How big is a 75% saving on your FX fees?

By on February 9th, 2017 in Editorial

This is made possible by our 0.2% fixed charge putting us ahead of the average (and variable) bank exchange fee of 0.8%, while our biggest competitors’ charges hover somewhere around the 0.5% mark.

Nevertheless, 80% of businesses (according to our 2015 study ‘Breaking out of the FX status quo’) still unquestioningly exchange currency with major banks and brokers, despite the ever-present threat of hidden fees and unfavourable terms for small businesses.

Maybe it’s difficult for FX customers to envisage just how considerable a 75% reduction can be…so we’ve put together this handy list of tangible, real-world examples:

Q: What do you get if you remove 75% of the wheels from a car?
A: An incredibly cool, manoeuvrable, space-efficient vehicle.
Why drive around in a cumbersome, conventional 4-wheeled car when you can take things to the next level with a nimble, innovative monowheel that will get you (i.e. your money) from A to B quickly and in style?

Q: What would happen if you removed 75% of the Clifton Suspension Bridge?
A: It would be a real concern.
Unlike the entirely positive results of a 75% reduction in you FX fees, a 75% reduction in the size of the Clifton Suspension Bridge would have solely negative consequences. Cars would pirouette into the River Avon like overly ambitious Olympic divers, and none except the hardiest amphibious vehicle would make it to the other side. Feel free to imagine freemarket as an all-terrain form of transportation to help your money navigate any FX catastrophe in a speedy and cost-effective manner.

Q: What if you reduce the size of a lion by 75%?
A: Taming a lion gets much easier.
Lions – like FX transactions – can be intimidating. There is always the risk of losing an arm and a leg in dealing with either. Fortunately, it is actually quite easy to reduce the size of your FX fees by 75% (by using freemarket), while reducing the size of a lion by 75% would be far more difficult and ethically questionable.

Q: What if Earth’s sea levels rose by 75%?
A: Apocalypse.
Yes, that’s right. The entire planet would be covered in water. It would become an ocean planet, and we would all be sploshing about desperately trying to keep our heads above water. Coincidentally, it might feel like your business is in just such a situation (figuratively speaking, at least) if you find yourself beset by the hidden fees that so many banks and brokers are eager to impose on SMEs.

Q: What if working hours increased by 75%?
A: The working day would be 14 hours long.
Image courtesy of Hiroo Yamagata
If you want to very immediately feel the impact that a 75% difference can have, try bumping your employees’ hours up so they are working 58% of the day. Very quickly, you will notice dramatic changes in productivity (a brief increase followed by a profound drop-off), the number of employees wishing you harm, and the number of keyboards needing replacement as a result of staff falling asleep on, weeping into or clogging up the keys with forehead grease.

As you can see, 75% is not to be shrugged off – and especially not when it comes to reductions in your business costs. Small businesses need to make savings wherever they can, and avoid those that are out to exploit them.

Don’t let the banks overcharge you by 75%. Make your foreign payments with freemarket.

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James is freemarket’s Chief Commercial Officer. He has a history of finding new ways to solve age-old financial challenges and was responsible for launching some of the first online money transfer and prepaid card initiatives in Europe.

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