There are hundreds of currency brokers in the UK. I’ve worked for one, and have industry relationship with people who work for dozens more brokerages. They are alike in a sense that they all offer a similar service and functionality. But, that doesn’t mean there aren’t differences between them too.
What Do Currency Brokers Offer?
✅ Transferring money internationally
✅ Receiving funds from abroad (and exchanging currencies)
✅ Foreign exchange exchange between owned accounts
✅ Hedging tools
✅ Expert and bespoke guidance based on the customer needs.
All while offering bank-beating exchange rates.
This is what sets them apart from money transfer apps which have some of the functionality.
But keep in mind, many of UK’s most prominent brokers have added strong digital capabilities are offer fully functional online trading systems and apps themselves.
For example, OFX and Currencies Direct.
You shouldn’t opt for any old broker. Some have a better reputation, functionality and rates than others.
On this guide, I will list the best currency brokers in the UK as per my research, and address the Frequently Asked Questions below.
What differentiates one broker from another?
How do I tell if a certain brokerage is reliable?
How do I know which one is the best?
I will address these points from my 10+ years of involvement in the currency transfer industry. Combining first-hand experience at a currency brokerage, alongside unique comparison expertise which has resulted from investigating and writing about the sector ever since.
What is a Currency Broker?
A currency broker is a type of foreign exchange company.
A currency brokerage exchanges currencies on behalf of its customers, whether that’s between a customer’s own accounts or transferring money internationally to a third party.
Currency brokers are typically cheaper and more specialised than banks.
Best Currency Brokers in the UK – Top 7 – December 2023
Best UK Currency Broker for 2023 (Overall Rating)- Large Transfers and Bespoke Service Specialists with 4.5/5 Rating on TrustPilot (5,000+ Reviews)
- Industry Leader with £10bn in Annual Turnover
- Most Global Offices in the Industry
Friendliest Currency Brokerage in the Industry- Personal, Friendly Service - Based in Cornwall with 100+ In-House Traders
- 95% Satisfaction from Past Customers
- Regular Market Updates
Moneycorp: Foreign Exchange Powerhouse, Business FX Specialists- Operating Since 1970 - First Commercial FX Firm
- Corporate FX and Hedging Specialists
- Most Consumer and Business Awards in The Industry
Corpay: 99% Positive Client Feedback- 99% of its Past Clients Gave the Firm a Positive Review
- Strong Global Reach with Offices in UK, Europe, and Canada
- More than Two Decades of Experience
Key Currency: Best NEW Currency Brokers for 2023- Fastest Growing UK Currency Transfer Provider
- Strong Onboard Team, Get an Immediate Callback
- Recepient of Multiple Industry Awards
Excellent Online System, APAC Payment Specialists- Traded Publicly
- £20bn Turnover per Year
- Ultra Professional
Halo Financial: Excellent Online Platform and Support- Feefo 2020 Platinum Trusted Provider
- Excellent Website and Online Flow
- Highly Professional
Should I use a broker for my international transfers?
If you have a requirement to send money internationally, or transfer one currency to another, then you should consider using a currency broker.
There are a number of reasons why you should use a currency broker.
Currency brokers provide bank-beating exchange rates and offer a tailored service which is built specifically for sending money internationally.
You’ll be assigned a personal account manager and individual guidance is given for each customer’s unique situation.
What’s more, brokers offer currency hedging tools which can help to protect against exchange rate risk and provide more flexibility around the timing of your transfer.
Does a Currency Broker Buy or Sell?
Currency brokers will both buy and sell currencies on behalf of their customers.
Different brokers buy and sell different currencies so it’s worth understanding the currencies a provider can handle before you go through the hassle of registering.
As a general rule of thumb, the overwhelming majority of currency brokers will buy and sell most major currencies.
For an exotic currency, it’s worth investigating with a specific brokerage whether they can buy or sell it.
In some instances, it might be that they are only able to sell an exotic currency and they may not necessarily buy it from you.
How do Currency Brokers Make Money?
Currency brokers make most of their money from the exchange rate margin they apply to currency exchange.
This is the difference between the rate they receive from the bank and the rate they provide their customer.
Currency brokers can also make money from payment fees, though it’s quite common for brokers to waive these for personal customers.
The exchange rate margin is also sometimes referred to as the FX markup or FX spread.
Despite applying this markup, the idea is that customers still achieve a better rate from a broker than if they went directly to the bank themselves.
Brokers exchange high volumes of currency and receive lower ‘wholesale rates’ from banks, while individuals and SMEs receive more expensive ‘retail rates’.
The FX markup is a not-so-evident cost which is factored into the exchange rate. But it’s an important one to be aware of as it’s where most of the costs are incurred.
