Bank or Broker?

If you have ever travelled to another country or dealt with foreign currency when conducting business overseas, you have likely engaged in the foreign exchange market in some capacity. Whenever you need to exchange one currency for another, you can choose to use a high street bank or a foreign exchange broker like Misano Payments.

High street banks offer foreign currency exchange services alongside their regular banking services, while foreign exchange brokers specialise in currency exchange and international money transfers. Here are some of the differences between high street banks and foreign exchange brokers to help you determine which option is best for your currency exchange needs.

Exchange Rates

One of the most significant differences between high street banks and foreign exchange brokers is the exchange rates they offer. High street banks tend to offer lower (worse) exchange rates compared to foreign exchange brokers. They do not specialise in currency exchange, as they offer many other products and services such as mortgages and bank accounts, so they may not have the best rates on foreign currencies. On the other hand, foreign exchange brokers offer competitive exchange rates because exchanging currencies is their primary business.

Fees and Commissions

High street banks may also charge additional fees and commissions for foreign currency exchange. Some banks may charge for the physical exchange of currency, while others charge for transactions performed through their online platforms. Foreign exchange brokers generally do not charge fees for currency exchange, although some may charge a small commission depending on the amount of currency you are exchanging. With Misano Payments, all our fees are included in the exchange rate you are offered for your transfer at the time you request a quote.

Speed of Transactions

High street banks may take longer to complete foreign currency exchange transactions than foreign exchange brokers. Banks often have a more complex and bureaucratic process, while brokers can quickly execute trades. However, if you need to exchange currency very quickly, a high street bank may be able to provide you with more flexibility. Call or email Misano Payments today for a guide on how long your currency exchange might take.