchange rate and do the conversion at the exact second the price is right for you.
However, for one-off large personal transactions, having a dealer taking all the risk or making a mistake on the other end of the phone can make life a lot easier.
Does the currency broker offer currency forward contracts?
Currency forwards are essential for large currency transactions because you can lock in the current rate for up to a year in advance. They are used to hedge currency exposure. Compare currency broker forward rates.
It's a form of buy now pay later currency exchange. In most cases you will have to put down a 5% to 10% deposit of the value of the transaction to cover any moves in the underlying currency exchange rate.
What is a currency pair rate & why does the spread matter?
A currency pair is how brokers, traders and customers understand the value of one currency vs another. For example a GBP/EUR rate of 1.12 means for every £1 you have to transfer you will get €1.12 in euro currency.
When moving money abroad with a currency transfer the rate is very important as little differences in how you will move the money abroad will affect how much money is available in the quote currency (the currency that you are transferring your money into).
Currency brokers no longer tend to charge commission on transfers but instead factor their profits into the price that they offer you the transfer at.
This tends to mean that there is sometimes very little between currency brokers in terms of overall costs for making the transfer, although some will charge extra in admin charges or more for faster transfers.
Ultimately, choosing your currency broker should be about more than just the rate that you are being charged on the currency you want to transfer although this is an important part of comparison as it ultimately affects how much you pay.
Compare the rates and services, user reviews and efficiency of potential currency brokers before committing to making a large transfer.
How many currencies does the currency broker offer?
In reality most large currency transfers in the UK are from GBP into or from USD and EUR. But the more currencies a currency broker offers they better.
If ever you need to convert money to another currency, then finding a new broker, because your current broker does not offer transfers to that particular denomination could be frustrating.
The currency brokers included in our comparison all offer a minimum of 10 currency pairs with brokers like OFX offering more than 55.
What is the minimum transfer amount with a currency broker?
Some currency brokers and money transfer providers specialise in very large amounts and as such will have a large minimum transfer amount.
This doesn't mean that once you are set up you can do small amounts. It just means that currency brokers that specialise in large transactions tend to offer more personalised service and as such try to limit their clients to those that require more help.
Other currency brokers offer much smaller initial transfer amounts to get new business through the door in the hope that amounts will increase in the future. For example, OFX offers a minimum transfer value of £100, with most other brokers advertising minimum transfer balances of £1,000.
Does the currency broker offer same-day currency transfers?
In this day and age with the fast banking network, all brokers should be able to process payments on the same day. Most brokers are able to process same-day payments. If there are delays it is usually with the receiving bank allocating funds to accounts.
The reality is that currency brokers want to provide you with the best service as client funds are segregated, make no extra income from keeping your funds on account. Currency brokers want to process your transaction as quickly as possible because faster is normally better for customers.
What does a 0% commission currency transfer mean?
The majority of currency brokers now advertise their services as 0% commission, but what does this mean? The truth is not all that much.
Currency brokers make their money on the difference between the price they buy their currency and then sell it on to you.
In the past, currency exchanges have been making money on both the buy/sell spread, but also adding commission on top.
Now, with greater competition in the industry adding commission on top of the spread makes a currency broker seem less competitive than those which offer 0% commission.
Despite the 0% commission strap lines, you can still find cheaper or choose a more expensive currency transfer. Brokers now generally base their prices on a percentage away from the mid market price, known as the rate.
So if you are a small customer you can expect to be charged about 1% from the mid market by your currency broker. This means, if you convert £10,000 they will charge you £100 – from this they will have to deduct all their costs before they make a profit.
Peer 2 Peer currency exchange versus traditional currency broker conversions
New Peer 2 Peer Foreign Exchange companies claim to swap your currency with a local in another country rather than deal in the market with banks.
Companies like TransferWise rely heavily on this “we don’t use the evil banks” image to get new customers. However, the costs are still pretty high. They charge a flat 0.5% of the conversion value so still make 1% on the buy and sell before costs.
However, the liquidity of this market is still pretty thin so most of the time they are just using bank lines to do the conversion but with discounted rates to win new business.
How can banks justify charging tourist rates?
Tourist rates are around 3% – 5% from the mid-market depending on what bank you use and you’ll also have to pay transfer fees on top.
At the airport rates can be even bigger. The rates may seem large, but at the end of the day there is significant risk and administration in converting lots of small amounts of money so the large fees go towards covering these costs as well as the bricks and mortar locations that currency exchanges have to pay for.
How currency brokers help with large transactions
If you are converting over £100k, you may be better off speaking directly to a foreign exchange specialist who can give much better rates than 0.5% and also provide advice on when to buy and sell or currency forwards – which will make more of a difference than how good your exchange rates are.
No one can predict where the currency markets are going to go, but the dealers at currency brokers have a better chance than most of providing good advice on how to protect yourself against adverse rate movements.
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