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Corporate FX: Top Services for SME’s

At MoneyTransferComparison.com we help businesses (SME’s 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 highest credibility rating and best credit ratings, ones which 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:

  • A thorough analysis of money transfer companies.
  • A deep understanding of the industry requirements.
  • A continuous assessment of market conditions

Top Corporate Foreign Exchange Services:

Moneycorp Logo
  • 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.
  • Rating:
    97 / 100 on Feefo
    Editorial: 93.4%
  • 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.
  • Rating:
    9.8 /10 on Feefo
    Editorial: 95.8%
TorFX Logo
  • 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.
  • Rating:
    9.4 / 10 on TrustPilot
    Editorial: 93.2%

Corporate FX Testimonial

richard-shortt-photoIntamarque 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.

Kind Regards

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Richard Shortt, Managing Director, Intamarque Limited

Geographical Selection: All companies featured on 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, USA, New Zealand, Singapore, Hong Kong or anywhere else in the world – the business fx services listed on this page can help you.


 

 

The SME FX Survey 2016

A small business FX survey was conducted in April 2016 and is available on World First’s website. Here are the key findings from it:

89%

Of the businesses using a currency specialist would recommend other businesses to use its services, against 35% of SME’s using banks who would recommend it.

24%

Less than a quarter of UK-based companies are aware they have a bank alternative in the form of a corporate currency brokerage. This is why 8 out of 10 businesses still use banks.

83%

Of small business clients claim their foreign exchange payment provider is cheaper than their bank.

45%

Of the property businesses in the UK have been let down by their banks’ FX services, at least once.

How Currency Dealers Add Value to Your Business:

Here are some of the more common usages B2B currency brokerages can handle successfully:

  1. Import & Export Operations – Selling products or services to a foreign client.
  2. Regular International Payments – Automatically perform payments for outsourced services.
  3. Foreign Entity Funding – Sending funds to a foreign child-company entity.
  4. Suppliers’ Payment – Paying foreign product or service suppliers.
  5. Overseas Employees Salaries – Attracting a talented foreign based workforce.
  6. Currency Risk Hedging – Fixing the FX rate for a particular specific of time.
  7. Commercial Mortgage Payment – Borrowing and repaying money to a foreign bank.
  8. Overseas Investment – Buying a plant, land or a company abroad.
  9. Payroll payments – Automated or non-automated international payroll payments.
  10. Repatriation of Funds Receive foreign currency payments from abroad.
  11. Collection Accounts Abroad for Online Merchants – International bank accounts, paying and receiving. View our dedicated merchant international payment page.

Testemonial

On an annual basis my client imports over $1.5M of goods from China so the effect of not managing their currency exposure can be very harmful to the business and in the past currency has mainly been bought at the spot rate.

My advice was to manage the exposure particularly the downside risk of currency falls especially with a possible Brexit on the horizon, so we invited three companies including their current bank to talk to us about their different products and the service that they can provide. There wasn’t a vast difference between the rates that they all offered although moneycorp was the best, but what was evident was the advice of what products were available was quite clear and the ease of setting up the account was trouble free.

On a day to day basis Barbara is available at the end of the phone if we need her but the usability of the system is very good so we don’t have to contact her that frequently. So overall, good products at a good price, backed up with a system and service that makes the currency management trouble freeAndrew (Business Advisors), 28/07/2016

– Andrew’s testimonial is verified. He uses Moneycorp as his currency provider.

 

6 Things To Notice

As a Corporate Client When Booking a Trade

georgeWritten by George Tchetvertakov, a 10 year veteran in the foreign exchange space. His diverse experience includes  editorial and writing roles in publications such as Finance Magnets, alongside roles in FX firms like Head of Market Research at Alpari UK, and Business Development Executive at Moneycorp UK.

If you’re a business that has made a decision to place a currency transaction, or trade, then you’ve come to right place. To see how a business foreign currency provider can add value to your business, read our 11-point list above. Here are 6 absolutely critical considerations to make before you make a contractual commitment to exchange one currency for another.

1) Know who you are dealing with

Before getting overexcited about the ultra-competitive currency transaction rate you are being offered, you may want to ask the question, ‘With whom am I doing business with?’.

In the FX world, this question carries a lot more traction and will take you a lot further in search of a reliable corporate FX broker. The not-so-often-said truth about foreign exchange at all levels is that entities often do business under the financial authorisation of another entity under so called ‘affiliate’, or ‘white-label’ agreements depending on the FX niche you’re referring to.
To ensure you know the full story of the company to who you will be potentially transferring millions of dollars with the expectation of a currency exchange, make sure you do a full due diligence check on the company you have earmarked and checked its financial market status through our website.

2) Timing is everything

An obvious one that’s most often forgotten. Many corporations (particularly the smaller ones) jump into conducting a currency transaction, may it be a business payment or a Forward contract, at the last minute when needs must, rather than when it’s most advantageous to do so.

