The Bank Isn’t Your Only Option for Foreign Exchange in Toronto
Foreign exchange can be devastating for businesses that require large conversions upwards of $50,000 per month. Although it can work in your favour, when you are dealing with foreign currencies offering less money, every penny counts. You want to keep as much of your money as possible during each foreign exchange transaction whether you are a law firm, manufacturer, importer, real estate investment company, a pension fund or SaaS company. Despite this fact, 90% of all foreign exchange transactions are still conducted through the bank.
This is even though the banks charge as much as 1.5% to 2% more than other options such as Money Service Businesses. As well, the foreign exchange market is a $5 Trillion USD per day industry, the largest market in the world. It also has the most volatile price. That is why working with the most effective institution for your foreign exchange option is important. You want to see real-time rates that will make you the most money on your exchanges.
If you choose to work with a foreign exchange specialist like a Money Service Business, you will receive Market Update and Alerts designed to minimize the impact of foreign exchange in Toronto. With a price that can move as much as 1% to 2% in a matter of minutes, you want to be aware of the best time to proceed with your exchanges. This is because market information and global trends will affect your price. Getting real-time savings is your best strategy to avoid unnecessary losses.
The Boutique Foreign Exchange Option
RICE FX is Canada’s premier foreign exchange Money Service Business. Focused completely on providing businesses with market-leading exchange rates, you always know you will not lose out on opportunities to either save or earn on your exchange. This is a completely regulated Canadian Money Service Business that must report to FinTrac. It does not pose risk and instead offers a far more reliable and reasonable rate when compared to banks. In fact, the risk is minimized to ensure the safest way to move funds. The average savings for RICE FX clients is 3% per transaction or about $4500 per month.
Money Service businesses must be fully compliant with all associated regulations of FinTrac including:
- Having a compliance officer appointed to implement and oversee a compliance program
- Developing and applying compliance policies and procedures in writing
- Applying and documenting risk assessments with a risk mitigation strategy
- Developing and maintaining training programs for all those authorized to act on the company’s behalf
- Reviewing your compliance policies and procedures, risk assessment and training programs every two years to ensure it is effective
This helps mitigate risk and ensure all operations and transactions are meeting the requirements of FinTrac.
Hedging strategies when working with RICE FX include a forward Contract. This locks in a rate today but pays for the transaction at a future date. This form of contract can be as far out as a year, or as little as two weeks. You can also check rates online easily to watch the best times for currency exchange.
Why Maximize Foreign Exchange?
Some businesses might not realize the impact maximized foreign exchange will have on their bottom line. When looking at Money Service Businesses like RICE FX, you could be saving money while still using a highly secure and risk-free form of transaction. When dealing with your bank, it could cost you thousands of dollars. In fact, you could be paying as much as 2%-5% for each exchange. If you look at the numbers, you could be paying out as much as $25,000 on an exchange of $500,000. Calculate how often you do this annually and you can see where you are losing potentially hundreds of thousands of dollars. If you are exchanging at least $50,000 per month it is well worth it to explore a Money Service Business.
Money Service Businesses are Proactive
The key to foreign exchange is getting the best possible rates. While banks are large, faceless institutions, Money Service Businesses understand your business needs to save money. Losing money on foreign exchange transactions is not necessary when you take a more proactive approach. You receive notifications as the market moves in your favour, so you can take action. You’ll understand the risks of waiting things out and see the benefits when applicable.
Working with a Money Service Business such as RICE FX does not limit the types of transactions you can make. They are able to provide the same opportunity to purchase and send all foreign currencies.
As you can see, a Money Service Business is your best option when it comes to foreign exchange in Toronto. Contact us today for a no-obligation assessment
Contact RICE FX
Our experts are here to help. Contact us today for a no-obligation assessment of your foreign exchange needs. Complete the form below or call us directly at 1-855-887-2793