Compare Quotes To Get The Best GBP Exchange Rates

If you are doing any sort of Pound Sterling (GBP) conversion it pays to compare providers to see who can give you the best Pound Sterling (GBP) exchange rate. High street banks are the worst place to convert money as they generally have poor Pound Sterling (GBP) exchange rates. To get the best rate for large Pound Sterling (GBP) currency transfers, smaller regular money transfers or cash travel money read our guide to the top providers.

Get The Best Pound Sterling (GBP) Exchange Rates With These Currency Providers

Currency BrokerNumber of CurrenciesMin TransferForward ContractsPersonal TransfersBusiness CustomersSame DayCurrency OptionsYear FoundedAnnual TransfersAmount of CustomersGet A Quote
Key Currency42£1,00012 months✔️✔️✔️2015£2bn50,000+Visit Key Currency
OFX55+£25012 months✔️✔️✔️1998£2.4bn1,000,000Visit OFX
Global Reach30+£3,00024 months✔️✔️✔️✔️2001£6bn30,000+Visit Global Reach
TorFX40£10024 months✔️✔️✔️2004£7.5bn325,000Visit TorFX
Currencies Direct
40£10012 months✔️✔️✔️1996£7.5bn325,000Visit Currencies Direct

What is the best Pound Sterling (GBP) exchange rate?

The current best Pound Sterling exchange rate versus other G10 currencies is the mid market price which is:

Australian Dollar (AUD)1.775595651
Canadian Dollar (CAD)1.558426918
European Union Euro (EUR)1.160872608
Japanese Yen (JPY)163.6809081
New Zealand Dollar (NZD)1.951996594
Norwegian Krone (NOK)12.02096557
Swedish Krona (SEK)12.47518167
Swiss Franc (CHF)1.161574437
United States Dollar (USD)1.210049

Pound Sterling (GBP) Exchange Rate Explained

The Pound Sterling is one of the oldest currencies in the world. It is the official currency of the United Kingdom and some crown dependencies. Sterling’s FX abbreviation is GBP. Most FX quotations are against one Pound Sterling, e.g., GBPUSD specifies how many US dollars for one pound.

As the currency of one of the largest economies, the British Pound is actively traded in the foreign exchange market. It is the fourth most traded currency behind the Dollar, Euro, and the Japanese Yen. Many central banks hold Sterling as part of their foreign exchange reserves (IMF estimates this to be $550 billion).

The Bank of England, the second oldest central bank in the world, manages the monetary policy and policy rate. These two factors bear heavy influence on the movement of Sterling. More specifically, the nine-member Monetary Policy Committee (MPC) meets eight times a year to debate the economy and to adjust the policy rate if necessary. Currently, the policy rate is set at 10 basis point (0.1%), the lowest level in more than 200 years.

Over the past few years, another factor has emerged to influence to movements of Sterling, namely Brexit. But the impact of Brexit is slowly diminishing due to the conclusion of the separation treaty.

What factors affect the Pound Sterling exchange rate?

Foreign exchange is a large and interconnected market place. Billions of dollars are transacted 24/7. Unsurprisingly, many factors can influence exchange rates movements. Most factors can be grouped under the three broad categories: 1) Political, 2) Economic, and 3) Monetary. Because of the myriad of market-moving factors, it is hard to calculate the correct value of a currency at any time. Even if we can compute this value, exchange rates rarely stay at that price.

For Sterling, its value since 2015 has been a roller coaster ride. This is due to the political uncertainty arising from the Brexit referendum (see below). At time, Sterling trades like an emerging market currency. But the conclusion Brexit has diminished the impact of the event.

Source: American Express

Apart from Brexit, other factors that drive the exchange rate include the economic outlook, inflation, and quantitative easing.

  • Economic outlook – is determined by dynamic factors, including house prices, post-Brexit trading patterns, and the fight against covid-19. UK is one of the fastest countries to vaccinate its population. This makes investors more positive about its economy, hence the rise in Sterling since late 2020.
  • Inflation – is one of key aspects of BoE’s mandate. If inflation overshoots the 2 percent target, the central bank will be prepared to raise interest rate to dampen demand.
  • QE – is a key tool in the fight against the deflationary aspect of a financial crisis and the pandemic. During Mar-Nov 2020, the central bank has increased its balance sheet by about £250 billion to £895 billion. This weakened Sterling.

Another crucial factor is expectations. If investors expect an economy to do well – even from a poor starting point – then they are willing to buy the currency. In contrast, if the market anticipates the economy to deteriorate despite if it doing well now, then the exchange rate will have limited upside.

Bottom line – Sterling has been quite volatile over the past few years because of Brexit. Now that event has passed, economic factors may have more influence on its direction. In 2021, one of the most important factors to watch for is inflation. This is due to a constriction of supply and pent-up demand arising from the pandemic.

Getting the best Pound Sterling (GBP) Exchange Rate FAQ

When you convert and transfer Pound Sterling (GBP) with a currency broker your fixed exchange should be a maximum of 0.5% from the mid-market for currency transfers. To put this in perspective, banks traditionally charge 3-5% which means that if you are sending £100,000 worth of Pound Sterling (GBP) you could save up to £4,500 with a currency broker versus the banks.

Request a quote to see how much you can save – you’ll find a better Pound Sterling (GBP) exchange rate than by using your bank.

Where to find the best exchange rate for Pound Sterling (GBP)?

Comparison tables and Pound Sterling (GBP) exchange rate quote request forms will help you find the best Pound Sterling (GBP) exchange rate. Pound Sterling (GBP) exchange rate comparison tables highlight the key features of currency transfer providers whereas Pound Sterling (GBP) exchange rate quote request forms will make currency brokers compete for your business by offering the best exchange rate.

A few tips on getting the best Pound Sterling (GBP) exchange rate:

How do I know I am getting the best Pound Sterling (GBP) exchange rate?

Only go with a currency broker that offer fixed and transparent exchange rates and clearly show fees. All fees and charges should be built into the exchange rate. Have a look around currency providers’ websites, and if you find that they don’t clearly show how much a currency transfer is going to cost you will need to ensure you get a fixed mark up rate in writing to ensure you get the best Pound Sterling (GBP) exchange rate.

Should you convert Pound Sterling (GBP) now or wait for the exchange rate to improve?

If you think the exchange rate is going to go in your favour have a chat with your currency broker. Most have been providing market timing advice to institutions and hedge funds for years and should be able to provide some guidenece on strategy. Or, if you are worried the rate will move against you it is possible to lock in the current rate for up to a year in advance with a currency forward.

How do I know what the Pound Sterling (GBP) exchange rate commission is?

These are included in the exchange rate and are always fixed and transparent. Our exchange rates are always a fixed percentage from the live mid-market.

If you want to know how much the fees will be just ask and we’ll provide a clear breakdown. Read our guide on how to compare exchange rates, which also explains what the fees are and how to calculate them.

Will I really get the best Pound Sterling (GBP) exchange rate?

Yes but you’ll have to put a bit of effort it. If you are already using your bank or another currency broker send us a recent transaction and we will send you back a breakdown of exactly how much they are charging you in hidden fees and how our approach to fixed and transparent exchange rates will result in you getting the best Pound Sterling (GBP) exchange rate.

Why buy Pound Sterling (GBP) through a currency broker?

  • Compare the cheapest bank beating currency exchange rates
  • Expert help and advice to reduce your risk and exposure
  • Dedicated account managers every step of the way
  • Convert funds online and platform access 24/7
  • Same day and forward currency exchange contracts
  • Zero service charge, commission or transfer fees
  • Transfer money direct to single or multiple beneficiary accounts
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