Additional UK Brokers
Online Currency Transfer Expert- Specialist in Online Transfers
- Processes £5bn a month
- Transfers Possible in a Few Clicks
Highly Professional Currency Broker in its Early Days- Powered by Currency Cloud - A Major Currency Transfers Platform
- Experienced Management Team
- Not Enough Client Reviews to Determine Quality of Service
Simple Exchange from a Small Currency Broker- Feefo Gold Trusted Provider
- Over 20 Years Experience
- Dedicated Account Manager
Best Rated Small Currency Brokerage on MTC- UK-based, UK-banked & UK Regulated
- Experienced Account Managers
- No Commission or Hidden Fees
Overseas Money Transfers & Travel Money- 100+ Currencies
- Friendly, UK-based Customer Service
- Travel Money
Rated Excellent for Currency Exchange by Customers- Great Option for European-Based Transfers
- Offices in Spain & Portugal
- Live Rates & Charts
Amalgamation of 3 Leading Currency Brokers- Combined forces of Cambridge FX, AFEX and Global Reach - 3 Former Leading Brokerages in Their Own Right
- Market-Leading Automated Business Payment Solution
- Works with NGOs
International Transfers & Currency Cards- Financial Times Award-winner
- Overseas Travel Card
- Make Payments Within Minutes
Investing & International Payments - Not Just a Currency Broker- Full-suite Financial Services Solution
- Designated Account Managers
- Financially Secure FTSE100 Company
Long-standing Currency Broker & Global Payment Specialist- Free Risk Management Consultation
- Customised Global Payment Solutions since 1979
- Corporate Solutions
Innovative Solution Focused on Fast Payments- Rated Excellent on TrustPilot
- Personal & Business Currency Services
- Regular Currency News
London-based Personalised Currency Brokerage- Clients Always Have One Point of Contact
- Facilitates Large Transfers
- Award-winning Best Emerging Currency Brokerage
Currency Broker With Institutional Clients- Suitable for Investment Banks & Hedge Funds
- Almost 20 Years Experience
- Unique Solutions to Pay Countries in Africa
Cross-Border Currency Transfer and Immigration Specialist- Forex, Tax & Accounting Advice
- Experienced in Immigration and Citizenship
- UK Currency Transfers
Husband and Wife Run Business- No Payment Fees
- Customer-Focused
- Small, Family-Run Brokerage
Independent Brokerage Based in North of England- Supporting Local Businesses in North of England
- Well Respected Founder
- Personal Service from Small Team
Offering Forward Contracts With the Longest Maturity Date- Forward Contracts up to 5 Years for Major Currencies
- Handles over 140 Currencies
- Bespoke Account Management Service
Publicly Traded With Annual Trading Volumes of £20bn- Dedicated Currency Consultancy
- Larger Trading Volumes Than 90% of Competitors
- Business Specialist
New Broker Gaining Strong Momentum- Already Traded Billions
- Emphasis Relationships but Invests in Tech
- Award-Winning New Business
Great Solution for Australian Expats Living in the UK- Slick Online Platform
- Smart Look
- Trusted by Big Brands
Top B2B International Payment Specialist- Book Forward Contracts With Multiple Drawdowns
- Integrated With World-leading Payment Platforms
- Dedicated Account Manager
How Does the Process Work? (Illustration)
Is Brokering Currency a “UK Thing”
Across the world, big banks remain king of the currency markets.
JPMorgan, Deutsche Bank and Citi process the highest volumes, with the majority of FX traded by financial institutions such as hedge funds and pension funds.
Banks remain the go-to option for large corporates and financial institutions as the volume they are trading is so vast, banks will offer competitive spreads and a huge variety of hedging solutions.
These include things like currency forwards, swaps and even FX options.
Small businesses and individuals however are often mistreated by banks. There is little to no customer service, international payment fees are unnecessarily high and FX spreads are extortionate.
Many of the major global banks are based in London, and, more often than not, it has been ex-bank staff identifying the opportunity to fill a major hole in the market that their employers were not. A premium FX service, complete with dedicated guidance and currency hedging tools, specifically for individuals and smaller corporations.
This is how the industry was born.
Most of the major UK currency brokers in London launched between the mid 90’s to mid 00’s when the barriers to entry were much lower than they are today. Regulation in particular was softer, making it more accessible for entrepreneurs to launch a currency brokerage.
With the UK gaining an early jump-start against other nations it has remained the global hub for currency brokers.
In the past, brokers would have also been attracted to the UK due to EU ‘financial passporting’ rights, i.e. the ability to offer services throughout the EU by being registered and regulated by the FCA.
After leaving the EU…
Leaving the EU and losing these rights has presented challenges for the UK but its reputation for world leading technology, regulation and security in financial services continues to comfort both currency brokers and their end clients.
London is traditionally the place where currency brokers conduct their business…
As the business centre of the UK, it makes sense, but things are starting to change.
There is a growing number of brokers which are headquartered outside of London.With Cornwall, of all places, proving to be quite popular as the home of TorFX and Key Currency.
