Corporate FX – Best Foreign Exchange Services for SME’s in 2018
At MoneyTransferComparison.com, we help businesses (SMEs to larger corporations) optimise their foreign exchange transactions. If your business needs to send or receive international payments, you’re in the right place. We list only the best companies with the highest credibility rating and best credit ratings, ones that are able to maintain high liquidity and consistently offer good rates, as well as a wide selection of FX hedging options. Our approach is multi-lateral and consists of:
Top 3 Business FX Providers Selection
- Supported Currencies: 90.
- Offices: UK, USA, France, Spain (2 Offices), and Ireland.
- Execution of Orders: Online, via Telephone, or In Person.
- Strong Point: Reputation, Liquidity, Service, Credit Rating
- Operating Since 1962. Highest Credit Rating. Preferential Rates for Our Referrals.
97 / 100 on Feefo
- Supported Currencies: 121.
- Offices: All 5 Continents.
- Execution of Orders: Via Telephone, Online or In Person.
- Strong Point: Price Rate Guarantee, Service-Orientation, Reliability.
- Trading more than $7bn each year.
9.8 /10 on Feefo
- Supported Currencies: 59.
- Offices: UK, Australia.
- Execution of Orders: Online, via Telephone, or In Person.
- Strong Point: Online Platform, Dealers Experience, Employee Retention
- FastTrack 100 Listed.
9.4 / 10 on TrustPilot
Corporate FX Testimonial
Intamarque is one of the UK’s fastest growing Distributors’ of FMCG lines with sales growing from zero to £35m in just 10 years. We were award the Fast Track 100 award which identifies Britain’s private companies with the fastest-growing sales. We’ve been successful because we offer retailers, wholesalers and pharmacies a unique combination of extremely competitive pricing, outstanding flexibility and a high level of personal service and attention.
We are located in the UK centrally on the M5 corridor between Birmingham and Bristol.
We recently had the pleasure of using the service of MoneyTransferComparison.com who helped us secure a successful outcome of an order which was challenged due to the economic climate at the time.
The professionalism and attention to detail from MoneyTransferComparison.com was amazing and Intamarque would thoroughly recommend them to anyone needing to use this service.
Richard Shortt, Managing Director, Intamarque Limited
Geographical Selection: All companies featured in our selection can take on corporate clients from almost anywhere in the world. Whether your business is based in the UK, the EU, Australia, Canada, the USA, New Zealand, Singapore, Hong Kong or anywhere else in the world – the business fx services listed on this page can help you.
Corporate FX Hedging Tools
Composed by Badre Bouarich, a former Trader and Multi Asset Structurer (Forex, Interest Rates) at HSBC bank in London & an expert Financial Writer. To read our complete guide click here.
A main task for a company’s manager is to minimize (hedge) risks that are not necessary for the performance of the business. Among the different types of risks lies a very important one that can jeopardize the financial health of any global company: Foreign Exchange Risk.
As currencies fluctuate and as markets increase in volatility, it becomes very difficult to predict the future and gain stability in terms of inflows and outflows. For this reason, more and more companies are hedging their future cash flows and stabilizing the rate at which they will exchange currencies in the future.
As the derivatives market developed and as counterparty risk became mitigated through clearinghouses, hedging possibilities have widened, making it possible to reasonably hedge cash flows due in 3 years time. Now, there are different instruments that will enable you to achieve your desired objectives – although a thorough understanding of the products involved is necessary.
There are additional tools to the vanilla 4 presented here, such as a Time Option, which is fully hedged, unlimited upside, minor cost, and participating forward. Additionally, this is also partially hedged with upside potential.
Again, commercial corporate FX companies will make tremendous efforts in order to inform you about market developments, along with the most adapted instruments to use. Moreover, they will give you access to a set of hedging instruments that banks will provide only for the largest corporations. Read the full overview on our hedging guide.
Too Complex? Find Our Hedging for Dummies Video
Why Are These Particular Companies Recommended?
