Foreign exchange companies
Encyclopedia
A non-bank foreign exchange company also known as foreign exchange broker or simply forex broker is a company that offers currency exchange
Foreign exchange market
The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...

 and international payments to private individuals and companies. The term is typically used for currency exchange companies that offer physical delivery rather than speculative trading
Speculation
In finance, speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum...

. i.e., there is a physical delivery of currency to a bank account.

Foreign exchange companies are normally distinct from money transfer companies or remittance companies and bureaux de change
Bureau de Change
A bureau de change or currency exchange is a business whose customers exchange one currency for another. Although originally French, the term bureau de change is widely used throughout Europe, and European travellers can usually easily identify these facilities when in other European countries...

 as they typically perform high-value transfers unlike their money transfer counterparts that focus on high-volume low-value transfers generally by economic migrants back to their home country or to provide cash
Cash
In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...

 for travelers.

United Kingdom

It is estimated that in the UK, 14% of currency transfers/payments are made via non-bank Foreign Exchange Companies. These companies' selling point is usually that they will offer better exchange rates or cheaper payments than the customer's bank.
The 10 largest companies in the UK by net profit as at November 2010.All UK currency brokers must be Authorised as Payment Institutions by the FSA. This list is publicly available on the FSA website. All UK companies must also submit their full accounts to Companies House. The accounts of all the authorised payment institutions were checked with Companies House on the 18th November 2010 to create this list. The UK's Companies House website http://www.companieshouse.gov.uk/. Measured by pre-tax profit as turnover is not available for all companies.
No. Company Accounting Date Pre Tax Profit
1 Travelex
Travelex Group
Travelex Group is foreign exchange company founded by Lloyd Dorfman and headquartered London. Its main businesses are international payments, bureau de change and issuing prepaid credit cards for use by travellers...

It is difficult to tell the exact revenue generated by Travelex from their private and corporate foreign exchange due to the number of entities and business areas they have. £10m is an estimate although the group parent entity Travelex Holdings Ltd posted a loss of £150m for the year to 31st December 2009.
31 December 2009 £10m (estimate)
2 Moneycorp
Moneycorp
Moneycorp is a UK company offering foreign exchange services to individual and corporate customers. It operates in a number of countries and also provides bulk foreign notes and travel money services via a number of travel companies and airlines.-History:The company was established in 1962 and...

TTT Moneycorp Limited also has high-street and airport/station bureaux de change. This profit figures includes that profit.
31 August 2009 £7,264,000
3 HiFX
HiFX
HiFX is a UK based foreign exchange money broker. The company provides foreign exchange payment services to individuals and corporate customers in a number of different countries...

30 June 2010 £3,583,000
4 Currencies Direct Ltd
Currencies Direct
Currencies Direct Ltd is a UK based foreign exchange broker and international payment provider. It provides currency exchange services in a number of different countries to individuals and small businesses.-Company history:...

Currencies Direct accounting date changed from 30th April to 30th June. This period is thus 61 weeks. Annualised Net Profit is £2,709,115
30 June 2009 £3,178,000
5 World First UK Ltd
World First
World First is a UK-based foreign exchange company. It offers currency exchange and international payments to private clients and corporate clients in the UK and a number of other countries.-History and awards:...

31 January 2010 £2,172,496
6 Foreign Currency Direct 31 October 2009 £1,886,165
7 Global Currency Exchange Network 31 March 2009 £1,717,169
8 No1 Currency LtdPreviously The Xchange Business. This includes net profit from cash bureaux de change offices. 31 March 2009 £1,679,483
9 AFEX 31 December 2009 £1,166,514
10 Corporate FX 31 December 2009 £648,000

See also

  • Foreign exchange market
    Foreign exchange market
    The foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...

  • Remittance
  • Bureau de change
    Bureau de Change
    A bureau de change or currency exchange is a business whose customers exchange one currency for another. Although originally French, the term bureau de change is widely used throughout Europe, and European travellers can usually easily identify these facilities when in other European countries...


:Category:Foreign exchange companies
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