This is usually down to oversight or simply being faced with unforeseen circumstances, or merely in ignorance that better rates even exist in the first place. This can be simply removed from the equation by having a reliable fx provider already waiting having completed the account opening process beforehand.

3) The Ins and Outs

Knowing exactly what has been (or about to be) contractually agreed is important, and so is, knowing exactly what the expected currency transaction will look like. Keeping a close eye on the specifics of the deal such as currency exchange rate, due date, country where nominated bank account is held, associated bank fees and so on are essential to the deal maintain legal integrity and for costly clerical mistakes to be avoided.

In modern times recommended currency operators routinely offer online portal functionality allowing corporate users to login an track all the fine details of their transactions. Being able to use and understand these tools can be more difficult than first thought however, especially if the corporate entity does not routinely engage in financial market transactions.

It is easy to forget that currency transactions with some brokers are filled with jargon that may not be easily understood by firms outside of financial services. For this exact reason we have established MoneyTransferComparison.com which does all the hard work for its readers.

4) Mitigating risk, reducing the cost

What a corporate fx B2B payment can cost is not solely limited to the commission fees that have been agreed. There are tangible and intangible costs that all businesses regardless of its size should consider when conducting a currency transaction.

Of the tangible variety, there is transaction cost in the form of commissions or flat fees including as-yet-unseen bank charges. There is also the possibility of interest-bearing charges upon late delivery (especially the case for regular payments).

In the intangible corner, there is an outside chance of a currency provider not being able to carry out the transaction despite the agreement made. This could well mean legal expenses and delays in obtaining the expected funds, or any funds at all.

It cannot be reemphasized enough how important due diligence is when opening a currency account — especially corporate accounts where many of the protections afforded to private individuals are not forthcoming. Meanwhile, operators of start-ups and small-sized businesses often make the mistake of acting as a corporate entity, believing they have the commercial rights of an individual.

The larger the expected volume of trading, the larger the risk mitigation should be in the form of professional due diligence.

5) Relative or absolute

The best currency rates do not always come from the same fx company. Very often, one provider will have the best rate on one day, and another will have it the day after.Therefore, one consideration worth making is asking just how competitive your current rates actually are. This may be routine for financial sector firms, but for real-estate agents, import/export companies and shipping agents as just a few examples, currency exchange rates are often a late afterthought without forward-planning and taking into account alternative means of obtaining the right currency at the right time.

6)  Bank aren’t always so bad, sometimes

One of the prime reasons for many businesses to switch their corporate currency exchange solution from their bank over to an alternative provider is that of cost. However, using third-parties for currencies carries unforeseen risks, deep considerations and potentially additional steps to obtain the same peace of mind that banks arguably provide. So to finish this list of things to consider, one consideration may simply be that your existing banking service isn’t so bad after all.

It all depends on type of business you have, transaction size, frequency and currencies required. However, determining which option is best can only be done after some mindful thinking and careful consideration of all the factors surrounding foreign exchange dealing that apply to your business specifically. The rule of thumb will dictate that if your business is large enough you could potentially get the same rates and fees directly from your bank, and get direct access to the trading room. If you are an SME, a corporate foreign exchange solution is likely to be your cup of tea.

Experiencing trouble with any corporate FX services listed on our website? Let us research into it. View our FX Case Investigation service we have recently started.

 

Corporate FX Hedging Tools

badreComposed 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 get to fluctuate and as markets gain 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 got to develop and as counterparty risk got mitigated through clearinghouses, hedging possibilities have widened and it has become 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 – though a thorough understanding of the products involved is necessary.

Forward Transactions – Simple and Total Hedge

Forward Transactions – Simple and Total Hedge

Limit Orders – Flexible though partial

Limit Orders – Flexible though partial

Stop Loss Orders – Hedging and keeping upside possibilities

Stop Loss Orders – Hedging and keeping upside possibilities

One Cancels Other Orders – Limiting both upside and downside

One Cancels Other Orders – Limiting both upside and downside

There are additional tools to the vanilla 4 presented here like 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 only provide for the largest corporation. Read the full overview on our hedging guide.

 

Too Complex? Find Our Hedging for Dummies Video

 


All Recommended Corporate FX Services – 2017

* Kantox offers an online platform which is specifically made for businesses. It’s not a traditional corporate Forex dealer.


Why Are These Particular Companies Are 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 in corporate forex brokerages and real partners that will enable them to increase profitability, while mitigate risks.


