If you're moving money internationally, whether you're buying property abroad, sending regular payments to family overseas, or you're an expat managing finances across borders, you've probably wondered whether to stick with your high street bank or try one of those specialist currency companies.
The short answer? For most private clients, specialist FX providers beat traditional banks hands down. But let's dig into the details so you can make the right choice for your situation.
Why Traditional Banks Fall Short for Individual Clients
Your bank might be brilliant for your current account, mortgage, and savings, but when it comes to international transfers, they're often the expensive option.
Banks treat foreign exchange as a nice little earner. They'll quote you an exchange rate that looks reasonable until you check what the real rate should be. That gap, usually 2-4% for individual customers, goes straight into their pocket.
Here's what typically happens: you want to send £50,000 to buy property in Spain. Your bank quotes you a EUR rate of 1.15 when the real market rate is 1.18. You end up with €57,500 instead of €59,000. That's €1,500 less, enough to furnish a room.
The problems don't stop there. High street banks are slow (transfers often take 3-5 working days), charge hefty fees on top of poor rates, and their customer service teams usually know very little about currency markets. When you call with a question about exchange rates, you'll often get transferred around or given generic responses.
How Specialist FX Providers Work Better
Specialist currency companies do one thing: move money between countries efficiently. Because that's their entire focus, they've built their systems, staff expertise, and pricing around giving you a better deal.
The biggest difference is cost. While your bank might charge 2-4% in hidden exchange rate margins, a good specialist provider typically charges 0.5-1%. On that same £50,000 property transfer, you might get €58,500, €1,000 more than through your bank.
Speed matters too. Most specialist providers can move money within 24 hours for major currencies, and some offer same-day transfers. This can be crucial when you're buying property with completion deadlines or taking advantage of favourable exchange rates.
The human element is often better as well. Specialist providers employ currency experts who understand exchange rate movements and can guide you on timing. They'll explain market conditions in plain English and help you decide whether to transfer immediately or wait.
The Main Types of Specialist Providers
Online-Only Platforms: Companies like Wise (formerly TransferWise) offer cheap, fast transfers through slick apps and websites. Great for regular, straightforward transfers but limited personal service.
Currency Brokers: Traditional brokers assign you a personal dealer who can advise on market timing and offer tools like forward contracts to lock in rates. More expensive than online platforms but with added expertise.
Hybrid Services: Newer companies combining online convenience with human expertise when you need it. Often the sweet spot for private clients.
When Banks Might Still Make Sense
There are a few situations where sticking with your bank could be the right choice:
If you're only making tiny transfers (under £500), the absolute cost difference might not justify opening new accounts, though the percentage savings are still significant.
Some banks offer preferential rates for premier banking customers, though these are rarely as good as specialist providers claim.
If you're doing something complex involving loans, mortgages, and currency transfers simultaneously, keeping everything under one roof might simplify matters.
For urgent, one-off transfers where you don't have time to set up accounts with new providers, banks offer immediate access, though you'll pay for the convenience.
Real-World Comparison
Let's look at a realistic example: you're sending £25,000 to buy a flat in Berlin.
High Street Bank: Offers EUR rate of 1.15 (market rate is 1.18), charges £25 transfer fee. You receive €28,725.
Specialist Provider: Offers EUR rate of 1.175, charges £10 transfer fee. You receive €29,365.
Difference: €640 more with the specialist provider, enough to cover your flights and first month's expenses.
For regular transfers, these savings compound quickly. Expats sending £2,000 monthly could save £1,000+ annually by switching from banks to specialists.
What to Look For in a Specialist Provider
Regulation: Ensure they're authorised by the Financial Conduct Authority (FCA). This protects your money during transfers.
Transparency: Good providers show you the real exchange rate and their margin clearly. Avoid anyone who won't explain their pricing upfront.
Speed: Check typical transfer times for your currency corridors. Most major currencies should move within 24 hours.
Customer Service: Test their responsiveness before committing to large transfers. You want to speak to currency experts, not general call centre staff.
Account Protection: Your money should be held in segregated accounts, separate from the company's operating funds.
Frequently Asked Questions
Is my money safe with specialist providers?
Yes, if they're FCA-regulated. Your funds are held in segregated client accounts and protected even if the company fails. Check the FCA register before choosing a provider.
How much can I save compared to my bank?
Typically 1-3% on the exchange rate, plus lower fees. On a £50,000 transfer, this often means £500-1,500 more in your pocket.
Are specialist providers slower than banks?
Actually, they're usually faster. Most transfers complete within 24 hours versus 3-5 days for banks.
Do I need to close my bank account?
No. You can use specialist providers just for international transfers while keeping your domestic banking unchanged.
What if something goes wrong?
FCA-regulated providers must have complaints procedures and access to the Financial Ombudsman Service, just like banks.
Can I get better rates for larger amounts?
Yes, most providers offer improved rates for transfers above £25,000-50,000. Always ask about volume discounts.
For most private clients, specialist FX providers offer better value, faster service, and more expertise than traditional banks. The savings can be substantial, especially for regular transfers or large one-off payments.
The key is choosing a reputable, regulated provider that matches your needs. If you want simple, cheap transfers, online platforms work well. If you need advice on market timing or complex requirements, currency brokers offer more support.
Your bank will always be there if you need them, but for international payments, there are usually better options available.
Take The Next Step
We help private clients navigate currency transfers with practical, no-nonsense advice that actually makes sense for your situation. No jargon, no over-complication: just straightforward guidance on getting more for your money. Get in touch at info@okumarkets.com or
0203 838 0250 for a straight-talking review of your international payment needs. Thanks for reading 👋
