A good FX Broker will not make ANY charges and should also be able to save you on receiving fees in the destination country (in Spain for example this could save you 0.5%). However a lot of clients, probably the majority, have no idea that when they use an FX Broker for their currency transfer that their money could be at risk if the Broker was to go in to liquidation. At the moment these foreign exchange brokers are not regulated by the financial services authorities (FSA) - amazing BUT true. When you are transferring money to another country you obviously want to make sure that your funds are completely safe. What if the Bank or Broker you are using suddenly had a financial crisis and went in to liquidation. Where would you stand financially ?. Would the Gov't intervene and return your funds ?. Would they all be returned ?. Years ago you may not have been concerened - surely a Bank for example would never have financial problems. Well unless you have been away for the last 12 months and not read the news - times have changed !. The norm with an FX Broker is that your funds would be held in a segregated account where it is pooled with that of all other clients. Now if the FX Broker was to cease trading you are only covered for a maximum of £50, 000. So if you are transferring any sum larger than 50k you could potentially lose the excess !. From November 1st 2009 new EU regulations will require most foreign currency brokers to become authorized by the FSA. But they will not be regulated immediately - they have two years to comply. There is a transition period until November 2011. Firms that are approved as money-handlers by the FSA, can hold their clients money in trust, ring-fencing those funds against any claims should the firm go bust. Funds will then be safe from administrators. In a world where all financial institutions are under scrutiny and where major companies have suddenly overnight become financially insolvent it obviously makes sense to make sure that your funds are safe with the Broker that you use. When approaching a Broker ensure they are FSA authorized. If they are then you can be certain that your money will be protected in the event of any insolvency. It's a simple check but it could save you an absolute fortune.
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If you want to do a currency transfer, maybe pounds to euros because you are buying a property, then you will certainly get the best exchange rates when you use a Foreign Exchange (FX) Broker.
Do You Want To Save 1000's On Your Currency Transfer ? Find 6 tips which could save you a fortune on your currency transfer. Also details on the different types of currency transactions. Plus great information as to why we work closely with a UK Broker. Visit: http://www.bestexchangecurrencytransfer.com.
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