Top Tips for Choosing an FX Company

Mark O'Sullivan, head of trading at Currencies Direct offers his top tips on how to choose a foreign exchange specialist and how to determine the legitimate companies from the ‘cowboys':

1. Select a company that has at least three years of audited accounts and is financially strong.
2. Ask what professional bodies the company belongs to. The Association of International Property Professionals (AIPP) is the trade body set up to protect the interests of property buyers and sellers.
3. Find out more information by doing a quick internet search on the company. Look out for whether they have won any awards or been recommended by a reliable source.
4. Do not let a foreign exchange company pressurise you into doing a deal. Their role is to understand your requirements and to provide you with the information you need, not to hard sell and certainly not to make you trade until you are 100% happy to go ahead.
5. Ask what charges apply. If you are unsure, ask them to confirm in writing. You can really save money by using a well established reputable foreign exchange company; not only through better rates but also as a result of lower transfer charges.
6. Be aware that at present commercial foreign exchange is not an FSA regulated industry because it is not considered ‘investment business'. Under the Money Laundering Regulations 2003, commercial foreign exchange companies are treated as "Money Service Businesses" which are covered by regulations administered by HM Customs & Excise.

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