Why you should stop using banks to buy foreign currency

If you’re using your bank to buy foreign currency for your business, you could easily save thousands of dollars by switching to a specialist foreign currency broker.

There are many currency brokers to choose from, all offering easy to use and functional websites, good service and low fees. If you’re an importer and often buy currency, you’ll probably want to sign up with a service that offers consistently competitive rates, rather than shop around to save a few (more) bucks with each individual trade.

Foreign exchange brokers

We’ve used Ofx for many of our clients, while other clients like Xylo. Generally, users create an online account, add recipients’ details (saved for later use), create the deal online and then send the AUD to the broker using Bpay. When received and matched, the broker sends the funds to the recipient, typically the next day. Many services offer forward contracts with locked exchange rates which can help reduce exchange risk.

Compare rates

You should compare rates yourself and decide if these services are right for you. The table below lists the cost of purchasing US$50,000 from four brokers with four major Australian banks. On 11 June 2016, the average price offered by the brokers was almost $3000 cheaper than the banks. For even modest importers buying say US$500,000 in stock each year, the switch could save $25,000 - $30,000.

Comparison of exchange rates: banks vs. brokers

Get started

Compare rates and discover possible service provides at these comparison sites here and here.

Get in touch with us if you’d like to know more about how these services work and whether they’re right for your business.

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