Financial Security when using Currency Brokers
28 July, 2011
When considering using a currency broker instead of your bank, how do you know you are dealing with a reputable company and that your funds are safe? The answer to this vital question can be found with a little research.
The main check you should make it that any currency broker you are dealing with should be an “Authorised Payment Institution”, which you can check on the FCA’s website at http://www.fsa.gov.uk/register/psdFirmSearchForm.do.
Currency Index was one of the first firms to become an “API” in November 2009 under the new Payment Services Regulations. This means that we have shown (and continue to have) the following:
- Safeguarded client accounts. Your funds are held in separate accounts to the main business, and would be protected from creditors in the event of any problems
- Minimum capital requirements. Currency Index is required at all times to keep a substantial amount of its own funds in the business, to cover any unforeseen problems or expenses
- Treating customers fairly. Currency Index’s terms and conditions of business are required to be clear and fair
- Speed of payments. Client payments will be sent as quickly as possible in all cases and we will never hold on to your money unless you ask us to
The full FCA interpretation of the regulations, should you wish to check them, are also available at http://www.fca.org.uk/firms/firm-types/payment-services-institutions/Key-publications.
Aside from the regulations, there are several reasons why exchanging your currency with us is safe.
- We do not speculate on the markets, and only buy currency when instructed by clients. There is therefore no exposure to market risk.
- Currency Index does not lend or borrow money under any circumstances, and therefore has negligible exposure to default.
- Payments are only sent on a client’s behalf once full settlement has been received and cleared.
Dealing with a professional currency company should be safe, secure, and of course save you time and money. At Currency Index that is our aim, and we are delighted to have assisted a large number of clients transfer millions of pounds per month around the world while maintaining complete integrity and maximum security. If you have any further questions on the processes involved, please contact us and we will be pleased to assist.
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