Do you know the true cost of your FX/Foreign Exchange?

Posted on 16th October 2023 by Streets What's trending?


Image to represent Do you know the true cost of your FX/Foreign Exchange?

One of the more complex and often overlooked areas for a business to manage is ensuring they know what their international payments are truly costing them.


The good news is that help is on hand through Streets Banking & Finance’s long standing partnership with a global Foreign Exchange specialist. 

In tandem with our specialists help, Streets can assist clients with the provision and cost of Foreign Exchange. By completing a complimentary currency health check, we will be able to demonstrate whether you are on a ‘good deal’ or if in fact there are savings to be made.

Statistically 85% of UK businesses still use their main High Street bank for their international payments. One of the downsides to this is that the banks will often charge a transaction fee for both incoming and outgoing payments. Most banks charge anything from £10 to £25 for outgoing transaction fees.

If a business makes 10 payments per month, based on say a £15 transaction fee, that’s a cost of £1800.00 per annum. Under our agreement with our global Foreign Exchange specialist, the cost of this would be zero.

By working with our Streets FX partner, we can very quickly analyse the true cost of your foreign exchange and more often than not, offer an improved FX margin on the exchange rates.

A recent example of this is as follows:

Client was purchasing £750,000 per annum using their High Street bank.

Client margin averaged 1.5% from the bank.

Annual cost via the bank £623,441.39
Annual cost via Streets’ FX partner £618,658.74
FX Saving on the exchange rates £4782.65
Total Transaction fees – bank £1260.00
Total Transaction fees – Streets’ FX partner £0.00
Total Client Saving £6042.65

The process for arranging a free currency health check is quick and simple. All we need is the following:

  • Copies of the last 3 or 4 contract notes that will you will have from your existing FX supplier
  • Your approximate annual FX spend

The contract notes will include the following information:

  • Currency bought
  • Currency sold
  • Value bought and sold
  • Transaction date and time

For a free complimentary FX health check or for further information on Streets Banking & Finance FX service please speak to your usual Streets contact or email Martyn Shakespear, Head of Banking & Finance at mshakespear@streetsfc.com or Tina Hayes, Associate Director at thayes@streetsfc.com

Streets Banking & Finance team are a part of Streets Financial Consulting Ltd. 

Streets Financial Consulting Ltd is authorised and regulated by the UK Financial Conduct Authority (FCA) and is entered on the Financial Services Register (www.fca.org.uk/register) under reference 116445.


No Advice

The content produced and presented by Streets is for general guidance and informational purposes only. It should not be construed as legal, tax, investment, financial or other advice. Furthermore, it should not be considered a recommendation or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset. The information provided by Streets is of a general nature and is not specific for any individual or entity. Appropriate and tailored advice or independent research should be obtained before making any such decisions. Streets does not accept any liability for any loss or damage which is incurred from you acting or not acting as a result of obtaining Streets' visual or audible content.

Information

The content used by Streets has been obtained from or is based on sources that we believe to be accurate and reliable. Although reasonable care has been taken in gathering the necessary information, we cannot guarantee the accuracy or completeness of any information we publish and we accept no liability for any errors or omissions in material. You should always seek specific advice prior to making any investment, legal or tax decisions.


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