Why choose online currency accounts over FX brokers?
Automation poses a big threat to traditional FX brokerage services; it is very difficult to argue against the idea that online payment solutions allow you to trade smarter, faster and far more efficiently.
FX hedging strategies are mostly speculative, if not risky, and so UK SMEs have started to realise the benefits of automating the process of exchanging currencies, paying suppliers and managing their FX workflows online. By replacing manual, over-the-phone processes with technology, businesses can enjoy greater pricing, faster payments and a level of transparency that make it very difficult for traditional services to compete with, whilst also reducing the possibility of human error, long-winded delays and time-consuming sales calls.
In this article, we explore 3 reasons why you should consider automation over FX brokers.
Reason 1 - Better pricing and transparency
By giving businesses the ability to transact online, there is no need to worry about calling a broker, getting a price, benchmarking that price, confirming the trade, instructing the payment and asking for reconciliation documents. Someone (i.e. the broker) needs to be paid for doing all that, so you can almost guarantee it will be reflected in your pricing. Also, if there is no FX broker to speak to, you remove the risk of paying commission-incentivised prices, or those prices changing over time.
Some payment platforms even go so far as to display the live interbank exchange rate, adding another layer of transparency on the client's part, and making it very difficult for over-the-phone brokers to compete with. Integritas offers fixed 0.15% markups, an end-to-end online payment solution and full visibility of the live interbank exchange rate.
Reason 2 - Securing the best exchange rates
FX brokers will watch the markets for you, so you don’t have to. But what if nobody had to watch them at all? What if you were made aware of attractive rate movements at the exact moment your broker was? Automated rate notifications do just that.
Integritas offers an email notification system that alerts every client, at the same time, when the rate moves in their favour, at multiple points throughout the day. Whilst a traditional broker is watching the markets and deciding which client to call first - at the risk of other clients missing out - ours are already being notified of the mid-market exchange rate. For those SMEs that use a handful of brokers, it not only allows them to capture the best exchange rates but also removes the risk of expensive quotes (i.e. poor exchange rates) in the absence of transparency.
Reason 3 - Saving more time for your business
Outside of protecting the bottom line, time is also a valuable commodity for UK SMEs. When using a traditional FX brokerage service, end clients must rely on a third party to exchange currency, raise the payment and manage admin-related tasks; this is inevitably time-consuming.
On the other hand, with an online solution, like Integritas, SMEs can minimise the amount of time spent processing payments and are therefore able to prioritise more pressing tasks. Put simply, your life becomes a lot easier.
Take a look at our product features, or use our free online cost calculator to see exactly what you are currently paying your FX provider.
Your money belongs to you, let’s keep it that way.