Currency Exchange Information Library

CURRENCY EXCHANGE BROKERS - CORPORATE CLIENTS

What are Corporate Services from Currency Brokers?

Most currency brokers offer a separate service for corporate and private clients. This is because the needs of each entity have some differences. By separating them into separate areas, brokers are able to offer specialist advice and management of each account.

Corporations – companies and firms – generally have much larger transfer requirements than private individuals. Therefore they require a service that can handle their level of demand, whether this is for a regular overseas transfer to pay for staff based abroad, or whether they want to set up a direct investment platform.

To cope with risk exposure, companies usually require a highly expert system to manage their currency transactions. A foreign exchange brokerage can easily deal with this, by offering a range of hedging strategies and other formats which are then tailored to each account.

This allows a corporation to limit its risk level to the notoriously volatile currency market. From a variety of forward contracts to plain vanilla options, each account is assigned with its own dedicated manager to ensure that the needs of a company are met.

What Can the Broker Offer a Company?

After the initial request to open an account, a broker will be in contact directly in order to discuss the details of your firm's requirements. They will ask what the needs of your company are – how often you need to make currency transfers and what volumes you expect to move. They will ask you about your firm and suggest ways in which to cap risks, with a wide selection of bespoke solutions.

The exchange rate that is offered will be significantly better than a traditional bank can offer. This is for many reasons, including the fact that forex brokers are direct brokers and deal in large volumes of currencies each day. Unlike regular banks, they only offer currency transfer and trade services, and do not offer a wide range of financial products such as loans or credit cards.

This allows them to be able to access the best rates – within 1% to 3% of the Interbank rate. A regular bank can only offer its clients of within around 5% or more of the Interbank rate. On top of this, their transfer speeds are generally slower.

Another massive advantage point of using a foreign exchange broker is that each account receives a broker who can be contacted directly any time of the day – there is no anonymous call center to deal with, only an expert service when you need it.