If you want to do a currency transfer, maybe pounds to euros because you are purchasing a property, then you will certainly get the best exchange rates when you use a Foreign Exchange (FX) Broker. 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