When it comes to finding a foreign exchange provider, there are alternatives to the banks that are established, stable and secure. Here’s what to look for when shopping around:
1. Global reach, local feel
When it comes to getting the best rate at OFX, we have 16 partner banks (which means over 150 bank accounts in locations around the world, across 55 currencies). We call this system Global By Local (GBL), and this means that we are able to send funds directly between these banks accounts, rather than using an expensive network of external banks.
2. Understand that risk management and global expansion go hand-in-hand
As a company that has been established for over 20 years, OFX are always looking to new means of ensuring our customers get the best deal. Say for example that an online seller wants to keep cash flows predictable, the ability to lock in an ideal rate for future payables and receivables (like paying overseas staff and suppliers and bringing profit back home) using OFX’s Forward Contract means that you can protect against market uncertainty in the wake of world events (think Brexit).
A Forward Contract allows a customer to lock in an ideal rate and then transfer that amount at any point for up to 12 months.
Similarly, OFX’s Limit Order option means that you can set a target rate, and if it’s reached, a dedicated dealer or someone in the customer support team will contact you via email or phone to complete the transfer. You can then choose to have the transfer processed automatically, or at a later date, even potentially rolling it into a Forward Contract.
3. Find tools for ecommerce success
Risk management tools are great for business customers more generally, but what tools exist specifically for online sellers? As an emerging market, there are few players who understand the unique challenges faced by online sellers. That’s why OFX created the OFX Global Currency Account, which essentially gives online sellers the equivalent of a local bank account in the US, Canada, UK, Europe, Australia and Hong Kong.
David Nichols, Director of Enterprise Development and e-commerce at OFX explained in a webinar with Seller’s Choice that this enables clients to collect their overseas revenue in the currency they’re selling in internationally, and the ability to move that back to their home currency at a much better exchange rate than they would with a marketplace or a bank.
Alternatively, clients can use the funds they’ve accumulated internationally to pay their taxes or suppliers, which essentially removes the requirement of moving money around the world unnecessarily.
4. The trust factor
The nature of dealing with people’s money means that trust really must underpin every aspect of financial services, be that banking or foreign exchange. So it makes sense why people revert to their banks for managing currency flow. However, the financial services industry is a heavily regulated one, which means that the players in that market need to abide by a strict set of rules.
At OFX, our parent company is publicly listed on the Australian Stock Exchange (ASX) and is regulated by over 50 regulators globally. Along with this, the skilled fraud and compliance teams work with many partners globally to ensure our clients’ money is in safe hands.
While the growing market of foreign exchange is seeing many players rapidly appear then disappear, it doesn’t mean that the bank is the only way to go. In fact, a valuable foreign exchange specialist can often have a better understanding of the needs and challenges of businesses of all sizes.
This means that choosing a reliable provider can be key to building a successful international business. At OFX, we strive to be the stable voice of understanding and support for our increasingly global world. We understand that your world never stops moving, so neither will we.
With OFX, you can get bank beating rates on global money transfers.
AustralianTimes.co.uk is a proud partner with OFX on The Currency Zone