Taking P2P FX for a test drive
Technology, when used effectively, eliminates these overheads. In the case of P2P, using technology to facilitate currency exchange leads to a far more simple, fair and efficient service. Technology enabled FX providers can remove intermediaries and any associated costs, passing the savings on to the customer.
It’s that simple. By way of illustration, let’s take a look at how much three freemarket customers have saved using P2P currency exchange.
Music software company
This customer is a UK-based music software firm with international revenues. They regularly need to convert income between USD, GBP and EUR. As an SME every penny is important to them, but their average transaction size is not considered large enough to unlock the favourable rates with their banks.
Prior to using freemarket they used their bank’s online system to make foreign payments. Rather than paying the bank’s £199 fees, they paid only £49 on a 32,000 GBP to USD transaction, keeping £148.
A UK advertising agency received 60,000 CAD which they needed to convert to GBP. They traditionally used an FX broker but wanted a more efficient and streamlined way to exchange currency, cutting out the middle man.
The total cost of their exchange with freemarket was C$120, meaning they received C$360 more on their net exchange.
A UK domiciled individual who wished to convert 25,000 USD to EUR. Despite having a premium personal account with an international bank, this customer was still being subjected to uncompetitive rates.
By exchanging with freemarket they received €173 more than they would have with their premium account at their bank.
Overall, all three customers made a 75% saving on the fees they would have paid their bank or broker.
You don’t need to be a mathematician to see just how inefficient traditional currency exchange processes are, relative to what technology now enables. Equally simple should be the decision not to throw good money away, if there’s a cheaper way to do exactly the same thing.
Indeed, perhaps the only thing getting in the way is the natural tendency to stick with what we know. We understand that breaking with the past is not always easy, which is why our advisors are on hand to help you get set up. Use our instant quote tool to see how much money you could keep by using a P2P FX provider.