For these reasons, we have taken into account the following elements when making our choices:For these reasons, we have taken into account the following elements when making our choices:

  • Wide Global Reach – In the era of globalization, it is 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 could be trickier than straightforward international payments. If the commercial service provider goes bust, it’s not only your funds which are at stake, it’s the contract which might not be honoured when it matures. This is why selecting a company with a high credit rating is absolutely required.
  • 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 a great customer service will watch your back while you get to 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 getting 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 which we rated poorly (like Western Union), some don’t handle business (like Azimo), and some we just don’t think are a good option for business, even though we think they provide good solutions to private clients (like Transferwise).

And yet, there are over 10 companies that provide corporate FX services 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, less employees, and usually less than 5 offices (where often times there’s a single UK office).

  • Advantages: Often higher level of expertise from currency dealers. Really service oriented. They need your business to work with them, and thus willing to offer tighter spreads.
  • Disadvantages: Usually don’t accept US-based businesses. Have less corporate clients and thus some scenarios could be unprecedented. Lower global reach (dealing with fewer currencies). Less testimonial to their services than with larger firms.

Our Recommendation

We suggest larger multi-national corporates would stick to the larger companies. After all, they need a company that can handle these large transactions efficiently, and have been doing it for a long while. The risk with large transactions is viable – as currency transfers are not insured – and if a company goes bankrupt, you could be getting hurt (though client accounts are separated from the company’s accounts by FCA instruction).

For smaller business we suggest trying one of the smaller firms. They could potentially get better rates, and more tailored services than with larger firms. They can get direct access to the head dealer and even the Managing Director / Senior Associate of the company, if they need to.


 

MoneyTransferComparison.com – Business Magazine

B2B Services

Repatriation of funds: Learn about how to receive money to your business from abroad.

Foreign Bank Account Services for Etailers: Learn how to reduce collection fees for sales abroad with bank accounts provided to you by FX firms.

FX Hedging Tools: Learn how to reduce FX-related risk through hedging activities.

Best Unsecured Business Loans: Listing of the top companies in UK that provide unsecured loans for small businesses.

Trade

International Trade Surplus and Deficit: An economic overview on how they impact currency rates.

What is The Libor Rate: Learn about the LIBOR rate and how it encompasses important topics relating to the trade account.

International trade for SME’s from UK : Learn about the volumes of trade between UK businesses and other countries, and how many of them involve SME’s.

Overvalued and under-valued economic indicators: What really impacts the currency rates? probably less events than you imagined.

Economic Calendar: The main events affecting the major currencies worldwide put together in a single page.

International invoicing issues and solutions: Learn to perfect your international invoicing dealing with FX payments.

Currency Movements in 2016: An overview on the most popular currency pairs – how did they move during 2016 and how do we anticipate them to move in 2016.

Property Summary for 2015: An overview on the state of property in 2015 and where it’s heading in 2016.

Legal

The Financial Conduct Authority: Learn about the rules of the FCA, and in particular in money transfers.

UK Bank Regulation and Biggest Bank Scandals: Learn about the regulatory system that approves, and fines, banks.

Money Laundering Policies and Overview: Learn about the policies in place to prevent money laundering. Including an historical overview.

More

B2B Marketing – The How To: Learn from our experience how to harness the power of content into B2B marketing.

Growth Hacking Your Way Up: Looking to growt-hack your business to the next level promptly? Read our top tips in order to do so.

Budgeting a Brand New Business: Learn how to predict expenses and income for brand new businesses without any trading history.

Awards

Business Excellence Awards: Read our comprehensive award list for exceptional people, blogs and websites in the domain of small business advice, financial advice, disruption and of course transfer of funds.

Our list consists of figures like Susan Solovic and Marty Zwilling, as well money transfer startups like Neema, and of course our top ranked firms World First, Currencies Direct and Moneycorp.

 


The Conclusion – Corporate FX Reviews

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, make 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 optimize their cross border transactions while turning potential risks into value adding elements. An international B2B payment conducted via an FX firm that specializes in business is the best option a small business owner or a company’s money manager can make.

3 comments

  1. Business Owner, Orlando, FL

    If you have a !#$load of transfers to make every month, like me, and don’t really have the manpower to handle it with the best care, use foreign exchange companies! I use moneycorp and it saved me a lot of money and headache. I have a small business, we’re 4 people in total, and we’re importing goods -> over 100 separate international purchases monthly from different countries. It’s been SO SO difficult to do this through the bank, jesus. now I do everything on their website, and they choose exactly when to execute, and with much better rates… I know that for sure because I see my spending is reducing by a significant number.

    Posted on November 6, 2014
  2. Zlatan Remifovic

    I am not sure if the average business which seldom transfers money really needs such services, but businesses like the one I’m running (international media) definitely benefit from the 1,2,3% off I get compared to HSBC or Barclays. If your game is margin consider such companies (I recommend World’s First, simple ways to make future contracts and secure rates).

    Posted on December 1, 2014
  3. Pingback: 3 Ways to Save Money When Doing Business Overseas | Small Biz Viewpoints

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