Currency exchange is often one of the forgotten aspects of dealing internationally as most people will just trust their bank to make the transfer for them at the best rate available. However, you can add exchange rates to the long list of ways in which High Street banks will exploit their customers to make the largest profits possible!
Most banks will set a rate of exchange at the start of the day and won’t alter it throughout no matter what the value of the transfer is or what the rate of exchange is doing. On the other hand there are specialist foreign currency brokerages that can not only beat the rates of exchange offered by the banks but also don’t charge astronomical fees just to transfer funds. They can do this due to the volume of transfers they are making and the fact their sole aim as a business is to offer superior rates compared to the banks.
Brokerages can help law firms in a number of ways and have helped Connect2Law members before on a number of issues. Essentially, a brokerage can help a law firm as long as there is an exchange involved but the most common areas where a brokerage could help are;
- Sending probate overseas
- The management of trust funds
- Personal injury claims
- The purchase of overseas property.
Example - if a law firm was transferring £100,000 to Spain today for the beneficiary of a client’s will the savings would be significant…..
| High Street Bank EURO | Currency Brokerage EURO | |
|---|---|---|
| £100,000 at 1.0630 = €106,300 | £100,000 at 1.1076 = €110,760 | |
| TT Charge | £25 | Free |
| Gain your client an extra €4,460 by using a currency brokerage! | ||
The process for using a brokerage is not only cost effective but also very time efficient. Law firms can set up an account and have their first trade booked within minutes. From there it is simply a case of transferring funds to a segregated client where the relevant currency can be forwarded on to the desired account.
This article was provided by Escape Currency plc who are one of the leading brokerages of specialist foreign currency exchange for both private and corporate clients. Escape is well established, having started in 2003 and has a proven track record in the financial exchange market. In addition to our size, we have a rock solid financial basis of 100% equity funding which provides our clients with the security, resources and business continuity they deserve. We offer a back to back trading service for a vast array of currencies saving our clients anything up to 4% on a single transfer.
If you have any questions or queries on anything mentioned in the article feel free to contact Dominic Butcher on dominic@escapecurrency.com or 01296 339811