Other brokers are located in Hertfordshire, Essex and Leeds.
| Company | Our Rating | Headquarters | Visit |
|---|---|---|---|
97.8% ⭐⭐⭐⭐⭐ | London | Visit Website | |
93.4% ⭐⭐⭐⭐⭐ | Cornwall | Visit Website | |
92.8% ⭐⭐⭐⭐⭐ | London | Visit Website | |
90.6% ⭐⭐⭐⭐⭐ | London | Visit Website | |
90.4% ⭐⭐⭐⭐⭐ | London | Visit Website | |
87.3% ⭐⭐⭐⭐ | London | Visit Website | |
82.1% ⭐⭐⭐ | Essex | Visit Website | |
81.1% ⭐⭐⭐ | Cornwall | Visit Website | |
80.1% ⭐⭐⭐ | London | Visit Website | |
80.0% ⭐⭐⭐ | London | Visit Website | |
78.0% ⭐⭐⭐ | London | Visit Link N/A | |
| N/A | Website not available | Visit Link N/A | |
71.0% ⭐⭐⭐ | Buckinghamshire | Visit Link N/A | |
| N/A | Hertfordshire | Visit Link N/A | |
| N/A | London | Visit Link N/A | |
| N/A | London | Visit Link N/A | |
| N/A | London (now being rebranded into Ebury) | Visit Link N/A | |
| N/A | Hertfordshire | Visit Link N/A | |
| kbr FX – kbr FX | N/A | Essex | Visit Link N/A |
| HiFX – Read Review | N/A | London, merged with XE money transfers | Visit Link N/A |
| N/A | London, but company ceased to exist | Visit Link N/A | |
| N/A | Buckinghamshire, UK | Visit Link N/A | |
| N/A | Leeds, UK | Visit Link N/A | |
| N/A | London, UK | Visit Link N/A | |
| N/A | London, UK | Visit Link N/A | |
| N/A | London, UK | Visit Link N/A | |
| N/A | London, UK | Visit Link N/A |
Can UK Currency Brokers Onboard Clients From Other Parts of the World?
Until 2020, FX firms operating from the UK were able to offer international payment services to all EU member states.
As a result of Brexit, firms based in the UK lost access to the EU financial services ‘passport’.
The EU passport gives financial services firms authorised in their home state the right to conduct business in the EEA based on their home state authorisations.
Virtually all of the major currency brokers in the UK, such as Currencies Direct, have a long history of working in Europe and hold at least one other European office, meaning they still gain access to the EU passport through their European operations.
All established UK brokers can still on-board European clients.
Most of the large ones also have offices set up in North America, enabling them to take on Americans and Canadians.
Lastly, some brokers have licences in Australia, South Africa and Asia – and if they do, they can on-board customers from there.
Brokers who aren’t licensed in other international jurisdictions will only be only able to register British locals.
Registering With Currency Brokers is Easier From the UK
If you are a private client based in the UK, or a Brit based abroad who has dual citizenship and a valid home address in the UK, onboarding should be quite simple.
Most brokers have third party compliance tools which help them get customers from “enquiry” into “authorised to trade” instantly or almost instantly.
You just have to send a few basic things:
- Your name.
- An ID including a photo, usually a passport or driving licence.
- A ‘selfie’ taken from your phone camera.
- Your residential address (with accompanying proof) and date of birth.
If you are signing up with a currency broker as a business then you should know that the process will be longer.
These are the documents you will need to supply:
- The purpose of your transactions, i.e. are you paying staff, paying overseas suppliers, conducting FX for treasury purposes.
- Details of the type of business and industry you operate in.
- The source and origin of funds that’s used to settle your transfers.
- Copies of articles of association or, if applicable, recent and current financial statements instead.
- The expected level of trading that will take place, usually estimated volumes over a year.
- Identification and verification of 1-3 directors of the business and ultimate beneficial owners (known as UBOs – usually when they own over 25% of the business registering for an account).
If you are trying to sign up with a broker from OUTSIDE the UK, then you can expect a little more hassle.
They may ask you for additional things like notarising your foreign documents into English.Or, ask more questions about the source of funds and ask for further proof.
This should not deter you, though; if you need to transfer money, it’s definitely worth taking the time to get setup with the right provider.
How to negotiate rates with a currency broker?
You can negotiate the rate offered to you by a broker.
This is a little-known secret that isn’t advertised as it contradicts the broker’s interests.
But it does exist.
This is how you go about it –
When registering with a new currency broker, compare quotes from at least two currency brokerage companies.
If you do, you’ll likely find that one currency broker is cheaper than the other. See if the more expensive brokerage will try to better the rate you found elsewhere.
Rinse and repeat and you may have brokers competing over your business.
Just please note, that when you say you have a better rate at hand, they will likely ask you to share evidence of the rate offered.
In this sense, you can’t ‘cheat the game’, and, in any case, you’ll want to build a mutually trustworthy relationship with your broker.
Treat them fairly and expect to be treated fairly in return.
There are many costs that come with providing a currency broker service – bank fees, tech development and staffing to name just a few – and currency brokers will themselves have to find a price point where their business can still turn a profit.
If you’ve been with a provider for a long time we’d also recommend comparing providers every year or so.
Brokers are known to engage in an activity known as ‘spreading out’.
They may offer ultra-competitive margins on the initial one or two trades to gain your trust but then start to widen the margin over time.
If a currency broker seems very aggressive to win your business at the outset and offers rates which seem ‘too good to be true’ then the chances are they’re more likely to engage in this sort of activity.
Whichever way you look at it, it pays to compare rates between multiple brokers to ensure you’re getting a fair deal that works for your budget.
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