For global reach you should sidestep your bank
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Some believe the internet boom is coming to an end. We believe this notion to be misguided: the internet age is merely entering the second half. As we speak, telecommunications companies are testing 5G networks in select cities around the world. When this technology begins to roll out across the globe, billions more will come online.
From one corner of this world to the other, daring entrepreneurs will make unfathomable amounts of money.
However, you’ll need to make international investments to realise any gains. As such, choosing a trustworthy Forex broker is a crucial decision you’ll have to make.
This will not be easy, though. At present, there is not much difference between the rates that leading money transfer firms charge.
We urge you to be vigilant. As transfer amounts scale, losses can add up quickly. If you need to transfer massive amounts of capital, it is imperative you choose the right firm. In this post, we’ll introduce you to Global Reach Group.
Why do corporations and high net-worth individuals entrust them with their cash assets? We’ll break it down for you below.
Minute differences in exchange rates can cost you dearly
Every day, investors, businesses, and individuals move a mind-numbing 5.3 trillion USD across international borders.
Needless to say, these colossal cash flows create immense profits for banks and money transfer firms. However, from the perspective of rates, things have gotten tighter.
Ever since Transferwise made a splash by charging the “interbank rate,” competition has been cutthroat. With little room for differentiation, firms are posting ever-lower rates and tighter margins. In today's environment, tenths of a point separate industry leaders from competitors in some currency pairings. To the untrained eye, it might not appear to matter which agency you choose. However, as transfer sizes increase, the amount lost to fees/margins scales right along with it.
Let’s say you need to send 10,000 GBP to a bank in the Netherlands. At this moment, you sit at your desk, mulling two options – Provider A and Provider B. Both charge no fees for transfers of 10,000 GBP and greater. However, they differ in the rate they offer. Provider A has a GBP/EUR rate of 1.16135, whilst Provider B quoted you 1.16302. If you go with Provider A, you’ll end up with 11,613 EUR. Provider B will give you 11,630 EUR.
Now, if Provider A offers services that Provider B doesn’t (market analysis), it might be worth losing 17 EUR. However, as the numbers ramp up, it might not be such a clear-cut decision.
Using the above rates, the disparity between A & B is 167 EUR when you move 100,000 GBP. For 1,000,000 GBP, it’s 1,670 EUR. If you’re a financial controller for a large corporation, is Provider A’s service worth losing 1,670 EUR per million GBP moved?
If it isn’t, you ought to consider the alternatives.
Why are bank FX rates out-of-step with industry leaders?
At this point, we’ve yet to mention the banks. If you have any real experience moving funds internationally, you already know why.
If you’re new to international commerce, though, you might be unaware of how badly financial institutions rip off FX customers. Decades ago (except firms like Western Union), banks were the only show in town. As such, they could charge whatever rates they liked. On top of hefty fees, margins were obscene, with many players boasting spreads of 5% or more. Even today, they continue to charge rates wildly out of line with industry leaders.
How are they getting away with this? In short – convenience, ignorance, and fear of the unknown.
Many customers have used their bank for decades – switching requires research and effort. Others are unaware of superior alternatives, as they don’t use the web for research. And whilst some know that competitors exist, they are fearful of exposing their banking info to a “scam site.” At this point, however, most entrepreneurs know that most non-bank money transfer companies are legitimate businesses. It’s just a question of choosing the one that best meets their needs.
Global Reach Group: a favoured money transfer solution for the elite
Cursory research of the international money transfer market will tell you who the big players are. Transferwise, Currencies Direct, and World First are all names that stand out.
The Global Reach Group often gets lost in the shuffle, despite posting huge numbers annually. In 2001, Mark Smith-Halvorsen and Stewart Blake created Global Reach Group from the assets of four smaller FX companies. This newly amalgamated firm focused its efforts on serving corporate clients.
At that point in history, the banks still had the currency exchange market in its iron grasp. As such, Global Reach was able to offer a high-value service that created millions in annual savings for clients. They continue to serve medium/large enterprises and high net-worth individuals to this day.
In 2018, they moved over 5 billion GBP, despite only serving ~25,000 clients. These numbers mean that Global Reach Group moves an average of 200,000 GBP annually per customer. In short, they have plenty of experience meeting the needs of big-money clients.
But, how have they carved out a niche for themselves? In our view, they’ve done this in three significant ways. First, they commit to going the extra mile for their customers. They’ve served them faithfully for years, a fact that many glowing Global Reach Group reviews reflect.
Secondly, they’ve made their workplace an attractive place for top-level talent. In return, Global Reach’s professionals have elevated the company to top-tier status. Global’s efforts have not gone unnoticed. In 2014, Global Reach Group made the Sunday Time’s list of Best Small Companies to Work For.
Finally, they’ve paid close attention to their bottom line. Whilst they’ve invested in growth, they’ve done it responsibly. Thanks to prudent financial management, they currently boast an A2 credit level, per Dun & Bradstreet.
Business success depends on liquidity
The business opportunities of the next decade will create countless million (and BILLION) dollar companies. However, to avoid crashing and burning, you must pay rapt attention to your bottom line.
As you grow aggressively, finances will be tight. Should a recession strike, unnecessary money transfer losses could deprive you of capital needed to stay afloat.
If you mind your pence, the pounds will take care of themselves. Take this motto to heart when transferring funds, and your business will thrive.