Corporate FX does not only consist in sending B2B payments from place A to place B (and sometimes B2C as salaries). It also involves continuous advisory, market monitoring and timely execution. When conducting their business operations, companies need to find corporate forex brokerages and real partners that will enable them to increase profitability, while mitigating risks.
For these reasons, we have taken into account the following elements when making our choices:
- Wide Global Reach– In the era of globalization, it’s necessary for your business to gain worldwide exposure and access to new markets. As developed markets get very competitive, emerging markets can offer tremendous business opportunities that the best Foreign Exchange firms will enable you to capitalize on.
- Liquidity / Competitiveness– High liquidity enables companies to tighten their bid/ask spreads and offer you better exchange rates. For this reason, liquidity is among the most important parameters to take into account when dealing with a commercial Forex company. By selecting the right company, you could save up to £10,000 on a £500,000 transfer.
- Credit Rating – FX derivatives can be trickier than straightforward international payments. If the commercial service provider goes bust, it’s not only your funds that are at stake, but also the contract, which might not be honoured when it matures. This is why selecting a company with a high credit rating is absolutely essential.
- Customer Service– Alerts, Stop losses, recurrent payments, timely execution and market advisory are all elements that will enable you to gain time while focusing on your company’s core value proposition. Corporate FX firms with great customer service will watch your back while you focus on the operational side of your business.
- Online Merchants –Foreign bank accounts. While it is not possible for other types of corporate clients, some companies allow eCommerce sellers to set up collection bank accounts abroad. That means foreign currency payments are being exchanged for much better rates. Read our dedicated Merchant bank account guide.
Should You Go for Large or Boutique?
Here on MoneyTransferComparison, we have tested and rated a variety of FX companies offering business services. Some of these we rated poorly (like Western Union), some don’t handle business (like Azimo), and some simply don’t appear to be a good option for business, even though we think they provide good solutions to private clients (like Transferwise).
Even so, there are more than 10 other companies that provide corporate FX services that we do recommend. The main differentiation between them is their size.
Large currency firms
Higher trading volumes, more employees (both sales, marketing and dealers), and more offices across the globe. These typically are headquartered in London.
- Advantages: Get better rates than smaller companies and thus the haggling space on the spreads they take could be potentially smaller. These companies have a lot of experience dealing with thousands of businesses in varying sizes in different markets. They usually have higher global reach than smaller firms, and local presence in countries which enables them to handle complicated transactions better. Plenty of testimonial to attest for their quality of services from fellow business owners.
- Disadvantages: Though the staff is professional, as a small business you are not likely to be dealing with the head dealer.
Boutique currency firms
Smaller trading volumes, fewer employees, and usually fewer than 5 offices (where oftentimes there’s only a single UK office).
- Advantages: Often provides a higher level of expertise from currency dealers. Extremely service oriented. They need your business to work with them, and are therefore willing to offer tighter spreads.
- Disadvantages: Usually don’t accept US-based businesses. Have fewer corporate clients, so some scenarios could be unprecedented. Lower global reach (dealing with fewer currencies). Less testimonials to their services than with larger firms.
We suggest that larger multi-national corporates stick to the larger companies. After all, they need a company that can handle these large transactions efficiently and have been doing so for a long while. The risk with large transactions does exist – as currency transfers are not insured – and if a company goes bankrupt, you could be getting hurt (although client accounts are separated from the company’s accounts by FCA instruction).
For smaller businesses, we suggest trying one of the smaller firms. They could potentially get better rates and more tailored services than with larger firms. Smaller businesses can also get direct access to the head dealer and even the Managing Director / Senior Associate of the company, if required.
The Conclusion – Corporate FX Overview 2018
Within a global macro-economic conjuncture that is characterized by transition and instability, businesses have been facing a growing number of risk-bearing factors. Nevertheless, this climate has also created a tremendous number of opportunities for businesses willing to open up, take the extra step and explore global marketplaces.
As a consequence, international money exchange flows have sky-rocketed and it has become critical for business owners and managers to optimise their cross-border transactions, while turning potential risks into value-adding elements. An international B2B payment conducted via an FX firm that specialises in business is the best choice that a small business owner or a company’s money manager can make.