Information is the invisible lifeblood that runs through every single part of a business, and when it comes to dealing with international foreign exchange, the accuracy of that information is crucial to making the correct choice, at the right time, in order to get the very best deal.
For larger companies who are looking to exchange millions of pounds worth of currency on a regular basis, knowing the facts and logistics of the deal is key for a fast, economic and safe transaction.
Smaller companies should therefore stay clear of exchange providers that do not provide them with all the financial details during the transaction process. Often exchange providers will work over the phone when brokering a deal, and although this is convenient, it can lead to confusion if the figures and prices are not recorded or compared to other providers.
For SMEs, the process of getting the right information is a little easier, as smaller, independently led foreign exchange providers often work on totally automated systems.
This means that instead of getting information from a salesman, all of the currency rates and fees are viewable from a digital exchange platform. Not only that, but this transparency is increased even further by the simple fact that the platforms often stream live rates that change the second that there is movement in the markets.
So how can a lack of transparency hurt companies?
Quite simply, if there is less information available about the deal that you are about to make, the greater the risk is, because if any of the information is revoked, this often hides the true risk of the investment during a deal.
Fuzzy financial structures and lack of transparency has in the past caused the downfall of some of the biggest corporations in history, one of the most significant of course is American energy company, Enron.
Though when it comes to financial exchange however, there are only a minority of companies that maliciously defraud customers, if clients aren’t given the entire picture in regards to their deal, these clients can often make decisions that aren’t quite as reliable as what is made out – and this is where the problems begin.
When making a financial exchange for the first time therefore, it is imperative to search out a trusted broker that is able to provide a simple breakdown of the process at hand. Seek out those that disclose where they make their money, and whether or not they charge any fees for their services – the more information that you can find out about a provider, the greater chance there is of making an informed decision.
This guest article was provided by Andrew Jessop, a content writer at 4x Currency Corporation who specialises in import/export and international money markets.