A quick Google search asking who or what online currency brokers are is quite misleading. You’ll get pages and pages of results about Forex brokers, who have nothing to do with currency brokers we’re discussing today.
No surprise there. The rapid development of technology and the onset of payment firms have altered what it means to be a currency broker and expanded it.
Companies like US First Exchange, which are third-generation currency brokers, have seen the industry change quite a bit over time. Naturally, they’re an excellent place to start learning about currency brokers.
Today we’ll give you a rundown of everything you need to know about online currency brokers, what they do, and why they’re important to individuals and businesses alike. You’ll finally have all the information in one place.
Currency Brokers — What They Used to Do
Nowadays, online currency broker is used as a blanket term to describe any company that provides customers with pricing directly from the market. So, you can now see why Google would (mistakenly) suggest checking out Forex.
However, that hasn’t always been the case. Just fifteen years ago, before the entire fintech boom, currency brokers had a much clearer purpose. They were companies that would get all the traders together, quote the highest bids, and offer prices for different currency pairs.
For all intents and purposes, currency brokers offer currency exchange. That’s what they used to do, and what they still do. Don’t let anyone tell you otherwise.
What Can Online Currency Brokers Offer to Individuals?
If you have foreign currencies you need to exchange, online currency brokers can help you buy or sell dollars.
It used to be you’d have to wander around the city, looking for an exchange office with the least extortionate rates. Suffice it to say that it was both expensive and time exhausting. And don’t get us started on exchange offices in foreign countries. They made an entire fortune gouging unaware tourists.
Online currency brokers offer safe transactions at competitive rates, unlike their traditional predecessors. If you’re worried about security, think about all the other services you’re already paying for online. You may take care of bills, order food, and clothes at a click of a button. Why not exchange money the same way?
The truth of the matter is that online currency brokers provide all the services that regular exchange offices do, only better. For example, you might have a foreign currency of some less known emerging economy. You could waste days looking for an exchange office that can convert it (if you can find one at all). And the rate would be abysmal.
Instead, you could save a whole lot of time and money by simply looking up an online exchange service that takes its business seriously. You won’t find better rates anywhere else.
The whole process is more streamlined than ever, allowing you to buy or sell currencies in a matter of days. Every broker will lay out their shipping process in a manner that’s easy to understand and simple to follow.
There’s absolutely no reason to keep avoiding digital exchanges. They are the way of the future, and the smart use of your money.
More Than Just Amazing Rates
The exchange rates of online currency brokers are quite impressive, yes. But they can help you out with more than just an occasional exchange of a couple of hundred euros.
Currency brokers can also serve as personal consultants. They are people who intimately know the market and its ups and downs. Once you find a broker with rates that suit you and access to all the foreign currencies you want, it’s an excellent idea to keep them around. Brokers can advise you on when to wait or when to exchange your foreign currency.
That’s especially true if you plan on exchanging your money regularly or huge amounts of it.
What if you want to buy a property in another country? Or send your relatives money? Or pay a monthly installment? Letting a bank exchange your money is just the same as gambling it away. Their sky-high rates are there to get the most cash out of you as they can. Banks are not a long-term viable solution.
Bypass the abnormal rates of banks and put your faith in brokers instead.
Currency Broker Can Add Value to Your Business
If you’re a business owner, all of the above applies to you as well. However, you’re not just exchanging your savings as an individual does. You’re putting your livelihood on the line when exchanging money.
That’s why currency brokers are vital to a business’ profitability. Again, banks are very expensive and often inefficient. As a business owner, you shouldn’t tolerate either of those things. And let’s not forget hidden fees and charges that banks thrive on. It’s best to avoid them in case you need to do business in a foreign currency.
Exchanging foreign currencies is much faster, more consistent, and valuable with the help of a professional currency broker. When we say valuable, we’re referring to the fact that brokers can serve as consultants and currency risk managers, making them a valuable asset to all your business transactions.
And let’s not forget the multi-currency accounts that some brokers offer. That way, your clients can pay you in their local currency and the broker will take care of the rest.
If you plan on going global with your business and dealing in multiple currencies, a broker is basically a necessity.
The Bottom Line
Currency brokers exchange foreign currencies using highly competitive rates that local exchange offices and banks just can’t beat.
Using cutting-edge software and their access to the market, brokers can provide you with extremely fast and highly secure transactions. They’ll also alert you to changes in rates, giving you a chance to get in on the action while the rates are still in your favor.
Whether you’re an individual or a global business, currency brokers have so much to offer. Never use banks to exchange funds again.