There is still limited knowledge of more people on how foreign exchange companies work. The general understanding of some people is that foreign exchange only involves the trading of one currency into another and remitting it to a recipient in another country.
Their concept is not incorrect, but far from the whole work foreign exchange companies do. Basing it from Wikipedia, foreign exchange companies perform high-value transfer unlike money remitting companies which work on high-volume, low-value transfers. Although the concept of people may generally point to money remittance companies, some foreign currency exchange companies have also services of this kind.
A foreign exchange company which is a non-bank entity offers currency exchange and cross-country payments to individuals and companies using physical delivery. In most countries, foreign currency exchange is a fast growing economic activity. In fact, it has become one of the most profitable businesses to be involved with.
Bond and Insurance Check
It is indeed critical to see that a foreign exchange company is sufficiently bonded and insured as it provides a higher level of assurance and protection to its customers. A foreign exchange company which is adequately bonded means that is prepared to offer reliable products and services to its clients.
This connotes that the more the company is bonded, the more secure you are in your transactions with the foreign exchange company. So it is much wiser to choose a $1,000,000 bonded company than a foreign exchange company with a $100,000 bond.
You are truly in better hands when you are dealing with a foreign exchange company with wide connections. When you can work with a multitude of banks concerning your transaction with a foreign currency exchange company, then you are transacting with a trusted and reliable company. Making sure that the company has a stable liquidity relationship with the most reputable banks should give you peace of mind that the company in itself is trustworthy.
With the high-volume transactions, it is a requirement that foreign exchange companies should be registered and strictly regulated by an appropriate government body. With scams happening in financial institutions worldwide, it is important to check on the registration of these companies. You should also access records if they have any mark on irregularities.
Be careful of companies offering free services but would victimize you with very low exchange rates. Look for companies with the highest exchange rates with no hidden charges. The exchange rate should be the one agreed on the phone with fast payment either on the same day or the next banking day.
Checking on customer reviews will definitely help in finding the best foreign exchange company out there. Should you want, you can go deeper by contacting them personally if that would help you feel more secure about your high-volume transaction.